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Submitted by : Shilpa Dhawan

Project Mentor: Dr. D.Babu

World Trade Scenario of Spices in India especially Cardamom, Pepper,Turmeric,Ginger,

Scheme of Presentation

• Introduction

• Objectives

• Methodology

• Results

• Conclusion

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ObjectivesTo examine the direction and composition of spices especially cardamom,pepper,turmeric,ginger in IndiaTo estimate the growth and instability of exports and imports of spices in India

Research Methodology

Secondary data is collected from various sources like:

National Horticultural Board(NHB)UNCOMTRADE (Commodity Trade Statistics

Database) of United NationsWorld Trade Atlas, DGFT (Directorate General of

Foreign Trade)DGCIS (Directorate General of Commercial

Intelligence and serviceTrademapSpices board of India

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WORLD TRADE IN SPICES :2005-06

QTY (MT)

VALUE(US $ MLN.)

WORLD TRADE 750000 1650.00

INDIA’S SHARE 320527 517.90

% SHARE 43 31

INDIA’S STRENGTH

In the total World Spice trade in 2005 - 06

INDIA VOLUME(43%) INDIA VALUE(31%)

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CHILLI41.1%

TURMERIC12.8%

PEPPER4.2%

CUMIN4.1%

CORIANDER10.1%

GINGER3.9%

CARDAMOM (S)0.2%

VANILLA0.01%

OILS & OLEORESINS2.8%

MINT PRODUCTS 1.7%

OTHER SEEDS10.7%

OTHER SPICES 6.1%

CURRY POWDER2.31%

MAJOR PRODUCT SEGMENTS IN EXPORTS OF SPICES

VALUE: 2004-05,Spices board of India

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EAST ASIA36%

OTHER EUROPE1%AMERICAN ZONE

27%

AUST.&OCEANIC ZONE1%

EUROPEAN UNION21%

OTHERS1%

WEST ASIA9% AFRICAN ZONE

4%

MAJOR DESTINATION FOR INDIAN SPICES

VALUE: 2004-05,Spices board of India

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INDIAN SPICE INDUSTRY

1998 REGISTERED EXPORTERS

364 MANUFACTURER EXPORTERS

100 EXPORTERS (5%) CONTRIBUTE OVER 80% OF EXPORTS

98 UNITS WITH IN-HOUSE LABORATORIES

16 SPICE HOUSE CERTIFICATE HOLDERS

  5 UNITS CERTIFIED UNDER ISO 9000

INDIAN SPICES LOGO PROVIDED TO RETAIL/INSTITUTIONAL PACKS

  55 SPICE BRANDS REGISTERED WITH THE BOARD

Selected Country-wise Import of Indian Spices

(1997-1998 to 1999-2000)Country 1997-98 1998-99 1999-00USA 30 30 38UK 6 6 6Japan 5 5 5Germany 4 4 4Canada 3 3 4Netherlands 2 2 3Russia 4 2 3Sri Lanka 3 5 4UAE 5 4 3Malaysia 2 2 2

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Major Country-wise Export of Cardamom from India(2007-2008 to 2010-2011)

Major Country

2007-2008 2008-2009 2009-2010 2010-2011 (E)

Qty. (MT)

ValueQty.

(MT)

Value (Rs.

Lakh)Qty.

(MT)

ValueQty.

(MT)

Value(Rs.

Lakh)(Rs.

Lakh)(Rs.

Lakh)Saudi Arabia 331 1794.3 519.3 3331 1117.7 9409.5 724 8155.96Kuwait 18.1 94.6 4.3 28.1 92.2 818.6 102 1109.6

U.A.E 3.4 16.3 17.9 104.8 296 2519.7 62 641.73U.S.A 6 31.4 7.2 51.2 50.1 473.9 40 627.47Japan 16.2 90.5 25 223.2 34.4 319.3 26 376.52Pakistan 0.4 3.5 0.4 1.4 29.6 269 33 288.34U.K 17.2 67.8 7.2 50.7 55 462.8 18 238.14Malaysia 29.3 102.4 27.6 134.8 45.6 304.1 21 229.06Israel - - - - 71 609.7 21 216.32Australia 0.2 1 11.3 63.7 32.3 222.7 16 185.24Canada - - - - 71 609.7 11 141.83South Africa - - - - 71 609.7 9 105.47Egypt (A.R.E) - - - - 71 609.7 - -

