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Kalimirch – Mirchi – Haldi

Dhaniya – Jeera

S P I C E S

FUNDAMENTAL

REPORT

1

1.1 Introduction

‘Spices’ are aromatic substances of a plant origin, obtained from roots, flowers,

fruits, seeds, leaves or bark. They form a dried part of a plant, which essentially

distinguishes them from ‘Herbs’, which are obtained from the leaves of herbaceous

(non-woody) plants. While spices are generally grown in warm tropical and sub-

tropical climates, herbs originate from temperate climate. Condiments also

differ from spices, as they are edible substances.

1.2 Spices’ Uses

The primary application of all the three – spices, herbs and condiments - remains

the same, i.e. they are used for adding flavour, aroma, colour and taste to food and

drinks, and sometimes also as preservatives or anti-bacterial agents, or as

refreshing or invigorating agents. Although spices are very commonly used in the

form of a powder, some are used as tinctures obtained by extracting essential oils

and many are used as a whole.

The use of spice in food has started from time immemorial but they have found new

applications in the course of history as ingredients of medicines, perfumes, incense,

soaps and many pharmaceutical products.

Certain spices have often been used as medium of exchange/currencies at many

periods throughout history. Researchers have found the mention that Alaric I is said

2

to have demanded pepper as part of the ransom for raising the siege of Rome in

408. Similarly, Pharisees in Judea paid tithes in cumin seeds. During the fourteenth

century, in Germany, one pound of nutmeg could be traded for seven FAT oxen. At

other points in history, rent would be paid in peppercorns, and a pound of pepper

would serve to buy the freedom of a serf in France.

Most of Spices are indigenous to tropical Asia, the West Indies and South

America. Hence, spices have always served as a primary and prominent source to

earn the much needed foreign exchange by developing countries in these regions,

which historically have been exporting these basic agricultural commodities to

developed countries, which have limited production of the same.

A Brief Backdrop of Spices’ Trade

� History of spices dates back to 6th century BC, if not long, long before that.

� Archaeologists discovered spices in Egyptian tombs as early as 3000 BC. Many of the

spices had strong connections or affiliations with different Gods.

� Spices from Asian continent were carried by caravan to ports of the Mediterranean

Sea or the Persian Gulf and thereafter to the market places of Athens, Rome, and

other cities, where they were sold at exorbitant prices.

� During 1497 and 1498, British, Italian, Portuguese navigators undertook voyages to

Asia in search of spices.

� Portuguese navigator, Vasco da Gama, who landed in Calicut (Kozhikode, now) in

Kerala, India, on May 20, 1498, reported about Malabar region, the inexhaustible

land of spices in India.

� The Portuguese started trading directly with India, Siam (modern day Thailand) and

China and controlled the Silk Routes to China and the sea routes to India.

� Between A.D. 1605 and 1621, the Dutch managed to drive the Portuguese out of the

Spices Islands achieving a monopoly in spices trading.

� However in A.D.1799 the Dutch East India Company went bankrupt due to many

reasons and the Dutch ports of Malabar Coast were taken over by the British.

� By the end of the eighteenth century, the United States entered the scene of world

spices trade (especially pepper), the most remunerative trade of the time.

Source: SPICES AN OVERVIEW (www.shodhganga.inflibnet.ac.in/bitstream/10603/156/16/09_chapter2.pdf)

3

1.3 India: A Global Spice Hub

• India is known as the 'The home of spices'.

• India is the leading producer, consumer and exporter of spices in the world and

meets nearly half of the global demand for spices.

• Spices are produced almost in all states of India.

• A whopping 75 spices out of 109 listed by ISO are produced in India.

• Harnessing the technological developments over a period of time, Indian spices

have unleashed their application capabilities to cover a wider spectrum of

industry verticals such as spice and food processing industries, pharmaceutical

and medical segments.

• As a result, Indian spice industry has witnessed increasing number of varieties

of value-added spices and spice products in ground, crushed, cracked, blended,

dehydrated forms in bulk, in brine and in consumer packs (Examples: curry

mixes, natural food colours, spice extracts, spice oil, oleoresins, organic spice

varieties, etc.);

• Landmark Events in the Development of Spices Industry in India

� First research station for pepper established in India at Panniyur, Kerala

in 1952-53;

� Establishment of National Research Centre for Spices (NRCS) in 1986;

� Establishment of Spices Board of India (clubbing the activities of Spices

Export Promotion Council and the Cardamom Board) in 1986, which is a

statutory body responsible for the development and growth of all the

major Indian spices, having commercial significance;

� NRCS upgraded as Indian Institute of Spice Research. (IISR) 1996;

� Establishment of International pepper exchange at Mattancherry, Kerala

in 1997.

1.4 Important Initiatives undertaken by Spices Board to promote

production and export of spices:

� Assisting Spice-growers by providing various services like

1. Soil testing and fertilizer advisory service;

2. Plantation visit and on the spot study of pests and disease problems;

4

3. Recommendation for pest and disease control;

4. Supply of planting materials of high yielding and improved varieties;

5. Supply of bio-control agents for controlling specific diseases and pests;

6. Conducting spice clinics, planters’ meets and group discussions;

7. Imparting training on mass production of bio-agents and on good

Agricultural Practices;

8. Transfer of technical know-how to growers on production of spices on the

scientific aspects of cultivation through personal contact, field visits,

group meetings and through distribution of literature in vernacular

languages for increasing productivity and improving quality

9. Subsidy for constructing Drying Yards;

10. Supply of Polythene Sheets and Bamboo Mats, Moisture Metres (devices

for detecting the moisture level present in the final product for

maintaining the quality) and power operated and manually operated

threshers at subsides cost.

� Promoting Organic Farming through

� Providing subsidy for obtaining Certification of Organic

farms/Processing units;

� Providing a maximum subsidy of Rs.1.30 lakhs per unit towards 50%

cost to purchase equipment and accessories and mother culture for

setting up the unit;

� Providing subsidy for setting up of vermin-compost (an organic

manure which can be produced from farm-waste using earthworms)

units.

� Encouraging exports of spices by providing financial assistance for

• Packaging Development including design and bar coding (50% of the

cost subject to a ceiling of Rs.1.00 lakh per exporter)

• Business promotional trips (reimbursement of 50% of the air fare

subject to a maximum of Rs.60,000/- for Logo/SHC holders and

Rs.40,000/- for registered brand holders)

5

• Participation in international food fairs (50% of the stall rent subject to

a ceiling of Rs.1.00 lakh per exporter per year)

• Forwarding business samples abroad (courier charges subject to a

maximum of Rs.50,000/- per exporter per year)

• Printing of promotional brochures (50% of the cost subject to a

maximum of Rs.2.00 lakhs per brochure)

� Collecting, Compiling and disseminating information on production, prices,

demand, supply, export and import for the benefit of various stakeholders of

the industry through its 'Trade Information Service';

� Bearing total cost of conducting Market studies and marketing strategy

development for promotion of Indian Brands of Spices and Spice Products in

Specified Markets;

� Endorsing product development &research by providing financial assistance

to the tune of 90% of the cost of the project (subject to a ceiling of Rs.1.00

crore per project) involving research, clinical trials and patenting;

� Encouraging production of spices in North East/Special Areas by

• providing financial assistance in the form of subsidies for setting up

spice processing units including processing of organic spices,

upgradation of existing units if any, setting up/ upgradation of quality

control labs in these units, logo certification of the units, setting up of

packaging facilities & packaging development for the branded spice

products and market promotion measures for branded organic

products;

• motivating spice growers’ co-operatives, NGOs representing growers

and individual entrepreneurs (in that order of priority) in North East

and other Hill areas, who can ensure professional management of the

processing units, to enter export oriented spice processing by

establishing ‘Equity Funds’, where by Spices Board will subscribe to the

share capital of these ventures up to 49% or up to the face value of

Rs.1.00 crore (interest free loan up to Rs.1.00 crore where equity

cannot be subscribed for legal reasons) whichever is less.

� Establishing Spices Park - an industrial park to have an integrated operation

for cultivation, post-harvesting operations, processing for value addition,

6

packaging, storage and exports of spices and spice products by meeting the

quality specifications of the consuming countries.

o Spices Board allots the land available in the Park to prospective private

entrepreneurs for initial period of 30 years for developing their own

processing units for value addition and higher end processing by

availing the common facilities in the Spices Park.

o The grower community sells their produce directly to the exporters so

that they can avail the premium price for their produces.

o The exporters develop a link with reliable farming community for an

uninterrupted supply of farm fresh raw material for their business.

1.5 Trading in Spices on Commodity Exchanges in India

In India, trading in spices futures dates back almost a century ago to pre-

Independence period. Even in the post-Independence period when futures

trading in most of the commodities was banned in mid-1960s, Pepper and

Turmeric futures continued to be traded on commodity exchanges in India. A

committee on Forward Markets under the Chairmanship of Prof. K.N. Kabra, at

the time of introduction of economic reforms, recommended upgradation of

futures trading in pepper to the level of international futures markets.

At present, 12 out of 103 commodities in which

futures trading is permitted belong to spices

category. However, six spices, viz., Chilli,

Coriander, Jeera, Pepper, Turmeric and

Cardamom constitute spice complex for actual

derivatives trading in India. The performance of

these contracts illustrates the success of

efficient price discovery in the Indian domestic

market through derivatives trading. Albeit the fact is that no other futures

contracts of spices are actively traded on any of leading international exchanges.

NCDEX offers futures contracts in five major spices, viz. Red Chilli, Coriander,

Jeera, Pepper and Turmeric. Trading in spices futures has always seen huge

turnover in terms of volume as well as value since the introduction the first spice

futures contract on the exchange platform in the year 2004.

List Of Spices Notified Under

Section 15 Of The F.C.(R.) Act

Aniseed Coriander seed

Betelnuts Ginger

Cardamom Methi

Chillies Nutmegs

Cinnamon Pepper

Cloves Turmeric

7

As can be seen from chart 1, turnover of the spice-complex peaked in the

calendar year 2007 to Rs 2,41,061 crore, largely contributed by Pepper and

Jeera; and accounted for slightly more than one-third of the NCDEX’s total

turnover for that year. However, it shrank drastically in 2008, coinciding with

the meltdown in the global economy, following an aftermath of US Sub-prime

crisis followed by financial meltdown and global recession. Trading improved

slightly in 2010 with signs of gradual recovery in global economy but remained

sluggish in the subsequent years amidst another round of global downturn that

began with European sovereign debt crisis.

8

1.6 Volatility in Spot Prices in Spice Complex on NCDEX

0.002.004.006.008.0010.0012.0014.0016.0018.0020.00

Jan-04

Aug-04

Mar-05

Oct-05

May-06

Dec-06

Jul-07

Feb-08

Sep-08

Apr-09

Nov-09

Jun-10

Jan-11

Aug-11

Mar-12

Oct-12

Monthly Spot Price Volatility from Jan'04 to Dec'12 (in %)

Coriander

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Jan-04

Aug-04

Mar-05

Oct-05

May-06

Dec-06

Jul-07

Feb-08

Sep-08

Apr-09

Nov-09

Jun-10

Jan-11

Aug-11

Mar-12

Oct-12


Jeera

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Jan-04

Aug-04

Mar-05

Oct-05

May-06

Dec-06

Jul-07

Feb-08

Sep-08

Apr-09

Nov-09

Jun-10

Jan-11

Aug-11

Mar-12

Oct-12


Pepper

0.00

5.00

10.00

15.00

20.00

25.00

Jan-04

Aug-04

Mar-05

Oct-05

May-06

Dec-06

Jul-07

Feb-08

Sep-08

Apr-09

Nov-09

Jun-10

Jan-11

Aug-11

Mar-12

Oct-12


Red Chilli

0.00

5.00

10.00

15.00

20.00

Jan-04

Aug-04

Mar-05

Oct-05

May-06

Dec-06

Jul-07

Feb-08

Sep-08

Apr-09

Nov-09

Jun-10

Jan-11

Aug-11

Mar-12

Oct-12


Turmeric

9

Apart from the previously mentioned factors, the other fundamental aspects

including demand-supply dynamics in domestic as well as global market,

weather conditions, fiscal and foreign trade policies, etc. also played an

important role in governing the price movements and trading in spices at

aggregate as well as individual level; this report attempts to provide some

insights into the interplay of these factors in the context of 5 spices which, at

present, are being traded on the NCDEX platform, in the subsequent sections.

1.7 Key Statistics

Production of Select Spices in India (in 000' Tonnes)

Pepper Chilli Turmeric Coriander Cumin Total

Spices

2001-02 62 1069 563 319 206 3765

(1.7) (28.4) (14.9) (8.5) (5.5)

2002-03 72 895 522 174 135 3765

(1.9) (23.8) (13.9) (4.6) (3.6)

2003-04 73 1236 565 390 203 5113

(1.4) (24.2) (11.0) (7.6) (4.0)

2004-05 73 1186 718 248 176 8051

(0.9) (14.7) (8.9) (3.1) (2.2)

2005-06 93 1015 852 223 200 3705

(2.5) (27.4) (23.0) (6.0) (5.4)

2006-07 69 1242 787 233 177 3953

(1.7) (31.4) (19.9) (5.9) (4.5)

2007-08 47 1298 794 310 265 4357

(1.1) (29.8) (18.2) (7.1) (6.1)

2008-09 47 1270 821 242 283 4145

(1.1) (30.6) (19.8) (5.8) (6.8)

2009-10 51 1203 793 237 304 4016

(1.3) (30.0) (19.7) (5.9) (7.6)

2010-2011 52 1223 993 482 314 5351

(1.0) (22.9) (18.6) (9.0) (5.9)

2011-2012* 42 1260 1062 530 343 5726

(0.7) (22.0) (18.6) (9.3) (6.0)

*: Estimated Figures.

Figures in brackets are share (in %) of individual spice in total spices’

production.

Source: Ministry of Agriculture and www.indiastats.com

10

FACTS & FIGURES ABOUT SPICES IN INDIA

�Average growth in production of Spices’ during 2001-2012 – 8.8%

�Chilli is the largest produced spice followed by Turmeric

�Overall, Andhra Pradesh is the largest spices’ producing state followed by Gujarat

and Rajasthan in 2009-10

�Spice-wise Major Producing State:

o Black Pepper – Kerala

o Coriander Seed – Rajasthan

o Cumin Seed – Gujarat

o Red Chilli – Andhra Pradesh

o Turmeric - Andhra Pradesh

(Refer Appendix I for state-wise production data of above spices)

�As per data provided by Food and Agriculture Organization of United Nations

(FAO), India accounted for more than 70% of the global spice production in 2010.

�Out of the total spices production, Indian households consume about 70-75%

either in whole form or in value added form (powder or masalas), 5-10% is

utilized by oleoresins, pharmaceuticals and cosmetics companies, 15-20% is

exported and the remaining goes for seed purposes (5%). (Source:

www.commodityindia.com)

�India exports about 180 varieties of spices to more than 150 countries around the

world.

�Spices exports have registered substantial growth during the last five years,

registering an annual average growth rate of 21% in value and 8% in quantity

and India commands a formidable position in the World Spice Trade.

�Compared to the target fixed 5,00,000 tons valued Rs. 6500.00 crore (US$1450

million) for the financial year 2011-12, the achievement is 115% in terms of

quantity and 151 % in rupee and 141% dollar terms.

