Spices exports from India, sector reached unprecedented heights in the fiscal year 2023-24, recording an all-time high of $4.46 billion. This significant growth marks India’s critical role in the global spice trade, propelled by a rebound in volumes and increased prices for several key spices such as pepper, cardamom, and turmeric. This blog delves into the factors behind this impressive performance, the challenges ahead, and the outlook for the current financial year.
Growth in Spices Exports Volume and Values
Key Statistics:
The fiscal year 2023-24 saw Indian spices exports achieving remarkable milestones:
- Total Export Volume: 15,39,692 tonnes
- Total Export Value: ₹36,958.80 crore ($4.46 billion)
- Percentage Increase in Value: 17% from the previous year’s $3.95 billion
- Percentage Increase in Volume: 9% from the previous year’s 14.04 lakh tonnes
This growth was primarily driven by the increased global demand for specific spices like pepper, cardamom, and turmeric. The Spices Board under the Ministry of Commerce and Industry highlighted that this surge was due to higher prices and robust demand.
Major Contributors:
One of the standout performers in this growth story is red chilli:
- Red Chilli Exports: $1.5 billion (34% of total spices exports)
- Increase in Red Chilli Export Volume: 15% to 6.01 lakh tonnes from 5.24 lakh tonnes the previous year
Key Export Destinations:
Several countries emerged as major importers of Indian spices, underscoring the global appeal and demand:
- China: The largest importer of Indian red chillies, purchasing over 1.79 lakh tonnes valued at ₹4,123 crore, marking a 14% increase in volume and a 21% increase in value from the previous year.
- Bangladesh: Significant growth in imports, with a 67% increase to 90,570 tonnes, up from 53,986 tonnes the previous year.
Additionally, other key spices such as coriander, ginger, celery, fennel, and garlic saw heightened demand, contributing to the substantial rise in shipment volumes and values.
Are you also looking to export spices but struggling to start, Then learn from the expert himself – Click to Find out how to start your Spice Export Business from India.
Challenges and Early Indicators for the Current Financial Year
Despite the record-breaking performance in FY 2023-24, the spices exports sector faces several challenges in the current financial year that could impact its momentum.
Challenges :
- Quality Concerns: Issues raised by some countries regarding the presence of ethylene oxide (ETO) in certain spice brands have emerged as a potential hurdle. While the industry maintains the impact is minimal, the increased demand for new test results by external laboratories may impose additional financial burdens on exporters.
- Crop Shortages: Lower crop yields for some varieties, particularly turmeric, are expected to impact availability and potentially lead to export declines.
Early Export Trends:
Initial indicators suggest a decline in spices exports in the early months of the current financial year:
- Initial Decline: Spices exports in value terms were down by 5.84% in the first two months, amounting to $766.79 million compared to $814.37 million in the same period last year. This early dip indicates potential headwinds that may affect the overall performance of spices exports.
Insights and Expectations
Expert Opinions:
Emmanuel Nambusseril, Vice Chairman of the All India Spices Exporters Forum, noted that the impact of the ETO contamination issue on overall spice exports is minimal. The primary decline was observed in the export of spice blends (masalas), while value-added products remained largely unaffected.
Outlook for the Current Fiscal Year:
- Quick estimates for the first two months of the current financial year show a slight dip in export value compared to the same period last year.
- The industry remains optimistic about achieving export levels comparable to FY 2023-24, with a focus on value-added products less affected by current issues.
Conclusion
The fiscal year 2023-24’s performance of Indian spices exports underscores India’s dominant position in the global spices market. While the sector faces significant challenges in the current financial year, including quality concerns and crop shortages, the industry remains optimistic. By focusing on maintaining high standards and strategically adjusting to new requirements, India can continue to meet the robust global demand for its spices, sustaining its growth and reinforcing its status as a key player in the global spice trade.
This blog just scratched the surface of the exciting world of exports! Check more of our Blogs.
Do Follow us on Our Social Media channels to stay ahead in your rice business
Source: The Statesman