India Spice Exports Up 20 Per Cent

India's spices export in the first two months of the 2008/09 fiscal year rose 20 percent in volume terms on the back of strong demand for pepper, chilli and jeera, the Spices Board said on Monday.

Total spices exports during April-May was at 98,570 tonnes, compared with 82,210 tonnes a year-ago, it said in a statement.

In value terms, exports rose 28 percent to 8.85 billion rupees during the period from 6.91 billion rupees in the year ago period.

Spice oils, oleoresins and mint products together contributed 35 percent of the total export earnings, while chilli contributed 27 percent followed by pepper, jeera and turmeric, it said.

Pepper exports during the period rose 17 percent to 5,750 tonnes. India, the second largest pepper producer and exporter, exports mainly to U.S., U.K., Italy, Germany and Canada.

Cumin seed, or jeera, exports grew three times in April-May due to strong export demand on hopes of lower production in other major producing countries like Syria and Turkey.

The country exported about 6,500 tonnes, compared with 2,180 tonnes a year-ago. India is the world's largest jeera producer and exporter.

Chilli exports in the same period rose 21 percent to 50,000 tonnes on strong demand from Pakistan, which is the main competitor to India in international markets, it said.

Exports of spice oils and oleoresins increased 41 percent to 1,500 tonnes, while mint products exports rose 21.1 percent to 2,900 tonnes during April-May, the statement said. However, exports of spices like turmeric, cardamom, ginger and fennel was lesser than the year-ago period.

Turmeric exports declined 7.1 percent to 8,550 tonnes due to higher prices in domestic markets, which diverted buyers towards cheaper sources like Myanmar.

Turmeric prices in Nizamabad spot market almost doubled to 4,100 rupees in June compared to the year-ago period on lower output.

India produces over 4 million tonnes of spices and exports around 180 spice products to over 150 countries.

Source: Reuters