11

Top 3 Export Destinations for Spices

Traded on NCDEX

� Black Pepper – USA, UK, Canada

� Coriander Seed – Malaysia, UAE, UK

� Cumin Seed – UK, USA, Brazil

� Chilli – Malaysia, Sri Lanka,

Bangladesh

12

Exports of Select Spices

Pepper Chilli Turmeric Coriander Cumin Total

Qty. In

Tonnes

Value in

Rs Lakh

Qty. In

Tonnes

Value in

Rs Lakh

Qty. In

Tonnes

Value in

Rs Lakh

Qty. In

Tonnes

Value in

Rs Lakh

Qty. In

Tonnes

Value in

Rs Lakh

Qty. In

Tonnes

Value in

Rs Lakh

2007-08 35,000 51,950 2,09,000 1,09,750 49,250 15,700 26,000 11,025 28,000 29,150 4,44,250 4,43,550

(7.9) (11.7) (47.0) (24.7) (11.1) (3.5) (5.9) (2.5) (6.3) (6.6)

2008-09 25,250 41,374 1,88,000 1,08,095 52,500 24,858 30,200 20,379 52,550 54,400 4,70,520 5,30,026

(5.4) (7.8) (40.0) (20.4) (11.2) (4.7) (6.4) (3.8) (11.2) (10.3)

2009-10 19,750 31,393 2,04,000 1,29,173 50,750 38,123 47,250 22,586 49,750 54,825 5,02,750 5,56,050

(3.9) (5.6) (40.6) (23.2) (10.1) (6.9) (9.4) (4.1) (9.9) (9.9)

2010-11 18,850 38,319 2,40,000 1,53,554 49,250 70,285 40,500 16,663 32,500 39,598 5,25,750 6,84,071

(3.6) (5.6) (45.6) (22.4) (9.4) (10.3) (7.7) (2.4) (6.2) (5.8)

2011-12 (E) 26,700 87,813 2,41,000 2,14,408 79,500 73,434 28,100 16,402 45,500 64,442 5,75,270 9,78,342

(4.6) (9.0) (41.9) (21.9) (13.8) (7.5) (4.9) (1.7) (7.9) (6.6)

E: Estimated Figures. Figures in brackets are share (in %) of individual spice in total spices’ exports. Source: Spices Board

% Share of Select Spices in Global Trade in 2011 (Value Terms)*

Spice HS Code

Share in

Global

Export

Rank

Share in

Global

Import

Rank

Coriander

Seed 90920 27.4 1 4.95 5

Cumin Seed 90930 48.4 1 0.7 28

Pepper 90411 10.4 4 5.5 4

Turmeric 91030 80.3 1 2.9 13

*: Refer to Appendix II for statistics related to World. Trade in the above mentioned Spices. Source: ITC calculations based on UN COMTRADE statistics.

Inflation in Spices (Y-o-Y) (in %)

Black

Pepper

Chillies

(Dry) Turmeric Cumin Coriander

weight 0.03 0.16 0.08 0.04 0.02

2006-2007 42.86 93.46 -2.55 7.22 27.13

2007-2008 39.40 -3.25 -6.09 17.14 31.87

2008-2009 -2.07 16.25 27.36 -1.07 73.57

2009-2010 3.03 12.37 99.51 20.82 -34.06

2010-2011 32.67 8.09 91.00 8.66 -18.00

2011-2012 63.05 24.94 -46.51 15.39 24.19

Source: www.eaindustry.nic.in

13

2. Black Pepper – The King of Spices

2.1 Introduction

Black pepper (Piper nigrum) is a perennial woody climbing vine belonging to the

family Piperaceae. It is cultivated for its fruit known as a peppercorn / pepper

berries. Famous for its use as a ‘commodity currency’ in the ancient period and as a

catalyst to international spice trade, it is often referred to as ‘black gold’. It is also

called the ‘King of Spices’, as its usage round the world is more than any of the

spices at present.

Black peppercorn is actually same as the green and white peppercorns; the colour

difference reflects varying stages of development and processing methods. Black

pepper is the most pungent and flavourful of all types of peppers and it is available

as whole or cracked peppercorns or ground into powder.

2.2 Origin

The word ‘pepper’ has been derived from a Latin word ‘piper’ but the origin of this

word comes from the Dravidian word, pippali, which means pepper only.

Black Pepper is believed to be in use since 4000 years and its history dates back to

even before 410 A.D. The Vedas, the Bible and the Quran also contain references to

pepper.

Black pepper is considered native to Western Ghats of South India particularly the

Malabar Coast. Pepper is believed to have been introduced into Indonesia and the

Malay Archipelago as early as the first century AD, during the period of the Hindu

kingdoms. Before the 16th century, pepper was being grown in Java, Sunda,

Sumatra, Madagascar, Malaysia, and everywhere in Southeast Asia.

Expeditions in search of pepper led to the discovery of new trade routes. Many wars

were fought and countries were also colonised to gain control over the supply of

pepper. Until 18th century, the Portuguese dominated the pepper trade as they

discovered the sea route to India and they used this route for taking pepper to their

country.

14

2.3 Usage

Black pepper is used in all types of

cuisine across the world at all stages

of the cooking process and as a table

condiment. It is used as flavour

ingredient in most major food

products including sauces, gravies,

processed meats, poultry, snack

foods etc. except baked goods.

Pepper is used in certain tonic and

rubefacient1 preparations also.

Other than in food, it finds

applications in the preparation of

traditional and modern medicines, as in Ayurvedic treatments in India and Jamu

preparations in Indonesia. The peppercorns are acrid, bitter, carminative,

aphrodisiac, diuretic, digestive and stimulant. They are useful for arthritis, asthma,

fever, cough, dysentery, dyspepsia and flatulence. Piperine, the pungent principle in

pepper oleoresin helps to enhance bio-availability of specific medicines during

treatment of serious illness and therefore used in pharmaceuticals. The major

functional properties of pepper are analgesic, anti-pyretic, anti-oxidant and anti-

microbial. Piperine is also an effective insecticide against houseflies and is also used

for spraying against different types of pests in garden.

Once the peppercorns are dried, pepper spirit & oil can be extracted from the

berries by crushing them. Pepper spirit is used in beverages like Coca-Cola and

many medicinal and beauty products. Pepper oil is also used as ayurvedic massage

oil and used in certain beauty and herbal treatments. The oil is used in preparing

1 A substance is said to have rubefacient characteristic when that increases the reddish coloration of the skin. Such

substance, when used for medicinal purpose, increase circulation in the skin and muscle tissue, creating relief from

pain through an anti-inflammatory effect as well as helping to clear the tissue of by-products of prior inflammation.

It provides a comforting feeling of warmth as they accelerate metabolism in the area.

15

perfumes and also for flavouring purposes. It has been reported that in the past,

Egyptians used it in the embalming mixture and also as an air purifier.

In the recent past value-added products of pepper has seen gaining popularity, as

they have helped to provide new value to pepper, by creating new uses, both in

food and non-food applications. Pepper oleoresin, green pepper in brine,

dehydrated green pepper, and freeze dried pepper are some of the examples of

such products.

2.4 Domestic Fundamentals

Cultivation Practice

The black pepper plant needs a hot and humid weather and also it needs a good

rainfall and partial shades to prosper. It is grown in soil that is neither too dry nor

susceptible to flooding, moist, well-drained and rich in organic matter. A pepper

plant starts producing the berries after 2-5 years. The pepper crop is grown as a

mixed crop in India; they are sometimes interspersed in coffee, tea, coconut,

arecanut and rubber plantations. In India, Black pepper is generally sown during

May-June. Fruits take 6-8 months from flowering to full maturity, the average being

seven months, depending upon the variety and on climatic conditions. Normally

harvesting starts from December and extends till March whereas the arrivals in the

physical markets start from February. The harvesting period is not uniform across

the country and alters depending upon the geographical location i.e. in plains the

harvesting period may start from November up to January and in hilly areas it may

start from January and can extend up to March, while in coffee estates in Karnataka

it is from February to April and in Tamil Nadu from March to May.

Crop Cycle

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Sowing2 Flowering Harvesting

2 Sowing is not done every year. Pepper follows a life time of around.

16

Depending upon the product to be finally prepared, harvesting has to be done at

different maturity stages. The stages of the maturity of pepper for different

products are as follows:

Product Maturity at Harvest

Pepper in brine / Canned pepper Green and tender (4-5 months) from Flowering

Dehydrated Green pepper 10-15 days before full maturity

Oil and Oleoresin 15-20 days before maturity

Pepper powder Fully matured with maximum starch

Black pepper Fully matured but 1-2 berries in the spike starting to turn yellow

White pepper Fully matured and at least 1-2 berries in the spike ripened and turned red

Source: Pepper Production Guide for Asia and The Pacific

Area, production and Yield

It can be observed from Chart 1 that during the span of last two decades, area and

production of black pepper have increased steadily till 2005-06 barring some

aberrations seen on one or two occasions; after which, pepper cultivation as well as

production has fallen significantly with the pace of decline in latter being sharper

than in the former.

As per the latest data available from the Ministry of Agriculture, area under black

pepper in India has grown from 184.2 thousand hectares in 1991-92 to 260.2

thousand hectares in 2005-06. It shrank thereafter to just 196 thousand hectares

in 2009-10 showing huge variations during the intermittent period of four years,

recording a meagre compound annual growth rate (CAGR) of 1.3% for the period

1991-92 to 2009-10.

The production of black pepper grew by 5.3% on an average from 52 thousand

tonnes to 93 thousand tonnes during the period 1991-92 to 2005-06. It slipped

drastically below 50 thousand tonnes thereafter, managing to touch 51 thousand

tonnes in 2009-10 (Chart 1) mainly due to pest and disease attack.

17

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

0.0

50.0

100.0

150.0

200.0

250.0

300.0

1991-9

2

1992-9

3

1993-9

4

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-0

0

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

Pro

duct

ion (in '000 tonnes)

Are

a (in '000 h

ectare

s)

Chart 1: Trend in Area, Production and Yield of

Black Pepper: All India

Area (in '000 Hectares) Production (in ''000 Tonnes)

282

268

269

314

353

308

316

316

302

298

285

320

314

320

357

281

239

199

260

Yield (Kg/ hectare)

Source: Ministry of Agriculture

During the period of two decades, average black pepper yield hovered around 295

kg/hectare, varying from a peak of 357 kg/hectare in 2005-06 to a low of 199 kg/

hectare in 2008-09. Black pepper productivity has suffered badly after 2005-06

compared to that recorded in the earlier years. Important reasons for poor pepper

yield are:

• Pepper is grown as a mixed/ internal crop;

• Improved production technologies are not widely adopted;

• Losses due to pest and disease attach and drought

• High cost of inputs due to labour shortage and poor weather conditions

• Cultivated on small and marginal holding

A glance at a state-wise bifurcation reveals that black pepper is grown in as many

as 5-6 states in India, with its cultivation and production mainly concentrated in

Kerala followed by Karnataka (Charts 2 & 3). As per the latest available data, in

2007-08, area under cultivation in Kerala stood at 176 thousand hectares followed

18

by Karnataka at around 16 thousand

hectares (Chart 2). The major districts

of Kerala, which are active in pepper

production, are Calicut, Cannanore,

Kottayam and Idukki. The important

districts, for pepper production in

Karnataka are Kodagu, North Kanara,

South Kanara and Shimoga. With the

rising interest towards pepper

production in states other than Kerala,

black pepper is also grown in some

parts of Orissa, Andhra Pradesh, Goa,

Maharashtra and North Eastern region.

In terms of Production, Kerala alone contributed around 89% of the total production

in 2007-08, with black pepper output touching 42 thousand tonnes followed by

Karnataka at just 4 thousand tonnes (Chart 3). Though Kerala is the leading pepper

producing state in India, production of black pepper in the state has declined

shrinking its share in total production at All-Inida level (Chart 4).


Source: Ministry of Agriculture Source: Ministry of Agriculture

19

Black Pepper yield in

Kerala has remained

higher than All-India

average for most of

the time, though of

late Meghalaya has

reported the highest

yield of more than

500 kg per hectare

(Chart 5).

Varieties of Pepper

Depending on the stage of maturity of the pepper berry, three primary varieties of

Pepper are obtained, viz., black pepper, green pepper and white pepper.


20

According to Spices Board report (Black Pepper: Extension Pamphlet) released in

2009, over 75 varieties of black pepper are being cultivated in India. Karimunda is

the most popular of all cultivars in Kerala. The other important cultivars include

Kottanadan (South Kerala), Narayakodi (Central Kerala), Aimpiriyan (Wynad),

Neelamundi (Idukki), Kuthiravally (Kozhikode and Idukki), Balancotta, Kalluvally

(North Kerala), Malligesara and Uddagare (Karnataka). In terms of quality,

Kottanadan has the highest oleoresin (17.8%) content followed by Aimpiriyan

(15.7%).

Sixteen improved varieties of black pepper have been released for cultivation by

research institutions. Panniyur-1 and Panniyur-3 are hybrids evolved at the Pepper

Research Station, Panniyur (Kerala). IISR Girimunda and IISR Malabar Excel are

the two hybrids released from Indian Institute of Spices Research (IISR), Calicut,

among others.

A few important cultivars and their salient features are given in Tables 1 & 2.

Table 1: Important cultivars of black pepper and their characteristic

Cultivar

Fresh

mean

yield

Quality attributes

Features Oleoresin Piperine Essential

oil

Dry

recovery

(kg/vine) (%) (%) (%) (%)

Aimpirian 4-5 15 4.7 2.6 34 Good for higher elevations, good in

quality, late maturing

Arakulan

munda 2 9.8 4.4 4.7 33 Moderate and regular bearer

Balankotta 1-2 9.3 4.2 5.1 35 Moderate and irregular bearing

Karimunda 2-3 11 4.4 4 35 Suitable for all pepper growing areas,

high yielder, shade tolerant.

Kalluvally 1-2 8.4-11.8 2.5-5.4 3 35-38 Good yielder with high dry recovery,

drought tolerant

Kottanadan 5 17.8 6.6 2.5 34-35 High yielding, drought tolerant

Kuthiravally 3 15 6 4.5 35 High yield, good quality

Narayakodi 2-Jan 11 5.4 4 36 Moderate yielder with medium quality

Neelamundi 2 13.9 4.6 3.3 33-34 Good yielder, Tolerant to Phytophthora

infection

Vadakkan 3 10.8 4.2 3.2 - Medium quality and yield

Source: Spices Board

21

Table 2: Improved Varieties of Black Pepper and their salient features

Variety

Mean

yield

(dry)

Dry

recovery

Quality attributes

Features Piperine Oleoresin Essential

Oil

(kg/ha) (%) (%) (%) (%)

Panniyur -1(KAU) 1242 35.3 5.3 11.8 3.5 Not suited to heavily shaded areas

Panniyur -2 (KAU) 2570 35.7 6.6 10.9 - Shade tolerant

Panniyur -3 (KAU) 1953 27.8 5.2 12.7 - Late maturing

Panniyur -4 (KAU) 1277 34.7 - 9.2 - Stable yielder

Panniyur -5 (KAU) 1098 - 5.5 12.3 3.8 Tolerant to selection from

Perumkodi shade

Panniyur -6 (KAU) 2127 32.9 4.9 8.3 1.3 Suited to all black pepper tracts

Panniyur -7 (KAU) 1410 33.6 5.6 10.6 1.5 Suited to all from Kuthiravally

black pepper tracts

Subhakara (IISR) 2352 35.5 3.4 12.4 6 Suited to all black pepper tracts

Sreekara (IISR) 2677 35 5.3 13 7 Suited to all black pepper tracts

Panchami (IISR) 2828 34 4.7 12.5 3.4 Late maturing

Pournami (IISR) 2333 31 4.1 13.8 3.4 Tolerant to root knot nematode

PLD -2 (IISR,

CPCRI, Palode) 2475 - 3.3 15.5 3.5

Suited to Thiruvananthapuram and

Kollam districts of Kerala

IISR Shakthi 2253 43 3.3 10.2 3.7 Tolerant to Phytophthora foot rot.

IISR Thevam 2481 32 1.65 8.15 3.1 Tolerant to Phytophthora foot rot;

Suited to high altitudes and plains

IISR Girimunda 2880 32 2.2 9.65 3.4 Suited to high Neelamundi altitudes

IISR Malabar Excel 1440 32 4.95 14.6 4.1 Suited to high Panniyur-1 altitudes;

Rich in oleoresin


Consumption of Black Pepper: Domestic demand + Exports

The domestic demand for black pepper arises from household sector (for culinary

purpose), from spice powder making industries, from companies involved in

extraction of oil and oleoresins as well as those involved in manufacturing value-

22

added pepper products, and also

from pharmaceutical companies

etc. However, as India is

recognised world over for

producing the premium quality

pepper, most of the domestically

produced pepper gets exported.

Nonetheless, of late, pepper

consumption in the country is seen

rising at a slow pace due to

increasing population, changing

food habits along with changes in

food preferences. Average

domestic consumption in India, including industrial usage is estimated about

40,000 to 45,000 tonnes per annum.

Among spices, Black pepper is the fifth largest spice exported from the country in

terms of quantity. With its exports estimated at 26.7 thousand tonnes in 2011-12,

black pepper accounted for around 4.6% of the total spices exports, while in terms

of value its share stood at a meagre 9% or Rs 878 crore (Chart 6).

Source: Spices Board and www.indiastats.com


23

As per the latest available data, in 2009-10, 19.8 thousand tonnes of black pepper

was exported from 51 thousand tonnes produced in the country accounting for

almost 39% of the domestic production.

