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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 •  Garlic
•  Aniseed •  Ginger
• Bay Leaf • Fenugreek
• Black Pepper
• Lemongrass
• Cambodge

• Mango Powder
 Capsicum
• Caraway Seed • Marjoram
• Cardamon •  Mustard
• Cassia •  Nutmeg & Mace
• Celery •  Paprika
• Chillies •  Saffron
• Cinnamon • Turmeric
• Clove •  Vanilla
• Coriande •  White Pepper
•  Cumin • 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 Area Prodn.

Cardamom(Small) 181074 46745

Cardamom(Large) 71170 10999

Chilli 27034 4300

801070 1353796
Ginger
138479 795028
Turmeric
194358 892213
Corriander
507935 416663
Cumin
527132 283000
Fennel
74149 114277
Fennugreek
103097 95833
Garlic
194274 1009116
Vanilla 4477 169
Clove 2172 1002
Nutmeg 16400 11362
Cinnamon 186 37

Tamarind 54222 193873

Dill seed 8620 11522

Ajwan 20776 16299

Saffron 3000 9

4117 5329
Celery
6646 17277
Tejpat
2940388 5278851
GRAND TOTAL
GRAND TOTAL IN MLN TONNES   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.
INDIA’S SHARE IN WORLD
TRADE OF SPICES
QUANTITY VALUE
TREND IN INDIA’S SPICES
EXPORT
2009-10

2008-09

VALUE
2007-08
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-Cum-
Membership 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

Exporter
Rank Exporter Name
Code

1 A558 A.V.T. MCCORMICK INGREDIENTS PVT.LTD

2 V059 VALLABHDAS KANJI LIMITED

3 W076 WAYANAD SOCIAL SERVICE SOCIETY

4 J529 JEEVAGRAM

5 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]

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