SPICES INDUSTRY

Submitted by :Richa SinghPrarthana

JovitaNupur

INDUSTRY OVERVIEW

• The global spice and culinary herb industry comprises of many plants having diverse end uses including culinary, medicinal etc.

• The industry also consists of spice derivatives like essential oils, oleoresin, spice oils etc.

• About 85% of spices and culinary herbs are traded in dried form which are cleaned and used in a crude form without any further processing.

INDUSTRY OVERVIEW

• The world production and processing centres of spices and culinary herbs remain concentrated in Europe and in a number of Asian countries.

• Canada is fast emerging as one of the leading players in the international spice and herb industry.

• For example, India is popularly known for being a source of cloves, Indonesia has supplied the global market with cinnamon and nutmeg and China has been the leading provider of ginger.

INDUSTRY TRENDS

• There has been a substantial increase in use of fresh herbs and spices owing to an increased demand in the hotel industry.

• Change of consumers towards leading a healthy lifestyle has increased the use of herbs / natural spices for natural flavoring.

• Use of spice derivatives like essential oils are being widely used internationally in food and

beverage industries for flavoring and fragrances.

INDUSTRY TRENDS

• The global demand of spices has increased due to: – Increase in demand and consumption of

ethnic food. – Introduction of flavored coffee, tea and

aerated drinks in the beverage industry. – A sharp growth in the processed food

consumption. – Increase in the demand for natural fragrances

for various health therapies.

PRODUCTION CENTRES

• The spice production areas or centres, its derivatives and culinary herbs are concentrated in the moderate and semi-tropical regions of the world.

• These places are suited for a particular spice or herb due to their climatic conditions and other factors including low wage rates, sound infrastructure etc.

GLOBAL PRODUCTION AREAS

• Europe• Israel• India• Egypt• Bulgaria• Germany• Hungary

INDIAN SPICES INDUSTRY

• India has traditionally been known for its spice and culinary herb production.

• It is one of the largest spice producing and consuming country.

• Its strategic location, climatic conditions, advanced production processes and availability of cheap labour makes it advantageous for the producers to ensure large scale production of quality spices and herbs.

TYPES OF SPICES•  Ajowan •  Aniseed• Bay Leaf• Black Pepper • Cambodge •  Capsicum• Caraway Seed • Cardamon• Cassia • Celery• Chillies• Cinnamon• Clove• Coriande•  Cumin 

•  Garlic•  Ginger• Fenugreek • Lemongrass• Mango Powder• Marjoram •  Mustard •  Nutmeg & Mace•  Paprika •  Saffron• Turmeric•  Vanilla•  White Pepper• Dill Seed•  Fennel

CULINARY HERBS•  Basil •  Borage•  Catnip •  Chives•  Curry Leaf•  Lavender •  Mint •  Oregano •  Parsley•  Peppermint•  Rosemary• Sage •  Tarragon•  Thyme •  Zucchini Flowers

SPICE DERIVATIVES

•  Indian spices Oil

•  Spice Oleoresins

•  Essential Oils

 

Pepper

Cardamom(Small)

Cardamom(Large)

Chilli

Ginger

Turmeric

Corriander

Cumin

Fennel

Fennugreek

Garlic

Vanilla

Clove

Nutmeg

Cinnamon

Tamarind

Dill seed

Ajwan

Saffron

Celery

Tejpat

GRAND TOTAL

GRAND TOTAL IN MLN TONNES

2008 - 09

Area Prodn.

181074 46745

71170 10999

27034 4300

801070 1353796

138479 795028

194358 892213

507935 416663

527132 283000

74149 114277

103097 95833

194274 1009116

4477 169

2172 1002

16400 11362

186 37

54222 193873

8620 11522

20776 16299

3000 9

4117 5329

6646 17277

2940388 5278851

  5.28

SPICE BOARD OF INDIA

• The Spices Board India (Ministry of Commerce, Government of India) is the apex body for the export promotion of Indian Spices

• The Board plays a far reaching and influential role as a developmental, regulatory and promotional agency for Indian Spices.

• The Board is a link between the Indian exporters and the importers abroad. 