Total 500 2475 750 4727 1975 16570 1083 12315.68

Export of Ginger From India

(1960-1961 to 2003-2004)

YearQuantity (Tonnes)

ValueUnit Value

(Rs/Kg)(Rs. Lakhs)

1994-95 12,022 1673.03 13.92

1995-96 18,483 3892.13 21.06

1996-97 29,737 5924.41 19.92

1997-98 28,268 7262.73 25.69

1998-99 8,683 4058.32 46.74

1999-00 8,923 3253.55 36.46

2000-01 6,288 2682.06 42.65

2001-02 6,464 2311.47 35.76

2002-03 8,461 2396.59 28.33

2003-04 5,000 2340.5 46.81

Export of Pepper from India

(1949-1950 to 2003-2004)

Year Quantity (Tonnes)

ValueUnit Value

(Rs/Kg)(Rs. Lakhs)

1995-96 26244 19629.84 74.8

1996-97 47893 41231.84 86.09

1997-98 35907 49635.7 138.23

1998-99 35109 63479.88 180.81

1999-00 42824 88528 206.73

2000-01 21830 38081.57 174.45

2001-02 22877 20368.79 89.04

2002-03 21609 17887.98 8278

2003-04 16700 14350.5 85.93

Growth and Instability of Export of Pepper

Exporters 2006-2007 2007-2008 2008-2009 2009-2010 growth Instability

Sri Lanka 29.1 0.2 18.2 23.4 0.47 70.54Viet Nam 5.4 23.9 69.9 10.5 0.36 107.10Indonesia 7.7 164.2 7.4 64.3 0.39 121.31China 41.2 158.1 5.9 33.2 -0.33 113.06Spain 1.7 5.6 61.1 6.6 0.91 151.00Jamaica 69.2 32.7 37 23 -0.27 49.48Madagascar 90.6 104.9 62.4 172.3 0.15 43.36United States of America 71.2 285.7 724.7 87 0.17 104.21Republic of Korea 366.7 92.9 300 25 -0.50 83.16Germany 2500 94.9 850 97.4 -0.53 127.99Brazil 93.8 127.2 97.7 100 -0.01 14.55

Method used for calculation in Excel Sheet

Analyses like growth trends, Coefficient of variation, Instability Index and Net barter terms of trade will be carried out to fulfil the objectives.

By knowing growth and instability of particular exported product to particular destination, it has a great applicability for policy decision making

Growth is calculated by using LOGEST function in excel which derives cumulative annual growth rate (CAGR).

Instability is calculated by using coefficient of variation.CV (coefficient of variation) = (standard deviation / mean)*100 CV explains the deviation from the mean value of the exported product.For the calculation of the growth and instability the exports are taken in

terms of value which is in Rs (crores)

Growth and Instability of Import of GingerImporters 2006-2007 2007-2008 2008-2009 2009-2010 Growth Instability

Bangladesh 10.9 6.3 10.2 436.9 2.18 184.3United Kingdom 24.1 10.4 7.9 77.1 0.38 108.0Saudi Arabia 36.3 0.7 64.8 31.8 0.51 78.6Morocco 19.5 29.8 11.8 116 0.56 109.3Spain 30.7 47.5 18.6 7.4 -0.41 65.9Netherlands 9 25.9 112.3 16.6 0.39 117.4Canada 1.6 63 105.7 178.1 3.33 85.2Japan 6.6 19.2 4.9 103 0.99 140.1Germany 0.2 26.5 14.5 70.1 4.46 108.4Australia 26.9 12.9 44.3 34 0.21 44.7France 141.7 312.1 7.9 12.4 -0.67 120.8Philippines 24 173.7 37.5 276.9 0.79 93.8South Africa 71.7 33.3 130 808.7 1.37 140.8New Zealand 34.6 2.2 46 39.4 0.41 63.7Israel 14.9 36.5 26.2 18.8 0.04 39.4Belgium 20.2 40.9 5.5 51.2 0.08 69.7Malaysia 1288.9 7.2 92.5 1140 0.24 106.9Hong Kong, China 51.6 57.4 25 620 0.94 152.8Poland 200 33.3 100 2275 1.31 166.3Kuwait 40.5 236.4 36.5 85.1 0.04 94.2Sweden 6.3 72.1 521.1 33.1 1.00 153.9Qatar 10 377.8 60.5 323.5 1.36 95.7Nepal 61.3 82.8 1506.7 71.8 0.40 166.6Sri Lanka 12.5 88.9 1850 69.2 1.26 177.6Singapore 164 36.4 64.3 4.3 -0.64 102.6Norway 10.3 51.9 56.5 111.1 1.06 72.0Italy 50 4.2 76 633.3 1.86 155.3Denmark 83.3 23.1 75 39.3 -0.10 52.0Thailand 98.6 1400 93.3 20.7 -0.52 165.1Viet Nam 88.9 0.6 513.3 76.1 0.87 136.9