USA has been the largest importer of Indian black pepper in terms of quantity as

well as value. UK has been the second largest importer with its share hovering

around 6-8% in terms of both quantity and value (Charts 7A and 7B).

2.5 International Fundamentals

Pepper is cultivated in developing

countries across Asia and South

America, while its consumption is

mainly concentrated in developed

countries. Global pepper production

has ranged between 2.5 to 3 lakh

tonnes per annum during last

decade (Chart 8). The output is

declining since 2005 following

depleting output levels in the major

producing countries such as

Vietnam and India as pepper plants

suffered various disease.

Till late 1990s, India was the leading pepper producing country followed Indonesia.

But 1999, Vietnam became the top pepper producer bringing more land under

cultivation and increased its production. According to data released by International

Pepper Community (IPC), Vietnam produced 8.8 lakh tonnes of black pepper and

accounted for 33% of the world black pepper production. India accounted for

18.7% of the world production and Indonesia stood at the third place having a

share of 15.1% in global black pepper output (Chart 9).

24

Besides being the largest producer,

Vietnam has also been the largest

exporter of Pepper. Its share in the

global black pepper export stood

around 43% in 2010 with the

volumes touching 96.9 thousand

tonnes. Indonesia is placed at

second position accounting for 22%

of the export market share followed

by Brazil contributing to around

13% of the export market. India

remained at the fourth position

accounting for around 7% of the total global export (Chart 10). Pepper exports

have shown a gradual increase during the first half of the last decade, though they

have picked up significantly during the latter half of the decade peaking at 2.3 lakh

tonnes in 2009 (Chart 8).

World imports of pepper,

including pepper for re-export

in various forms, has

increased in line with exports

(Chart 8). The United States

is the world’s largest importer

and consumer of pepper,

Singapore features strongly in

world trade in pepper as an

importer but though much of

the imports are re-exported.

Germany and Netherlands are

also important pepper

importing countries for a domestic consumption as well as for processing and re-

export. Over the last two years, India has also begun to import significant amounts

25

of pepper, as domestic demand for grinding and extraction as well as other uses

expands. Growth in imports has also been significant in the United Arab Emirates

(UAE), France, Pakistan and Poland.

Table 2: Black Pepper: Balance Sheet (Thousand Tonnes)

Year

Stock

brought

Forward

Production Import Domestic

Consumption

Exportable

Surplus Export

Stock

carried

Forward

Brazil

2011

Actual 24.6 33.0 558.0 6.0 52.1 30.7 21.4

2012 Est.

30.3 580.0 6.8 45.5 26.0 19.5

2013 Proj.

31.3 580.0 6.8 44.6 27.0 17.6

India

2011

Actual 16.7 46.9 16.5 41.3 38.8 23.2 15.6

2012 Est.

41.5 15.0 41.5 30.6 16.0 14.6

2013 Proj.

53.5 13.8 42.0 39.8 23.2 16.6

Indonesia

2011

Actual 10.9 28.0 1.5 6.5 33.9 25.4 8.5

2012 Est.

42.5 1.0 6.6 45.4 40.0 5.4

2013 Proj.

30.0 1.0 6.7 29.7 24.0 5.7

Malaysia

2011

Actual 8.0 18.0 2.2 5.5 22.7 11.0 11.6

2012 Est.

18.5 1.5 5.5 26.1 15.0 11.1

2013 Proj.

19.0 1.5 5.5 26.1 15.5 10.6

Sri Lanka

2011

Actual 1.5 10.8 25.0 7.0 5.3 5.1 259.0

2012 Est.

17.3 25.0 7.1 10.6 10.0 574.0

2013 Proj.

18.0 25.0 7.1 11.5 10.5 999.0

Vietnam

2011

Actual 8.0 90.0 15.0 4.5 108.5 99.9 8.6

2012 Est.

85.0 15.0 5.0 103.6 94.0 9.6

2013 Proj.

80.0 15.0 5.5 99.1 85.0 14.1

World

2011

Actual 72.3 247.0 46.8 92.2 273.9 205.8 68.1

2012 Est. 68.1 255.9 46.6 95.0 275.7 212.0 63.7

2013 Proj. 63.7 254.1 45.4 96.6 266.5 197.4 69.1

Figures are provisional and subject to revision

Source: International Pepper Community

26

2.6 Factors Influencing Prices

2.7 Major Trading Centres for Black Pepper

International Market Domestic Market (Kerala)

Vietnam (primary international grades) Cochin Thodupuzha

Sarawak – Malaysia (primary international

grades Alleppey Chalakudy

Kochi - India (Malabar grade) Calicut, Badagara

Lampung - Indonesia (primary

international grades Nedumangad Cannanore

New York Konni Tellicherry

Singapore Adoor Kanjangad

Rotterdam Pala Kasaragod

Alwaye


27

2.8 Trading in Black Pepper on NCDEX:

Pepper futures contract was launched on April 2004 and since then this contract has

witnessed considerable volatility. Using futures platform producers can minimize

their price risk .Wide range of Market participants ensure good price discovery. With

ever increasing export demand, exporters can insure themselves against price risk.

Being amongst the most liquid contract various market participants can easily enter

or exit the market. Thus the Pepper contract provides space for every investor

category.

Black pepper prices, generally,

start moving higher July

onwards due to off season for

arrivals. However further price

movement for the short period

of 2-3 months depends on the

fresh arrivals from major

exporting countries like

Indonesia, Brazil, Malaysia etc.

in October- November prices

again start moving northward

on winter season demand from

US and EU countries. From

December onwards fresh crop arrival starts in India followed by Vietnam in

February-March. Better crop from these two largest producing countries pressurise

black pepper prices and correction in prices continues till March starting from

December.

A month-wise movement in spot prices of black pepper since introduction of its

contract on the NCDEX platform has been depicted in Chart 12. During the first two

years since the lauch of pepper contract, pepper prices remained range-bound

accompanied by sluggish trading in terms of both volume and value (Chart 13).

28

Source: NCDEX

However, during second half of the year 2006 pepper prices surged significantly

from August to December 2006. The tight supply position due to drop in output in

the producing countries was pointed out as the reason for the increase in prices of

pepper. Pepper prices traded at slightly higher level during 2007 and first half of

2008 compared to that in 2006. During the second half of 2008 prepper prices

started moving downwards due to the absence of active trade participation in the

domestic as well as international market, as demand for pepper in the global

market, particularly from major pepper from the US and the Europe, remained

subdued due to financial turmoil and global recession, despite all in global pepper

production.

During 2009, pepper prices picked up on account of signs of gradual economic

recovery across the globe. Pepper prices remained elevated during August and

November on good domestic demand. Pepper prices soared to new highs in 2010.

Starting from April, prices moved higher on emergence of active buying from local

traders as well as exporters. After witnessing a rally prices took sharp correction

during October 2010. Fresh crop arrivals from other major producing countries like

Indonesia, Malaysia and Sri Lanka started from September which affected exports

29

from India and ultimately pressurized Indian domestic prices. However, in early

November, pepper prices bouced back on lower global production projection given

by International Pepper Community (IPC). End of season in Vietnam, Srilanka,

Malaysia and Indonesia also supported the India pepper prices to trade higher.

The year 2011 maked massive escalations in pepper prices due to drop in pepper

production, growing demand and limited stocks available at producing and

consuming countries. During 2011 the pepper market was very dynamic. The global

stocks have been coming down year on year and prices earned by farmers in the

previous years, although higher than during the 2002-2006 period, were not

remunerative enough for them to increase their acreage or plantation, except

maybe in Vietnam.

Pepper prices scaled even higher toching new peacks in 2012 due to production

shortfall amid high domestic and overseas demand. Accoding to a survey pepper

production in Kerala would be lower than normal. The survey foresees a supply

squeeze triggered by erratic weather conditions, shrinking acreage under pepper

and declining productivity in the major growing tracts of Kerala.

30

2.9 Policy Environment

Following initiatives have been undertaken by the Spices Board to mitigate the

challenges faced by pepper growers in the country

• Re-plantation and rejuvenation of pepper plantations in Idukki & Waynad

districts of Kerala and North Eastern states;

• Training on Good Agricultural Practices(GAP)to farmers, traders, NGO’s,

extension advisory staff and unemployed rural youth;

• Support to farmers in acquiring Organic Certification under National

Programme for Organic Production (NPOP);

• Training for mass production of Bio-agents [Trichoderma / Pseudomonas /

Entomo Pathogenic Nematodes] to farmers and establishment of Bio-agent

production units;

• Mobile Agri Clinic services (weekly) and Free Soil testing;

• Thrust on farm mechanization. Assistance for the purchase of mechanical

pepper threshers;

• Support to farmers for hygienic drying of pepper (supply of Bamboo

mats/polythene sheets and construction of concrete drying yards;

• Establishment of Spices Park (Idukki, Kerala) for full line processing namely

cleaning, grading, sorting, grinding, packing and sterilization;

• Personal Accident Insurance scheme for small and marginal growers and

labourers with subsidized premium.

32

3. CHILLI – THE WONDER SPICE

3.1 Introduction

Chilli, botanically known as Capsicum annuum L.; Capsicum frutescene L., belongs

to the genus capsicum, under the solanaceae family. Chilli is the dried ripe fruit of

the genus Capsicum. Chilli is an annual sub herb and the dried ripe fruit forms the

commercial part of the plant. Chilli has two important commercial qualities - its

colour and pungency levels.

3.2 Origin

Chillies originated in the Latin American regions of New Mexico and Guatemala as a

wild crop in around 7500 BC. It is mentioned in the remains of the pre historic Peru,

that the people native to these places domesticated this crop in 5000 BC to protect

the primary crop from any damage that the birds could do.

Christopher Columbus, the founder of America, was one of the first Europeans who

encountered and consumed chilli, and called it peppers due to the similarity in

taste. He carried chilli seed to Spain in 1493. The cultivation of chilli and Capsicum

spread rapidly from Spain to Europe. It was found that crushing the dried pods give

chilli powder which substituted ‘peppercorn’ in due course of time and chilli earned

more recognition as compared to the peppercorns being simpler to produce and

hotter than other spices.

With the identification of new sea routes by Portuguese and Spanish explorers, chilli

was brought from Brazil to India during the year 1584. The south Asian climate

suited this vegetable crop, and since then the concentration of production of chillies

shifted to Asia.

3.3 Usage

Dry chilly is extensively used as spice in curried dishes. Chilli imparts pungency and

colour to the dishes. It is also used as an ingredient in curry powder, in seasonings

pickles, chutneys and beverages.

33

Paprika, Bydagi chilly, Warangal chapatta and similar high colour less pungent

varieties are widely used for colour extraction. This colour is highly popular among

food and beverage processors for its use as a colouring agent.

As a medicine it is used as a counter

irritant in Lumbago, Neuralgia, and

Rheumatic disorders. The enzyme

isolated from chilly is used in the

treatment of certain type of cancers.

Chilli is also a rich source of Vitamin A,

C and E and assists in digestion. It also

prevents heart diseases by dilating

blood vessels.

Pungent types of chillies are used by

the pharmaceutical industry in the

preparation of stimulant and counter

irritant balms and in stomach ache, carminative and stimulant formulation.

Oleoresin capsicum is used in pain balms and vaporubs.

Oleoresin is a viscous liquid, possessing aroma and flavour, is also extracted from

finely ground chilli powder. Capsicum oleoresin is used in medicine internally as a

powerful stimulant and carminative and externally as a counter irritant in the

treatment of diseases such as rheumatism.

Chillies are reportedly used for curing various types of ailments in homeopathy.

3.4 Cultivation

Chilli can survive on different soil types and several climatic conditions. However,

the best output of this crop is obtained when Chilli is cultivated on light loamy or

sandy loam soils rich in lime and organic matters with temperature ranging from 20

to 25 degrees. A warm humid climate favours growth while warm and dry weather

enhances fruit maturity. Duration of crop is 3 to 4 months.

Use of Chilli

Food Adjunct

As a Colouring

Agent

As a Medicine

34



In India, chillies can be grown during the entire year in one or the other part of the

country. Generally, two crops are produced in the year each dry and wet season.

The seed or the seedlings are planted in April and are harvested in August in dry

season. In wet season the crop is planted as and when the rainfall occurs starting

from August and harvesting takes place in December and chillies start reaching the

major markets in February and March.

State-wise Harvesting Season in India

Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Andhra Pradesh

Gujarat

Himachal Pradesh

Jammu & Kashmir

Karnataka

Madhya Pradesh

Maharashtra

Rajasthan

Tamil Nadu

Uttar Pradesh

West Bengal

India

Source : www.indiastats.com

As per the latest data available from the Ministry of Agriculture, during the last two

decades, area sown under chilli in India has remained sluggish and saw a decline of

1.2% in its compound annual growth rate (CAGR). During 1991-92 to 2002-03,

average area covered under chilli stood at around 8.8 lakh hectares, ranging from

the maximum acreage of 9.6 lakh hectares covered in 1992-93 to a low of 8.2 lakh

hectares reported in 2002-03. However, sown acreages shrank drastically from

2003-04 onwards for seven years in a row with the average sowing touching 7.5

35

lakh hectares, hardly rising above 8 lakh hectares during the in-between years

(Chart 1).

Chilli production, however, has increased gradually during the same period

recording a CAGR of around 3% from 6.2 lakh tonnes in 1991-92 to 12 lakh tonnes

in 2009-10, touching a peak of 13 lakh tonnes in 2007-08. Crop damage due to

floods in major producing regions of South India affected chilli production as well as

yield particularly in 2005-06; though rising export demand coupled with higher

price realization in the domestic market helped endure the farmers’ interest in chilli

cultivation which in turn boosted chilli production in the consecutive years. Chilli

production has consistently remained above 12 lakh tonnes from 2006-07 onwards

with productivity sustaining above 1550 kg per hectare.

During the period of two decades under consideration, average chilli yield hovered

around 1234 kg/hectare, varying from a low of 730 kg/ hectare in 1991-92 to a

peak of 1630 kg/hectare in 2008-09.

0

200

400

600

800

1000

1200

1400

0

200

400

600

800

1000

1200

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

Production ('000 Tonnes)

Area ('000 Hectares)

Chart 1: Trend in Area, Production and Yield of Chilli

Area ('000 Hectares) Production ('000 Tonnes)

730

896

860

958

916

1129

1035

1171

1098

1176

1215

1081

1596

1607

1551

1627

1611

1630

1568

Yield (Kg/Hectare)


36

A glance at a state-wise bifurcation reveals that chilli is grown in almost all states in

India, though its cultivation is mainly concentrated in southern states, with Andhra

Pradesh being the top cultivator as well as producer of chilli followed by Karnataka

(Charts 2 & 3).

As per the latest available data, in 2007-08, area under cultivation in Andhra

Pradesh stood at 223 thousand hectares followed by Karnataka at 136 thousand

hectares and Maharashtra at 100 thousand hectares. Thus, Andhra Pradesh and

Tamil Nadu together accounted for around 45% total sown acreage under chilli in

2007-08.

In terms of production, the two states contributed to more than 70% of the total

production in 2007-08. Andhra Pradesh recorded the highest output of 772

thousand tonnes followed by Karnataka at 155 thousand tonnes and West Bengal at

93.7 thousand tonnes.

Source: Ministry of Agriculture Source: Ministry of Agriculture

37

Productivity of chilli is highest in Andhra Pradesh. In 2007-08 it touched 3462 kg

per hectare followed by in Andaman & Nicobar Islands at 1750 kg per hectare and

in Punjab at 1615 kg per hectare (Chart 4).

Varieties of Chilli

There are more than 400 different varieties of chillies found all over the world. India

is the only country rich in many varieties of chillies with different quality factors;

some varieties are famous for red colour because of the pigment casanthin, while

others are known for biting pungency attributed by capsaicin.

The world’s hottest chilli ‘Naga Jolokia’ is cultivated in hilly terrain of Assam in a

small town Tezpur of India. Different varieties of chilli are grown for vegetables,

spices, condiments, sauces and pickles.

800 1800 2800 3800

Andhra Pradesh

Arunachal Pradesh

Bihar

Jammu & Kashmir

Karnataka

Kerala

Madhya Pradesh

Nagaland

Orissa

Punjab

Rajasthan

Tripura

West Bengal

A & N Islands

All India

Chart 4: Trend in Chilli Yield: Major States (kg/hectare)

2007-08

2006-07

2005-06


38

While salient features of some of the important varieties cultivated in India are

given in Table 1, state-wise available varieties of chillies are enumerated in Table 2.

