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Pallavi Oak
Knowledge Management Group Email: [email protected]
Contact: + 91 22 66406568
Kalimirch – Mirchi – Haldi
Dhaniya – Jeera
S P I C E S
FUNDAMENTAL
REPORT
1
1.1 Introduction
‘Spices’ are aromatic substances of a plant origin, obtained from roots, flowers,
fruits, seeds, leaves or bark. They form a dried part of a plant, which essentially
distinguishes them from ‘Herbs’, which are obtained from the leaves of herbaceous
(non-woody) plants. While spices are generally grown in warm tropical and sub-
tropical climates, herbs originate from temperate climate. Condiments also
differ from spices, as they are edible substances.
1.2 Spices’ Uses
The primary application of all the three – spices, herbs and condiments - remains
the same, i.e. they are used for adding flavour, aroma, colour and taste to food and
drinks, and sometimes also as preservatives or anti-bacterial agents, or as
refreshing or invigorating agents. Although spices are very commonly used in the
form of a powder, some are used as tinctures obtained by extracting essential oils
and many are used as a whole.
The use of spice in food has started from time immemorial but they have found new
applications in the course of history as ingredients of medicines, perfumes, incense,
soaps and many pharmaceutical products.
Certain spices have often been used as medium of exchange/currencies at many
periods throughout history. Researchers have found the mention that Alaric I is said
2
to have demanded pepper as part of the ransom for raising the siege of Rome in
408. Similarly, Pharisees in Judea paid tithes in cumin seeds. During the fourteenth
century, in Germany, one pound of nutmeg could be traded for seven FAT oxen. At
other points in history, rent would be paid in peppercorns, and a pound of pepper
would serve to buy the freedom of a serf in France.
Most of Spices are indigenous to tropical Asia, the West Indies and South
America. Hence, spices have always served as a primary and prominent source to
earn the much needed foreign exchange by developing countries in these regions,
which historically have been exporting these basic agricultural commodities to
developed countries, which have limited production of the same.
A Brief Backdrop of Spices’ Trade
� History of spices dates back to 6th century BC, if not long, long before that.
� Archaeologists discovered spices in Egyptian tombs as early as 3000 BC. Many of the
spices had strong connections or affiliations with different Gods.
� Spices from Asian continent were carried by caravan to ports of the Mediterranean
Sea or the Persian Gulf and thereafter to the market places of Athens, Rome, and
other cities, where they were sold at exorbitant prices.
� During 1497 and 1498, British, Italian, Portuguese navigators undertook voyages to
Asia in search of spices.
� Portuguese navigator, Vasco da Gama, who landed in Calicut (Kozhikode, now) in
Kerala, India, on May 20, 1498, reported about Malabar region, the inexhaustible
land of spices in India.
� The Portuguese started trading directly with India, Siam (modern day Thailand) and
China and controlled the Silk Routes to China and the sea routes to India.
� Between A.D. 1605 and 1621, the Dutch managed to drive the Portuguese out of the
Spices Islands achieving a monopoly in spices trading.
� However in A.D.1799 the Dutch East India Company went bankrupt due to many
reasons and the Dutch ports of Malabar Coast were taken over by the British.
� By the end of the eighteenth century, the United States entered the scene of world
spices trade (especially pepper), the most remunerative trade of the time.
Source: SPICES AN OVERVIEW (www.shodhganga.inflibnet.ac.in/bitstream/10603/156/16/09_chapter2.pdf)
3
1.3 India: A Global Spice Hub
• India is known as the 'The home of spices'.
• India is the leading producer, consumer and exporter of spices in the world and
meets nearly half of the global demand for spices.
• Spices are produced almost in all states of India.
• A whopping 75 spices out of 109 listed by ISO are produced in India.
• Harnessing the technological developments over a period of time, Indian spices
have unleashed their application capabilities to cover a wider spectrum of
industry verticals such as spice and food processing industries, pharmaceutical
and medical segments.
• As a result, Indian spice industry has witnessed increasing number of varieties
of value-added spices and spice products in ground, crushed, cracked, blended,
dehydrated forms in bulk, in brine and in consumer packs (Examples: curry
mixes, natural food colours, spice extracts, spice oil, oleoresins, organic spice
varieties, etc.);
• Landmark Events in the Development of Spices Industry in India
� First research station for pepper established in India at Panniyur, Kerala
in 1952-53;
� Establishment of National Research Centre for Spices (NRCS) in 1986;
� Establishment of Spices Board of India (clubbing the activities of Spices
Export Promotion Council and the Cardamom Board) in 1986, which is a
statutory body responsible for the development and growth of all the
major Indian spices, having commercial significance;
� NRCS upgraded as Indian Institute of Spice Research. (IISR) 1996;
� Establishment of International pepper exchange at Mattancherry, Kerala
in 1997.
1.4 Important Initiatives undertaken by Spices Board to promote
production and export of spices:
� Assisting Spice-growers by providing various services like
1. Soil testing and fertilizer advisory service;
2. Plantation visit and on the spot study of pests and disease problems;
4
3. Recommendation for pest and disease control;
4. Supply of planting materials of high yielding and improved varieties;
5. Supply of bio-control agents for controlling specific diseases and pests;
6. Conducting spice clinics, planters’ meets and group discussions;
7. Imparting training on mass production of bio-agents and on good
Agricultural Practices;
8. Transfer of technical know-how to growers on production of spices on the
scientific aspects of cultivation through personal contact, field visits,
group meetings and through distribution of literature in vernacular
languages for increasing productivity and improving quality
9. Subsidy for constructing Drying Yards;
10. Supply of Polythene Sheets and Bamboo Mats, Moisture Metres (devices
for detecting the moisture level present in the final product for
maintaining the quality) and power operated and manually operated
threshers at subsides cost.
� Promoting Organic Farming through
� Providing subsidy for obtaining Certification of Organic
farms/Processing units;
� Providing a maximum subsidy of Rs.1.30 lakhs per unit towards 50%
cost to purchase equipment and accessories and mother culture for
setting up the unit;
� Providing subsidy for setting up of vermin-compost (an organic
manure which can be produced from farm-waste using earthworms)
units.
� Encouraging exports of spices by providing financial assistance for
• Packaging Development including design and bar coding (50% of the
cost subject to a ceiling of Rs.1.00 lakh per exporter)
• Business promotional trips (reimbursement of 50% of the air fare
subject to a maximum of Rs.60,000/- for Logo/SHC holders and
Rs.40,000/- for registered brand holders)
5
• Participation in international food fairs (50% of the stall rent subject to
a ceiling of Rs.1.00 lakh per exporter per year)
• Forwarding business samples abroad (courier charges subject to a
maximum of Rs.50,000/- per exporter per year)
• Printing of promotional brochures (50% of the cost subject to a
maximum of Rs.2.00 lakhs per brochure)
� Collecting, Compiling and disseminating information on production, prices,
demand, supply, export and import for the benefit of various stakeholders of
the industry through its 'Trade Information Service';
� Bearing total cost of conducting Market studies and marketing strategy
development for promotion of Indian Brands of Spices and Spice Products in
Specified Markets;
� Endorsing product development &research by providing financial assistance
to the tune of 90% of the cost of the project (subject to a ceiling of Rs.1.00
crore per project) involving research, clinical trials and patenting;
� Encouraging production of spices in North East/Special Areas by
• providing financial assistance in the form of subsidies for setting up
spice processing units including processing of organic spices,
upgradation of existing units if any, setting up/ upgradation of quality
control labs in these units, logo certification of the units, setting up of
packaging facilities & packaging development for the branded spice
products and market promotion measures for branded organic
products;
• motivating spice growers’ co-operatives, NGOs representing growers
and individual entrepreneurs (in that order of priority) in North East
and other Hill areas, who can ensure professional management of the
processing units, to enter export oriented spice processing by
establishing ‘Equity Funds’, where by Spices Board will subscribe to the
share capital of these ventures up to 49% or up to the face value of
Rs.1.00 crore (interest free loan up to Rs.1.00 crore where equity
cannot be subscribed for legal reasons) whichever is less.
� Establishing Spices Park - an industrial park to have an integrated operation
for cultivation, post-harvesting operations, processing for value addition,
6
packaging, storage and exports of spices and spice products by meeting the
quality specifications of the consuming countries.
o Spices Board allots the land available in the Park to prospective private
entrepreneurs for initial period of 30 years for developing their own
processing units for value addition and higher end processing by
availing the common facilities in the Spices Park.
o The grower community sells their produce directly to the exporters so
that they can avail the premium price for their produces.
o The exporters develop a link with reliable farming community for an
uninterrupted supply of farm fresh raw material for their business.
1.5 Trading in Spices on Commodity Exchanges in India
In India, trading in spices futures dates back almost a century ago to pre-
Independence period. Even in the post-Independence period when futures
trading in most of the commodities was banned in mid-1960s, Pepper and
Turmeric futures continued to be traded on commodity exchanges in India. A
committee on Forward Markets under the Chairmanship of Prof. K.N. Kabra, at
the time of introduction of economic reforms, recommended upgradation of
futures trading in pepper to the level of international futures markets.
At present, 12 out of 103 commodities in which
futures trading is permitted belong to spices
category. However, six spices, viz., Chilli,
Coriander, Jeera, Pepper, Turmeric and
Cardamom constitute spice complex for actual
derivatives trading in India. The performance of
these contracts illustrates the success of
efficient price discovery in the Indian domestic
market through derivatives trading. Albeit the fact is that no other futures
contracts of spices are actively traded on any of leading international exchanges.
