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8/3/2019 Group17 Secg Gptaie Spices

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SPICES INDUSTRY

Submitted by :Richa SinghPrarthana

JovitaNupur


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INDUSTRY OVERVIEW

The global spice and culinary herb industrycomprises of many plants having diverse enduses including culinary, medicinal etc.

The industry also consists of spice derivativeslike essential oils, oleoresin, spice oils etc.

About 85% of spices and culinary herbs are

traded in dried form which are cleaned and usedin a crude form without any further processing.


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INDUSTRY OVERVIEW

The world production and processing centres ofspices and culinary herbs remain concentratedin Europe and in a number of Asian countries.

Canada is fast emerging as one of the leadingplayers in the international spice and herb

industry.

For example, India is popularly known for being

a source of cloves, Indonesia has supplied theglobal market with cinnamon and nutmeg andChina has been the leading provider of ginger.


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INDUSTRY TRENDS

There has been a substantial increase in use offresh herbs and spices owing to an increaseddemand in the hotel industry.

Change of consumers towards leading a healthylifestyle has increased the use of herbs / naturalspices for natural flavoring.

Use of spice derivatives like essential oils arebeing widely used internationally in food and

beverage industries for flavoring and fragrances.


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INDUSTRY TRENDS

The global demand of spices has increased dueto: Increase in demand and consumption of

ethnic food.

Introduction of flavored coffee, tea andaerated drinks in the beverage industry.

A sharp growth in the processed foodconsumption.

Increase in the demand for natural fragrancesfor various health therapies.


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PRODUCTION CENTRES

The spice production areas or centres, itsderivatives and culinary herbs are concentratedin 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 otherfactors including low wage rates, sound

infrastructure etc.


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GLOBAL PRODUCTION AREAS

Europe

Israel

India

Egypt

Bulgaria

Germany

Hungary


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INDIAN SPICES INDUSTRY

India has traditionally been known for its spiceand culinary herb production.

It is one of the largest spice producing and

consuming country. Its strategic location, climatic conditions,

advanced production processes and availabilityof cheap labour makes it advantageous for theproducers to ensure large scale production ofquality spices and herbs.


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TYPES OF SPICES

Ajowan Aniseed Bay Leaf Black Pepper Cambodge

Capsicum Caraway Seed Cardamon Cassia Celery Chillies Cinnamon Clove Coriande Cumin

Garlic Ginger Fenugreek Lemongrass Mango Powder

Marjoram Mustard Nutmeg & Mace Paprika Saffron

Turmeric Vanilla White Pepper Dill Seed Fennel


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CULINARY HERBS

Basil Borage Catnip Chives Curry Leaf

Lavender Mint Oregano Parsley Peppermint

Rosemary Sage Tarragon Thyme Zucchini Flowers


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SPICE DERIVATIVES

Indian spices Oil

Spice Oleoresins

Essential Oils


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Pepper

Cardamom(Small)

Cardamom(Large)

Chilli

Ginger

Turmeric

Corriander

Cumin

Fennel

Fennugreek

Garlic

Vanilla

Clove

Nutmeg

Cinnamon

Tamarind

Dill seed

Ajwan

Saffron

Celery

Tejpat

GRAND TOTAL

GRAND TOTAL IN MLN TONNES

2008 - 09

Area Prodn.

181074 46745

71170 10999

27034 4300

801070 1353796

138479 795028

194358 892213

507935 416663

527132 283000

74149 114277

103097 95833

194274 1009116

4477 169

2172 1002

16400 11362

186 37

54222 193873

8620 11522

20776 16299

3000 9

4117 5329

6646 17277

2940388 5278851

5.28


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SPICE BOARD OF INDIA

The Spices Board India (Ministry of Commerce,Government of India) is the apex body for theexport promotion of Indian Spices

The Board plays a far reaching and influentialrole as a developmental, regulatory andpromotional agency for Indian Spices.

The Board is a link between the Indian exportersand the importers abroad.


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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 handlingand registration and licensing of traders andexporters.

It acts as a data bank and communicationchannel for importers and exporters andpromotes Indian Spices abroad.

The Board has close association withinternational agencies


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EXPORT TRENDS

Spices exports have registered substantialgrowth rate of 13.1% in value and 9% involume.

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 470,520tonnes valued Rs.5300.25 crores (MLN US $1168.40) in 2008-09, registering an increase of7% in volume and 5% in rupee value.

India commands a formidable position in theWorld Spice Trade with 48% share in Volumeand 44% in Value.


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INDIAS SHARE IN WORLD

TRADE OF SPICES

QUANTITY VALUE


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TREND IN INDIAS SPICES

EXPORT

0 100,000 200,000 300,000 400,000 500,000 600,000

2005-06

2006-07

2007-08

2008-09

2009-10

VALUE

QUANTITY


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EXPORT DESTINATIONS

India can boast as the monopoly supplier ofspices, 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 majorSpice items exported from the country.

Kerala, which is the Spices Garden of India, ishome to all major items of export like Pepper,Cardamom, Ginger, Turmeric, Curry powder,Spice oils and Oleoresins, Vanilla, Nutmeg and

mace.

Th j d ti ti f i


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The major destination of spiceexports is

USA

European Union

Malaysia China

Singapore

Sri Lanka

Japan

Middle East.