Table 1: Different Varieties

Chilli Cultivars Producing

Region Characteristics

Harvesting

Period

Annual

Production Market

ASTA

colour

value

Capsaicine

Birds Eye Chilli

(Dhani) Mizoram & some

areas of Manipur

Blood red in

colour, highly

pungent

October to

December NA Calcutta 41.7 0.59%

Byadagi

(Kaddi) Dharwar

Karnataka

Red in colour

with less

pungency or

without

pungency

January to

May

21,000

tonnes Hubli-Dharwad 159.9 Negligible

Ellachipur

Sannam-S4

Type

Amaravathi

District of

Maharashtra

Reddish in

colour and

very hot

September

to

December

1800

tonnes

Mumbai,

Delhi,Ahemedabad

and Nagpur

70.4 0.20%

LCA 334

Guntur,Warangal,

Khammam

Districts of

Andhra Pradesh

Skin thick,hot

and red

December

to May

2,80,000

tonnes Guntur 32.11 0.23%

Hindpur-S7 Hindpur in

Andhra Pradesh

Red in

colour,hot and

highly

pungent

December

to March NA Hindpur 33 0.24

Jwala Kheda, Mehsana

& in South

Gujarat

Highly

pungent, light

red in

colour,short

and the seeds

are compact

September

to

December

NA Unjha NA 0.40%

Kanthari-White

Kerala & some

parts of Tamil

Nadu (Mainly

grown as a

homestead crop)

Short and

ivory white in

colour with

high pungency

NA

Available in the

markets

throughout the

year

2.96 0.50%

Kashmir Chilli

Temperate

regions such as

Himachal

Pradesh,Jammu

& Kashmir and

also in sub-

tropical regions

of North India

during winter

season

Long,

fleshy,

deep red in

colour

November

to

February

NA North India 54.1 0.33%

Madhya

Pradesh

G.T.Sannam

Indore, Malkapur

Chikli and

Elachpur areas of

Madhya Pradesh

Red in colour

and pungent

January to

March

7500

tonnes

Major markets of

Madhya Pradesh NA NA

Source: http://www.indianmirror.com/ayurveda/indian-spices/chilli.html

39

Table 2: Zone-wise Major Varieties of Chilli in India

Sl.

No. State Variety

SOUTH ZONE

1 Andhra

Pradesh

Jwala, X-235, G-1, G-2, G-3, G-4, G-5, LCA-205, 206, 235, Karakulu,

Sannalu, Dippayerupu, Punasa, Maduru, Pottibudaga, Hybrid, Bharat,

Aparna, Pottikayalu, Cullakayalu, Barak, Mota, Chapta, DesiSindu, Kiran,

Chikkaballapur (Lavangi), Sapota.

2 Karnataka Jwala, Bayadgi, G-1, G-2, G-3, G-4, G-5, Pusa Jwala

3 Kerala Jwala, Sadabahar, Champa, CO-1, Nandan, K-1

4 Pondicherry K-1, K-2, CO-1, CO-2

5 Tamil Nadu K-1, K-2, CO-1, CO-2, CO-3, PMK-1, PMK-2, Borma Wonder, Sannam,

Palam

NORTH ZONE

6 Bihar Rori, Moti Mirchi, Chittee

7 Haryana NP-46-A, Pusa Jwala, Pusa Summer

8 Himachal

Pradesh

Solan Yellow, Hot Portugal, Pachad Yellow, Sweet Banana, Hungarian

Wax, Punjab Lal

9 Jammu &

Kashmir NP-46-A, Ratna Red, California Wonder

10 Punjab CH-1, Sanauri

11 Uttar

Pradesh NP-46, Jwala Pant C-1, Desh, Pahadi, Kalyanpur, Chaman and Chanchal.

EAST ZONE

12 Assam NP64-Am Pusa Jwala, Surya Mukhi, Krishna, Balijuri

13 Tripura Jwala, Suryamukhi, Krisha, Balijwai

14 West Bengal Siti and Suti, Akashi, Kajari, Bow, Dhani, Bullet, Dhala.

WESTERN ZONE

15 Goa Cacana, harmal, Tanvati, Lavangi

16 Gujarat K-2, Pant C-1, Jawahar-218, NP-46-A, Jwala.

17 Rajashtan CH-1, NP-46-A, Jwala, Pant C-1, G-3, G-5

CENTRAL ZONE

18 Madhya

Pradesh Pusa Jwala, Sona-21, Jawahar, Sadabahar, Agni.

19 Maharashtra Pathori, Bugayati, Dhobri, Black seed, Chaski, Bhiwapuri

20 Orissa Jwala, Deshi, Sadabahar.

Source: Post harvest Profile of Chilli, Directorate of Marketing & Inspection,

Ministry of Agriculture

40

Consumption of Chilli: Domestic demand + Export Demand

Following a healthy domestic demand from household sector (for food usage) and

the spice as well as food

processing industry, more than

80% of the chilli produced in the

country is consumed internally.

This leaves the country with a

smaller exportable surplus.

However, as the Indian chilli is of

superior quality, demand for

Indian chilli is on rise and as a

result chilli exports from India has

picked up in recent past. The

large demand of chilli is made by

several chilli consuming countries

as it forms part of cuisines of various cultures and is also used as a colouring agent.

Most of its demand is generated in the food processing sector (Chart 5).

Among spices, chilli is the largest

spice exported from the country in

terms of quantity. Chilli powder,

dried chillies, pickled chillies and

chilli oleoresins are some of the

forms in which this crop is

exported from the country.

With its exports estimated at 2.41

lakh tonnes in 2011-12, chilli

accounted for around 42% of the

total spices exports. In terms of

value, chilli has been placed at

second position with exports

0.0

500.0

1000.0

1500.0

2000.0

2500.0

0.0

50.0

100.0

150.0

200.0

250.0

300.0

1991-92

1993-94

1995-96

1997-98

1999-00

2001-02

2003-04

2005-06

2007-08

2009-10

2011-12…

Value (Rs Crore)

Quantity ('000 Tonnes)

Chart 6: Chilli Exports

Quantity ('000Tonnes)Value (Rs Crore)

Source: Spices Board & www.indiastats.com

Source: Spices Board & www.indiastats.com

41

estimated at Rs 214 crore contributing 22% of the total spices exports from the

country. Chart 6 reveals that chilli exports have gained momentum since 2004-05

onwards when it had crossed a mark of 1 lakh tonnes. The surge in the production

of chilli crop and subsequent availability of large exportable surplus in the country

when the crop in other major producing countries declined seem to have resulted in

a boom in the chilli exports.

Major Export Markets for Chilli

Malaysia has been the largest importer of Indian chilli in terms of quantity as well

as value, followed by Sri Lanka and Bangladesh in 2010-11. The three importers

together account for 48% of the total chilli exported from the country in terms of

both quantity and value.


42


India is considered as the largest producer, consumer and exporter of chilli in the

globe contributing over 70% of the world production.

Global production of chilli stands at about 20.00 lakh MT to 25.00 lakh tonnes per

annum. India is the largest producer followed by China, Pakistan and Mexico etc. In

Spain and Pakistan it is sown during February to April - May and harvesting starts

from July and lasts till October- November. In China and Mexico the crop is sown in

the month of June- September and crop comes to market by the month of

November till February- March. Thus, sowing cycle starts from Pakistan and Spain

followed by China, Mexico and India.

China has emerged as the major exporter in the world market and as a serious

competitor in the International market for India.


Chilli

Prices

Domestic Fundamentals

World production & Exports

International trading price

Domestic and

Export demand

Carry forward stocks

Sowing and

Harvesting

Climatic conditions

43

3.8 Trading in Chilli on NCDEX:

Chilli Futures contract was launched on NCDEX platform 11th March 2005 and since

then the contract has witnessed good participation from various supply chain

participants.

A glance at the seasonal

movement in prices of

chillies traded on the

NCDEX platform reveals

that they follow a seasonal

pattern. Chilli prices,

generally, remain

pressurised in the

beginning of the calendar

year starting from January

till May due to heavy

arrivals in markets.

However, from June

onwards prices start

moving northwards

towards the end of the arrival season as well as on account of pick-up in export

demand and increased demand from domestic economy ahead of festive season.

Nonetheless, prices also face small corrections during this period on

commencement of the sowing season.

A month-wise movement in spot prices of red chilli since introduction of its contract

on the NCDEX platform has been depicted in Chart 9. Since the launch of red chiili

contract, chilli prices remained range-bound for a very short period of

approximately 3-4 months accompanied by smaller trading turnover in terms of

both volume and value (Chart 10). However, the major floods in southern parts of

the country during 2005-2006 hampered red chilli production and in turn its

arrivals, which set red chilli prices spiralling upward touching unprecedented high

levels by the end of the calendar year 2006. Heavy export orders and increased

Near MonthFutures

2500

3000

3500

4000

4500

5000

5500

6000

6500

7000

7500

8000

8500

9000

9500

10000

10500

11000

10-Nov-05

22-Feb-06

6-Jun-06

18-Sep-06

31-Dec-06

14-Apr-07

27-Jul-07

8-Nov-07

20-Feb-08

3-Jun-08

15-Sep-08

28-Dec-08

11-Apr-09

24-Jul-09

5-Nov-09

17-Feb-10

1-Jun-10

13-Sep-10

26-Dec-10

9-Apr-11

22-Jul-11

3-Nov-11

15-Feb-12

29-May-12

10-Sep-12

23-Dec-12

Rs per Quintal

Source: NCDEX

Chart 8: Trend in Spot and Near Month Futures Prices

of Chilli (Nov 2005 to Dec 2012)

Spot

44

domestic demand also fuelled this uptrend in chilli prices. Chilli turnover in terms of

both volume and value also soared to all-time during this period as can be seen in

Chart 10.

Prices eased in the subsequent year, as more area was brought under chilli

cultivation following higher price realization in the domestic market during 2006.

Prices continued to trade

at lower level during the

first half of calendar year

2008; however, a decline

in chilli production in

Andhra Pradesh, the major

producing state due to the

heavy rains during harvest

season once again trigged

the northward movement

in chilli prices, though they

remained lower that the

historical levels reached

earlier in 2006.

During the calendar year 2009, chilli prices sustained at a level slightly higher than

that touched at the end of 2008; but the subsequent year 2010 saw chilli prices

falling throughout the year except for last two months. Higher price realisation,

introduction of high yielding varieties and rising export demand attracted farmers to

increase area under chilli cultivation which dented prices during this period. The

calendar year 2011 witnessed sharp escalations in chilli prices, as chilli prices leap

bounded from around Rs 6000 per quintal level traded at the end of 2010 to touch

record high levels of above Rs 8000 per quintal for most of the period during the

year. Unseasonal heavy rains during crop maturity and harvesting period in major

growing regions of Andhra Pradesh damaged the crop significantly. The expected

slump in production and lower carryover stocks induced the historical upward rally

Source: NCDEX

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Rs per Quintal

Chart 9:Trend in Spot Prices of Red Chilli:

Monthly Average

2005

2006

2007

2008

2009

2010

2011

2012

45

in chilli prices. Though prices came under pressure in the month of February mainly

on account of normal chilli harvest in China – the second largest producer, they

resumed uptrend once again

on good demand from

stockiest due to lower

domestic production in

addition to gaining some

support by export demand

from Bangladesh, Malaysia.

However, prices trimmed

down heavily towards the end

of the year 2011 on reduced

buying interest by stockiest

amid declining quality of

arrivals.

Chilli prices remained heavily supressed during 2012 as farmers resorted to

increasing area under chilli cultivation this year in the hope of getting better

returns, alike last year. Better production prospects coupled with weak demand

from overseas markets also added downward pressure on chilli prices during the

year.

3.9 Major Trading Centres for Chilli

Tamil Nadu Andhra Pradesh Madhya Pradesh

Virudhnaga,

Tuticorin,

Sankarankoil,

Kovilpatti,

Theni,

Ariyalur,

Ramnad

Guntur

Warangal

Khammam

Hindupur

Khandwa

Bediya

Source: Spices Board and media sources

Source: NCDEX

0.0

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800.0

1000.0

1200.0

0.00

1000.00

2000.00

3000.00

4000.00

5000.00

6000.00

7000.00

8000.00

Mar-05

Jun-05

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

Sep-07

Dec-07

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Mar-12

Jun-12

Sep-12

Dec-12

Volume ('000 Tonnes)

Value (Rs Crore)

Chart 10: Red Chilli Turnover on NCDEX

(Mar 2005 to Dec 2012): Monthly AverageVolume (Thousand Tonnes)

Value (Rs crore)

46

3.10 Policy Environment

• Individual growers are provided subsidy for construction of concrete /

cemented drying yards (area up to 150 sq.mt);

• Community drying yards by NGOs/Farmers’ Groups (SHGs), Association of

Farmers & Agri. Market Committees are given 50% of the cost of

construction of concrete/cemented drying yards as subsidy;

• Under the Promotion of Integrated Pest Management (IPM) programme,

chilly growers having area upto 8 hectares in the slected villages of Guntur ,

Prakasam and Khammam districts of Andhra Pradesh are provided with IPM

kits containing pheromone traps, bio agents like trichoderma, trichogramma,

neem pesticides, worms for producing vermicompost etc. with subsidy worth

Rs. 1500 per hectare towards 50% of the cost of IPM Kit.

The first meeting of the Task Force Committee for Chillies held on May 18, 2012

recommended following measures:

• Spices Board may suggest the State Seed Corporation (SSC)/National Seed

Corporation (NSC) to produce the varieties of (IPM) chilli seeds like Teja and

Bhujnal with better resistance against pests.

• Spices Board may request the State Horticulture Departments of Andhra

Pradesh, Karnataka and Tamil Nadu to explore the possibility of developing

trial cultivation of good Paprika varieties.

• Spices Board along with Exporters/Traders may have a dialogue with the

State Horticulture Departments of the Chilli producing states for developing a

revised Package of Practices for Chilli. Necessary publicity campaigns shall

also be undertaken so as to create awareness amongst the farmers.

• The development schemes operated by the Spices Board for providing Drying

yards/ Silpaulin sheets to the farmers shall be continued.

• The QEL of Spices Board may carry out a comparison study of the Indian and

ASTA methods of sampling of chillies. Based on the outcome of the study, it

should be decided if the methods of sampling which is currently being

followed by the Board needs to be re-looked.

• Spices Board may contact the State Horticulture Department of Karnataka to

work out a Buy-back arrangement for chilli in Karnataka.

47

4. TURMERIC – THE GOLDEN SPICE

4.1 Introduction

Turmeric, botanically known as Curcuma longa (LINN), belongs to Zingiberaceae,

the family of Ginger. It is a perennial herb, which gets cultivated and propagated

with the help of its rootstalk/ rhizome. The name ‘turmeric’ is derived from the

Latin terra merita (‘meritorious earth’) referring to the color of ground turmeric

which resembles a mineral pigment.

4.2 Origin

History of turmeric dates back to ancient era. Though its exact origin remains

unidentified, it is considered native of tropical South Asia. Reports indicate that the

Arab traders took turmeric to Europe in the 13th century and during the Middle Ages

because of its color, it was known as Indian saffron in Europe. Marco Polo, in 1280,

mentioned about turmeric in notes of his travels in China that "There is also a

vegetable that has all the properties of true saffron, as well as the smell and the

color, and yet it is not really saffron."

4.3 Usage

Turmeric is widely used in a dried, powdered

form as food adjunct imparting flavor as well

as color to food stuff. Leaves of turmeric are

also used to wrap and cook food in some

parts of India. Turmeric oleoresin, which is

obtained by solvent extraction of the ground

spice, is used in brine pickles and to some

extent in mayonnaise and relish

formulations, non-alcoholic beverages,

gelatins, butter and cheese etc.

Use of Turmeric

Food Adjunct

Dying /Coloring Agent

As a Medicin

e

In Religiou

s Rituals

As a Cosmeti

c

48

It has been used extensively in various ceremonies and religious rituals in India and

China since ancient period, as it is considered highly auspicious.

However, initially turmeric was cultivated in India mainly as a dye, because

Curcumin from Turmeric produces a range of colors from yellow to deep orange. Its

use as a colouring material is reported in pharmaceutical, confectionery, rice

milling, food, paints and varnishes industries.

With increasing awareness about its several medicinal properties like anti-

inflammatory, anti-oxidant, carminative, tonic, blood purifier, vermicide and

antiseptic, turmeric’s usage for medicinal and cosmetic purposes got popularized.

Indian Ayurvedic and Chinese medicines are found to be using turmeric for the

treatment of inflammatory and digestive disorders since ages.