• Its broad-based activities include formulation & implementation of quality improvement systems, research and development programmes, education and training of farmers, processors, packers and exporters on post harvest handling and registration and licensing of traders and exporters.

• It acts as a data bank and communication channel for importers and exporters and promotes Indian Spices abroad. 

• The Board has close association with international agencies

EXPORT TRENDS

• Spices exports have registered substantial growth rate of 13.1% in value and 9% in volume.

• In 2009-10 the export of spices from India has been 502,750 tonnes valued Rs.5560.50 crores (MLN US $ 1173.75 million) as against 470,520 tonnes valued Rs.5300.25 crores (MLN US $ 1168.40) in 2008-09, registering an increase of 7% in volume and 5% in rupee value.

• India commands a formidable position in the World Spice Trade with 48% share in Volume and 44% in Value.

INDIA’S SHARE IN WORLD TRADE OF SPICES

QUANTITY VALUE

TREND IN INDIA’S SPICES EXPORT

0 100,000 200,000 300,000 400,000 500,000 600,000

2005-06

2006-07

2007-08

2008-09

2009-10

VALUE

QUANTITY

EXPORT DESTINATIONS

• India can boast as the monopoly supplier of spices, spice oils and oleoresins the world over.

• Chilly, Turmeric, Pepper, Cummin, Coriander, Ginger, Cardamom, Tamarind, Cloves, Fenugreek, Fennel, Celery, Garlic, Vanilla, Nutmeg & Mace, Asafoetida, Cinnamon, Cambodge, Cassia, Saffron, Oils & Oleoresins, Mint products and Curry Powder are the major Spice items exported from the country.

• Kerala, which is the Spices Garden of India, is home to all major items of export like Pepper, Cardamom, Ginger, Turmeric, Curry powder, Spice oils and Oleoresins, Vanilla, Nutmeg and mace.

The major destination of spice exports is

• USA • European Union • Malaysia• China• Singapore• Sri Lanka• Japan • Middle East.

FTP PROVISIONS

• Certificate of Registration as Exporter of Spices (CRES) issued by Spices Board shall be treated as Registration-Cum-Membership Certificate (RCMC) for the purposes under this Policy.

SCHEMES

• Special purpose fund for replanting and rejuvenation of cardamom plantations

• Export oriented production and post harvest improvement of spices

• Export development & promotion of spices• Quality improvement and strengthening of quality

evaluation laboratory

• Human resource development & capital works

• Setting up of Plantation research unit in Centre for Development Studies (CDS), Trivandrum

• Replantation and rejuvenation of pepper in Wynad district in Kerala and NE

SPICES PARK

• To empower the growers of spices and ensure better price realization, Board has taken steps to establish Spices Parks at the seven locations to provide scientific infrastructure facilities.

• The projects on Spices Park are primarily intended to benefit the growing community through quality improvement, grading, packing, warehousing, etc for value addition which would lead to better price realization of their produce.

• The exporters can also set up their unit in the Parks for processing spices under the terms and conditions of the Board.

• The centers where Spices Parks proposed are: a) Chhindwara [ Madhya Pradesh]

b) Guntur [Andhra Pradesh]c) Sivaganga [ Tamil Nadu]d) Idukki [Kerala]e) Mehsana [Gujarat] f) Jhalawar [Rajastan]g) Bydagi [Karnataka]

QUALITY STANDARDS• The Spices Board has evolved two major concepts for quality

improvement. One is the introduction of the Indian Spices Logo, the other The Spice House Certificate

• To improve the quality of spices at the farmers, traders and exporters level, the Board organizes a series of quality up gradation programmes.

• To educate the farmers, traders and exporters on the production of quality spices, Board conducts a series of training programmes at various levels.

• The training programmes are conducted by the Board jointly with Export Inspection Agency, Directorate of Marketing & Inspection, Agricultural Universities and Department of Horticulture/ Agriculture in spice growing states.

• Spices Board also sponsors Indian technical personnel for training abroad to improve understanding of regulations, testing methods etc

QUALITY EVALUATION LABORATORY

• The Quality Evaluation Laboratory of Spices Board was established in 1989.

