Hyderabad: India exported spices worth $359 million in June 2020, up by a strong 23% in dollar terms compared with $292 million in the year-ago period, according to data provided by Associated Chambers of Commerce and Industry of India (Assocham).
In rupee terms, the growth in spice exports was even more solid 34% to Rs 2,721 crore in June 2020 compared with Rs 2,030 crore in June 2019.
The rise in export of spices is significant as it comes at a time when India’s overall exports have contracted 12.4% in June to $21.91 billion compared with $25.01 billion in June 2019.
The outbreak of the Covid-19 pandemic and the subsequent increase in focus on health among people across the globe are being seen as key reasons behind the surge in spice exports.
Dr. Parashram Patil, agricultural export policy analyst and a former adviser to the Ministry of Commerce and Industry, said: “Due to Covid, entire food dieting system has changed. Immunity is now in focus… people want to boost their immunity naturally and hence we are seeing strong demand for spices.”
India has been witnessing strong demand for spices for a past couple of months. In May, spice exports in dollar terms registered a growth of 10.6% year-on-year in May 2020, while it was 32.2% in April 2020.
“Demand for spices has been good for last 10-15 years, but it has picked up pace as spices have strong medicinal value. Turmeric (haldi) alone is used in manufacturing of so many medicinal drugs,” noted Patil.
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India is the world's largest exporter of spices, with pepper, cardamom, ginger, turmeric, coriander, cumin, celery, fennel, fenugreek, nutmeg, spice oils and oleoresins, and mint products some of the key commodities shipped abroad. Some of the biggest buyers of Indian spices include Vietnam, China, the US, the UK, Bangladesh, Malaysia, UAE, Indonesia, Thailand and Iran.
The global surge in demand for spices has been even more beneficial for India as the country has maintained its leadership in the production of these commodities. “India has a unique set of agro-climatic conditions which is ideal for producing spices. No other country has been able to produce that kind of variety and quality that is available in India,” said Patil.
“There is abundant production of spices in the country… Moreover, the Ministry of Ayush, along with the Spices Board, has done a lot of work to promote the benefits of spices, which has also resulted in boosting demand,” he added.
Strong demand has also led to higher realisation for spice producers. A dipstick study by Assocham noticed that rising demand for spices in the domestic market led to a sharp 12% increase in their prices in June, whereas the overall headline retail inflation was just around 6%. A dipstick study is basically a poll that asks open-ended questions to solicit opinions or information.
(ETV Bharat Report)
