SPICES INDUSTRY

Submitted by : Richa Singh Prarthana Jovita Nupur

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

2008 - 09

Pepper Cardamom(Small) Cardamom(Large) Chilli Ginger Turmeric

Area 181074 71170

Prodn. 46745 10999

27034
801070 138479 194358 507935 527132 74149

4300
1353796 795028 892213 416663 283000 114277

Corriander
Cumin Fennel Fennugreek Garlic Vanilla Clove Nutmeg Cinnamon Tamarind Dill seed Ajwan Saffron Celery Tejpat GRAND TOTAL GRAND TOTAL IN MLN TONNES

103097
194274 4477 2172 16400 186 54222 8620 20776

95833
1009116 169 1002 11362 37 193873 11522 16299

3000
4117 6646 2940388

9
5329 17277 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.

INDIAS SHARE IN WORLD TRADE OF SPICES

QUANTITY VALUE

TREND IN INDIAS SPICES EXPORT

2009-10 2008-09 2007-08 VALUE QUANTITY

2006-07 2005-06 0 100,000 200,000 300,000 400,000 500,000 600,000

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-CumMembership 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
2 3 4

A558
V059 W076 J529

A.V.T. MCCORMICK INGREDIENTS PVT.LTD

VALLABHDAS KANJI LIMITED WAYANAD SOCIAL SERVICE SOCIETY JEEVAGRAM

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]

References
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]