Growth and pattern of export of major spices from India

Spices are low volume and high value commodities. The Indian chilli, black pepper, turmeric, coriander are considered as major spices as they have the foremost position in value terms in the world trade during 2009–2010. Presently, this is being threatened by stiff competition from other producing countries with higher productivity level and surplus for exports. The present study examined export pattern of trade destination and various SPS issues responsible for export rejection for the period of 1988–2011. First order Markov chain approach was used and CGR was calculated. The export of chilli registered a significant and positive growth in both quantities (13.56%) and value (18.06%) terms. The tremendous growth in quantity of chilli exported and value realized was mainly due to increased demand in the world market. The stringent quality measures implemented by the Spices Board, viz. mandatory sampling and analysis for the presence of aflatoxin and adulterant red sudan in export consignment of chilli has made Indian chilli more acceptable in the international markets. Malaysia is the largest buyer of the Indian chilli followed by other traditional buyers like Bangladesh, Sri Lanka and United States of America. Sri Lanka and U.S were found to be the stable markets for Indian chilli. T As revealed by the growth rates, the of export value (3.48%) and export price (6.77%) of pepper was found to be increasing, but the export volume were found to be declining (−0.329%). United States of America, Germany, and Italy were found to be the loyal markets for Indian pepper. The export of turmeric registered positive and significant growth in quantity (6.23%), value (13.80%) and price (7.57%). In the case of turmeric, India is virtually a monopoly supplier to the world. United Arab Emirates and Bangladesh were found to be the loyal market for Indian turmeric. Coriander export has showed significant growth rate of 8.70% per annum in terms of quantity and 15.99% in value. The changing pattern of food consumption or consumption of more spicy foods, especially in developed countries and the large population of Indian origin in these countries has resulted in good export orders for Indian spice exporters. Malaysia was found to be the most loyal markets for Indian coriander. Different countries have their own SPS standards for different crops. In relation to the spice crops cleanliness specification, aflatoxin levels and Pesticide residue limits were found to be important parameter that affect the export of spices.