SPICES EXPORTS: FOLLOWING THE TURMERIC TRAIL

CMYKMarket SurveyBY: A.T.N. ABUBACKERSPICES EXPORTS: FOLLOWINGTHE TURMERIC TRAILThe spices grown in the country aremainly consumed by the large domesticmarket. That is, 94 per cent ofthe total production of spices in Indiais domestically consumed and theremaining six per cent is exported.India’s share in the world trade ofspices is 47 per cent in volume and 25per cent in value terms. India exported37.37 million tonnes of spicesvalued at Rs 3675.75 crore duringthe year 2006-07. India exports spicesto a number of countries in differentparts of the world. The major importersof the Indian spices are theUSA, Japan, Russia and the Arabcountries. The area under spices cultivationand its production in thecountry during the period 2000-01 to2004-05 is given in Table I.Table I reveals that there was awide variation in area and productionof spices in India from 2000-01to 2005-06. In the year 2004-05, theareas under spices cultivationreached the highest level of 5.78 millionhectares with production of 8.04million tonnes, due to the pricesprevalent for spices during the previousyear 2003-04.Despite high domestic consumption and fluctuations inthe export market, India holds a dominant position inturmeric export.Indian spices are as old ashuman civilisation and theVedas, ancient literature andtravelogues are replete withinnumerable references tothem. Spices trade in India startedwith the Arabians, who enjoyed themonopoly till the 15th century. Fromthe beginning of the 16th century,the Dutch began to control the Indianspices trade, till the Britishemerged as a strong rival to them.Even though spices exports are lowin volume, they are high value crops.Turmeric trailTurmeric obtained from the undergroundrhizome of the plant curcumalonga, belongs to the familyzingiyberaceae. The origin of turmericis believed to be South-East Asia. It iswidely cultivated in India, China, JavaTable IArea under Spices and itsProduction in IndiaDuring 2000-01 to 2005-06Year Area Production(in million (in millionhectares) tonnes)2000-01 2.36 2.512001-02 2.77 3.382002-03 2.49 2.882003-04 2.65 3.182004-05 5.78 8.042005-06 5.71 7.93Source: Spices Board, Cochin

CMYKTable IIArea, Production and Yield ofTurmeric in IndiaDuring 2000-01 to 2005-06Year Area Production Yield(in ‘000 hectares) (in ‘000 tonnes (kg per hectare)2000-01 187.4 719.6 3,8392001-02 162.9 552.3 3,3892002-03 149.8 526.4 3,5122003-04 152.3 600.0 3,9392004-05 160.6 700.7 4,3632005-06 174.6 830.2 4,755Source: Spices Board, Cochinand Haiti. It grows two-three feet (0.6-0.9 metre) tall and has large brightgreen leaves, yellow flowers and a rhizomeconsisting of short segments. Thecured and dried rhizomes are commerciallycalled turmeric.Turmeric is largely consumed asa spice in India. It is widely utilisedas a food adjunct in many vegetables,meat and fish preparationsin most of the Asian countries. Turmericis also used to flavour and addcolour to butter, cheese, pickles, liquor,fruit drinks and cakes. In ancientIndia, turmeric was largelyused for dyeing wool, silk and cottonto impart a yellow hue. It is alsoemployed as a colouring agent inconfectionery and food industry. Inthe Indian medicalsystem, turmeric occupiesan importantplace as an ingredientin the preparationof medicinal oilsand ointments. It isalso used as a curefor stomachache, as atonic, blood purifierand antiseptic. Itsantiseptic and healingproperties haveboth preventive andcurative role in adolescencepimples. Itis widely used bywomen in India toremove unwanted hair and as a cosmeticcure. India is the largest producerand exporter of turmeric inthe world market, but still it meetsonly 46 per cent of the total demandfor turmeric in the world. Turmericproduction in India was 830.2 thousandtonnes with an area of 174.6thousand hectares under its cultivationduring the year 2005-06.In India, turmeric is cultivatedin the states of Andhra Pradesh,Tamil Nadu, Kerala and Karnataka.Turmeric production in thestates of Andhra Pradesh and TamilNadu jointly account for 76 per centof the total turmeric production inIndia.The areas in India under turmericTable IIIExport Earnings of Spices andTurmeric in IndiaDuring 2000-01 to 2006-07Year Spices Turmeric Per cent Spices Turmeric Per cent(tonnes) (tonnes) (lakhs) (lakhs)2000-01 235,917 44,627 18.9 183,352.19 11,567.62 6.312001-02 243,203 37,778 15.5 194,054.88 9,073.71 4.682002-03 264,107 32,402 12.2 208,671.02 10,337.99 4.952003-04 254,382 34,500 13.5 191,160.50 12,751.88 6.672004-05 348,524 43,097 12.5 235,051.87 15,624.95 6.652005-06 350,363 46,405 13.2 262,762.46 15,286.02 5.822006-07 373,750 51,500 13.7 367,575.00 16,480.00 4.48Source: Spices Board, CochinMarket Surveycultivation, production and the yieldsfor the period of five years from 2000-06 are given in Table II.It may be concluded from Table IIthat the area, production and yield ofturmeric in India fluctuated duringthe given period. The variations inprice of turmeric and diseases besettingits cultivation were the main reasonsfor these fluctuations.Export of turmericTurmeric is second in exportearnings of spices in India. It fetchedRs 4473.75 lakh as export earningsduring April-June 2007. Turmeric isexported to many countries particularlyBangladesh, Iran, Japan, Pakistan,South Africa, Sri Lanka, theUSA, the UK and the UAE.Export of spices and turmericfor the period of seven years from2000-01 to 2006-07 are presentedin Table III.Table III reveals the fact thatthe share of turmeric in total spicesexports was 18.9 per cent duringthe year 2000-01. Later, it decreasedto 13.7 per cent during 2006-07. Theexport value of turmeric in totalvalue of spices was higher (6.67 percent) during the year 2003-04. Thereason for the variation in valuewas the fluctuation in price of turmericin the world market. Still,India occupies a dominant positionin turmeric export. If the governmentof India frames suitable policiesto increase turmeric exports,no doubt, our nation will lead theworld spices market.