Growth and Instability of Import of Turmeric

Importers 2006-2007 2007-2008 2008-2009 2009-2010 Growth Instability

Malaysia 5.8 90.3 24.3 131.1 1.23 92.52Japan 15.8 68 35 81.2 0.53 59.91Bangladesh 40.8 84.3 12.6 151.3 0.23 83.59South Africa 6 56.7 22 169.3 1.48 115.97Sri Lanka 8.4 37.6 68.6 100.3 1.23 73.71Germany 7.4 65.7 23.6 148.7 1.22 103.02Netherlands 8.1 28.8 0.9 174.4 0.78 154.12Egypt 7.4 106 7.4 27.8 0.14 126.24France 7.7 43.2 20.6 166.4 1.33 122.37Singapore 24 53.5 50.4 36.6 0.13 33.01Spain 5.9 26.3 78.6 138.6 1.88 95.18Israel 25.8 109.3 12 132.4 0.31 85.69Canada 24.4 12.2 27.9 80 0.55 83.08Australia 28.8 25.6 33.1 94.7 0.47 72.25Turkey 30.1 22.3 142.6 166.3 1.01 82.75Poland 29.7 150 79.6 117.6 0.42 54.92Iraq 5.2 26.3 79.5 690.5 3.84 163.81Jordan 95 10.2 8.1 68 -0.12 95.33Denmark 49.4 166.7 1211.6 69.9 0.35 149.70Italy 69.5 65.2 1.8 262.5 0.04 113.11Sweden 12.1 93.1 8 85.9 0.41 92.41

Growth and Instability of Export of Spices

Exporters 2006-2007 2007-2008 2008-2009 2009-2010 Growth Rate

Growth rate% Instability

Sri Lanka 0.6 77.7 40.1 28.4 1.98 197.73 87.09Indonesia 1.5 47 29.4 28.8 1.32 131.53 70.43China 26 42.8 70.6 48.3 0.27 26.60 39.24United Republic of Tanzania 1.1 12.9 60.3 41.6 2.47 246.96 92.95Nigeria 56.1 3.5 48.1 194.3 0.89 88.65 109.29Ethiopia 64.6 7900 12.4 37.7 -0.55 -55.39 196.19Afghanistan 26.1 2.3 19.7 27.4 0.26 25.78 61.20Argentina 13.9 29.5 26.8 20.9 0.12 11.94 30.39Thailand 411.9 98.8 600 817.9 0.47 47.13 63.19Germany 7.9 116.4 52.7 56.4 0.67 66.60 76.33Brazil 35.8 92.2 63.2 79.1 0.22 22.15 35.92Canada 11.6 83.6 130 682.6 2.55 254.88 135.56France 552.3 48.4 108.1 57.1 -0.45 -45.14 126.38Malaysia 49.9 39.1 40 13.8 -0.32 -31.84 43.13Singapore 64.3 22.9 71.8 62.3 0.11 11.05 39.77Australia 48 83.1 38.6 3.9 -0.56 -56.38 75.02South Africa 62.8 25 10 136.4 0.15 15.15 96.42

Growth and Instability of Import of Spices

Importers 2006-2007 2007-2008 2008-2009 2009-2010 Growth rate Growth rate% Instability

Italy 2.1 34.2 33.8 48.8 1.57 156.65 94.53Malaysia 92.3 20 9 43.3 -0.26 -26.43 89.86

United Kingdom 14 29.2 12.3 28.6 0.14 13.64 43.39Germany 23 44.9 37.8 72.3 0.39 38.60 46.42Sri Lanka 44.1 19.8 3.4 28.4 -0.27 -26.52 70.99

