INDIAN INDIAN SPICES SPICES

Prepared by :Bhakti Shelar & Dipali Golatkar Batch : SMBA-2

INTRODUCTION
 Spices are defined as "a strongly flavored or aromatic substance of vegetable origin, obtained from tropical plants, commonly used as a condiment".  India - the land of spices plays a significant role in the global spices market.  India exports around 180 kinds of spices to nearly 150 countries worldwide.  Masala is a word very commonly used in Indian cooking and is simply the Hindi word for "spice."  In India, spices are important commercial crops from the point of view of both domestic consumption and export.  Kerala is a major spice-exporter.  India is the worlds largest producer and exporter of spices.

LIST OF INDIAN SPICES

Ginger Sour Mango Powder Indian Pickle (Achar) Celery Seed (Ajmud) Carom Seed (Ajwain) Indian Gooseberry (Amla) Pomegranate seed Spice powder Almond Green cardamom (Elaichi) Black Cardamom Star anise (Chakra Phool) Charoli Mango extract Cinnamon (Dalchini) Coriander seed (Dhania) Spice mixture Rose water Unrefined Sugar (Jaggery) Turmeric (Haldi) Coriandergreen Asafoetida (Hing) Tamarind (Imli) Nutmeg (Jaiphal) Mace (Javitri) Cumin seed (Jeera) Licorice (Jethimadh ) Capers (Kachra) Curry Leaf (Kadipatta) Cashewnut Black salt Black Cardamom Black pepper Nigella seed (Kalonji) Fenugreek seed (Methi) Salt Lemon \ Lime (Nimbu) Mint (Pudina) Onion Black Stone Flower Pepper Mustard Seed (Rai) Alkanet root (Ratin jot) Citric acid (Saji ka phool) Mustard oil (Sarson oil) Fennel seed (Sanchal) Caraway Seeds (Shahi Jeera) Vinegar (Sirka) Dill (Soa sag) Aniseed (Shopa) Bay Leaf (Tej Patta) Capsicum Black Cumin (Kali Zeera) Holy Basil (Tulsi) Sesame Seed (Til)

Forms of Spices
Whole Spices: These spices are used in their original form after being thoroughly cleaned. These spices are used both for garnishing as well as flavoring. e.g.: Cloves, Cinnamon, Black Pepper. Ground Spices: Grinded spices are used as they deliver flavor quickly and also they blend easily into a product; this is so, because grinding a spice breaks down the protective cell structure .

Parts of a Plant used as a Spice

Barks Berries Buds Bulbs Pistil (female part of flower) Kernel Leaf Rhizome/Roots Roots e.g.: Cinnamon e.g.: Black Pepper, Chilli e.g.: Cloves e.g.: Garlic, Leek e.g.: Saffron e.g.: Nutmeg e.g.: Basil, Bay Leaf, Mint, Marjoram, Sage, Curry Leaf e.g.: Ginger, Turmeric e.g.: Ajowan, Aniseed, Celery

Spices Extraction Methods

There are a number of extraction methods of spices being used depending on the technology and also the forms of Indian spices being extracted. Some of the popular extraction methods are:  Steam Distillation  Hydrocarbon Extraction  Chlorinated Solvent Extraction  Enzymatic Treatment and Fermentation  Carbon dioxide Extraction

Application of Indian Spices

Spices are used mainly for food flavoring and preservation. However, Indian spices have medicinal, aromatic properties that also make them useful in a number of industries including:  Perfumes  Cosmetics  Medicine  Beverages

International Trade in Spices

 Spice trade has always held major economic importance throughout the human history.  The international trade in different forms of spices has grown tremendously in the last decade.  According to an estimate, 85% of the international trade in spices is dried and is used after cleaning but without further processing.

 Pepper is one of the most valuable spice in the global trade.  Countries including China, India, Madagascar, Indonesia are emerging as the leading spice traders.

India's Share in the Global Spice Market

 The Indian spice industry is booming with a substantial increase in exports over the past few years.  India accounts for nearly 48% and 44% in terms of volume and value in the world spice trade.  The booming global spice market also poses good opportunities for the Indian spice industry to provide quality spices at competitive prices.  India faces stiff competition form China, Malaysia and Pakistan in terms of pricing of the products. Manufacturers should therefore ensure consistency in supply, product quality, pricing and marketing strategy to increase the share in exports.  Producers are incorporating latest methods and technologies to ensure higher quality of spices and herbs.  India is one of the prime exporters of pepper, chilies, turmeric, seed spices and spice derivatives to the rest of the world. USA, EU, Japan and Srilanka import these Indian spices in large volumes.

India's share in Global Spice Derivative Market

 Spice derivatives can be categorized into spice oil, oleoresins and essential oils.  The demand for spice derivatives is also increasing due to the hygiene, standardization and consistency factor.  India contributes nearly 70% to the world spice derivative market. It exports largely to the US, EU etc.  Indian southern states including Kerala, Karnataka and Tamil Nadu provide concentrated oils and oleoresins for use in perfumery, pharmaceuticals, foods processing and industrial chemical industry.  Indian Government is providing financial assistance to farmers, growers and spice producers and has also taken certain steps to ensure the availability of better quality spices, more hygienically processed spices in order to boost exports. Indian spice board also provides financial and technical assistance to farmers.

Spice industry
 India produces 2.5 million tones to 3 million tones 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 worlds 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 coriander, cumin and fenugreek 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 tones in terms of quantity.

