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OVERVIEW OF SPICE

INDUSTRY
INTRODUCTION
 Since ancient times India has been the largest
producer of spices in the world. Spice became one
of the first and most enduring links between Asia
and Europe. It was this spice trade that led to
intense competition among various European
nations. They tried to extend their influence
throughout India gradually in order to gain
monopoly in this trade. The demand for Indian
spices was very high in Europe and elsewhere.
Therefore many European nations set up
companies like the British East India Company
established in 1600.
OVERVIEW
 Spice industry has been witnessing phenomenal growth
rates both in the international and domestic sector. The
growth in this sector can be attributed to the change in
the lifestyle patterns of the consumers all over the
world. The shift in the consumption trend toward natural
products has also contributed to the increased global
demand of spices and culinary herbs. Spice and
derivatives market is booming because these products
find applications in a number of industries including
pharmaceutical, medicine, beverages, food processing,
personal hygiene products to name a few.
INDIAN SPICE INDUSTRY
 India produces 2.5 million tonnes to 3 million
tonnes of spices annually. India produces
spices of different categories worth around
US$ 3 billion.
 In terms of volume and value, India accounted
for 46 percent and 23 percent in value of global
spice trade. (Source: Spices Board India) India
accounts for 25-30 per cent of world’s pepper
production, 35 per cent of ginger and about 90
per cent of turmeric production.
MAJOR SPICES EXPORTED
Chilies 33%

Seed spices 22%

Turmeric 14%

Spice Oils and 7%


oleoresins
Pepper 7%

Cardamom 1.1%

Ginger 2.7%
EXPORT OF SPICES
 Spices exports have registered substantial growth during
the last one-decade, registering an annual average
growth rate of 13.1% in value and 9% in volume. During
the year 2009-10, spices export from India has
registered an all time high both in terms of quantity and
value. In 2009-10 the export of spices from India has
been 502,750 tonnes value. India commands a
formidable position in the World Spice Trade with 48%
share in Volume and 44% in Value. 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.
STRENGHTS

THREATS
SWOT WEAKNESS

ANALYSIS

OPPORTUNITIES
• LARGEST PRODUCER OF SPICES
• VAST DOMESTIC AND INTERNATIONAL MARKET
• OUT OF THE 105 SPICES,75 SPICES ARE GROWN IN INDIA
• FERTILE LAND
• AROUND 60% OF THE POPULATION DIRECTLY OR INDIRECTLY
DEPENDES ON AGRICULTURE
• GEOGRAPHICAL LOCATION
• MANPOWER
STRENGTH
• DIFFICULT TO TRAIN FARMERS AND EDUCATE THEM
• INCREASED PRESSURE ON LAND DUE TO INCREASING POPULATION
• POOR IRRIGATION FACILITIES
• NON PROPER STORAGE FACILITIES
• WEAK INFRASTRUCTURE
• POOR FINANCING
• INADEQUATE RESEARCH
WEAKNESS
• PRIVITILATION OF COMMUNICATION,IRRIGATION
• FACILITATION OF EASIER CREDIT TO FARMERS
• INTRODUCTION OF NEW TECHNOLOGIES
• INCREASING RESEARCH IN THE AGRICULTURE FIELD
• OUR COUNTRY IS RICH IN LAND,HUMAN,WATER RESOURCES
• HUGE POSSIBILITIES OF TRADE DUE TO THE LOCATION
OPPORTUNITIES
• LOSS OF MANPOWER TO OTHER INDUSTRIES
• THREAT FROM NATURAL CALAMITIES LIKE FLOODS,DROUGHTS
• UNCERTAINITY OF THE MONSOONS
• THOUGH COMPETION FROM FOREIGN COUNTRIES
THREATS
CASE STUDY
 For better understanding of the given
topic a case study was carried out at
‘‘Kanwal Foods and Spices Pvt Ltd’’, it
provided first hand experience and
helped understand the topic.
BIBLIOGRAPHY
 1. SPICE: The history of a temptation by Tom Standage
 2. THE HINDU- BUSINESS LINE: Business Daily from THE
HINDU group of publications. India tops in output, trade of
several seed spices
Thursday, Feb 11, 2010
 3. www.kanwalspices.com/profile.html
 4. www.spice-trade.com/indian-spice-market.html

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