Download - 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
Spice - The Mistress of Flavor
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
Spice - The Mistress of Flavor
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
Spice - The Mistress of Flavor
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
Spice - The Mistress of Flavor
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%)
Spice - The Mistress of Flavor
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%)
Spice - The Mistress of Flavor
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
Spice - The Mistress of Flavor
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.
Spice - The Mistress of Flavor
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
Spice - The Mistress of Flavor
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
Spice - The Mistress of Flavor
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
Spice - The Mistress of Flavor
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
Spice - The Mistress of Flavor
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
Spice - The Mistress of Flavor
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.
Spice - The Mistress of Flavor
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
Spice - The Mistress of Flavor
Spice - The Mistress of Flavor