Indian Spices Sector: An overview

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India produces 2.5 million tonne to 3 million tonne of spices annually.

India produces spices of different categories worth around US$ 3 billion.

In terms of volume and value,  India accounted for 46 percent  and 23 percent in value of global  spice trade. (Source: Spices Board India) India accounts for 25-30 per cent of world’s pepper production, 35 per cent of ginger and about 90 per cent of turmeric production.

Among the Indian Federal states, Kerala tops in pepper (96 per cent), Cardamom (53 per cent), Ginger (25 per cent) production in the country. Andhra Pradesh leads in Chilli and Turmeric production in the country with 49 per cent and 57 per cent. In corriander, cumin and fengugreek production in the country, Rajasthan emerges as the largest producer with 63 per cent, 56 per cent and 87 per cent. (Source: All India Spice Exporters Forum)

The world spice trade is estimated at US$ 1.5-2 billion in terms of value and 500,000 tonnes in terms of quantity.

According to UNCTAD-International Trade Centre estimate, in terms of volume, pepper contributes 34% of total global spices trade followed by chillies 22%, seed spices 17%, tree spices 14%, trumeric 5%, ginger 4%, cardamom 3% and vanilla 1%.

In last five years (1997-98 to 2001-02) India's spice exports increased marginally by 1.20 per cent in terms of volume but export earnings in rupee terms registered an impressive 45.72 per cent growth reflecting marked value addition. In terms US$ the growth in earnings 13.40 per cent.

In the global spice trade composition, pepper tops the list with 34 per cent followed by chillies (22 per cent), seed spice (17 per cent), tree spice (14 per cent), turmeric (5 per cent), ginger (4 per cent), cardamom (3 per cent) and vanilla (1 per cent).

India emerges as the single largest country outside IPC net accounting for 29.77 per cent of global pepper production and 22.16 per cent of global exports – both in terms of volume. The estimate is based on a study (1989-98) of the International Pepper Community (IPC).

In terms of export earnings pepper accounts for 45 per cent of India’s total spice exports. See volumewise exports of Indian spices.

In terms of quantity, the position is just the reverse with chilli taking the largest share (28.10 per cent) in India’s spice export basket compared with pepper (20.16 per cent).

Spice oil and Oleoresins, value added items, together accounts for 15.33 per cent of total export earnings from Indian spices.

The 2001-02 export scenario however was not encouraging with pepper exports being hit by a dull international market. According to provisional estimate, in terms of US$, spices exports from India the current fiscal year (2001-02) dropped by 3 percent at US$ 341.60 million compared with US$ 352.13 mn. However, in terms of Rs, exports were marginally up -- 0.83 percent -- at Rs 1625.35 crore against previous year's Rs 1612.07. In terms of volume exports were up 6.53 percent  at 245,000 tonnes from 181,174 tonnes in 2000-01. Click here to see India's spices export earnings in US$.

With the financial assistance of UNDP, India has undertaken a number of long term projects to better quality of spices, to make available clear, hygienically processed spices in higher quantities for exports. UNDP is funding US$ 1.24 million in the second phase of the programme ending 2003. Indian Spices Bopard would be contributing another US$ 1.12 million besides industry, exporters combined contribution of around US$ 0.95 million.

India's exports of Spices  (2001-02)
(In US$ million)