NCDEX offers futures contracts in five major spices, viz. Red Chilli, Coriander,
Jeera, Pepper and Turmeric. Trading in spices futures has always seen huge
turnover in terms of volume as well as value since the introduction the first spice
futures contract on the exchange platform in the year 2004.
List Of Spices Notified Under
Section 15 Of The F.C.(R.) Act
Aniseed Coriander seed
Betelnuts Ginger
Cardamom Methi
Chillies Nutmegs
Cinnamon Pepper
Cloves Turmeric
7
As can be seen from chart 1, turnover of the spice-complex peaked in the
calendar year 2007 to Rs 2,41,061 crore, largely contributed by Pepper and
Jeera; and accounted for slightly more than one-third of the NCDEX’s total
turnover for that year. However, it shrank drastically in 2008, coinciding with
the meltdown in the global economy, following an aftermath of US Sub-prime
crisis followed by financial meltdown and global recession. Trading improved
slightly in 2010 with signs of gradual recovery in global economy but remained
sluggish in the subsequent years amidst another round of global downturn that
began with European sovereign debt crisis.
8
1.6 Volatility in Spot Prices in Spice Complex on NCDEX
0.002.004.006.008.0010.0012.0014.0016.0018.0020.00
Jan-04
Aug-04
Mar-05
Oct-05
May-06
Dec-06
Jul-07
Feb-08
Sep-08
Apr-09
Nov-09
Jun-10
Jan-11
Aug-11
Mar-12
Oct-12
Monthly Spot Price Volatility from Jan'04 to Dec'12 (in %)
Coriander
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
Jan-04
Aug-04
Mar-05
Oct-05
May-06
Dec-06
Jul-07
Feb-08
Sep-08
Apr-09
Nov-09
Jun-10
Jan-11
Aug-11
Mar-12
Oct-12
Monthly Spot Price Volatility from Jan'04 to Dec'12 (in %)
Jeera
0.00
2.00
4.00
6.00
8.00
10.00
12.00
Jan-04
Aug-04
Mar-05
Oct-05
May-06
Dec-06
Jul-07
Feb-08
Sep-08
Apr-09
Nov-09
Jun-10
Jan-11
Aug-11
Mar-12
Oct-12
Monthly Spot Price Volatility from Jan'04 to Dec'12 (in %)
Pepper
0.00
5.00
10.00
15.00
20.00
25.00
Jan-04
Aug-04
Mar-05
Oct-05
May-06
Dec-06
Jul-07
Feb-08
Sep-08
Apr-09
Nov-09
Jun-10
Jan-11
Aug-11
Mar-12
Oct-12
Monthly Spot Price Volatility from Jan'04 to Dec'12 (in %)
Red Chilli
0.00
5.00
10.00
15.00
20.00
Jan-04
Aug-04
Mar-05
Oct-05
May-06
Dec-06
Jul-07
Feb-08
Sep-08
Apr-09
Nov-09
Jun-10
Jan-11
Aug-11
Mar-12
Oct-12
Monthly Spot Price Volatility from Jan'04 to Dec'12 (in %)
Turmeric
9
Apart from the previously mentioned factors, the other fundamental aspects
including demand-supply dynamics in domestic as well as global market,
weather conditions, fiscal and foreign trade policies, etc. also played an
important role in governing the price movements and trading in spices at
aggregate as well as individual level; this report attempts to provide some
insights into the interplay of these factors in the context of 5 spices which, at
present, are being traded on the NCDEX platform, in the subsequent sections.
1.7 Key Statistics
Production of Select Spices in India (in 000' Tonnes)
Pepper Chilli Turmeric Coriander Cumin Total
Spices
2001-02 62 1069 563 319 206 3765
(1.7) (28.4) (14.9) (8.5) (5.5)
2002-03 72 895 522 174 135 3765
(1.9) (23.8) (13.9) (4.6) (3.6)
2003-04 73 1236 565 390 203 5113
(1.4) (24.2) (11.0) (7.6) (4.0)
2004-05 73 1186 718 248 176 8051
(0.9) (14.7) (8.9) (3.1) (2.2)
2005-06 93 1015 852 223 200 3705
(2.5) (27.4) (23.0) (6.0) (5.4)
2006-07 69 1242 787 233 177 3953
(1.7) (31.4) (19.9) (5.9) (4.5)
2007-08 47 1298 794 310 265 4357
(1.1) (29.8) (18.2) (7.1) (6.1)
2008-09 47 1270 821 242 283 4145
(1.1) (30.6) (19.8) (5.8) (6.8)
2009-10 51 1203 793 237 304 4016
(1.3) (30.0) (19.7) (5.9) (7.6)
2010-2011 52 1223 993 482 314 5351
(1.0) (22.9) (18.6) (9.0) (5.9)
2011-2012* 42 1260 1062 530 343 5726
(0.7) (22.0) (18.6) (9.3) (6.0)
*: Estimated Figures.
Figures in brackets are share (in %) of individual spice in total spices’
production.
Source: Ministry of Agriculture and www.indiastats.com
10
FACTS & FIGURES ABOUT SPICES IN INDIA
�Average growth in production of Spices’ during 2001-2012 – 8.8%
�Chilli is the largest produced spice followed by Turmeric
�Overall, Andhra Pradesh is the largest spices’ producing state followed by Gujarat
and Rajasthan in 2009-10
�Spice-wise Major Producing State:
o Black Pepper – Kerala
o Coriander Seed – Rajasthan
o Cumin Seed – Gujarat
o Red Chilli – Andhra Pradesh
o Turmeric - Andhra Pradesh
(Refer Appendix I for state-wise production data of above spices)
�As per data provided by Food and Agriculture Organization of United Nations
(FAO), India accounted for more than 70% of the global spice production in 2010.
�Out of the total spices production, Indian households consume about 70-75%
either in whole form or in value added form (powder or masalas), 5-10% is
utilized by oleoresins, pharmaceuticals and cosmetics companies, 15-20% is
exported and the remaining goes for seed purposes (5%). (Source:
www.commodityindia.com)
�India exports about 180 varieties of spices to more than 150 countries around the
world.
�Spices exports have registered substantial growth during the last five years,
registering an annual average growth rate of 21% in value and 8% in quantity
and India commands a formidable position in the World Spice Trade.
�Compared to the target fixed 5,00,000 tons valued Rs. 6500.00 crore (US$1450
million) for the financial year 2011-12, the achievement is 115% in terms of
quantity and 151 % in rupee and 141% dollar terms.
11
Top 3 Export Destinations for Spices
Traded on NCDEX
� Black Pepper – USA, UK, Canada
� Coriander Seed – Malaysia, UAE, UK
� Cumin Seed – UK, USA, Brazil
� Chilli – Malaysia, Sri Lanka,
Bangladesh
12
Exports of Select Spices
Pepper Chilli Turmeric Coriander Cumin Total
Qty. In
Tonnes
Value in
Rs Lakh
Qty. In
Tonnes
Value in
Rs Lakh
Qty. In
Tonnes
Value in
Rs Lakh
Qty. In
Tonnes
Value in
Rs Lakh
Qty. In
Tonnes
Value in
Rs Lakh
Qty. In
Tonnes
Value in
Rs Lakh
2007-08 35,000 51,950 2,09,000 1,09,750 49,250 15,700 26,000 11,025 28,000 29,150 4,44,250 4,43,550
(7.9) (11.7) (47.0) (24.7) (11.1) (3.5) (5.9) (2.5) (6.3) (6.6)
2008-09 25,250 41,374 1,88,000 1,08,095 52,500 24,858 30,200 20,379 52,550 54,400 4,70,520 5,30,026
(5.4) (7.8) (40.0) (20.4) (11.2) (4.7) (6.4) (3.8) (11.2) (10.3)
2009-10 19,750 31,393 2,04,000 1,29,173 50,750 38,123 47,250 22,586 49,750 54,825 5,02,750 5,56,050
(3.9) (5.6) (40.6) (23.2) (10.1) (6.9) (9.4) (4.1) (9.9) (9.9)
2010-11 18,850 38,319 2,40,000 1,53,554 49,250 70,285 40,500 16,663 32,500 39,598 5,25,750 6,84,071
(3.6) (5.6) (45.6) (22.4) (9.4) (10.3) (7.7) (2.4) (6.2) (5.8)
2011-12 (E) 26,700 87,813 2,41,000 2,14,408 79,500 73,434 28,100 16,402 45,500 64,442 5,75,270 9,78,342
(4.6) (9.0) (41.9) (21.9) (13.8) (7.5) (4.9) (1.7) (7.9) (6.6)
E: Estimated Figures. Figures in brackets are share (in %) of individual spice in total spices’ exports. Source: Spices Board
% Share of Select Spices in Global Trade in 2011 (Value Terms)*
Spice HS Code
Share in
Global
Export
Rank
Share in
Global
Import
Rank
Coriander
Seed 90920 27.4 1 4.95 5
Cumin Seed 90930 48.4 1 0.7 28
Pepper 90411 10.4 4 5.5 4
Turmeric 91030 80.3 1 2.9 13
*: Refer to Appendix II for statistics related to World. Trade in the above mentioned Spices. Source: ITC calculations based on UN COMTRADE statistics.