• It provides analytical services to the Indian spice industry, monitors the quality of spices produced and processed in the country and analyse all the samples collected by the Board under the Compulsory inspection on Chillies, Chillies products and Turmeric powder exported from India.

• The laboratory is certified by British Standards Institution, U.K. for the ISO 9001:2000 Quality Management System in 1997, ISO 14001:2004 Environmental Management System in 1999 and Accreditation under the National Accreditation Board for Testing & Calibration Laboratories (NABL) (under the ISO/IEC: 17025) in 2004.

INDIAN SPICES LOGO• The Indian Spices Logo is a major effort to overcome this

impasse. The international consumer is by and large aware of the intrinsic qualities and acquired superiority of Indian spices.

• The logo - a fresh green leaf inside an elliptical ring (denoting freshness, growth and excellence) is prominently displayed on all packs cleared and approved by the Spices Board India, so that you can easily spot the pack that spells Indianness and quality.

• The Board awards the logo selectively to exporters who have certified processing and quality control capability and maintain a high level of hygiene and sanitation at all stages.

SPICE HOUSE CERTIFICATE• The certificate is issued to those processors/exporters who have a

genuine commitment to quality, and whose long-term objective is sustained export growth.

• The Spice House Certificate seeks to identify and recognise processors who have made investments in in-house processing facilities and infrastructure, and have the necessary competence to ensure consistent quality and reliability.

• These facilities cover all critical areas - cleaning, grading, processing, packaging and warehousing.

• A foolproof system of quality assurance should be employed at all stages of processing - from raw material selection to final shipping.

• The processors are also expected to maintain a high degree of sanitation in the plant, while the workers must observe absolute cleanliness and personnel hygiene.

MANDATORY QUALITY CHECK

• Export of chilli/chilli products or other food products containing chilli products in whatsoever form is subjected to mandatory sampling and quality test for Aflatoxin and Sudan I,II,III & IV

• Shipment is permitted only at Customs only on the basis of cleared analytical report from the Spices Board.

• Also applicable are exports of turmeric powder to destinations in EU, USA, North America, Australia, New Zealand and Japan.

Top Exporters(2008-09) : ALL-SPICE

Rank Exporter Code

Exporter Name

1 A558 A.V.T. MCCORMICK INGREDIENTS PVT.LTD

2 V059 VALLABHDAS KANJI LIMITED

3 W076 WAYANAD SOCIAL SERVICE SOCIETY

4 J529 JEEVAGRAM

5 P644 PHALADA AGRO RESEARCH FOUNDATIONS PVT LTD

Problem & Challenges faced by exporters

• Infrastructure gaps

• Producing international quality at competitive price

• SPS measures

• Restrictive govt. market regulations

• Weak policy and regulatory framework for food safety

Problem & Challenges faced by exporters

• Inadequate enforcement of existing standards

• Predominance of small firms

• Weak risk assessment methodologies

• High cost of compliance

• Information gap

References

• ASSOCHAM, 2010. Food and Agri-Exporters Conclave (updated 09 September, 2009):

http://www.assocham.org/events/showevent.php?id=362 [Accessed on 17th Dec, 2010]

• Rediff, 2010. 5 steps to boost Indian agriculture (updated on: May 03, 2004): http://www.rediff.com/money/2004/may/03spec.htm [Accessed on 17th Dec,

2010]

• Spice board of India, 2010. SPICE BOARD OF INDIA, Ministry of Commerce, Govt. of India (updated on Nov, 2010)

http://www.indianspices.com/php/article.php [Accessed on 14th Dec, 2010]

• Spice board of India, 2010. SPICE BOARD OF INDIA, Ministry of Commerce, Govt. of India (updated on Nov, 2010)

http://www.indianspices.com/html/s0420sts.htm [Accessed on 13th Dec, 2010]

• Spice board of India, 2010. Trade search (updated on Nov, 2010) http://www.spicesboard.in/directory/tis/TraderSearch.php

[Accessed on 13th Dec, 2010] • Spice board of India, 2010. Top Exporters (updated on Nov, 2010) http://www.spicesboard.in/directory/tis/TopExpHome.php

[Accessed on 14th Dec, 2010]

References