spices final

Spice - The Mistress of Flavor

The Spice Trade

Of India

By : Saif Khan Roll No.

191167

Spices

Market Overview

Industry Trends

Indian Spice Trade

Export Stats

SWOT Analysis

Plan & Strategy

Conclusion

References

• Dried seed, fruit, bark, leaf, used as a food additive to flavor, color or preserve.

• Most expensive spice - Saffron – 1g may cost up to Rs.800

• Currency of developing nations• India, China and Indonesia are the major spice

producers in the world• Major Source of foreign exchange• Major importers are U.S.A, Japan, Europe, East

Asian & Middle East countries


Spices

Market Overview

Industry Trends

Indian Spice Trade

Export Stats

SWOT Analysis

Plan & Strategy

Conclusion

References

• Current World Imports 525,000 Tons valued USD 1.5 Billion with CAGR of 4%

• World Production 8.5 Million Tons valued USD 25 Billion

• Pepper – 34%• Chili – 22%• Seed Spices – 17%• Tree Spices – 14%• 80% spice trade is in unground form


Spices

Market Overview

Industry Trends

Indian Spice Trade

Export Stats

SWOT Analysis

Plan & Strategy

Conclusion

References

Substantial increase in demand due to• Increasing hotel business• Increased demand of ethnic food• Introduction of flavored beverages• Growth in processed food consumption• Consumers are getting more inclined to healthy

lifestyle & so use natural spices for flavoring, coloration and preserving


Spices

Market Overview

Industry Trends

Indian Spice Trade

Export Stats

SWOT Analysis

Plan & Strategy

Conclusion

References

• 46% share in volume and 27% in value of global trade

• Has been an exporter for more than 2000 yrs• Exports spices to 120 countries• Major exported spices, value wise 2010–11

• Mint Products – Rs.1696.79 Cr• Chili – Rs.1535.54 Cr• Oils & Oleoresins – Rs.910.62 Cr

• As a percentage of Global Trade, India leads in Pepper, Cardamom(S & L) & Chili


Spices

Market Overview

Industry Trends

Indian Spice Trade

Export Stats

SWOT Analysis

Plan & Strategy

Conclusion

References

Country Wise Major Export (2010 – 11)• India exported 525,750 Tons valued at Rs.6840

Cr as against 502,750 Tons valued at 5560 Cr in 2009-10, (5% & 28% resp.)

• USA:42,816 MT (-9.49%); Rs.988.5 Cr (+13.27%)

• China: 13,058 MT (+46.5%); Rs.637.6 Cr (+49.96%)

• Malaysia: 65,414 MT (+1.94%); Rs.502.4 Cr (+11.34%)


Spices

Market Overview

Industry Trends

Indian Spice Trade

Export Stats

SWOT Analysis

Plan & Strategy

Conclusion

References

Item Wise Major Export (2010 – 11)• Mint products: 17,450 MT (-8.15%); Rs.1696.79

Cr (+42.62%)• Chili: 240,000 MT (+17.64%); Rs.1535.54 Cr

(+18.87%)• Oils & Oleoresins: 7,600 MT (12.59%);

Rs.91,062.45 Cr (28.48%)


Spices

Market Overview

Industry Trends

Indian Spice Trade

Export Stats

SWOT Analysis

Plan & Strategy

Conclusion

References

Major Item – Country Export (2010 – 11)

Major Item - Country.xlsx


Spices

Market Overview

Industry Trends

Indian Spice Trade

Export Stats

SWOT Analysis

Plan & Strategy

Conclusion

References

Strengths• major producer of spices globally• Most fertile land• Has International trade unions & thus get

preferential treatment in spice trade.• Easy availability of raw materials.• Social acceptability of agriculture • support from the central government.• largest population engaged in agriculture.• Large network of manufacturing facilities• Vast domestic market.


Spices

Market Overview

Industry Trends

Indian Spice Trade

Export Stats

SWOT Analysis

Plan & Strategy

Conclusion

References

Weakness• Low productivity • Poor product quality at farm level• Insufficient infrastructure• Lack of scientific storage & processing• Poor post harvest handling & SCM• Insufficient mechanization• Unable to meet quality req. of developed nations• Inadequate surplus for exports• Poor linkage between R&D labs & Industry


Spices

Market Overview

Industry Trends

Indian Spice Trade

Export Stats

SWOT Analysis

Plan & Strategy

Conclusion

References

Opportunities• Large crop & material base due to agro ecological

variability offers huge potential • Integration of technology (biotech, material

science etc.) is increasing productivity• Opening of global markets allows access to

developed technologies and facilitate higher production and storage capabilities

• Advances in genetic engineering enable crops to be naturally resistant to diseases

• Improving export trends


Spices

Market Overview

Industry Trends

Indian Spice Trade

Export Stats

SWOT Analysis

Plan & Strategy

Conclusion

References

Threats• Competition from global players• Some countries have no domestic market for their

produce and thus sell at cost price (e.g. Cardamom from Guatemala, Pepper from Vietnam & Cloves from Indonesia)

• Loss of trained manpower to other industries and professions

• Rapid development in contemporary requirements of the industry fast lead to obsolescence


Spices

Market Overview

Industry Trends

Indian Spice Trade

Export Stats

SWOT Analysis

Plan & Strategy

Conclusion

References

Plan• Minimize product losses• Add maximum value• Achieve high quality standards• Keep processing cost low• Ensure that a fair share of added value goes to the

producer


Spices

Market Overview

Industry Trends

Indian Spice Trade

Export Stats

SWOT Analysis

Plan & Strategy

Conclusion

References

Strategy• National Plans to improve agro processing

technology• Emphasis on developing new agro industrial

plants in production catchments to minimize costs & improve SCM

• Improvement of infrastructure in production catchment areas

• Enable management by public as well as private sector

• Financial incentives should be focused on modernization of the industry

• Improve supply of market information to farmer and agro processor


Spices

Market Overview

Industry Trends

Indian Spice Trade

Export Stats

SWOT Analysis

Plan & Strategy

Conclusion

References

• Indian spices are in high demand both in domestic & International Markets

• Not achieved development due to problems in marketing, SCM, storage, transportation & pre & post harvesting activities

• Most farmers produce spice as a cash crop besides commodities like maize & wheat

• To increase spice production, farmers need to be guaranteed a competitive price

• Exporters abroad are forced to import from several small farmers through several intermediaries

• Producing & exporting to USA, Europe etc. requires several quality checks, thus Govt. needs to intervene.


Spices

Market Overview

Industry Trends

Indian Spice Trade

Export Stats

SWOT Analysis

Plan & Strategy

Conclusion

References

• SME India• World Spice Association• Indian Spices Board• Food & Agricultural Organization• Global Trade Statistics• Indian Exporters Association• Agriculture Board of India• Spicetrade.com


spices final

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