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FTP PROVISIONS

Certificate of Registration as Exporter ofSpices (CRES) issued by Spices Boardshall be treated as Registration-Cum-

Membership Certificate (RCMC) for thepurposes under this Policy.


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SCHEMES

Special purpose fund for replanting and rejuvenation ofcardamom plantations

Export oriented production and post harvestimprovement of spices

Export development & promotion of spices

Quality improvement and strengthening of quality

evaluation laboratory Human resource development & capital works


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Setting up of Plantation research unit in Centrefor Development Studies (CDS), Trivandrum

Replantation and rejuvenation of pepper inWynad district in Kerala and NE


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SPICES PARK

To empower the growers of spices and ensurebetter price realization, Board has taken steps toestablish Spices Parks at the seven locations toprovide scientific infrastructure facilities.

The projects on Spices Park are primarilyintended to benefit the growing communitythrough quality improvement, grading, packing,warehousing, etc for value addition which wouldlead to better price realization of their produce.

The exporters can also set up their unit in theParks for processing spices under the terms andconditions of the Board.


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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]


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QUALITY STANDARDS The Spices Board has evolved two major concepts for quality

improvement. One is the introduction of the Indian Spices Logo, theother The Spice House Certificate

To improve the quality of spices at the farmers, traders andexporters level, the Board organizes a series of quality up gradationprogrammes.

To educate the farmers, traders and exporters on the production ofquality spices, Board conducts a series of training programmes atvarious levels.

The training programmes are conducted by the Board jointly withExport Inspection Agency, Directorate of Marketing & Inspection,Agricultural Universities and Department of Horticulture/ Agriculturein spice growing states.

Spices Board also sponsors Indian technical personnel for trainingabroad to improve understanding of regulations, testing methods etc


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QUALITY EVALUATIONLABORATORY

The Quality Evaluation Laboratory of Spices Board wasestablished in 1989.

It provides analytical services to the Indian spice industry,monitors the quality of spices produced and processed in thecountry and analyse all the samples collected by the Boardunder the Compulsory inspection on Chillies, Chillies productsand Turmeric powder exported from India.

The laboratory is certified by British Standards Institution, U.K.for the ISO 9001:2000 Quality Management System in1997, ISO 14001:2004 Environmental Management Systemin 1999 and Accreditation under the National AccreditationBoard for Testing & Calibration Laboratories (NABL) (underthe ISO/IEC: 17025) in 2004.


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INDIAN SPICES LOGO The Indian Spices Logo is a major effort to overcome this

impasse. The international consumer is by and large awareof the intrinsic qualities and acquired superiority of Indianspices.

The logo - a fresh green leaf inside an elliptical ring(denoting freshness, growth and excellence) is prominentlydisplayed on all packs cleared and approved by the SpicesBoard India, so that you can easily spot the pack thatspells Indianness and quality.

The Board awards the logo selectively to exporters whohave certified processing and quality control capability andmaintain a high level of hygiene and sanitation at allstages.


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SPICE HOUSE CERTIFICATE The certificate is issued to those processors/exporters who have a

genuine commitment to quality, and whose long-term objective issustained export growth.

The Spice House Certificate seeks to identify and recognise processorswho have made investments in in-house processing facilities andinfrastructure, and have the necessary competence to ensure consistentquality 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 ofsanitation in the plant, while the workers must observe absolutecleanliness and personnel hygiene.


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MANDATORY QUALITY CHECK

Export of chilli/chilli products or other foodproducts containing chilli products in whatsoeverform is subjected to mandatory sampling andquality test for Aflatoxin and Sudan I,II,III & IV

Shipment is permitted only at Customs only onthe basis of cleared analytical report from theSpices Board.

Also applicable are exports of turmeric powder todestinations in EU, USA, North America,Australia, New Zealand and Japan.


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Top Exporters(2008-09) : ALL-SPICE

RankExporterCode

Exporter Name

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


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Problem & Challenges faced byexporters

Infrastructure gaps

Producing international quality atcompetitive price

SPS measures

Restrictive govt. market regulations

Weak policy and regulatory framework forfood safety


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Problem & Challenges faced byexporters

Inadequate enforcement of existingstandards

Predominance of small firms

Weak risk assessment methodologies

High cost of compliance

Information gap


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References

ASSOCHAM, 2010. Food and Agri-Exporters Conclave(updated 09September, 2009):http://www.assocham.org/events/showevent.php?id=362 [Accessed on 17thDec, 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 ofCommerce, Govt. of India(updated on Nov, 2010)http://www.indianspices.com/php/article.php [Accessed on 14th Dec, 2010]
http://www.assocham.org/events/showevent.php?id=362http://www.rediff.com/money/2004/may/03spec.htmhttp://www.indianspices.com/php/article.phphttp://www.indianspices.com/php/article.phphttp://www.rediff.com/money/2004/may/03spec.htmhttp://www.assocham.org/events/showevent.php?id=362


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Spice board of India, 2010. SPICE BOARD OF INDIA, Ministry ofCommerce, 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]

References
http://www.indianspices.com/html/s0420sts.htmhttp://www.spicesboard.in/directory/tis/TraderSearch.phphttp://www.spicesboard.in/directory/tis/TopExpHome.phphttp://www.spicesboard.in/directory/tis/TopExpHome.phphttp://www.spicesboard.in/directory/tis/TraderSearch.phphttp://www.indianspices.com/html/s0420sts.htm

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