Inflation in Spices (Y-o-Y) (in %)
Black
Pepper
Chillies
(Dry) Turmeric Cumin Coriander
weight 0.03 0.16 0.08 0.04 0.02
2006-2007 42.86 93.46 -2.55 7.22 27.13
2007-2008 39.40 -3.25 -6.09 17.14 31.87
2008-2009 -2.07 16.25 27.36 -1.07 73.57
2009-2010 3.03 12.37 99.51 20.82 -34.06
2010-2011 32.67 8.09 91.00 8.66 -18.00
2011-2012 63.05 24.94 -46.51 15.39 24.19
Source: www.eaindustry.nic.in
13
2. Black Pepper – The King of Spices
2.1 Introduction
Black pepper (Piper nigrum) is a perennial woody climbing vine belonging to the
family Piperaceae. It is cultivated for its fruit known as a peppercorn / pepper
berries. Famous for its use as a ‘commodity currency’ in the ancient period and as a
catalyst to international spice trade, it is often referred to as ‘black gold’. It is also
called the ‘King of Spices’, as its usage round the world is more than any of the
spices at present.
Black peppercorn is actually same as the green and white peppercorns; the colour
difference reflects varying stages of development and processing methods. Black
pepper is the most pungent and flavourful of all types of peppers and it is available
as whole or cracked peppercorns or ground into powder.
2.2 Origin
The word ‘pepper’ has been derived from a Latin word ‘piper’ but the origin of this
word comes from the Dravidian word, pippali, which means pepper only.
Black Pepper is believed to be in use since 4000 years and its history dates back to
even before 410 A.D. The Vedas, the Bible and the Quran also contain references to
pepper.
Black pepper is considered native to Western Ghats of South India particularly the
Malabar Coast. Pepper is believed to have been introduced into Indonesia and the
Malay Archipelago as early as the first century AD, during the period of the Hindu
kingdoms. Before the 16th century, pepper was being grown in Java, Sunda,
Sumatra, Madagascar, Malaysia, and everywhere in Southeast Asia.
Expeditions in search of pepper led to the discovery of new trade routes. Many wars
were fought and countries were also colonised to gain control over the supply of
pepper. Until 18th century, the Portuguese dominated the pepper trade as they
discovered the sea route to India and they used this route for taking pepper to their
country.
14
2.3 Usage
Black pepper is used in all types of
cuisine across the world at all stages
of the cooking process and as a table
condiment. It is used as flavour
ingredient in most major food
products including sauces, gravies,
processed meats, poultry, snack
foods etc. except baked goods.
Pepper is used in certain tonic and
rubefacient1 preparations also.
Other than in food, it finds
applications in the preparation of
traditional and modern medicines, as in Ayurvedic treatments in India and Jamu
preparations in Indonesia. The peppercorns are acrid, bitter, carminative,
aphrodisiac, diuretic, digestive and stimulant. They are useful for arthritis, asthma,
fever, cough, dysentery, dyspepsia and flatulence. Piperine, the pungent principle in
pepper oleoresin helps to enhance bio-availability of specific medicines during
treatment of serious illness and therefore used in pharmaceuticals. The major
functional properties of pepper are analgesic, anti-pyretic, anti-oxidant and anti-
microbial. Piperine is also an effective insecticide against houseflies and is also used
for spraying against different types of pests in garden.
Once the peppercorns are dried, pepper spirit & oil can be extracted from the
berries by crushing them. Pepper spirit is used in beverages like Coca-Cola and
many medicinal and beauty products. Pepper oil is also used as ayurvedic massage
oil and used in certain beauty and herbal treatments. The oil is used in preparing
1 A substance is said to have rubefacient characteristic when that increases the reddish coloration of the skin. Such
substance, when used for medicinal purpose, increase circulation in the skin and muscle tissue, creating relief from
pain through an anti-inflammatory effect as well as helping to clear the tissue of by-products of prior inflammation.
It provides a comforting feeling of warmth as they accelerate metabolism in the area.
15
perfumes and also for flavouring purposes. It has been reported that in the past,
Egyptians used it in the embalming mixture and also as an air purifier.
In the recent past value-added products of pepper has seen gaining popularity, as
they have helped to provide new value to pepper, by creating new uses, both in
food and non-food applications. Pepper oleoresin, green pepper in brine,
dehydrated green pepper, and freeze dried pepper are some of the examples of
such products.
2.4 Domestic Fundamentals
Cultivation Practice
The black pepper plant needs a hot and humid weather and also it needs a good
rainfall and partial shades to prosper. It is grown in soil that is neither too dry nor
susceptible to flooding, moist, well-drained and rich in organic matter. A pepper
plant starts producing the berries after 2-5 years. The pepper crop is grown as a
mixed crop in India; they are sometimes interspersed in coffee, tea, coconut,
arecanut and rubber plantations. In India, Black pepper is generally sown during
May-June. Fruits take 6-8 months from flowering to full maturity, the average being
seven months, depending upon the variety and on climatic conditions. Normally
harvesting starts from December and extends till March whereas the arrivals in the
physical markets start from February. The harvesting period is not uniform across
the country and alters depending upon the geographical location i.e. in plains the
harvesting period may start from November up to January and in hilly areas it may
start from January and can extend up to March, while in coffee estates in Karnataka
it is from February to April and in Tamil Nadu from March to May.
Crop Cycle
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Sowing2 Flowering Harvesting
2 Sowing is not done every year. Pepper follows a life time of around.
16
Depending upon the product to be finally prepared, harvesting has to be done at
different maturity stages. The stages of the maturity of pepper for different
products are as follows:
Product Maturity at Harvest
Pepper in brine / Canned pepper Green and tender (4-5 months) from Flowering
Dehydrated Green pepper 10-15 days before full maturity
Oil and Oleoresin 15-20 days before maturity
Pepper powder Fully matured with maximum starch
Black pepper Fully matured but 1-2 berries in the spike starting to turn yellow
White pepper Fully matured and at least 1-2 berries in the spike ripened and turned red
Source: Pepper Production Guide for Asia and The Pacific
Area, production and Yield
It can be observed from Chart 1 that during the span of last two decades, area and
production of black pepper have increased steadily till 2005-06 barring some
aberrations seen on one or two occasions; after which, pepper cultivation as well as
production has fallen significantly with the pace of decline in latter being sharper
than in the former.
As per the latest data available from the Ministry of Agriculture, area under black
pepper in India has grown from 184.2 thousand hectares in 1991-92 to 260.2
thousand hectares in 2005-06. It shrank thereafter to just 196 thousand hectares
in 2009-10 showing huge variations during the intermittent period of four years,
recording a meagre compound annual growth rate (CAGR) of 1.3% for the period
1991-92 to 2009-10.
The production of black pepper grew by 5.3% on an average from 52 thousand
tonnes to 93 thousand tonnes during the period 1991-92 to 2005-06. It slipped
drastically below 50 thousand tonnes thereafter, managing to touch 51 thousand
tonnes in 2009-10 (Chart 1) mainly due to pest and disease attack.
17
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
0.0
50.0
100.0
150.0
200.0
250.0
300.0
1991-9
2
1992-9
3
1993-9
4
1994-9
5
1995-9
6
1996-9
7
1997-9
8
1998-9
9
1999-0
0
2000-0
1
2001-0
2
2002-0
3
2003-0
4
2004-0
5
2005-0
6
2006-0
7
2007-0
8
2008-0
9
2009-1
0
Pro
duct
ion (in '000 tonnes)
Are
a (in '000 h
ectare
s)
Chart 1: Trend in Area, Production and Yield of
Black Pepper: All India
Area (in '000 Hectares) Production (in ''000 Tonnes)
282
268
269
314
353
308
316
316
302
298
285
320
314
320
357
281
239
199
260
Yield (Kg/ hectare)
Source: Ministry of Agriculture
During the period of two decades, average black pepper yield hovered around 295
kg/hectare, varying from a peak of 357 kg/hectare in 2005-06 to a low of 199 kg/
hectare in 2008-09. Black pepper productivity has suffered badly after 2005-06
compared to that recorded in the earlier years. Important reasons for poor pepper
yield are:
• Pepper is grown as a mixed/ internal crop;
• Improved production technologies are not widely adopted;
• Losses due to pest and disease attach and drought
• High cost of inputs due to labour shortage and poor weather conditions
• Cultivated on small and marginal holding
A glance at a state-wise bifurcation reveals that black pepper is grown in as many
as 5-6 states in India, with its cultivation and production mainly concentrated in
Kerala followed by Karnataka (Charts 2 & 3). As per the latest available data, in
2007-08, area under cultivation in Kerala stood at 176 thousand hectares followed
18
by Karnataka at around 16 thousand
hectares (Chart 2). The major districts
of Kerala, which are active in pepper
production, are Calicut, Cannanore,
Kottayam and Idukki. The important
districts, for pepper production in
Karnataka are Kodagu, North Kanara,
South Kanara and Shimoga. With the
rising interest towards pepper
production in states other than Kerala,
black pepper is also grown in some
parts of Orissa, Andhra Pradesh, Goa,
Maharashtra and North Eastern region.
In terms of Production, Kerala alone contributed around 89% of the total production
in 2007-08, with black pepper output touching 42 thousand tonnes followed by
Karnataka at just 4 thousand tonnes (Chart 3). Though Kerala is the leading pepper
producing state in India, production of black pepper in the state has declined
shrinking its share in total production at All-Inida level (Chart 4).
Source: Ministry of Agriculture
Source: Ministry of Agriculture Source: Ministry of Agriculture
19
Black Pepper yield in
Kerala has remained
higher than All-India
average for most of
the time, though of
late Meghalaya has
reported the highest
yield of more than
500 kg per hectare
(Chart 5).