Turmeric has been considered as an excellent natural cosmetic. Turmeric’s external

application is found to be useful in treating many skin diseases ranging from acne

to leprosy to skin cancer. Turmeric serves as First-Aid in accidents ranging from

cuts to concussions. In fact, its popularity in Western cultures is of the recent past

following a research study which highlighted turmeric’s therapeutic properties.

4.5 Cultivation

It grows in tropical climatic conditions (hot and humid) with temperature ranging

between 20 to 30 degrees, along with light black, black clayey loams and red soils

in irrigated as well as rain fed areas from sea level to 1200 meters above mean sea

VALUE ADDED PRODUCTS

Turmeric

Essential Oil:

It is obtained by distillation, or by supercritical fluid extraction of the

powdered rhizome. It is also the product of curcuminoids

purification from oleoresins.

Turmeric Powder:

It is a major ingredient in curry

powders and pastes. In the food

industry, it is mostly used to

colour and flavour mustard.

Oleoresins:

They refer to extractives, are obtained by solvent extraction of the powdered or

comminutated rhizome.

Curcuminoids:

It is a coloring matter consists mostly of curcumin, which can be further purified to a crystalline material, and

are used preferably, in products where the turmeric

flavour is undesirable.

Volatile oils: they are used to

impart the flavour to

the product.

49

level (MSL). The crop cannot stand water logging or alkalinity and is very sensitive

to low atmospheric temperature. The commercial part of the plant is its rhizome or

underground stem, which gets processed to make it ready for commercial

utilization.

Turmeric Processing

WASHING: Mother and Finger Rhizomes are soaked in water over night and afterthey are taken out water is sprayed to get rid of unwanted partilces of soil.

BOILING: Rhizomes are boiled /blanched until they become soft and the innercolour become yellow instead of red. In the traditional method boiling is done using ametal or mud pots anlong with 3/4 water until foams or white foams startsevaporating. In modern method, perforated frame loaded with turmeric tubers orbulbs are sunk in soda solution filled in the boiler which gets heated from the bottomby electric heater or fuel oil. Water gets poured from all sides of perforations during theprocess of boiling.

DRYING: Cooked rhizomes are cooled first and spread in the yard for drying. Ittakes at least 10 to 15 days for drying in the sun. Dried rhizomes become hard andsolid and have 6% of moisure.

POLISHING: Traditional method involves rubbing of dried rhizomes against groundor below foot to get rid of hard layer and small roots. Modern technique involves use ofa machine - Polishing Drum - which is operated by a handle. Water is also sprinkledduring the polishing process which enhances colour of a turmeric.

COLOURING: It can be done in two ways: Dry colouring and Wet colouring. In thefirst process, dry powder of yellow colour, known as middle crome, is sprayed on boiledturmeric and rightly mixed. In the wet colouring process its solution is prepared inwater which is sprayed on rhizomes and mechanically mixed. After colouring rhizomesare dried for one week.

GRINDING: Traditionally, dried and polished turmeric are cut into pieces and beatenin mortar and pestle. After this is milled or ground with hand operated chakki. Hammermill is also used for grinding.

Source: www.indiaagronet.com

50



In India, Turmeric is a kharif crop. Its sowing begins in June and extends up to

August. The crop is harvested when the leaves turn yellowish after 7 to 10 months

of plantation and start drying up. The plant is harvested by digging the rootstalks

up. While some rhizomes are collected, some rhizomes are left so that the plant

remains perennial. From September to March the plant remains dormant, but the

roots survive to come up with green leaves once again.

State-wise Harvesting Season in India

Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Andhra Pradesh

Bihar

Himachal Pradesh

Karnataka

Kerala

Madhya Pradesh

Manipur

Rajasthan

Tamil Nadu

Uttar Pradesh

Source: www.indiastats.com

Usually harvesting begins from January-February and continues till March. The crop

becomes ready for harvest depending upon variety, fertility status of soil and

moisture availability. It has been reported that early varieties mature in seven to

eight months, medium varieties in eight to nine months and late varieties after nine

months.

As per the latest data available from the Ministry of Agriculture, during the last two

decades, area under turmeric in India has grown at a compound annual growth rate

(CAGR) of 2.2% from 1.2 lakh hectares in 1991-92 to 1.8 lakh hectares in 2009-10.

The production has grown at the CAGR of 4.1% from 3.7 lakh tonnes in 1991-92 to

7.9 lakh tonnes during the same period (Chart 1).

51

A glance at a state-wise bifurcation reveals that turmeric is grown in as many as 24

states in India, though its cultivation is mainly concentrated in peninsular region of

the country, with Andhra Pradesh being the top cultivator as well as producer of the

golden spice followed by Tamil Nadu (Charts 2 & 3).

As per the latest available data, in 2007-08, area under cultivation in Andhra

Pradesh stood at 63 thousand hectares followed by Tamil Nadu at 27.3 thousand

hectares and Odisha at 24.7 thousand hectares. Thus, Andhra Pradesh and Tamil

Nadu together accounted for more than half of the total sown acreage under

turmeric in 2007-08.

0.0

100.0

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400.0

500.0

600.0

700.0

800.0

900.0

0.0

50.0

100.0

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250.0

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

Production ('000 Tonnes)

Area ('000 Hectares)

Chart 1: Trend in Area, Production and Yield of Turmeric:

India


3102

3131

4767

4163

3323

3912

3931

3721

4734

3726

3368

3479 3763

4525

4952

4408

4532

4535

4382

Yield (Kg/ hectare)


52

In terms of production, the two states contributed more than 70% of the total

production in 2007-08. Andhra Pradesh recorded the highest output of 416

thousand tonnes followed by Tamil Nadu at 146 thousand tonnes and Karnataka at

64.7 thousand tonnes.

53

However, productivity of turmeric is highest in Gujarat. In 2007-08 it touched

14100 kg per hectare followed by in Haryana at 10778 kg per hectare and in

Andhra Pradesh at 6603 kg per hectare.

Varieties of Turmeric

Around 30 varieties of turmeric are grown in India, which vary in terms of their

appearance, rhizome thickness, colour intensity, aroma and hardness of the core

and duration. Based on the period required for turmeric cultivars to get ready for

harvest, they can be divided into three categories, viz., short (6 months), medium

(8 months) and long (9 months) duration. Short duration turmeric cultivars

generally are long thick rhizomes with shiny skin and aroma and low curcumin

content. Medium duration varieties are medium long and thick rhizomes with

narrow constrictions, while long duration varieties are in the form of long stout,

smooth and hard rhizomes with pale yellow colour. Medium duration cultivars are

observed to have the highest yield potential (14 to 35 tonnes/hectare), followed by

long duration varieties (15 to 17 tonnes/ hectares) and short duration (8 to 20

tonnes / hectares). Dry recovery rate has been the highest for short duration

varieties (26 to 30%), while it is more or less same for medium and long duration

cultivars at around 20%.

Some of the important varieties cultivated in different states include:

Cultivar State

Alleppey Finger, Mannuthy Kerala

Erode, Salem Tamil Nadu

Rajapore, Desi Cuddapah Maharashtra

Nizamabad Bulb, Kesari, Duvvur, Amruthapani, Kothapeta, Duggirala, Tekurpet, Mydukur, Armoor, Sugandham,

Vontimittra, Nandyal, Ananigadda

Andhra Pradesh

Shillong, Tall Karbi Assam

Dughi, Jobedi, Katigia Orissa

Gorakpur Uttar Pradesh

54

Improved Cultivars of Turmeric and their Characteristics

Variety Source Size

Fresh

yield

(t/ha)

Average

Potential

Average

Crop

duration

(days)

Dry

recovery

(%)

Curcumin

(%) Oleoresin Essential Oil

1 BSR-1 Large 30.7 39.6 285 20.5 4.2 4 3.7

2 BSR-2 Medium 32.7 43.2 20 3.8 - -

3 Co-1 Large 30 35 285 19.5 3.2 6.7 3.2

4 IISR

Prabha Medium 37.5 - 195 19.5 6.5 15 6.5

5 IISR

Prathibha Medium 39.1 - 188 18.5 6.2 16.2 6.2

6 Krishna Medium 9.2 11.8 240 16.4 2.8 3.8 2

7 Rajendra

Sonia Medium 4.8 - 225 18 8.4 - 5

8 Ranga Medium 29 37.1 250 24.8 6.3 13.5 4.4

9 Rasmi Medium 31.3 37.5 240 23 6.4 13.4 4.4

10 Roma Medium 20.7 40 250 31 9.3 13.2 4.2

11 Sudarsana Small 28.8 54.9 190 12 5.3 15 7

12 Sugandham Medium 15 20 210 23.3 3.1 11 2.7

13 Suguna Small 29.3 60.3 190 12 7.3 13.5 6

14 Suroma Medium 20 44.9 255 26 9.3 13.1 4.4

15 Suvarna Medium 17.4 43.5 200 20 4.3 13.5 7

Source: Spices Board and Indian Institute of Spices Research

Among these, BSR -1 & 2 and Co-1 have been developed by Tamil Nadu

Agricultural University (TNAU), while IISR Prabha, IISR Prabha, Sudarsana, Suguna

and Suvarna have been developed by India Institute of Spices Research (IISR),

Kerla.

Roma and Suroma from Pottangi (Orissa), CO 1 and BSR 1 from Coimbatore (Tamil

Nadu) and Sugandham from Jagudan (Gujarat) have been released as high yielding

varieties under the All India Co-ordinated Research Project for Improvement of

Spices.

55

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90.0

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

(Est.)

Value in Rs Crore

Quantity in thousand tonnes

Chart 5: Turmeric Export

Quantity ('000tonnes)

Value Rs crore

Consumption of Turmeric: Domestic demand and Export demand


also from pharmacy and dyeing industries, more than 90% of the turmeric

produced is consumed internally, which leaves the economy with a smaller

exportable surplus. Since last couple of years India’s turmeric export is hovering

around 6 to 6.5% of the total domestic production (Chart 4). For e.g., as per the

latest available data, in 2009-10, only 50.8 thousand tonnes of turmeric was

exported from 793 thousand tonnes produced in the country.

After chilli, turmeric is the second largest spice exported from the country. With its

exports estimated at 79.5 thousand tonnes in 2011-12, turmeric accounted for

13.8% of the total spices exports, while in terms of value its share stood at 7.5% or

Rs 734.3 crore (Chart 5). Important turmeric varieties exported include Allepey

finger turmeric, Rajapuri, and Erode variety. Export of turmeric takes place in the

form of dry turmeric after polishing, fresh turmeric, turmeric powder, dehydrated

turmeric powder, oils and oleoresins.

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

Quantity in '000 tonnes

*: Consumption data has been arrived at without considering stocks carried forward

and imports.

Chart 4: Turmeric

Consumption*

vis-a-vis Export Export Consumption

Source: Spices Board & www.indiastats .com Source: Spices Board & www.indiastats .com

56

Major Export Markets for Turmeric

United Arab Emirates (UAE) has been the largest importer of Indian turmeric in

terms of quantity as well as value, followed by Malaysia and, Japan in 2010-11. The

three importers together account for one third of the total turmeric exported from

the country.


India is considered as the largest producer, consumer and exporter of turmeric in

the globe contributing over 70% of the world production.

Global turmeric production is estimated around 11 -11.5 lakh tonnes. Other major

producers of turmeric in Asia are China, Myanmar, Bangladesh, Pakistan, Sri Lanka,

Taiwan, Burma and Indonesia, etc. Turmeric is also produced in the Caribbean and

Latin American countries like Jamaica, Haiti, Costa Rica, Peru and Brazil.

India holds key position in world trade of Turmeric. Other major exporters are

Thailand, other Southeast Asian countries, pacific islands, Central & Latin American

countries and Taiwan.


57

UAE, Iran and Malaysia are major importing countries. India also imports turmeric

for value addition and re-export.


4.9 Turmeric Trading on NCDEX

Turmeric futures contract was launched on NCDEX platform in April 2004 and since

then it has witnessed considerable participation from various supply chain

participants. Using futures platform producers can minimize their price risk. With

ever increasing export demand, exporters can insure themselves against price risk.

Being highly liquid contract market participants can easily enter or exit the market.

Thus the NCDEX Turmeric contract provides space for every investor category.

Turmeric Prices

Domestic Fundamentals

World Production & Export

International Trading Price

Carry Forward Stocks

Sowing and

Harvesting

Climatic conditions

58

Turmeric prices, generally, start

moving lower due to fresh crop arrival

season from January onwards. Prices

remain highly pressurized from March

to June April amid peak arrival

season; nonetheless, active buying by

stockiest during this period does

provide some support. During July-

August prices move gradually as

sowing for next season crop gets

started. However, strong festive

season demand at domestic and

export front supports the prices to

trade higher. Turmeric prices tend to

peak in October-November, the lean

season.

A month-wise movement in spot prices of turmeric since introduction of its contract

on the NCDEX platform has been depicted in Chart 8. During the first two years of

the inception of turmeric

contract, its prices

remained range-bound

accompanied by sluggish

trading in terms of both

volume and value (Chart

9).

As the turmeric price were

less remunerative

comapred to other crops,

farmeres preferred sowing

other cash crops like

Soybean, cotton, gram-

0

2000

4000

6000

8000

10000

12000

14000

16000

18000


Rs per Quintal

Chart 8: Trend in Spot Prices of Turmeric:

Monthly Average

200

4200

5200

6200

7200

8200

9201

0201

1

Source: NCDEX

Source: NCDEX

59

chana etc., which resulted in lower sown acerages during 2007 and turmeric

production declined in the subsequent harvesting period. A combination of lower

output and higher export demand pushed up turmeric prices in 2008. The price hit

all-time highs in 2009 following massive reduction in turmeric output due to

drought conditions in major turmeric producing state – Andhra Pradesh (A.P.-

Nizamabad, Warangal). Upward movement in turmeric prices continued during

2010 with prices scaling to new peaks due to speculative buying on lower

production estimate, anticipation of shortage of stock and emergence of strong

overseas demand. Lower arrivals at spot market because of stock holding by

farmers/ Stokiest in lieu of further rise in price also supported upward rally.

However, prices could not

sustain at these historically

high levels for long time

after production increased

sharply in last two years.

Despite rise in exports in

last financial year, markets

fell to multiyear lows on

huge stocks. The trend has

turned up recently following

good stockiest demand and

expectation of lower crop in

the coming season.

4.10 Major Trading Centres for Turmeric

Indian Market

Alleppey-(Kerala);

Erode-(Tamil Nadu);

Cudappah, Nizamabad, Duggirala, Guntur-(Andhra Pradesh)

Sangli-(Maharashtra)


Source: NCDEX

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

1400.0

1600.0

1800.0

0.0

2000.0

4000.0

6000.0

8000.0

10000.0

12000.0

Jul-04

Dec-04

May-05

Oct-05

Mar-06

Aug-06

Jan-07

Jun-07

Nov-07

Apr-08

Sep-08

Feb-09

Jul-09

Dec-09

May-10

Oct-10

Mar-11

Aug-11

Jan-12

Jun-12

Nov-12

Volume ('000 Tonnes)

Value (Rs Crore)

Chart 9:Turmeric Turnover on NCDEX

(Jul 2004-Dec 2012): Monthly AverageVolume (Thousand Tonnes) Value (Rs crore)

60

4.11 Policy Initiatives Undertaken For Promoting Turmeric Production

• Individual growers are provided subsidy for construction of concrete /

cemented drying yards (area up to 150 sq.mt);

• Community drying yards by NGOs/Farmers’ Groups (SHGs), Association of

Farmers & Agri. Market Committees are given 50% of the cost of construction

of concrete/cemented drying yards as subsidy;

• Organic cultivation of Lakadong turmeric (much preferred by the exporters for

extraction of the colour) is promoted in Meghalaya and other North Eastern

states. Rs.12500/- per hectare is provided as subsidy towards 50% of the cost

of planting material;

• To popularize the practice of using improved polishers for polishing turmeric,

turmeric growers having area up to 8 ha. are funded with 50% of the cost of

the polisher or Rs.16000/- per polisher whichever is less, as a subsidy;

• To popularize the use of turmeric boilers among turmeric growers for

production of quality turmeric suitable for exports, turmeric growers having

area up to 8 ha are provided with 50% of the cost of the boiler or Rs.4000/-

per boiler whichever is less, as a subsidy.