PRODUCTION OF SELECTED SPICES IN 2008-09

SPICES PAPER CHILLI GINGER TURMARIC CORRIANDER CUMIN GARLIC TOTAL ( INCLUDING ALL OTHER SPICES ) GRAND TOTAL IN MLN TONNES QTY ( IN TONNES) 46745 1353796 795028 892213 416663 283000 1009116 5278851 5.28 % OF TOTAL PRODUTION 0.9 26 15 17 8 5 19

Export of Indian Spices

 An annual growth rate of year 2009-10 = 13.1% in value and 9% in volume. YEAR 2008-09 2009-10 SHARE IN WORLD TRADE QTY ( TONNES) 470520 502750 48% VALUE ( CRORES ) 5300.25 5560.50 44% VALUE ( MLN US $) 1168.40 1173.50

 The total market size for spices is estimated Rs. 20000 Crores and is growing.

Major Item Wise Exports Of Spices From India( 2009 -10)

SPICES PEPPER CHILLI GINGER TURMERIC CORIENDER CUMIN TOTAL (INCLUDING ALL OTHER SPICES VALUE IN MLN US $ QTY ( TONNES) % OF TOTAL 19750 204000 5500 50750 47250 49750 502750 4 4 1 10 9 9 VALUE (LAKHS) 31392.50 129172.80 4675 38123 22585 22585 556050 % OF TOTAL 7 23 0.84 7 4 4

1173.75

Major Country Wise Exports of Spices From India ( 2009 - 10 )

MAJOR COUNTRIS USA MALASIA UAE U.K. SRI LANKA BANGLADESH TOTOAL (INCLUDING ALL OTHER COUNTRIES) QTY (MT) 47310.3 64163.3 54904.4 22519.8 42364 48071.4 502750 % OF TOTAL 9 13 11 4 8 9 VALUE ( LAKHS) % OF TOTAL 87265.3 43120,1 36470.7 29944.5 23690.3 23577.3 556050.1 16 8 7 5 4 4

Export Development
 Spices exports have registered substantial growth during the last five years, registering an annual average growth rate of 21% in value and 8% in volume.  During the year 2010-11, spices export from India has registered an all time high both in terms of quantity and value.  In 2010-11 the export of spices from India has been 525,750 tonnes valued Rs.6840.71 crores (US $ 1502.85 Million) as against 502,750 tonnes valued Rs.5560.50 crores (US $ 1173.75 Million) in 2009-10, registering an increase of 28% in dollar terms of value and 5% in volume.  India commands a formidable position in the World Spice Trade with 48% share in Volume and 44% in Value.

Imports of Indian spices

Major Spice wise Imports Of Spices Into India( 2009-10)
SPICES PEPPER QTY ( TONNES) % OF TOTAL 18100 17 6 26 9 12 11 1 VALUE(LAKHS) 23465.75 6719 4906.25 16740 5661.50 20000 13775.25 110045.75 % OF TOTAL 21 6 4 15 5 18 12

CARDAMON( 6000 LARGE) GINGER (FRESH/DRY) CLOVE CASSIA PEPPY SEED OIL & OLEORISINS TOTAL (INCLUDING OTHERS) 27250 9550 13000 11750 1300 106700

IMPORTS
 As per the current Foreign Trade Policy, there is no quantitative restriction on import of spices into the country except for items like 'seed quality' spices, Fresh Ginger and Poppy seed.  The tariffs for import have also been steadily brought down.  Under Free Trade Agreement with Sri Lanka, duty free import of spices is permitted.  Duty free imports are also allowed under the Advance Authorization Scheme for value addition and re-export.

Spices Board India

 Spices Board (Ministry of Commerce, Government of India) is the flagship organization for the development and worldwide promotion of Indian spices.  The Board is an international link between the Indian exporters and the importers abroad.  The Board has been spearheading activities for excellence of Indian spices, involving every segment of the industry.  The Board has made quality and hygiene the corner stones for its development and promotional strategies.

Multi faceted activities

 Promotion of exports of spices and spice products.  Maintenance and monitoring of quality of exports.  Development and implementation of better production methods, through scientific, technological and economic research.  Guidance to farmers on getting higher and better quality yields through scientific agricultural practices.  Provision of financial and material support to growers.  Encouraging organic production and export of spices.  Facilitating infrastructure for processing and value addition  Registration and licensing of all spice exporters.  Assistance for studies and research on better processing practices, foolproof quality management systems, improved grading methods and effective packaging techniques.  Production of promotional and educative materials in a variety of media for the benefit of exporters and importers.

Package of services for importers

 Helps importers and exporters in establishing mutual contact.  Identifies competent supply sources for specific requirements of importers.  Processes and forwards foreign trade enquiries to reliable exporters.  Organises a common platform for interaction between Indian exporters and international buyers through the World Spice Congress.  Examines each complaint from importers for corrective and preventive action.  Spearheads the quality improvement programme for Indian spices.  Manages a comprehensive and up-to-date data bank for exporters and importers.  Brings together international bodies, exporters and policy makers through contact group programmes.  Makes Indias presence felt in major international food fairs; conducts food festivals and cooking demonstrations.

Challenges
 Import volume of selective spices are rising because of cost consideration.  If indigenous production and quality continue to show sluggish growth, there is danger, the industry will migrate to countries that offer a more stable business environment. To stay competitive, the industry needs to improve its supply chain management.  Establishing backward linkages and undertaking contract farming to produce raw material that is tailor-made for the market will help.  Adoption of modern quality assurance systems is sure to help the processing industry gain consumer confidence.

Forecast
 World spice and seasoning market to reach 4687.86 million pounds by 2015, according to forecast by Global Industrial Analysis.

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