Varieties of Pepper
Depending on the stage of maturity of the pepper berry, three primary varieties of
Pepper are obtained, viz., black pepper, green pepper and white pepper.
Source: Ministry of Agriculture
20
According to Spices Board report (Black Pepper: Extension Pamphlet) released in
2009, over 75 varieties of black pepper are being cultivated in India. Karimunda is
the most popular of all cultivars in Kerala. The other important cultivars include
Kottanadan (South Kerala), Narayakodi (Central Kerala), Aimpiriyan (Wynad),
Neelamundi (Idukki), Kuthiravally (Kozhikode and Idukki), Balancotta, Kalluvally
(North Kerala), Malligesara and Uddagare (Karnataka). In terms of quality,
Kottanadan has the highest oleoresin (17.8%) content followed by Aimpiriyan
(15.7%).
Sixteen improved varieties of black pepper have been released for cultivation by
research institutions. Panniyur-1 and Panniyur-3 are hybrids evolved at the Pepper
Research Station, Panniyur (Kerala). IISR Girimunda and IISR Malabar Excel are
the two hybrids released from Indian Institute of Spices Research (IISR), Calicut,
among others.
A few important cultivars and their salient features are given in Tables 1 & 2.
Table 1: Important cultivars of black pepper and their characteristic
Cultivar
Fresh
mean
yield
Quality attributes
Features Oleoresin Piperine Essential
oil
Dry
recovery
(kg/vine) (%) (%) (%) (%)
Aimpirian 4-5 15 4.7 2.6 34 Good for higher elevations, good in
quality, late maturing
Arakulan
munda 2 9.8 4.4 4.7 33 Moderate and regular bearer
Balankotta 1-2 9.3 4.2 5.1 35 Moderate and irregular bearing
Karimunda 2-3 11 4.4 4 35 Suitable for all pepper growing areas,
high yielder, shade tolerant.
Kalluvally 1-2 8.4-11.8 2.5-5.4 3 35-38 Good yielder with high dry recovery,
drought tolerant
Kottanadan 5 17.8 6.6 2.5 34-35 High yielding, drought tolerant
Kuthiravally 3 15 6 4.5 35 High yield, good quality
Narayakodi 2-Jan 11 5.4 4 36 Moderate yielder with medium quality
Neelamundi 2 13.9 4.6 3.3 33-34 Good yielder, Tolerant to Phytophthora
infection
Vadakkan 3 10.8 4.2 3.2 - Medium quality and yield
Source: Spices Board
21
Table 2: Improved Varieties of Black Pepper and their salient features
Variety
Mean
yield
(dry)
Dry
recovery
Quality attributes
Features Piperine Oleoresin Essential
Oil
(kg/ha) (%) (%) (%) (%)
Panniyur -1(KAU) 1242 35.3 5.3 11.8 3.5 Not suited to heavily shaded areas
Panniyur -2 (KAU) 2570 35.7 6.6 10.9 - Shade tolerant
Panniyur -3 (KAU) 1953 27.8 5.2 12.7 - Late maturing
Panniyur -4 (KAU) 1277 34.7 - 9.2 - Stable yielder
Panniyur -5 (KAU) 1098 - 5.5 12.3 3.8 Tolerant to selection from
Perumkodi shade
Panniyur -6 (KAU) 2127 32.9 4.9 8.3 1.3 Suited to all black pepper tracts
Panniyur -7 (KAU) 1410 33.6 5.6 10.6 1.5 Suited to all from Kuthiravally
black pepper tracts
Subhakara (IISR) 2352 35.5 3.4 12.4 6 Suited to all black pepper tracts
Sreekara (IISR) 2677 35 5.3 13 7 Suited to all black pepper tracts
Panchami (IISR) 2828 34 4.7 12.5 3.4 Late maturing
Pournami (IISR) 2333 31 4.1 13.8 3.4 Tolerant to root knot nematode
PLD -2 (IISR,
CPCRI, Palode) 2475 - 3.3 15.5 3.5
Suited to Thiruvananthapuram and
Kollam districts of Kerala
IISR Shakthi 2253 43 3.3 10.2 3.7 Tolerant to Phytophthora foot rot.
IISR Thevam 2481 32 1.65 8.15 3.1 Tolerant to Phytophthora foot rot;
Suited to high altitudes and plains
IISR Girimunda 2880 32 2.2 9.65 3.4 Suited to high Neelamundi altitudes
IISR Malabar Excel 1440 32 4.95 14.6 4.1 Suited to high Panniyur-1 altitudes;
Rich in oleoresin
Source: Spices Board
Consumption of Black Pepper: Domestic demand + Exports
The domestic demand for black pepper arises from household sector (for culinary
purpose), from spice powder making industries, from companies involved in
extraction of oil and oleoresins as well as those involved in manufacturing value-
22
added pepper products, and also
from pharmaceutical companies
etc. However, as India is
recognised world over for
producing the premium quality
pepper, most of the domestically
produced pepper gets exported.
Nonetheless, of late, pepper
consumption in the country is seen
rising at a slow pace due to
increasing population, changing
food habits along with changes in
food preferences. Average
domestic consumption in India, including industrial usage is estimated about
40,000 to 45,000 tonnes per annum.
Among spices, Black pepper is the fifth largest spice exported from the country in
terms of quantity. With its exports estimated at 26.7 thousand tonnes in 2011-12,
black pepper accounted for around 4.6% of the total spices exports, while in terms
of value its share stood at a meagre 9% or Rs 878 crore (Chart 6).
Source: Spices Board and www.indiastats.com
Source: Spices Board
23
As per the latest available data, in 2009-10, 19.8 thousand tonnes of black pepper
was exported from 51 thousand tonnes produced in the country accounting for
almost 39% of the domestic production.
USA has been the largest importer of Indian black pepper in terms of quantity as
well as value. UK has been the second largest importer with its share hovering
around 6-8% in terms of both quantity and value (Charts 7A and 7B).
2.5 International Fundamentals
Pepper is cultivated in developing
countries across Asia and South
America, while its consumption is
mainly concentrated in developed
countries. Global pepper production
has ranged between 2.5 to 3 lakh
tonnes per annum during last
decade (Chart 8). The output is
declining since 2005 following
depleting output levels in the major
producing countries such as
Vietnam and India as pepper plants
suffered various disease.
Till late 1990s, India was the leading pepper producing country followed Indonesia.
But 1999, Vietnam became the top pepper producer bringing more land under
cultivation and increased its production. According to data released by International
Pepper Community (IPC), Vietnam produced 8.8 lakh tonnes of black pepper and
accounted for 33% of the world black pepper production. India accounted for
18.7% of the world production and Indonesia stood at the third place having a
share of 15.1% in global black pepper output (Chart 9).
24
Besides being the largest producer,
Vietnam has also been the largest
exporter of Pepper. Its share in the
global black pepper export stood
around 43% in 2010 with the
volumes touching 96.9 thousand
tonnes. Indonesia is placed at
second position accounting for 22%
of the export market share followed
by Brazil contributing to around
13% of the export market. India
remained at the fourth position
accounting for around 7% of the total global export (Chart 10). Pepper exports
have shown a gradual increase during the first half of the last decade, though they
have picked up significantly during the latter half of the decade peaking at 2.3 lakh
tonnes in 2009 (Chart 8).
World imports of pepper,
including pepper for re-export
in various forms, has
increased in line with exports
(Chart 8). The United States
is the world’s largest importer
and consumer of pepper,
Singapore features strongly in
world trade in pepper as an
importer but though much of
the imports are re-exported.
Germany and Netherlands are
also important pepper
importing countries for a domestic consumption as well as for processing and re-
export. Over the last two years, India has also begun to import significant amounts
25
of pepper, as domestic demand for grinding and extraction as well as other uses
expands. Growth in imports has also been significant in the United Arab Emirates
(UAE), France, Pakistan and Poland.
Table 2: Black Pepper: Balance Sheet (Thousand Tonnes)
Year
Stock
brought
Forward
Production Import Domestic
Consumption
Exportable
Surplus Export
Stock
carried
Forward
Brazil
2011
Actual 24.6 33.0 558.0 6.0 52.1 30.7 21.4
2012 Est.
30.3 580.0 6.8 45.5 26.0 19.5
2013 Proj.
31.3 580.0 6.8 44.6 27.0 17.6
India
2011
Actual 16.7 46.9 16.5 41.3 38.8 23.2 15.6
2012 Est.
41.5 15.0 41.5 30.6 16.0 14.6
2013 Proj.
53.5 13.8 42.0 39.8 23.2 16.6
Indonesia
2011
Actual 10.9 28.0 1.5 6.5 33.9 25.4 8.5
2012 Est.
42.5 1.0 6.6 45.4 40.0 5.4
2013 Proj.
30.0 1.0 6.7 29.7 24.0 5.7
Malaysia
2011
Actual 8.0 18.0 2.2 5.5 22.7 11.0 11.6
2012 Est.
18.5 1.5 5.5 26.1 15.0 11.1
2013 Proj.
19.0 1.5 5.5 26.1 15.5 10.6
Sri Lanka
2011
Actual 1.5 10.8 25.0 7.0 5.3 5.1 259.0
2012 Est.
17.3 25.0 7.1 10.6 10.0 574.0
2013 Proj.
18.0 25.0 7.1 11.5 10.5 999.0
Vietnam
2011
Actual 8.0 90.0 15.0 4.5 108.5 99.9 8.6
2012 Est.
85.0 15.0 5.0 103.6 94.0 9.6
2013 Proj.
80.0 15.0 5.5 99.1 85.0 14.1
World
2011
Actual 72.3 247.0 46.8 92.2 273.9 205.8 68.1
2012 Est. 68.1 255.9 46.6 95.0 275.7 212.0 63.7
2013 Proj. 63.7 254.1 45.4 96.6 266.5 197.4 69.1
Figures are provisional and subject to revision
Source: International Pepper Community
26
2.6 Factors Influencing Prices
2.7 Major Trading Centres for Black Pepper
International Market Domestic Market (Kerala)
Vietnam (primary international grades) Cochin Thodupuzha
Sarawak – Malaysia (primary international
grades Alleppey Chalakudy
Kochi - India (Malabar grade) Calicut, Badagara
Lampung - Indonesia (primary
international grades Nedumangad Cannanore
New York Konni Tellicherry
Singapore Adoor Kanjangad
Rotterdam Pala Kasaragod
Alwaye
Source: Spices Board
27
2.8 Trading in Black Pepper on NCDEX:
Pepper futures contract was launched on April 2004 and since then this contract has
witnessed considerable volatility. Using futures platform producers can minimize
their price risk .Wide range of Market participants ensure good price discovery. With
ever increasing export demand, exporters can insure themselves against price risk.