The first meeting of Task Force Committee on Turmeric, held on 18th May, 2012

recommended following measures:

1. Developing a mechanized system for harvesting of Turmeric by

associating with Central Institute of Agriculture Engineering, Bhopal and

Tamil Nadu Agriculture University (TNAU);

2. Spices Board may write to the State Governments to consider

implementation of the minimum support price for Turmeric;

3. The data on high curcumin variety released from various Institutes may

be made available to the state horticultural departments of the turmeric

producing states for conducting field trials. These high curcumin varieties

shall be recommended to the turmeric growers thereby popularizing

production of the same;

61

4. Spices Board may support initiatives for developing more value added

products of turmeric, to increase export volume and for enhancing the

domestic use;

5. Introduction of drying yard schemes for post-harvest management and

supply of Silpaulin sheets to Turmeric growers in Tamil Nadu and

Karnataka;

6. Assessing the possibility of Linkage of markets through NCDEX;

7. Requesting the state governments of Tamil Nadu, Karnataka & Andhra

Pradesh to consider establishing Warehousing facility for turmeric in the

major production centres.

61

5. Coriander or Dhaniya

5.1 Introduction

Coriander or Coriandrum sativum, commonly known as ‘Dhaniya’ belongs to the

Umbelliferae, or carrot family. It is an annual herb, all parts of which, viz., tender

stem, leaves, flowers and the fruits, have pleasant aromatic odour and are edible.

Coriander leaves also known as Chinese parsley, or cilantro (particularly in North

America), and coriander seeds essentially form the commercial parts of the plant.

5.2 Origin

Though often considered an Asian herb, coriander is a native to Mediterranean and

parts of south-western Europe and is believed to be in use since 5000 BC. Its

references are found in early Sanskrit documents, the Bible and ancient Chinese

and Middle Eastern countries. Its seeds have been found in Egyptian tombs of the

21st dynasty. Coriander seems to have been cultivated in Greece at least since the

second millennium BC. The herb was one of the first (along with dandelions) to be

brought to the Americas from Europe. It was brought into Mexico by the

conquistadors (Spanish conquerors or adventurers) in the 1500s. Before 1670 it

was introduced into Massachusetts and was one of the first spices cultivated by

early settlers. At present, in many temperate and tropical countries it has become a

frequent weed in cultivated fields.

5.3 Usage

Coriander is considered to be one of the first spices to be known and used by

mankind. All parts of this herb are edible. Fresh leaves of coriander are used for

flavouring and garnishing salads, soups and curries. They are the main ingredient in

Vietnamese food, chutney and other dishes in southeast and southern Asian,

Chinese and Mexican cuisine. The roots of the herb are also used in Thai cuisine.

The fruits (seeds) are widely used as condiments with or without roasting in the

preparation of curry powders, sausages and seasonings. It is an important

62

ingredient in the manufacture of food flavourings, in bakery products, meat

products, soda & syrups, gelatine and puddings, candy preserves and liquors.

Coriander leaves are considered as one of the richest sources of A and C Vitamins.

Various characteristics of

coriander, such as carminative,

refrigerant, diuretic, tonic,

stomachic, etc., make it an

important component in the

manufacture of a number of

medical products. Under the

homeopathy system of medicine,

alcoholic extracts of coriander are

treated as mother tincture.

Coriander oil is extracted from the

crushed ripe coriander seeds by

steam distillation, which yields 0.8 - 1.0% oil. The essential oil from this ancient

herb is used in aromatherapy. Good quality oleoresin is also extracted from

coriander seeds, which is been used for flavouring beverages, pickles, sweets, etc.

Coriander oil and oleoresins are primarily used in seasonings for sausages and

other meat products.

Coriander Powder is used as a flavouring agent in a number of pharmaceutical

preparations, especially the digestive medicines.



Coriander is usually cultivated during rabi season. It requires cool climate during

growth stage and warm dry climate at maturity. It can be cultivated in all most all

types of soils but well drained loamy soil suits well. In India, coriander is sown

during 15th October to 15th November in an area free from severe frost during

63

February when the crop flowers and sets its seeds. The sowing period generally

lasts till December and harvesting extends from January to April, while arrivals start

from January and continue till April. The crop matures in about 110 to 140 days. At

maturity, seeds turn to yellowish green colour.

Crop Cycle

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Sowing Harvest Peak Arrival Lean Arrival

It is observed that when the crop is grown in colder regions & at high altitudes

quality of seed is superior & essential oil content is more. Composition of coriander

seeds varies depending upon its country of origin and agro climatic conditions in

which it is grown, harvested, dried and stored.

Coriander Seeds Processing

64


Area and production of coriander during 1991-92 to 2009-10 have shown vast

variations. As per the latest data available from the Ministry of Agriculture, during

the last two decades, area sown under coriander in India has remained sluggish to

mark a decline of 1.2% in its compound annual growth rate (CAGR). Area under

coriander showed a reasonable growth during early 1990s increasing from 3.5 lakh

hectares in 1991-92 to 6.6 lakh hectares in 1997-98; however, it shrank thereafter

to 2.9 lakh hectares in 2002-03. In late 2010s, area grew once again but failed to

cross the peak reached in late 2000s and ranged between 3.5 lakh hectares to 4

lakh hectares by the end of the decade (Chart 1).

0

50

100

150

200

250

300

350

400

450

0

100

200

300

400

500

600

700

1991-9

2

1992-9

3

1993-9

4

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-0

0

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

Pro

duction ('0

00 T

onnes)

Are

a ('0

00 H

ecta

res)

Chart 1: Trend in Area, Productiona and Yield of

Coriander : India


453

475

438

448

481 5

64

514 556

576 6

54

744

609

806

711

656 7

27 8

06

610 658

Yield (Kg/ hectare)


Coriander production has increased at a snail's pace recording a CAGR of just 1.7%

from 1.6 lakh tonnes in 1991-92 to 2.4 lakh tonnes in 2009-10. During these two

65

decades, the production ranged between 1.5 - 3 lakh tonnes; however output was

higher than 3 lakh tonnes on a couple of occasions touching a peak of 3.9 lakh

tonnes in 2003-04.

During the period of two decades, average coriander yield hovered around 605

kg/hectare, varying from a low of 438 kg/ hectare in 1993-94 to a peak of 806

kg/hectare in 2003-04. Coriander productivity has improved in the last decade

compared to that during 1990s.

A glance at a state-wise bifurcation reveals that coriander is grown in as many as

12 states in India, though its cultivation is mainly concentrated in north-western

and central parts of the country, with Rajasthan being the top cultivator as well as

producer followed by Madhya Pradesh (Charts 2 & 3).


As per the latest available data, in 2007-08, area under cultivation in Rajasthan

stood at 2.13 lakh hectares followed by Madhya Pradesh at around 1 lakh hectares.

Rajasthan and Madhya Pradesh together accounted for around 80% of the total

sown acreages under coriander in 2007-08 (Chart 2).

66

In terms of production, Rajasthan alone contributed around 79% of the total

production in 2007-08, with coriander output touching 245 thousand tonnes

followed by Madhya Pradesh at just 30 thousand tonnes (Chart 3).


However, coriander yield in

Rajasthan has consistently been lower

than that reported in Haryana over

the years; however, both these states

have recorded coriander productivity

higher than All-India average. Though

coriander productivity was the highest

in Haryana till mid-2010s, off late

Meghalaya has reported the highest

yield of around 3000 kg per hectare

followed by Haryana and Rajasthan

(Chart 4).


67

Varieties of Turmeric

Domestically major varieties are Badami, Eagle, Scooter, Double Parrot, Single

Parrot, and Super Green. Badami variety accounts to about 65 to 70% of total

production.

Improved varieties like Guj.Coriander-1, Guj.Coriander-2, RCr-41, UD-20, Rajendra

Swati (RD-44), CS-287, CO-1, CO-2, CO-3, Sadhana, Swati and Sindhu are also

been cultivated to get high yield.

Salient features of some of Improved Cultivars of Coriander are as follows:

Commercial Varieties of Coriander

Variety Characteristics Maturity Average Yield

RCr 41

A tall variety of coriander with small grains; highly

resistant to stem gall and wilt; moderately tolerant to

powdery mildew;

130–140

days;

9.2 q/ha.

RCr 20

Medium tall variety of coriander with bushy and spreading

growth habit; produces oval, large-sized grains;

moderately tolerant to powdery mildew, wilt as well as

stem gall;

100–110

days;

10q/ha.

RCr 435 An early variety of coriander with medium-sized grains; 110–130

days;

10.5 q/ha.

RCr 436 Another early-growing variety of coriander with bold

grains;

90–100

days;

11.09 g/ha

RCr 446 Erect-growing leafy variety of coriander with medium-

sized grains;

110–130

days;

12 q/ha.

GC 1

Erect-growing variety of coriander with medium-sized,

round, yellow colored grains; moderately tolerant to wilt

and powdery mildew;

112 days; 11q/ha.

GC 2

A medium-tall variety of coriander with semi-spreading

growth habit with dense, dark green foliage and medium-

sized grains; moderately tolerant to wilt and powdery

mildew;

110 days; 14.5 q/ha.

Sindhu

Dwarf variety of coriander with medium-bold, oval, straw-

coloured grains; tolerant to wilt and powdery mildew, and

resistant to aphids;

102 days; 10.5 q/ha.

68

Commercial Varieties of Coriander


Sadhna

Medium-tall variety of coriander with semi-erect stems

and bold, oval, straw–coloured grains; tolerant to white

fly and mites;

100 days; 10.3 q/ha.

Swathi Semi-erect growing variety of coriander with medium-bold, oval,

brownish-yellow grains; tolerant to whitefly, grain moulds and wilt;

8.89 q/ha

Co 1

Dwarf variety of coriander with globular, small–sized,

dusty brown grains;

100–120

days with

an

4.0 q/ha

Co 2

Erect-growing variety of coriander with oblong, medium-

sized dull yellowish-brown grains;

90–110

days with

an

5.2 q/ha and

green yield of

100 q/ha

Co 3

Dwarf variety of coriander with medium-bold, oblong,

brownish-yellow grains; tolerant to wilt, powdery mildew

and grain mould;

86–104

days

6.5 q/ha

CS 287

Early-maturing variety of coriander with medium-sized,

oblong, straw grains; tolerant to wilt and grain mould;

matures

78–97

days

6.0 q/ha

RD 44

(Rajendra

Swathi)

A medium variety of coriander with fine, round, aromatic

grains; resistant to stem gall and moderately resistant to

wilt, aphids and weevil;

100 days 13 q/ha.

DH 5 Medium-tall variety of coriander with bushy growth and

round attractive grains of medium-size;

120–130

days

18–20 q/ha

Source: http://www.myagrihortico.com/tutorialsview.php?id=107

Consumption of Coriander: Domestic Demand +Export demand

Among spices, Coriander is the fourth largest spice exported from the country in


coriander accounted for around 5% of the total spices exports, while in terms of

value its share stood at a meagre 1.7% or Rs 164 crore (Chart 5).

69


also from spice powder making industries, more than 90% of the turmeric produced

used to be consumed internally, leaving the economy with a smaller exportable

surplus. However, since last couple of years, India’s coriander export has picked up

pace on account of increase in consumption of more spicy foods, especially in

developed countries and large population from Indian origin staying in foreign

countries. For e.g., as per the latest available data, in 2009-10, 47.3 thousand

tonnes of coriander was

exported from 237

thousand tonnes

produced in the country

accounting for almost

20% of the domestic

production. This was

significantly higher

compared to 2006-07,

when coriander exports

have stood at 21.4

thousand tonnes forming

only 9.2% of the total

coriander produced in

the country.

Major Export Markets for Coriander

Malaysia has been the largest importer of Indian turmeric in terms of quantity as

well as value, except in 2009-10 when imports by Pakistan had surpassed those

from Malaysia. UAE has been the second largest importer of Indian coriander since

last few years with its share hovering around 13% in terms of both quantity and

value. Malaysia and UAE together account for slightly above one-third of the total

coriander exports from India (Charts 5A and 5B).


70


The global production of coriander seed is estimated to be around 5-6 lakh tonnes.

However, official estimates are rarely available for this crop in most producing

countries. Additionally, coriander is widely grown in home gardens on a small scale,

which is never included in official statistics.

Major producers are Morocco, Canada, India, Pakistan, Romania and the former

Soviet Union. Other producers include Iran, Turkey, Egypt and Israel in the Middle

East; China, Burma and Thailand in Asia; and Poland, Bulgaria, Hungary, France


71

and the Netherlands in Europe. The United States, Canada, Argentina and Mexico

are producers in the Americas.

India is the world’s largest producer and consumer of Coriander. India contributes

around 50-60% in the total world production, while domestic consumption in India

is been estimated around 4 lakh tonnes.

The global trade in coriander is estimated to be around 0.85 – 1 lakh tonnes per

annum. While, India, Turkey, Egypt, Romania, Morocco, Iran and China are the

major exporters, Middle East, South-east Asia, USA, UK, Germany etc. are the

major importers.

Table 1: Coriander Trade in 2008

Major Exporting Countries Major Importing Countries

Quantity

(tonnes)

%

share

Quantity

(tonnes)

%

share

India 30,200 32.2 Pakistan 12,258 13.0

Bulgaria 10,000 10.7 Malaysia 11,607 12.4

Canada 9,341 10.0 Indonesia 10,734 11.5

Romania 9,816 10.5 UAE 6,760 7.2

Syria 5,430 5.8 South

Africa

6,000 6.4

China 5,329 5.7 USA 5,552 5.9

Morocco 8,633 9.2 UK 4,135 4.4

Others 15,000 16.0 Saudi

Arabia

3,771 4.0

Total 93,749 100.0 Japan 3,519 3.8

Source: http://www.worldspicecongress.com/pre-cong/08.pdf

72


5.7 Trading in Dhaniya on NCDEX:

Coriander futures contract

was launched on August

2008. The supply fluctuation

due to underlying

fundamental factors leads to

prices being volatile. For

example, average volatility in

spot prices of coriander at

7.75% per month for the

period of 53 months, i.e. from

August 2008 to December

2012. Higher volatility in

prices makes coriander

Spot

2000

3000

4000

5000

6000

7000

8000

9000

10000

Aug-0

8

Dec-0

8

Apr-

09

Aug-0

9

Dec-0

9

Apr-

10

Aug-1

0

Dec-1

0

Apr-

11

Aug-1

1

Dec-1

1

Apr-

12

Aug-1

2

Dec-1

2

Rs p

er Quin

tal

Source: NCDEX

Chart 6: Trend in Spot and Near Month

Futures Prices of Coriander

Near Month Futures

73

amenable for hedging and because of its liquidity on the Exchange platform trading

in coriander has been attractive for all market participants. Thus, the Coriander

contract provides space for every investor category.

A month-wise movement in spot prices of Dhaniya since introduction of its futures

contract on the NCDEX platform has been depicted in Chart 7. Coriander prices kept

on tumbling almost for two year since the launch of coriander contract,

accompanied by trivial trading volume and insignificant trading turnover in terms of

value (Chart 8).

In fact, coriander prices, which were trading at their peak (slightly above Rs 9000

per quintal) in the very first month of its trading on the NCDEX platform on account

of lower output in

rabi season 2008

and strong export

demand, plunged

sharply by the end

of December 2008

to drop below Rs

5000 per quintal and

the declining trend

continued till March

2009 with prices

further falling below

Rs 4000 per quintal

mark.

Source: NCDEX

The freefall in coriander prices was triggered when many market players resorted to

profit-booking at higher prices and prices got dragged down further on reports of

improved sowing acreages under coriander following higher price realisation

witnessed by coriander grower in the earlier months and stockiest selling their crop

74

ahead of onset of dhaniya harvesting season in the country. However, coriander

prices saw some correction and started picking up from March 2009; but buoyancy

was short-lived as prices once again came under pressures amidst the expectations

of lower demand and so, the less off-take of coriander, which kept prices lingering

around Rs 4000 per quintal till the end of the calendar year 2009 showing marginal

upward as well as downward fluctuations on seldom occasions and sinking further

in the subsequent year 2010 to touch a low of around Rs 2600 per quintal. During

the calendar year 2010, coriander prices traded in the range from Rs 2600 per

quintal to Rs 4100 per quintal.

Lower price realisation from coriander encouraged coriander grower to cultivate

more lucrative crops like mustard seed in Rajasthan and jeera in Gujarat. The

resultant fall in acreages in major coriander growing regions lowered the output

estimates in 2011 harvesting season and coriander prices shot up to cross Rs 5000

per quintal mark in January 2011. Increased export demand drove up by lower

price levels witnessed in the previous year also contributed to this upward rally in

coriander prices seen in the beginning of the year 2011. However, onset of peak

arrival season in the

country dented coriander

prices till June amidst

higher output of coriander.