Saudi Arabia 43.5 34.1 8.5 29.3 -0.23 -22.70 51.28Bangladesh 128.1 56.1 31.1 60.3 -0.25 -24.80 60.26Australia 28.1 9.1 3.8 1.8 -0.60 -59.82 112.17Japan 9.7 20.4 5.4 41.6 0.36 35.51 83.86Belgium 9.2 34.2 36.4 40.3 0.57 56.73 47.00Netherlands 11.9 30.5 37.2 44.3 0.51 51.31 44.90Egypt 48 199.5 36.8 16.3 -0.39 -38.92 111.69South Africa 65.4 22 14.4 93.3 0.07 6.63 76.32Canada 14.7 28.5 10.3 32.5 0.15 14.60 49.64Kuwait 20.2 31 14 41.2 0.14 14.38 45.13Spain 5.9 20.4 30.3 15.7 0.40 39.54 56.12Indonesia 45 21.7 8.8 39.8 -0.12 -11.93 57.84Mexico 323.2 8.7 61.9 482.4 0.37 37.21 101.79China 250 57.3 122.4 294.9 0.13 13.37 60.86Nepal 47.1 12.3 7.6 5 -0.51 -51.37 109.08Poland 58.4 17.3 8.3 45.6 -0.14 -13.73 72.58France 24.6 28.7 42.6 22.2 0.01 0.87 30.89Singapore 82.6 20.5 11.9 3.3 -0.64 -63.96 121.86Brazil 151.3 49.9 8.1 1 -0.82 -81.50 131.74Thailand 112.8 141.8 44.6 41.1 -0.34 -34.20 59.00Portugal 43.4 23.1 42.5 54.1 0.14 13.55 31.66Ireland 18.3 4.3 24.4 49.5 0.60 60.34 78.32Afghanistan 116.3 159.9 52.4 67.8 -0.24 -23.92 49.27Kenya 45.6 30.8 36 154.3 0.46 46.42 88.10

New Zealand 15.9 20.1 11.6 20.4 0.02 2.00 24.38Philippines 44.4 11.2 22.7 43.8 0.07 6.88 53.61Turkey 26.7 507.8 73.7 95.4 0.21 20.81 126.84Denmark 4.1 33.4 161 39 1.30 130.03 116.98Ghana 197.8 24 12.7 13 -0.59 -58.54 146.70Myanmar 4 14.1 31.8 50.2 1.32 131.69 81.28Sudan 36.2 40.4 38.7 614.5 1.33 132.85 157.87Argentina 46.7 79.1 17.2 33.8 -0.22 -22.09 59.31

Conclusion Cardamom: Main exporting countries are Singapore and

India; main importers are Saudi Arabia, United Arab Emirates and Singapore

Pepper:Major producers of pepper across globe are Vietnam (about 0.90 lakh tons), India (0.55 lakh tons), Brazil (0.40 lakh tons) and Indonesia (0.3 lakh tons). Vietnum is the largest pepper exporter whereas the USA is the biggest importer in the world.

Cont:

Turmeric :The key export destination for Indian turmeric are UAE - 17%, USA - 10%, Bangladesh - 9%, Sri Lanka - 7%, Japan - 7%,Malaysia - 6% and UK - 6%. The major importers of turmeric are the Middle East and North African countries, Iran,Japan and Sri Lanka. These importing countries represent 75% of the turmeric world trade, and are mostly supplied by the Asian producing countries

Ginger:countries like UK, Netherland, Germany are the major importers of ginger in the world market.

Need for empowerment of the growers of spices and to ensure better price realization for them.

The Spices Board has taken steps to establish Spices Parks at the following seven locations :

a) Chhindwara [ M P] – Functional Since Feb 2009b) Guntur [A P]c) Sivaganga [ T N]d) Idukki [Kerala]e) Mehsana [GJ]f) Jhalawar [Rajastan]g) Bydagi [Karnataka]

 

The projects on Spices Park are primarily intended to benefit the growing community and its aim is 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.

To encourage the production of Spices in the country in the most efficient manner.

To provide the required state-of-the art infrastructure for improving production.

To be able to export the final product as fresh as possible.

Quality improvement, grading and packing, warehousing, etc – basically a lot of value addition, which would lead to better price realization.