Being amongst the most liquid contract various market participants can easily enter
or exit the market. Thus the Pepper contract provides space for every investor
category.
Black pepper prices, generally,
start moving higher July
onwards due to off season for
arrivals. However further price
movement for the short period
of 2-3 months depends on the
fresh arrivals from major
exporting countries like
Indonesia, Brazil, Malaysia etc.
in October- November prices
again start moving northward
on winter season demand from
US and EU countries. From
December onwards fresh crop arrival starts in India followed by Vietnam in
February-March. Better crop from these two largest producing countries pressurise
black pepper prices and correction in prices continues till March starting from
December.
A month-wise movement in spot prices of black pepper since introduction of its
contract on the NCDEX platform has been depicted in Chart 12. During the first two
years since the lauch of pepper contract, pepper prices remained range-bound
accompanied by sluggish trading in terms of both volume and value (Chart 13).
28
Source: NCDEX
However, during second half of the year 2006 pepper prices surged significantly
from August to December 2006. The tight supply position due to drop in output in
the producing countries was pointed out as the reason for the increase in prices of
pepper. Pepper prices traded at slightly higher level during 2007 and first half of
2008 compared to that in 2006. During the second half of 2008 prepper prices
started moving downwards due to the absence of active trade participation in the
domestic as well as international market, as demand for pepper in the global
market, particularly from major pepper from the US and the Europe, remained
subdued due to financial turmoil and global recession, despite all in global pepper
production.
During 2009, pepper prices picked up on account of signs of gradual economic
recovery across the globe. Pepper prices remained elevated during August and
November on good domestic demand. Pepper prices soared to new highs in 2010.
Starting from April, prices moved higher on emergence of active buying from local
traders as well as exporters. After witnessing a rally prices took sharp correction
during October 2010. Fresh crop arrivals from other major producing countries like
Indonesia, Malaysia and Sri Lanka started from September which affected exports
29
from India and ultimately pressurized Indian domestic prices. However, in early
November, pepper prices bouced back on lower global production projection given
by International Pepper Community (IPC). End of season in Vietnam, Srilanka,
Malaysia and Indonesia also supported the India pepper prices to trade higher.
The year 2011 maked massive escalations in pepper prices due to drop in pepper
production, growing demand and limited stocks available at producing and
consuming countries. During 2011 the pepper market was very dynamic. The global
stocks have been coming down year on year and prices earned by farmers in the
previous years, although higher than during the 2002-2006 period, were not
remunerative enough for them to increase their acreage or plantation, except
maybe in Vietnam.
Pepper prices scaled even higher toching new peacks in 2012 due to production
shortfall amid high domestic and overseas demand. Accoding to a survey pepper
production in Kerala would be lower than normal. The survey foresees a supply
squeeze triggered by erratic weather conditions, shrinking acreage under pepper
and declining productivity in the major growing tracts of Kerala.
30
2.9 Policy Environment
Following initiatives have been undertaken by the Spices Board to mitigate the
challenges faced by pepper growers in the country
• Re-plantation and rejuvenation of pepper plantations in Idukki & Waynad
districts of Kerala and North Eastern states;
• Training on Good Agricultural Practices(GAP)to farmers, traders, NGO’s,
extension advisory staff and unemployed rural youth;
• Support to farmers in acquiring Organic Certification under National
Programme for Organic Production (NPOP);
• Training for mass production of Bio-agents [Trichoderma / Pseudomonas /
Entomo Pathogenic Nematodes] to farmers and establishment of Bio-agent
production units;
• Mobile Agri Clinic services (weekly) and Free Soil testing;
• Thrust on farm mechanization. Assistance for the purchase of mechanical
pepper threshers;
• Support to farmers for hygienic drying of pepper (supply of Bamboo
mats/polythene sheets and construction of concrete drying yards;
• Establishment of Spices Park (Idukki, Kerala) for full line processing namely
cleaning, grading, sorting, grinding, packing and sterilization;
• Personal Accident Insurance scheme for small and marginal growers and
labourers with subsidized premium.
32
3. CHILLI – THE WONDER SPICE
3.1 Introduction
Chilli, botanically known as Capsicum annuum L.; Capsicum frutescene L., belongs
to the genus capsicum, under the solanaceae family. Chilli is the dried ripe fruit of
the genus Capsicum. Chilli is an annual sub herb and the dried ripe fruit forms the
commercial part of the plant. Chilli has two important commercial qualities - its
colour and pungency levels.
3.2 Origin
Chillies originated in the Latin American regions of New Mexico and Guatemala as a
wild crop in around 7500 BC. It is mentioned in the remains of the pre historic Peru,
that the people native to these places domesticated this crop in 5000 BC to protect
the primary crop from any damage that the birds could do.
Christopher Columbus, the founder of America, was one of the first Europeans who
encountered and consumed chilli, and called it peppers due to the similarity in
taste. He carried chilli seed to Spain in 1493. The cultivation of chilli and Capsicum
spread rapidly from Spain to Europe. It was found that crushing the dried pods give
chilli powder which substituted ‘peppercorn’ in due course of time and chilli earned
more recognition as compared to the peppercorns being simpler to produce and
hotter than other spices.
With the identification of new sea routes by Portuguese and Spanish explorers, chilli
was brought from Brazil to India during the year 1584. The south Asian climate
suited this vegetable crop, and since then the concentration of production of chillies
shifted to Asia.
3.3 Usage
Dry chilly is extensively used as spice in curried dishes. Chilli imparts pungency and
colour to the dishes. It is also used as an ingredient in curry powder, in seasonings
pickles, chutneys and beverages.
33
Paprika, Bydagi chilly, Warangal chapatta and similar high colour less pungent
varieties are widely used for colour extraction. This colour is highly popular among
food and beverage processors for its use as a colouring agent.
As a medicine it is used as a counter
irritant in Lumbago, Neuralgia, and
Rheumatic disorders. The enzyme
isolated from chilly is used in the
treatment of certain type of cancers.
Chilli is also a rich source of Vitamin A,
C and E and assists in digestion. It also
prevents heart diseases by dilating
blood vessels.
Pungent types of chillies are used by
the pharmaceutical industry in the
preparation of stimulant and counter
irritant balms and in stomach ache, carminative and stimulant formulation.
Oleoresin capsicum is used in pain balms and vaporubs.
Oleoresin is a viscous liquid, possessing aroma and flavour, is also extracted from
finely ground chilli powder. Capsicum oleoresin is used in medicine internally as a
powerful stimulant and carminative and externally as a counter irritant in the
treatment of diseases such as rheumatism.
Chillies are reportedly used for curing various types of ailments in homeopathy.
3.4 Cultivation
Chilli can survive on different soil types and several climatic conditions. However,
the best output of this crop is obtained when Chilli is cultivated on light loamy or
sandy loam soils rich in lime and organic matters with temperature ranging from 20
to 25 degrees. A warm humid climate favours growth while warm and dry weather
enhances fruit maturity. Duration of crop is 3 to 4 months.
Use of Chilli
Food Adjunct
As a Colouring
Agent
As a Medicine
34
3.5 Domestic Fundamentals
Area, production and Yield
In India, chillies can be grown during the entire year in one or the other part of the
country. Generally, two crops are produced in the year each dry and wet season.
The seed or the seedlings are planted in April and are harvested in August in dry
season. In wet season the crop is planted as and when the rainfall occurs starting
from August and harvesting takes place in December and chillies start reaching the
major markets in February and March.
State-wise Harvesting Season in India
Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Andhra Pradesh
Gujarat
Himachal Pradesh
Jammu & Kashmir
Karnataka
Madhya Pradesh
Maharashtra
Rajasthan
Tamil Nadu
Uttar Pradesh
West Bengal
India
Source : www.indiastats.com
As per the latest data available from the Ministry of Agriculture, during the last two
decades, area sown under chilli in India has remained sluggish and saw a decline of
1.2% in its compound annual growth rate (CAGR). During 1991-92 to 2002-03,
average area covered under chilli stood at around 8.8 lakh hectares, ranging from
the maximum acreage of 9.6 lakh hectares covered in 1992-93 to a low of 8.2 lakh
hectares reported in 2002-03. However, sown acreages shrank drastically from
2003-04 onwards for seven years in a row with the average sowing touching 7.5
35
lakh hectares, hardly rising above 8 lakh hectares during the in-between years
(Chart 1).