Prices bounced backed

thereafter till September to

cross a level of Rs 6000 per

quintal on reasons like

contraction of inventories

and rising export demand.

Nonetheless, at that higher

level, export demand

started waning, once again

pulling down prices towards

the end of the year 2011. Source: NCDEX

75

Coriander prices, which remained suppressed during the first half of the recently

concluded year 2012, showed some uptick as a result of the limited stocks on

restricted arrivals from the major growing belts till August and once again saw

correction dropping for next couple of months. However, with a delay in the harvest

of the kharif crop and poor sowing in major coriander seed growing areas of

Rajasthan and Madhya Pradesh prices went up from October 2012 till the of the

year. Expected strong export demand for the Indian coriander in the current year

due to lower production in major coriander seed producing countries such as

Ukraine, Bulgaria and Romania and even in the eastern European countries on

account of unfavourable weather conditions, also supported uptrend in coriander

prices.

5.8 Major Trading Centres for Coriander

Baran, Kotta, Ramgunj -Rajasthan

Ramganj - Mandi

Guntur, Varavakonda, Nandyal - Andhra Pradesh

Thiruchirappilly, Virudhunagar - Tamil Nadu

Davangore - Karnataka

Varanasi, Jaunpur - Uttar Pradesh

Guna – Madhya Pradesh


76

6. CUMIN SEED

6.1 Introduction

Cumin or Cuminum cyminum is an annual herb in the parsley family. Cumin seed,

commonly known as 'jeera', which forms the commercial part of the plant, is the

dried fruit of the plant used in both whole and ground form. Cumin seed is an

oblong shaped, sharp flavoured and dark coloured aromatic spice that is placed

second to pepper in the context of importance.

6.2 Origin

Cumin is indigenous to Levant and Upper Egypt, though it is widely cultivated in

Syria, the Mediterranean region, Iran and India. It is an ancient spice having a

history of over 5000 years. Bible has mentioned about jeera as a famous spice in

the historical times and also as a currency to pay taxes. Cumin has also played a

very important part as an agent among the ingredients to mummify pharaohs. In

Greece and Rome, it was a practice to keep cumin powder on the dining table. It

was introduced to the Americans by Spanish and Portuguese colonists.

6.3 Usage

Cumin seeds have an aromatic odour

and bitter taste. Cumin is used as a

condiment, and is an ingredient in curry

powders, seasonings of breads, cakes

and cheese, salsas, soups and

marinades. It features in Indian,

Eastern, Middle Eastern, Mexican,

Portuguese and Spanish cookery, where

highly spiced foods are preferred.

It is not only widely used as a spice but

also used in various medicinal preparations all over the world. In the West, it is

77

used mainly in veterinary medicine, as a carminative, but it remains a traditional

herbal remedy in the East. Besides being used in Ayurvedic medicines, cumin is

also used as a stimulant, carminative, stomachic and astringent.

Cumin seed oil is used in perfumery and for flavouring liqueurs and cordials.



Cumin is a tropical plant. It thrives well in a hot, tropical climate, but can also be

cultivated in the cooler regions in a green house. The cumin crop can be produced

on almost all soil types but a well-drained, fertile sandy loam and medium soil suits

the best to this crop. It requires less water and more cold for its better growth with

ideal temperature of 25 to 30 degree.

Jeera crop is highly sensitive to rain. High humidity during flowering & fruit bearing

stage causes fungal diseases in this crop.

Cumin is usually cultivated during rabi season in India. It is sown in the winter

season during 15th October to 15th December. It takes 120-125 days for the plant to

mature and the plant gets ready to harvest when it turns yellowish brown. The

harvesting starts from February, and extends up to April. The crop normally arrives

in the market in the month of March. After the crop gets harvested, it is dried in the

threshing yard and is thrashed to separate the seeds. The cumin seeds are cleaned

up through the winnowing process.

Crop Cycle

Oct Nov Dec Jan Feb Mar Apr

All India Sowing Harvest

Region Sowing Period Harvesting Period

Saurashtra 20 Oct. to 20 Nov. 15 Jan. to 15 Feb.

North Gujarat 01 Nov. to 25 Nov. 01 Feb. to 15 Mar.

Rajasthan 10 Nov. to 10 Dec. 01 Mar. to 31 Mar.

78


Area and production of cumin seeds during 1991-92 to 2006-07 have shown vast

variations; however, since 2007-08 onwards both have shown gradual increase for

the period of 3-4 years. As per the latest data available from the private source

(www.indiastat.com), during the last two decades, area sown under cumin seeds in

India has grown from 163.6 thousand hectares in 1991-92 to an estimated 507.9

thousand hectares in 2010-11, recording a compound annual growth rate (CAGR) of

4.3% (Chart 1).

Production of cumin seeds has risen at a CAGR of 6.6% from around 65 thousand

tonnes in 1991-92 to an estimated 314 thousand tonnes in 2010-11. Average

production during 1991-00 decade stood at 111 thousand tonnes, while in the

following decade it almost doubled to touch 226 thousand tonnes.


79

During the period of two decades, average jeera yield hovered around 437

kg/hectare, varying from a low of 258.5 kg/ hectare in 2002-03 to a peak of 619

kg/hectare estimated in 2010-11.

The All-India area and production data mentioned above pertain mainly to Gujarat

and Rajasthan. The two states account for more than 95% of jeera output produced

in the country. Banaskantha and Mehsana districts in Gujarat and Barmer, Jalore,

Jodhpur and Nagaur districts in Rajasthan are the prominent jeera producing areas

in the two states. West Bengal, Uttar Pradesh, Andhra Pradesh and Punjab also

contribute to Indian jeera output to some extent.

It can be seen from charts 2 & 3 that Area under jeera has been persistently

declining in Rajasthan since 2002-03 onwards, as the crop is highly vulnerable to

weather condition in the state and the yield is less. With this, the output has also

suffered, falling continuously over last few years. On the other hand, Gujarat state

has witnessed continuous increase in acreage and output.


80

The quality of cumin seeds of Rajasthan is better than that of Gujarat, but due to

the high stalk content its price is usually lower than the cumin seed produced in

Gujarat.

Varieties of Cumin

The two main types of cumin seeds are white and black cumin seeds. White cumin

seeds are the most common type, while black cumin seeds are popular in Iran. The

seeds of black cumin are smaller and have a sweeter aroma than the white seeds.

They are sometimes confused with nigella, another seed that is used in Indian

cookery.

Improved varieties of cumin seeds include S-404, MC-43 Gujarat Cumin-1(GC-1),

GC-2, GC-3, RS-1, UC-198, RZ-19, etc. Jeera cultivars evolved by Agricultural

Universities of Gujarat and Rajasthan having higher yield potential are useful for

cultivation.


81

Salient features of some of Improved Cultivars of Cumin seed are as follows:

Table 1: Commercial Varieties of Cumin Seed


RZ 19 A tall variety of cumin with erect stems, pink flowers

and bold pubescent grains; tolerant to wilt as well as blight

120–140

days

5.6 q/ha

RZ 209 An erect-growing variety of cumin with pink flowers and bold, grey, pubescent grains, resistant to wilt and blight diseases

140–150 day

6.5 q/ha.

GC 1 An erect-growing variety of cumin with pink flowers

and bold, linear, oblong, ash brown colour grains; tolerant to wilt disease

105–110

days

7.0 q/ha

Source: http://www.myagrihortico.com/tutorialsview.php?id=107

Consumption of Cumin Seeds: Domestic Demand +Export demand

Among spices, Cumin seed is the third largest spice exported from the country in


jeera accounted for around

7.9% of the total spices

exports, while in terms of

value its share stood at 6.6%

or Rs 644 crore (Chart 4).

Following a healthy domestic

demand from household

sector (for food usage) and

also from spice powder

making industries, more than

90% of the cumin seed

produced is consumed internally, leaving the economy with a smaller exportable

surplus. However, post 2006-07, India’s cumin exports gained momentum on

account of increase in consumption of more spicy foods and unstable jeera output

Source: www.indiastats.com and Spices Board

0.0

100.0

200.0

300.0

400.0

500.0

600.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Value (Rs Crore)

Quantity ('000 Tonnes)

Chart 4: Cumin seed Export

Quantity ('000tonnes)

Value (in RsCrore)

82

in other major producing countries. Cumin exports from India touched a record high

in 2008-09 to stand at 52.6 thousand tonnes (worth Rs 544 crore), accounting for

18.6% of the total domestic production.

Since Jeera is harvested in the month of February in India, much earlier than other

major producing countries harvest in August–September, Indian jeera seeds find a

good market overseas till

the new crop from other

producing countries enters

the global market.

However, jeera exports

from India have fallen

since last couple of years

amidst the stiff

competition from the

countries like Turkey and

Iran as a bulk of their

production is used for export purposes and also because these countries are able to

provide the spice at much cheaper rates as compared to India. In 2010-11, only

10.3% of the domestically produced jeera, equivalent to 32.5 thousand tonnes

worth Rs 396 crore were exported from India.

Major Export Markets for Cumin Seeds

Though USA and UAE have been the largest importers of Indian cumin seeds in

terms of both quantity and value, of late imports from these countries have fallen

while those from UK, Brazil, Pakistan, etc. have shown a gradual pick-up. As per

the latest available data, in 2011-12, Brazil has emerged the largest importer of

Indian Jeera in terms of quantity with its import estimated at 2.6 thousand tonnes,

accounting for 7.9% of the total cumin seeds exported from the country; followed

by UK (with import pegged at 2.5 thousand tonnes or a share of 7.6%) and USA

83

(with import pegged at 2.2 thousand tonnes or a share of 6.8%). In terms of value,

UK has taken the top most position in 2010-11 with its cumin imports from India

estimated at Rs 32.4 crore accounting for 8.2% share in total exports. While USA

has remained at the second position with its share in total cumin exports in value

terms standing at 7.5% (Rs 29.8 crore), Brazil has been placed at the third position

having a share of 7.4% worth Rs 29.1 crore (Charts 6A and 6B).



84


Besides India, which is the largest producer and consumer of cumin seeds, cumin is

cultivated in countries such as Syria, Iran, Turkey, China and Latin America.

Cumin seed: Crop Cycle across Major Producing Countries


India Harvest Sowing

Syria Sowing Harvest

Turkey Sowing Harvest

According to statistics provided in the World Spices Congress 2012, India, Syria and

Turkey contribute more than 90% of world cumin seed production. While India’s

share stands at 77%, Turkey accounts for 9% and Syria for 5%. Despite India

holding a giant share in the global jeera production, the fundamentals in major

producers Syria and Turkey play a significant role in determining the Jeera prices in

the global market, as these countries export more than 90% of their domestic

produce, unlike India.

However, Indian cumin seed output has an edge over that produced in Syria and

Turkey. With Jeera sowing in India taking place in October-December and

harvesting in February-April period, the fresh crop from India comes into the global

market when it is the ending season in the other major producers, adding to the

gains in India’s Jeera exports.

The major consumers of jeera are China, Indonesia, UAE, UK, US, Singapore,

Malaysia, Bangladesh and Nepal besides India.

6.6 Trading in Cumin Seed on NCDEX:

Jeera futures contract was launched on NCDEX platform on February 2005 and has

witnessed considerable volatility since its launch. It serves as a hedging platform

for the Producers and Exporters. The Cumin contract is highly liquid and provides

85

easy entry and exit to all market participants. Thus the Jeera contract provides

space for every investor category.

Jeera prices generally remained pressurised in the beginning of the year from

February onwards amid the arrival of fresh crop in the market and as stockeist sell

of their produce ahead of the onset of the jeera harvesting season in the country.

Prices tend to move upward from June, as the crop arrival season concludes in

India. Stockeist buying and

lack of supply from other

countries also support this

uptrend in prices which

continues till August -

September when prices start

retreating once again with

fresh jeera supply coming

from Syria and Turkey.

Prices trade at lower level till

October and again begin to

firm up with receding

arrivals from all countries.

A month-wise movement in spot prices of jeera since introduction of its contract on

the NCDEX platform has been depicted in Chart 8. During the first one and half

years since the lauch of jeera contract, its prices remained range-bound

accompanied by sluggish trading in terms of both volume and value (Chart 9).

Jeera prices started increasing gradually from April 2006 following lower than

normal jeera output in the country. However, prices soared to their all-time high

crossing Rs 13,000 per quintal for the first time in April 2007, touching their peak in

June 2007. Fall in jeera production for two consecutive year 2005 and 2006 coupled

with reports of crop damage in Syria a major competitor in global market fueled

this rally in prices. However, prices started receding from August 2007 onwards on

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

3-Feb-05

3-Jun-05

1-O

ct-05

29-Jan-06

29-M

ay-06

26-S

ep-06

24-Jan-07

24-M

ay-07

21-S

ep-07

19-Jan-08

18-M

ay-08

15-S

ep-08

13-Jan-09

13-M

ay-09

10-S

ep-09

8-Jan-10

8-M

ay-10

5-S

ep-10

3-Jan-11

3-M

ay-11

31-A

ug-11

29-D

ec-11

27-A

pr-12

25-A

ug-12

23-D

ec-12

Rs per Quintal

Chart 7: Trend in Spot and Near Month Futures

Prices of Jeera (Feb 2005 - Dec 2012)

Spot

Near Month

Futures

Source: NCDEX

86

lower demand and improved sowing activities, though they hovered at a level

higher than those reached by December 2006. Prices dropped in the beginning of

calendar year 2008 following better output and aarival of jeera in domestic market,

but reports of lower output in Syria and Turkey and strong export growth from

India prompted second upward rally in jeera prices during June-July 2008.

However, from September 2008 onwards prices fell due to slowdown in buying

reaching Rs 10500-10600 per quintal level in December 2008 as was seen a year

ago.

Jeera prices remained stable trading in the range of Rs 10900 –Rs 11900 per

quintal in calendar year 2009 but shot up above Rs 13,000 per quintal in November

2009 and on an average, sustained at this level during the subsequent year 2010.

Lower than expected

jeera production,

heavy export orders

and increased

domestic demand

sustained and

stabilised jeera prices

at this higher level

during this period

showing some spikes

at intermittent

intervals.

The beginning of calendar year 2011 saw jeera prices accelerating to record high in

the month of February crossing Rs 16000 per quintal on the back of low carryover

stocks, estimation of lower production due to unfavourable weather conditions at

the time of sowing and increase in export demand. However, as farmers and

traders cashed out on the record high prices in the market prices lost their

strength. Fresh crop arrival accompanied with lower offtake and waning export

Source: NCDEX

87

demand also simultaneously pressurised prices to some extent. However, due to

geo-political tensions in Syria and Turkey their exports declined resulting into

higher export demand for Indian jeera that were trading at comparatively lower

level and in turn, triggered uptrend in prices.

Jeera prices come under heavy pressure in the beginning of calendar year 2012 till

April 2012 following new

crop arrival. However,

with reports of lower

estimates of jeera crop in

Syria and Turkey, jeera

prices in India begin rising

gradually on increased

export demand; but prices

didn’t sustain this

momentum and moved

southwards reportedly

amid lower domestic

demand accompanied by

crop arrival seasons in Syria and Turkey to hover around Rs 15000 per quintal at

the end of 2012.

6.7 Major Trading Centres for Cumin seeds

Gujarat Rajasthan

Unjha, Jaipur,

Palan, Kisangarh

Mohsana, Kokri

Visnagar Jodhpur


Source: NCDEX

88


89

Appendix I: State-wise Production Estimates for Spices ('000 Tonnes)

Black Pepper

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

2008-

09 (E)

2009-

10 (E)

2010-

11 (E)

2011-

12 (E)

2012-

13 (F)

Goa 0.1 0.1 0.10 0.10 0.14 0.17 0 0.2 0.2 0.2 0.2

Karnataka 2.2 2.3 2.36 2.84 3.24 3.00 4 3.2 3.3 3.2 3.4 3.4

Kerala 58.2 67.4 69.02 68.36 87.61 64.26 42 74 68.9 68.6 70.2 72.2

Meghalaya 0.68 0.68 0.68 0.70 1 0.7 0.7 0.7

Tamil Nadu 1.0 1.0 0.90 0.91 1.14 0.84 1 0.9 0.9 0.9 0.8 0.9

A & N Islands 0.9 1.0 0.12 0.12 0.12 0.04 0 0.2 0.1 0.1 0.1 0.1

All India 62.4 71.7 73.18 73.01 92.93 69.01 47.06 78.3 73.3 73.7 75.4 77.5

E: Estimate, F: Forecast

Blank space indicates that data is either not available or not reported.

