Asian countries end monopoly of US, EU as largest buyers of Indian spices
Asian countries have ended the monopoly of the US and European nations as the largest buyers of Indian spices.
By PK Krishnakumar, ET Bureau |
KOCHI: Asian countries have ended the monopoly of the US and European nations as the largest buyers of Indian spices. Though the trend has been visible over the last few years, it has become more marked in the recent times with rising prominence of chilli, cumin, coriander, mint products etc in the Indian spice basket.
The increase in consumption has come from the Asian countries such as Malaysia, China, Sri Lanka, Pakistan, Bangladesh etc. Saudi Arabia and UAE in West Asia have been good buyers of Indian spices traditionally. Both East Asia and West Asia together accounted for 66% of the spice export volumes, with the latter having a share of 46% in 2008-09.
In value terms Asian share came to 48% again with East Asia dominating with 36%. Around four years ago the total share of Asian countries in Indian spice export was at 35 % with East Asia having a marginal presence.
���Asia and Latin America have been our focus areas. Now Asia has started showing good results with our efforts,��� Spices Board chairman VJ Kurian told ET. Several Asian countries have been successful in re-exporting the spices imported from India in value-added form. Spices Board has planned spice parks in an effort to follow this example.
Traditional items such as pepper and cardamom used to dominate the spice exports earlier. But now their role has been taken over by chilli, mint products, spice oil and oleoresins and cumin. In terms of volume, chilli accounted for 40% of the 4,70,520-tonne spices exported in 2008-09 worth Rs 5300 crore.
In value terms, mint products had the highest share of 27% while its volume came to a meagre 4%. The value of chillies in the total export basket was 20%. Among the major spices, US���s dominance is limited to mainly to pepper, spice oils and oleoresins.
The country still has a major share in the high-valued mint products with a purchase of 5675 tonne. But China with an import of 5200 tonne is fast catching up. The US still retains the top spot with 21% of the total value of the spices exported with all other major spice importing countries having a share below 10%.
In volume terms, the US and UAE have 11% each while Sri Lanka has 10% share.
The increase in consumption has come from the Asian countries such as Malaysia, China, Sri Lanka, Pakistan, Bangladesh etc. Saudi Arabia and UAE in West Asia have been good buyers of Indian spices traditionally. Both East Asia and West Asia together accounted for 66% of the spice export volumes, with the latter having a share of 46% in 2008-09.
In value terms Asian share came to 48% again with East Asia dominating with 36%. Around four years ago the total share of Asian countries in Indian spice export was at 35 % with East Asia having a marginal presence.
���Asia and Latin America have been our focus areas. Now Asia has started showing good results with our efforts,��� Spices Board chairman VJ Kurian told ET. Several Asian countries have been successful in re-exporting the spices imported from India in value-added form. Spices Board has planned spice parks in an effort to follow this example.
Traditional items such as pepper and cardamom used to dominate the spice exports earlier. But now their role has been taken over by chilli, mint products, spice oil and oleoresins and cumin. In terms of volume, chilli accounted for 40% of the 4,70,520-tonne spices exported in 2008-09 worth Rs 5300 crore.
In value terms, mint products had the highest share of 27% while its volume came to a meagre 4%. The value of chillies in the total export basket was 20%. Among the major spices, US���s dominance is limited to mainly to pepper, spice oils and oleoresins.
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The country still has a major share in the high-valued mint products with a purchase of 5675 tonne. But China with an import of 5200 tonne is fast catching up. The US still retains the top spot with 21% of the total value of the spices exported with all other major spice importing countries having a share below 10%.
In volume terms, the US and UAE have 11% each while Sri Lanka has 10% share.
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