Chilli production, however, has increased gradually during the same period
recording a CAGR of around 3% from 6.2 lakh tonnes in 1991-92 to 12 lakh tonnes
in 2009-10, touching a peak of 13 lakh tonnes in 2007-08. Crop damage due to
floods in major producing regions of South India affected chilli production as well as
yield particularly in 2005-06; though rising export demand coupled with higher
price realization in the domestic market helped endure the farmers’ interest in chilli
cultivation which in turn boosted chilli production in the consecutive years. Chilli
production has consistently remained above 12 lakh tonnes from 2006-07 onwards
with productivity sustaining above 1550 kg per hectare.
During the period of two decades under consideration, average chilli yield hovered
around 1234 kg/hectare, varying from a low of 730 kg/ hectare in 1991-92 to a
peak of 1630 kg/hectare in 2008-09.
0
200
400
600
800
1000
1200
1400
0
200
400
600
800
1000
1200
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
Production ('000 Tonnes)
Area ('000 Hectares)
Chart 1: Trend in Area, Production and Yield of Chilli
Area ('000 Hectares) Production ('000 Tonnes)
730
896
860
958
916
1129
1035
1171
1098
1176
1215
1081
1596
1607
1551
1627
1611
1630
1568
Yield (Kg/Hectare)
Source: Ministry of Agriculture
36
A glance at a state-wise bifurcation reveals that chilli is grown in almost all states in
India, though its cultivation is mainly concentrated in southern states, with Andhra
Pradesh being the top cultivator as well as producer of chilli followed by Karnataka
(Charts 2 & 3).
As per the latest available data, in 2007-08, area under cultivation in Andhra
Pradesh stood at 223 thousand hectares followed by Karnataka at 136 thousand
hectares and Maharashtra at 100 thousand hectares. Thus, Andhra Pradesh and
Tamil Nadu together accounted for around 45% total sown acreage under chilli in
2007-08.
In terms of production, the two states contributed to more than 70% of the total
production in 2007-08. Andhra Pradesh recorded the highest output of 772
thousand tonnes followed by Karnataka at 155 thousand tonnes and West Bengal at
93.7 thousand tonnes.
Source: Ministry of Agriculture Source: Ministry of Agriculture
37
Productivity of chilli is highest in Andhra Pradesh. In 2007-08 it touched 3462 kg
per hectare followed by in Andaman & Nicobar Islands at 1750 kg per hectare and
in Punjab at 1615 kg per hectare (Chart 4).
Varieties of Chilli
There are more than 400 different varieties of chillies found all over the world. India
is the only country rich in many varieties of chillies with different quality factors;
some varieties are famous for red colour because of the pigment casanthin, while
others are known for biting pungency attributed by capsaicin.
The world’s hottest chilli ‘Naga Jolokia’ is cultivated in hilly terrain of Assam in a
small town Tezpur of India. Different varieties of chilli are grown for vegetables,
spices, condiments, sauces and pickles.
800 1800 2800 3800
Andhra Pradesh
Arunachal Pradesh
Bihar
Jammu & Kashmir
Karnataka
Kerala
Madhya Pradesh
Nagaland
Orissa
Punjab
Rajasthan
Tripura
West Bengal
A & N Islands
All India
Chart 4: Trend in Chilli Yield: Major States (kg/hectare)
2007-08
2006-07
2005-06
Source: Ministry of Agriculture
38
While salient features of some of the important varieties cultivated in India are
given in Table 1, state-wise available varieties of chillies are enumerated in Table 2.
Table 1: Different Varieties
Chilli Cultivars Producing
Region Characteristics
Harvesting
Period
Annual
Production Market
ASTA
colour
value
Capsaicine
Birds Eye Chilli
(Dhani) Mizoram & some
areas of Manipur
Blood red in
colour, highly
pungent
October to
December NA Calcutta 41.7 0.59%
Byadagi
(Kaddi) Dharwar
Karnataka
Red in colour
with less
pungency or
without
pungency
January to
May
21,000
tonnes Hubli-Dharwad 159.9 Negligible
Ellachipur
Sannam-S4
Type
Amaravathi
District of
Maharashtra
Reddish in
colour and
very hot
September
to
December
1800
tonnes
Mumbai,
Delhi,Ahemedabad
and Nagpur
70.4 0.20%
LCA 334
Guntur,Warangal,
Khammam
Districts of
Andhra Pradesh
Skin thick,hot
and red
December
to May
2,80,000
tonnes Guntur 32.11 0.23%
Hindpur-S7 Hindpur in
Andhra Pradesh
Red in
colour,hot and
highly
pungent
December
to March NA Hindpur 33 0.24
Jwala Kheda, Mehsana
& in South
Gujarat
Highly
pungent, light
red in
colour,short
and the seeds
are compact
September
to
December
NA Unjha NA 0.40%
Kanthari-White
Kerala & some
parts of Tamil
Nadu (Mainly
grown as a
homestead crop)
Short and
ivory white in
colour with
high pungency
NA
Available in the
markets
throughout the
year
2.96 0.50%
Kashmir Chilli
Temperate
regions such as
Himachal
Pradesh,Jammu
& Kashmir and
also in sub-
tropical regions
of North India
during winter
season
Long,
fleshy,
deep red in
colour
November
to
February
NA North India 54.1 0.33%
Madhya
Pradesh
G.T.Sannam
Indore, Malkapur
Chikli and
Elachpur areas of
Madhya Pradesh
Red in colour
and pungent
January to
March
7500
tonnes
Major markets of
Madhya Pradesh NA NA
Source: http://www.indianmirror.com/ayurveda/indian-spices/chilli.html
39
Table 2: Zone-wise Major Varieties of Chilli in India
Sl.
No. State Variety
SOUTH ZONE
1 Andhra
Pradesh
Jwala, X-235, G-1, G-2, G-3, G-4, G-5, LCA-205, 206, 235, Karakulu,
Sannalu, Dippayerupu, Punasa, Maduru, Pottibudaga, Hybrid, Bharat,
Aparna, Pottikayalu, Cullakayalu, Barak, Mota, Chapta, DesiSindu, Kiran,
Chikkaballapur (Lavangi), Sapota.
2 Karnataka Jwala, Bayadgi, G-1, G-2, G-3, G-4, G-5, Pusa Jwala
3 Kerala Jwala, Sadabahar, Champa, CO-1, Nandan, K-1
4 Pondicherry K-1, K-2, CO-1, CO-2
5 Tamil Nadu K-1, K-2, CO-1, CO-2, CO-3, PMK-1, PMK-2, Borma Wonder, Sannam,
Palam
NORTH ZONE
6 Bihar Rori, Moti Mirchi, Chittee
7 Haryana NP-46-A, Pusa Jwala, Pusa Summer
8 Himachal
Pradesh
Solan Yellow, Hot Portugal, Pachad Yellow, Sweet Banana, Hungarian
Wax, Punjab Lal
9 Jammu &
Kashmir NP-46-A, Ratna Red, California Wonder
10 Punjab CH-1, Sanauri
11 Uttar
Pradesh NP-46, Jwala Pant C-1, Desh, Pahadi, Kalyanpur, Chaman and Chanchal.
EAST ZONE
12 Assam NP64-Am Pusa Jwala, Surya Mukhi, Krishna, Balijuri
13 Tripura Jwala, Suryamukhi, Krisha, Balijwai
14 West Bengal Siti and Suti, Akashi, Kajari, Bow, Dhani, Bullet, Dhala.
WESTERN ZONE
15 Goa Cacana, harmal, Tanvati, Lavangi
16 Gujarat K-2, Pant C-1, Jawahar-218, NP-46-A, Jwala.
17 Rajashtan CH-1, NP-46-A, Jwala, Pant C-1, G-3, G-5
CENTRAL ZONE
18 Madhya
Pradesh Pusa Jwala, Sona-21, Jawahar, Sadabahar, Agni.
19 Maharashtra Pathori, Bugayati, Dhobri, Black seed, Chaski, Bhiwapuri
20 Orissa Jwala, Deshi, Sadabahar.
Source: Post harvest Profile of Chilli, Directorate of Marketing & Inspection,
Ministry of Agriculture
40
Consumption of Chilli: Domestic demand + Export Demand
Following a healthy domestic demand from household sector (for food usage) and
the spice as well as food
processing industry, more than
80% of the chilli produced in the
country is consumed internally.
This leaves the country with a
smaller exportable surplus.
However, as the Indian chilli is of
superior quality, demand for
Indian chilli is on rise and as a
result chilli exports from India has
picked up in recent past. The
large demand of chilli is made by
several chilli consuming countries
as it forms part of cuisines of various cultures and is also used as a colouring agent.
Most of its demand is generated in the food processing sector (Chart 5).
Among spices, chilli is the largest
spice exported from the country in
terms of quantity. Chilli powder,
dried chillies, pickled chillies and
chilli oleoresins are some of the
forms in which this crop is
exported from the country.
