THE Spices Board is encouraging Indian exporters to upgrade from basic bulk spice exports to access retail markets worldwide.
The chairman of Spices Board, VJ Kurian said that currently the average farm-gate price in India is 10% of the retail price. "This can be jacked up to 30-35% by selling the products at retail level through value addition and branding." He added that by 2017 India's spice exports would touch $10 billion and by then it could be the only spice processing centre in the world. "India has the advantage of cost and quality," he said.
Mr Kurian, who was in the city to inaugurate the Board's second testing laboratory said that to facilitate value added exports the central government has sanctioned seven spice parks in different states. The Board would invest Rs 12 crore each, in basic infrastructure of these seven parks. "We are encouraging manufacturers to set up processing facilities at these parks," he said.
With better facilities India could also import in bulk from other countries and re-export after value addition, he reckons.. Spices exporters are of the view that so far there had been no concerted efforts to improve the value added exports. They are hoping that the new spice parks will generate more interest. India now exports only 10% of its total production which ranges between 35-40 lakh tonne. "We can increase this share to 35% by 2015," Mr Kurian said.
India accounts for 35% of world trade in value terms with exports topping $1billion in 2007-08. The Board has estimated that exports will cross $1.2 billion in the current financial year. The major spices exported would include turmeric, chilli, coriander and cumin in the current year.
The Board has also suggested that exporters should tap new markets including China, Russia, and some African and West Asian markets. Currently the US accounts for a major part of spices export from India.
The Board is promoting the development of organic spices in North East and will invest close to Rs 60 crore in the region. "We would like to develop North East as an organic hub of spices exports," he said. They expect exports to grow four-fold in next four years from Rs 65 crore.
The Board has entered a tripartite agreement with FMCG major ITC and the government to grow Naga chillies to be procured by ITC. It is also in talks with other prominent companies to replicate this model. Mr Kurian, however, did not elaborate, saying it was too early to comment.
The chairman of Spices Board, VJ Kurian said that currently the average farm-gate price in India is 10% of the retail price. "This can be jacked up to 30-35% by selling the products at retail level through value addition and branding." He added that by 2017 India's spice exports would touch $10 billion and by then it could be the only spice processing centre in the world. "India has the advantage of cost and quality," he said.
Mr Kurian, who was in the city to inaugurate the Board's second testing laboratory said that to facilitate value added exports the central government has sanctioned seven spice parks in different states. The Board would invest Rs 12 crore each, in basic infrastructure of these seven parks. "We are encouraging manufacturers to set up processing facilities at these parks," he said.
With better facilities India could also import in bulk from other countries and re-export after value addition, he reckons.. Spices exporters are of the view that so far there had been no concerted efforts to improve the value added exports. They are hoping that the new spice parks will generate more interest. India now exports only 10% of its total production which ranges between 35-40 lakh tonne. "We can increase this share to 35% by 2015," Mr Kurian said.
India accounts for 35% of world trade in value terms with exports topping $1billion in 2007-08. The Board has estimated that exports will cross $1.2 billion in the current financial year. The major spices exported would include turmeric, chilli, coriander and cumin in the current year.
The Board has also suggested that exporters should tap new markets including China, Russia, and some African and West Asian markets. Currently the US accounts for a major part of spices export from India.
The Board is promoting the development of organic spices in North East and will invest close to Rs 60 crore in the region. "We would like to develop North East as an organic hub of spices exports," he said. They expect exports to grow four-fold in next four years from Rs 65 crore.
The Board has entered a tripartite agreement with FMCG major ITC and the government to grow Naga chillies to be procured by ITC. It is also in talks with other prominent companies to replicate this model. Mr Kurian, however, did not elaborate, saying it was too early to comment.
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