Source for data up to 2007-08 is Ministry of Agriculture and from 2008-09 onwards is CMIE.

Coriander

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

2008-

09 (E)

2009-

10 (E)

2010-

11 (E)

2011-

12 (E)

2012-

13 (F)

Chhattisgarh 1.0 1.0 1.20 1.00 1.10 1.00 1.00 1 1 1 1 1

Haryana 7.1 2.1 2.20 2.20 2.90 2.63 2.90 3.5 2.4 3.2 2.9 2.8

Himachal Pradesh 0.10

Karnataka 1.8 1.1 1.20 1.50 1.40 1.00 1.00 1.1 1 1.5 1.5 1.5

Madhya Pradesh 38.0 12.7 47.00 45.00 42.00 43.60 30.20 28 40.1 41 40.5 42

Meghalaya NR 0.30 0.30 0.30 0.30 0.30 0.3 0.3 0.3 0.4 0.4

Orissa 3.9 9.0 9.00 9.10 9.00 9.00 9.00 8 9 9 9 10

Rajasthan 234.0 122.7 300.10 169.80 142.40 155.10 245.40 205 213.5 225 230 230

Tamilnadu 7.0 6.9 8.10 5.50 6.40 5.70 5.10 5.5 5.5 5.7 5.7 5.7

Uttar Pradesh 2.7 3.1 3.20 3.20 3.20 3.20 3.00 3 3.1 3.1 3.2 3.2

Andhra Pradesh 10 11.3 13 12.8 13

Bihar 1.5 1.6 1.6 1.6 1.6

All India 295.5 158.6 372.30 237.60 208.70 221.53 298.00 266.9 288.8 306.5 310.8 311.2

E: Estimate, F: Forecast



90

Chilli

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

2008-

09 (E)

2009-

10 (E)

2010-

11 (E)

2011-

12 (E)

2012-

13 (F)

Andhra Pradesh 591.0 409.0 797.00 749.00 538.00 766.00 772.00 729 711.4 765.2 773.2 768

Arunachal Pradesh 2.1 2.3 2.40 2.60 2.60 2.70 3.60 3.3 3.5 3.7 3.8 3.8

Assam 10.0 10.0 9.70 9.20 9.50 10.00 10.00 13.4 13.1 13.5 14 14

Bihar 4.3 2.3 2.20 2.20 3.10 3.00 3.90 3.6 3.8 3.9 3.8 3.8

Chhattisgarh 3.8 5.7 4.20 3.30 1.50 1.70 2.60 2 2.1 2.1 2.2 2.2

Gujarat 12.1 10.5 8.40 5.70 5.70 5.70 8.00 6.7 6 7 8 8

Haryana 1.7 1.6 1.20 1.20 68.00 0.60 0.70 1.3 2 1.3 1.8 1.6

Himachal Pradesh 0.0 0.1 0.10 0.10 0.10 0.20 0.30 0.4 0.2 0.3 0.3 0.3

Jammu & Kashmir 1.0 1.0 1.00 1.00 1.00 0.60 0.70 0.7 0.5 0.6 0.7 0.7

Karnataka 126.4 153.4 94.50 94.50 94.50 148.00 155.00 145.1 142.8 147.6 149.9 150

Kerala 0.2 0.8 0.70 0.70 1.20 1.40 1.30 1.1 1.2 1.2 1.3 1.3

Madhya Pradesh 22.0 31.7 38.40 39.60 35.60 40.81 44.75 42.2 43.6 43.8 44 44

Maharashtra 59.0 53.0 44.00 44.00 50.00 47.00 44.00 47 46 45.7 46.2 46.5

Manipur 4.5 6.1 8.00 8.00 3.90 3.90 4.30 4 4 3 4 4

Meghalaya 1.2 1.2 1.20 2.10 1.30 1.40 1.40 1.5 1.4 1.5 1.5 1.5

Mizoram 2.1 0.9 0.80 0.80 0.80 0.80 0.80 0.8 0.8 0.8 0.8 0.8

Nagaland 1.2 7.9 0.90 0.90 0.90 1.00 1.00 1.5 1.7 2.1 2.2 2.2

Orissa 59.2 62.9 63.20 63.20 63.30 63.90 63.90 63.9 62.5 63.3 63.4 64

Punjab 5.4 4.5 4.20 4.20 4.20 4.20 4.20 3.7 4 3.8 4.1 4.1

Rajasthan 49.1 15.0 31.40 31.10 17.50 15.40 27.40 26 26.8 26.7 27 27

Tamil Nadu 42.0 40.6 40.10 44.60 31.80 42.70 34.10 38.3 35 38 39.9 40

Tripura 2.8 2.4 2.30 2.30 2.30 2.30 2.50 2.4 2.4 2.4 2.4 2.4

Uttar Pradesh 13.4 10.8 12.80 12.80 16.10 14.30 15.00 14.7 14.8 14.9 15.1 15.1

Uttarakhand 2.00

West Bengal 54.5 60.5 66.30 61.40 60.70 63.60 93.70 72.7 76.7 81 76.8 80

A & N Islands 0.4 0.70 1.00 1.00 0.90 0.70 0.6 0.7 0.5 0.7 0.7

All India 1069.0 894.6 1235.7 1185.5 1014.6 1242.1 1297.6 1,231.60 1,211.90 1,279.20 1,289.60 1,288.00



91

Turmeric

2001-

02

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

2008-

09 (E)

2009-

10 (E)

2010-

11 (E)

2011-

12 (E)

2012-

13 (F)

Andhra Pradesh 249.5 283.5 321.00 418.00 519.00 401.00 416.00 425 406.2 438.9 450 454

Arunachal Pradesh 2.1 2.0 1.50 1.80 1.60 2.00 2.10 3 3 3.2 3.5 3.2

Assam 8.0 8.0 8.00 8.40 8.50 9.00 9.00 11.4 10.6 9.5 10.6 10.4

Bihar 2.6 2.9 2.80 2.80 3.40 3.00 3.30 3.3 3.3 3.4 3.3 3.3

Chhattisgarh 0.6 0.6 0.60 0.60 0.60 0.60 0.70 0.7 0.7 0.7 0.7 0.7

Gujarat 12.2 14.7 11.20 14.10 14.10 14.10 14.10 21 19 14 17 16

Haryana 4.8 7.0 7.00 7.00 9.60 4.60 3.88 6.1 7.9 6.7 6.9 6.8

Himachal Pradesh 0.0 0.1 0.10 0.10 0.10 0.10 0.10 0.1 0.2 0.1 0.2 0.2

Karnataka 36.4 28.6 26.40 26.40 26.40 37.75 64.72 55.8 49.1 49.4 50.3 50

Kerala 9.0 6.9 5.70 5.80 8.20 10.00 7.40 7.3 7.2 7.5 8 8

Madhya Pradesh 0.4 0.5 0.70 0.50 0.50 0.40 0.40 0.4 0.5 0.5 0.5 0.5

Maharashtra 9.0 3.0 9.00 9.00 8.00 9.00 8.00 8 8 9 9 9

Manipur 0.2 0.2 0.40 0.40 0.10 0.10 0.30 0.3 0.3 0.2 0.3 0.3

Meghalaya 8.6 8.6 8.70 8.80 9.40 14.30 10.00 15.2 17.2 14.3 14.6 14.8

Mizoram 2.8 2.8 2.30 2.30 2.30 2.30 2.30 2.3 2.3 2.3 2.3 2.3

Nagaland NR 3.1 3.10 3.10 3.10 0.50 0.50 0.5 0.5 0.5 0.5 0.5

Orissa 65.8 56.0 56.40 56.80 57.10 59.40 59.40 60.5 60.4 56.8 57.3 58

Rajasthan 0.5 0.2 0.40 0.20 0.20 0.60 0.50 0.5 0.5 0.5 0.5 0.5

Sikkim 1.2 1.2 1.70 1.70 1.70 1.70 2.60 2.6 2.6 2.8 2.7 2.6

Tamil Nadu 118.0 64.5 67.30 118.50 143.40 175.40 146.00 148.8 147 145 145.8 148

Tripura 6.6 4.3 4.30 4.30 4.30 4.30 4.00 4.2 4.2 4.1 4.2 4.2

Uttar Pradesh 2.5 2.0 1.60 2.30 4.40 6.00 4.00 4.8 6.3 6 6 6

West Bengal 22.0 21.3 24.50 24.50 25.00 30.10 34.60 39 39.5 37.5 39 40

A & N Islands NR 0.2 0.20 0.70 0.70 0.50 0.50 0.4 0.5 0.3 0.5 0.5

All India 562.8 522.2 564.90 718.10 851.70 786.75 794.40 821.2 797 817.8 838.3 839.8


92

Appendix II: World Trade in Select Spices

(Top 5 Trading Countries)

Qty: Tonnes, Value: Thousand US Dollar

Coriander Seeds

2001 2005 2010 2011 2001 2005 2010 2011

Export in Qty Export in Value

World No Quantity 93972 112350 121033 World 36340 52886 156028 124032

India 11910 27984 28862 32498 India 8205 16440 34646 34011

Bulgaria 18897 25837 23587 27036 Bulgaria 6416 9602 18049 18743

Ukraine 1318 1524 5420 11878 Italy 44 298 8680 9605

Morocco 3243 4410 6100 Morocco 3750 7884 9230

Italy 26 179 5400 5630 Ukraine 360 485 4207 7681

Import in Qty Import in Value

World No Quantity 98269 124387 118656 World 39392 54737 114706 118610

Indonesia 9244 6223 13616 15111 Malaysia 6198 7182 11447 13690

Sri Lanka No Quantity 9905 12068 13302 Sri Lanka 3700 2842 9492 9895

Malaysia 9358 11290 12059 11451 United Kingdom 2499 3571 7133 8764

Pakistan 15999 13551 7892 Japan 2159 4088 6962 6654

United Kingdom 3208 4095 5015 6385 India 256 1640 5289 5869

India 452 1556 3428 4342

Cumin Seeds

2001 2005 2010 2011 2001 2005 2010 2011

Export in Qty Export in Value World 59108 107591 81426 97261 World 127289 117248 208097 283155

India 15818 10660 42005 47325 India 30748 16652 91152 137165

Syrian Arab

Republic 18282 38738 5066 20829

Syrian Arab

Republic 53072 34931 22097 57115

Turkey 5668 7202 7695 7316 Turkey 12561 10718 17814 20424

China 90 39 7120 4476 China 131 52 18087 13008

Iran (Islamic

Republic of) 6073 10033 5606 3222 Singapore 7993 5414 6473 8442

Import in Qty Import in Value World 68803 101308 108074 101087 World 146929 121625 231205 284614

United States of

America 7250 9500 10283 11030

United States of

America 16649 16216 28537 35410

Egypt 12438 7925 Egypt 15330 21435

United Arab

Emirates 14432 5938 7052

United Arab

Emirates 8265 14744 19763

Brazil 4251 4892 4494 5513 Bangladesh 12438 14732 16264

Bangladesh 11400 5766 5344 Brazil 10196 6786 10255 15805

India 1059 1460 1054 669 India 1607 2180 2591 1914

93

Contd...

Pepper of the genus Piper, ex cubeb pepper, neither crushed nor ground

2001 2005 2010 2011 2001 2005 2010 2011

Export in Qty Export in Value

World 255291 228441 290150 255480 World 504011 425474 1070653 1408716

Viet Nam 45400 76033 102394 87744 Viet Nam 91237 151538 362070 442327

Indonesia 53594 34137 62213 35568 Indonesia 100384 57863 244373 208587

Brazil 36622 33990 30717 32646 Brazil 59299 46391 107989 197836

India 18399 12558 19464 28219 India 44232 23387 55551 147169

Malaysia 24659 16840 12759 12712 Malaysia 44086 27424 53425 80606

Import in Qty Import in Value

World 240746 258666 302382 253561 World 987147 1331060 114706 118610

United States

of America 55189 59400 57860 56211

United States

of America 213988 332836 11447 13690

Germany 19784 20040 27375 19961 Germany 110907 129586 9492 9895

Netherlands 18437 11187 16795 18317 Netherlands 51547 82705 7133 8764

India 5709 19651 14009 13319 India 44940 72843 6962 6654

Viet Nam 337 266 23020 10092 Viet Nam 68196 66797 5289 5869

Turmeric (Curcuma)

2001 2005 2010 2011 2001 2005 2010 2011

Export in Qty Export in Value World 39478 70175 151451 109813 World 24827 53832 204655 242085

India 27939 50080 107924 94093 India 15955 36579 145325 194400

Indonesia 30 1330 6119 2672 Netherlands 1015 1552 4528 7179

Myanmar 14439 1962 China 1002 1511 6200 5244

Ethiopia 389 438 1196 1794 Indonesia 101 1089 7545 4502

Netherlands 835 803 1191 1471 Myanmar 7298 3822

Import in Qty Import in Value World 45078 66349 97309 97673 World 28538 54150 187579 233759

United Arab Emirates

9229 19661 19940 United Arab

Emirates 4134 25875 35079

Bangladesh 1202 6655 6970 Japan 3562 5731 13485 19610

Malaysia 2263 3722 6272 5215

United

States of

America

2950 5968 13368 19558

Japan 4396 4177 3798 5093 Bangladesh 830 8992 13629

United States of America

2437 2895 3522 4649 Malaysia 1004 2913 14175 13491

India 99 3373 3698 2532 India 31 3358 8343 6858

• The world aggregation represents the sum of reporting and non-reporting countries

• Data based on the partner reported data (Mirror data) are shown in orange.

• Italics indicate that India does not feature among top 5 exporting or importing countries.

Source: ITC calculations based on UN COMTRADE statistics.

94

Appendix III: List of Proposed Spices Parks and their Operational Status

Sr

No Location/State Spices Covered Status

1 Chhindwara, Madhya

Pradesh Garlic & Chilly Started functioning

2 Puttady, Kerala Pepper &Cardamom Started functioning

3 Guntur, Andhra Pardesh Chilli Operational by Jul-Aug,

2012

4 Sivaganga, Tamilnadu Turmeric, Chilli &

Coriander

Operational by Jul-Aug,

2012

5 Guna, Madhya Pradesh Coriander, Fenugreek &

Garlic

Operational by Nov-Dec,

2012

6 Mehsana, Gujarat Cumin, Fennel &

Coriander

Waiting for land

clearance

7 Jodhpur, Rajasthan Cumin, Coriander &

Fenugreek Completed

8 Kota, Rajasthan Coriander, Cumin Operational by Jan-Feb,

2013

9 Hamirpur, Himachal

Pradesh Ginger & Turmeric Waiting for land

10 Raebareli, Uttar Pradesh Mint Waiting for land


95

References

1. Spices Board of India, www.indianspices.com

2. Directorate of Economics and Statistics, Ministry of Agriculture,

www.eands.dacnet.nic.in

3. Indian Institute of Spices Research, www.spices.res.in

4. Forward Markets Commission, http://www.fmc.gov.in

5. Office of the Economic Adviser to the Government of India

http://www.eaindustry.nic.in/

6. APEDA Agri-exchange, www.agriexchange.apeda.gov.in

7. World Spice Congress, www.worldspicecongress.com

8. Tanu Agritech Portal, Tamil Nadu Agriculture University,

http://agritech.tnau.ac.in/

9. IndiaStat.Com - India's Comprehensive Statistical Analysis, www.indiastat.com

10. Commodities, Centre for Monitoring Indian Economy Pvt. Ltd. (CMIE),

www.cmie.com

11. International Trade Centre, www.intracen.org

12. International Pepper Community, www.ipcnet.org

13. FAO: Food and Agriculture Organization of the United Nations, www.fao.org

14. www.wikipedia.org

15. www.commoditiescontrol.com

16. www.appropedia.org

17. www.indianfood.indianetzone.com

18. www.indianfood.indianetzone.com

19. www.agmarknet.nic.in

20. www.shodhganga.inflibnet.ac.in

Disclaimer: This report has been prepared by the Knowledge Management Department of NCDEX Limited for the

purpose of information dissemination. The news reported is from the stated sources and does not necessarily

reflect the views of NCDEX. The facts are reported from publications and have not been checked for authenticity.

NCDEX and its employees will not be responsible for any decision taken by the reader based on this report and are

advised to take independent advise on the commodity(is) dealt in this report .

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