With its exports estimated at 2.41
lakh tonnes in 2011-12, chilli
accounted for around 42% of the
total spices exports. In terms of
value, chilli has been placed at
second position with exports
0.0
500.0
1000.0
1500.0
2000.0
2500.0
0.0
50.0
100.0
150.0
200.0
250.0
300.0
1991-92
1993-94
1995-96
1997-98
1999-00
2001-02
2003-04
2005-06
2007-08
2009-10
2011-12…
Value (Rs Crore)
Quantity ('000 Tonnes)
Chart 6: Chilli Exports
Quantity ('000Tonnes)Value (Rs Crore)
Source: Spices Board & www.indiastats.com
Source: Spices Board & www.indiastats.com
41
estimated at Rs 214 crore contributing 22% of the total spices exports from the
country. Chart 6 reveals that chilli exports have gained momentum since 2004-05
onwards when it had crossed a mark of 1 lakh tonnes. The surge in the production
of chilli crop and subsequent availability of large exportable surplus in the country
when the crop in other major producing countries declined seem to have resulted in
a boom in the chilli exports.
Major Export Markets for Chilli
Malaysia has been the largest importer of Indian chilli in terms of quantity as well
as value, followed by Sri Lanka and Bangladesh in 2010-11. The three importers
together account for 48% of the total chilli exported from the country in terms of
both quantity and value.
Source: Spices Board
42
3.6 International Fundamentals
India is considered as the largest producer, consumer and exporter of chilli in the
globe contributing over 70% of the world production.
Global production of chilli stands at about 20.00 lakh MT to 25.00 lakh tonnes per
annum. India is the largest producer followed by China, Pakistan and Mexico etc. In
Spain and Pakistan it is sown during February to April - May and harvesting starts
from July and lasts till October- November. In China and Mexico the crop is sown in
the month of June- September and crop comes to market by the month of
November till February- March. Thus, sowing cycle starts from Pakistan and Spain
followed by China, Mexico and India.
China has emerged as the major exporter in the world market and as a serious
competitor in the International market for India.
3.7 Factors Influencing Prices
Chilli
Prices
Domestic Fundamentals
World production & Exports
International trading price
Domestic and
Export demand
Carry forward stocks
Sowing and
Harvesting
Climatic conditions
43
3.8 Trading in Chilli on NCDEX:
Chilli Futures contract was launched on NCDEX platform 11th March 2005 and since
then the contract has witnessed good participation from various supply chain
participants.
A glance at the seasonal
movement in prices of
chillies traded on the
NCDEX platform reveals
that they follow a seasonal
pattern. Chilli prices,
generally, remain
pressurised in the
beginning of the calendar
year starting from January
till May due to heavy
arrivals in markets.
However, from June
onwards prices start
moving northwards
towards the end of the arrival season as well as on account of pick-up in export
demand and increased demand from domestic economy ahead of festive season.
Nonetheless, prices also face small corrections during this period on
commencement of the sowing season.
A month-wise movement in spot prices of red chilli since introduction of its contract
on the NCDEX platform has been depicted in Chart 9. Since the launch of red chiili
contract, chilli prices remained range-bound for a very short period of
approximately 3-4 months accompanied by smaller trading turnover in terms of
both volume and value (Chart 10). However, the major floods in southern parts of
the country during 2005-2006 hampered red chilli production and in turn its
arrivals, which set red chilli prices spiralling upward touching unprecedented high
levels by the end of the calendar year 2006. Heavy export orders and increased
Near MonthFutures
2500
3000
3500
4000
4500
5000
5500
6000
6500
7000
7500
8000
8500
9000
9500
10000
10500
11000
10-Nov-05
22-Feb-06
6-Jun-06
18-Sep-06
31-Dec-06
14-Apr-07
27-Jul-07
8-Nov-07
20-Feb-08
3-Jun-08
15-Sep-08
28-Dec-08
11-Apr-09
24-Jul-09
5-Nov-09
17-Feb-10
1-Jun-10
13-Sep-10
26-Dec-10
9-Apr-11
22-Jul-11
3-Nov-11
15-Feb-12
29-May-12
10-Sep-12
23-Dec-12
Rs per Quintal
Source: NCDEX
Chart 8: Trend in Spot and Near Month Futures Prices
of Chilli (Nov 2005 to Dec 2012)
Spot
44
domestic demand also fuelled this uptrend in chilli prices. Chilli turnover in terms of
both volume and value also soared to all-time during this period as can be seen in
Chart 10.
Prices eased in the subsequent year, as more area was brought under chilli
cultivation following higher price realization in the domestic market during 2006.
Prices continued to trade
at lower level during the
first half of calendar year
2008; however, a decline
in chilli production in
Andhra Pradesh, the major
producing state due to the
heavy rains during harvest
season once again trigged
the northward movement
in chilli prices, though they
remained lower that the
historical levels reached
earlier in 2006.
During the calendar year 2009, chilli prices sustained at a level slightly higher than
that touched at the end of 2008; but the subsequent year 2010 saw chilli prices
falling throughout the year except for last two months. Higher price realisation,
introduction of high yielding varieties and rising export demand attracted farmers to
increase area under chilli cultivation which dented prices during this period. The
calendar year 2011 witnessed sharp escalations in chilli prices, as chilli prices leap
bounded from around Rs 6000 per quintal level traded at the end of 2010 to touch
record high levels of above Rs 8000 per quintal for most of the period during the
year. Unseasonal heavy rains during crop maturity and harvesting period in major
growing regions of Andhra Pradesh damaged the crop significantly. The expected
slump in production and lower carryover stocks induced the historical upward rally
Source: NCDEX
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Rs per Quintal
Chart 9:Trend in Spot Prices of Red Chilli:
Monthly Average
2005
2006
2007
2008
2009
2010
2011
2012
45
in chilli prices. Though prices came under pressure in the month of February mainly
on account of normal chilli harvest in China – the second largest producer, they
resumed uptrend once again
on good demand from
stockiest due to lower
domestic production in
addition to gaining some
support by export demand
from Bangladesh, Malaysia.
However, prices trimmed
down heavily towards the end
of the year 2011 on reduced
buying interest by stockiest
amid declining quality of
arrivals.
Chilli prices remained heavily supressed during 2012 as farmers resorted to
increasing area under chilli cultivation this year in the hope of getting better
returns, alike last year. Better production prospects coupled with weak demand
from overseas markets also added downward pressure on chilli prices during the
year.
3.9 Major Trading Centres for Chilli
Tamil Nadu Andhra Pradesh Madhya Pradesh
Virudhnaga,
Tuticorin,
Sankarankoil,
Kovilpatti,
Theni,
Ariyalur,
Ramnad
Guntur
Warangal
Khammam
Hindupur
Khandwa
Bediya
Source: Spices Board and media sources
Source: NCDEX
0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
0.00
1000.00
2000.00
3000.00
4000.00
5000.00
6000.00
7000.00
8000.00
Mar-05
Jun-05
Sep-05
Dec-05
Mar-06
Jun-06
Sep-06
Dec-06
Mar-07
Jun-07
Sep-07
Dec-07
Mar-08
Jun-08
Sep-08
Dec-08
Mar-09
Jun-09
Sep-09
Dec-09
Mar-10
Jun-10
Sep-10
Dec-10
Mar-11
Jun-11
Sep-11
Dec-11
Mar-12
Jun-12
Sep-12
Dec-12
Volume ('000 Tonnes)
Value (Rs Crore)
Chart 10: Red Chilli Turnover on NCDEX
(Mar 2005 to Dec 2012): Monthly AverageVolume (Thousand Tonnes)
Value (Rs crore)
46
3.10 Policy Environment
• Individual growers are provided subsidy for construction of concrete /
cemented drying yards (area up to 150 sq.mt);
• Community drying yards by NGOs/Farmers’ Groups (SHGs), Association of
Farmers & Agri. Market Committees are given 50% of the cost of
construction of concrete/cemented drying yards as subsidy;
• Under the Promotion of Integrated Pest Management (IPM) programme,
chilly growers having area upto 8 hectares in the slected villages of Guntur ,
Prakasam and Khammam districts of Andhra Pradesh are provided with IPM
kits containing pheromone traps, bio agents like trichoderma, trichogramma,
neem pesticides, worms for producing vermicompost etc. with subsidy worth
Rs. 1500 per hectare towards 50% of the cost of IPM Kit.
The first meeting of the Task Force Committee for Chillies held on May 18, 2012
recommended following measures:
• Spices Board may suggest the State Seed Corporation (SSC)/National Seed
Corporation (NSC) to produce the varieties of (IPM) chilli seeds like Teja and
Bhujnal with better resistance against pests.
• Spices Board may request the State Horticulture Departments of Andhra
Pradesh, Karnataka and Tamil Nadu to explore the possibility of developing
trial cultivation of good Paprika varieties.
• Spices Board along with Exporters/Traders may have a dialogue with the
State Horticulture Departments of the Chilli producing states for developing a
revised Package of Practices for Chilli. Necessary publicity campaigns shall
also be undertaken so as to create awareness amongst the farmers.
• The development schemes operated by the Spices Board for providing Drying
yards/ Silpaulin sheets to the farmers shall be continued.
• The QEL of Spices Board may carry out a comparison study of the Indian and
ASTA methods of sampling of chillies. Based on the outcome of the study, it
should be decided if the methods of sampling which is currently being
followed by the Board needs to be re-looked.
• Spices Board may contact the State Horticulture Department of Karnataka to
work out a Buy-back arrangement for chilli in Karnataka.
47
4. TURMERIC – THE GOLDEN SPICE
4.1 Introduction
Turmeric, botanically known as Curcuma longa (LINN), belongs to Zingiberaceae,
the family of Ginger. It is a perennial herb, which gets cultivated and propagated
with the help of its rootstalk/ rhizome. The name ‘turmeric’ is derived from the
Latin terra merita (‘meritorious earth’) referring to the color of ground turmeric
which resembles a mineral pigment.
4.2 Origin
History of turmeric dates back to ancient era. Though its exact origin remains
unidentified, it is considered native of tropical South Asia. Reports indicate that the
Arab traders took turmeric to Europe in the 13th century and during the Middle Ages
because of its color, it was known as Indian saffron in Europe. Marco Polo, in 1280,
mentioned about turmeric in notes of his travels in China that "There is also a
vegetable that has all the properties of true saffron, as well as the smell and the
color, and yet it is not really saffron."
4.3 Usage
Turmeric is widely used in a dried, powdered
form as food adjunct imparting flavor as well
as color to food stuff. Leaves of turmeric are
also used to wrap and cook food in some
parts of India. Turmeric oleoresin, which is
obtained by solvent extraction of the ground
spice, is used in brine pickles and to some
extent in mayonnaise and relish
formulations, non-alcoholic beverages,
gelatins, butter and cheese etc.
Use of Turmeric
Food Adjunct
Dying /Coloring Agent
As a Medicin
e
In Religiou
s Rituals
As a Cosmeti
c
48
It has been used extensively in various ceremonies and religious rituals in India and
China since ancient period, as it is considered highly auspicious.
However, initially turmeric was cultivated in India mainly as a dye, because
Curcumin from Turmeric produces a range of colors from yellow to deep orange. Its
use as a colouring material is reported in pharmaceutical, confectionery, rice
milling, food, paints and varnishes industries.
With increasing awareness about its several medicinal properties like anti-
inflammatory, anti-oxidant, carminative, tonic, blood purifier, vermicide and
antiseptic, turmeric’s usage for medicinal and cosmetic purposes got popularized.
Indian Ayurvedic and Chinese medicines are found to be using turmeric for the
treatment of inflammatory and digestive disorders since ages.
Turmeric has been considered as an excellent natural cosmetic. Turmeric’s external
application is found to be useful in treating many skin diseases ranging from acne
to leprosy to skin cancer. Turmeric serves as First-Aid in accidents ranging from
cuts to concussions. In fact, its popularity in Western cultures is of the recent past
following a research study which highlighted turmeric’s therapeutic properties.
4.5 Cultivation
It grows in tropical climatic conditions (hot and humid) with temperature ranging
between 20 to 30 degrees, along with light black, black clayey loams and red soils
in irrigated as well as rain fed areas from sea level to 1200 meters above mean sea
VALUE ADDED PRODUCTS
Turmeric
Essential Oil:
It is obtained by distillation, or by supercritical fluid extraction of the
powdered rhizome. It is also the product of curcuminoids
purification from oleoresins.
Turmeric Powder:
It is a major ingredient in curry
powders and pastes. In the food
industry, it is mostly used to
colour and flavour mustard.
Oleoresins:
They refer to extractives, are obtained by solvent extraction of the powdered or
comminutated rhizome.
Curcuminoids:
It is a coloring matter consists mostly of curcumin, which can be further purified to a crystalline material, and
are used preferably, in products where the turmeric
flavour is undesirable.
Volatile oils: they are used to
impart the flavour to
the product.
49
level (MSL). The crop cannot stand water logging or alkalinity and is very sensitive
to low atmospheric temperature. The commercial part of the plant is its rhizome or
underground stem, which gets processed to make it ready for commercial
utilization.
Turmeric Processing
WASHING: Mother and Finger Rhizomes are soaked in water over night and afterthey are taken out water is sprayed to get rid of unwanted partilces of soil.
BOILING: Rhizomes are boiled /blanched until they become soft and the innercolour become yellow instead of red. In the traditional method boiling is done using ametal or mud pots anlong with 3/4 water until foams or white foams startsevaporating. In modern method, perforated frame loaded with turmeric tubers orbulbs are sunk in soda solution filled in the boiler which gets heated from the bottomby electric heater or fuel oil. Water gets poured from all sides of perforations during theprocess of boiling.
DRYING: Cooked rhizomes are cooled first and spread in the yard for drying. Ittakes at least 10 to 15 days for drying in the sun. Dried rhizomes become hard andsolid and have 6% of moisure.
POLISHING: Traditional method involves rubbing of dried rhizomes against groundor below foot to get rid of hard layer and small roots. Modern technique involves use ofa machine - Polishing Drum - which is operated by a handle. Water is also sprinkledduring the polishing process which enhances colour of a turmeric.
COLOURING: It can be done in two ways: Dry colouring and Wet colouring. In thefirst process, dry powder of yellow colour, known as middle crome, is sprayed on boiledturmeric and rightly mixed. In the wet colouring process its solution is prepared inwater which is sprayed on rhizomes and mechanically mixed. After colouring rhizomesare dried for one week.
GRINDING: Traditionally, dried and polished turmeric are cut into pieces and beatenin mortar and pestle. After this is milled or ground with hand operated chakki. Hammermill is also used for grinding.
Source: www.indiaagronet.com
50
4.6 Domestic Fundamentals
Area, production and Yield
In India, Turmeric is a kharif crop. Its sowing begins in June and extends up to
August. The crop is harvested when the leaves turn yellowish after 7 to 10 months
of plantation and start drying up. The plant is harvested by digging the rootstalks
up. While some rhizomes are collected, some rhizomes are left so that the plant
remains perennial. From September to March the plant remains dormant, but the
roots survive to come up with green leaves once again.
State-wise Harvesting Season in India
Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Andhra Pradesh
Bihar
Himachal Pradesh
Karnataka
Kerala
Madhya Pradesh
Manipur
Rajasthan
Tamil Nadu
Uttar Pradesh
Source: www.indiastats.com
Usually harvesting begins from January-February and continues till March. The crop
becomes ready for harvest depending upon variety, fertility status of soil and
moisture availability. It has been reported that early varieties mature in seven to
eight months, medium varieties in eight to nine months and late varieties after nine
months.
As per the latest data available from the Ministry of Agriculture, during the last two
decades, area under turmeric in India has grown at a compound annual growth rate
(CAGR) of 2.2% from 1.2 lakh hectares in 1991-92 to 1.8 lakh hectares in 2009-10.
The production has grown at the CAGR of 4.1% from 3.7 lakh tonnes in 1991-92 to
7.9 lakh tonnes during the same period (Chart 1).
51
A glance at a state-wise bifurcation reveals that turmeric is grown in as many as 24
states in India, though its cultivation is mainly concentrated in peninsular region of
the country, with Andhra Pradesh being the top cultivator as well as producer of the
golden spice followed by Tamil Nadu (Charts 2 & 3).
As per the latest available data, in 2007-08, area under cultivation in Andhra
Pradesh stood at 63 thousand hectares followed by Tamil Nadu at 27.3 thousand
hectares and Odisha at 24.7 thousand hectares. Thus, Andhra Pradesh and Tamil
Nadu together accounted for more than half of the total sown acreage under
turmeric in 2007-08.
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
0.0
50.0
100.0
150.0
200.0
250.0
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
Production ('000 Tonnes)
Area ('000 Hectares)
Chart 1: Trend in Area, Production and Yield of Turmeric:
India
Area (in '000 Hectares) Production (in ''000 Tonnes)
3102
3131
4767
4163
3323
3912
3931
3721
4734
3726
3368
3479 3763
4525
4952
4408
4532
4535
4382
Yield (Kg/ hectare)
Source: Ministry of Agriculture
52
In terms of production, the two states contributed more than 70% of the total
production in 2007-08. Andhra Pradesh recorded the highest output of 416
thousand tonnes followed by Tamil Nadu at 146 thousand tonnes and Karnataka at
64.7 thousand tonnes.
53
However, productivity of turmeric is highest in Gujarat. In 2007-08 it touched
14100 kg per hectare followed by in Haryana at 10778 kg per hectare and in
Andhra Pradesh at 6603 kg per hectare.
Varieties of Turmeric
Around 30 varieties of turmeric are grown in India, which vary in terms of their
appearance, rhizome thickness, colour intensity, aroma and hardness of the core
and duration. Based on the period required for turmeric cultivars to get ready for
harvest, they can be divided into three categories, viz., short (6 months), medium
(8 months) and long (9 months) duration. Short duration turmeric cultivars
generally are long thick rhizomes with shiny skin and aroma and low curcumin
content. Medium duration varieties are medium long and thick rhizomes with
narrow constrictions, while long duration varieties are in the form of long stout,
smooth and hard rhizomes with pale yellow colour. Medium duration cultivars are
observed to have the highest yield potential (14 to 35 tonnes/hectare), followed by
long duration varieties (15 to 17 tonnes/ hectares) and short duration (8 to 20
tonnes / hectares). Dry recovery rate has been the highest for short duration
varieties (26 to 30%), while it is more or less same for medium and long duration
cultivars at around 20%.
Some of the important varieties cultivated in different states include:
Cultivar State
Alleppey Finger, Mannuthy Kerala
Erode, Salem Tamil Nadu
Rajapore, Desi Cuddapah Maharashtra
Nizamabad Bulb, Kesari, Duvvur, Amruthapani, Kothapeta, Duggirala, Tekurpet, Mydukur, Armoor, Sugandham,
Vontimittra, Nandyal, Ananigadda
Andhra Pradesh
Shillong, Tall Karbi Assam
Dughi, Jobedi, Katigia Orissa
Gorakpur Uttar Pradesh
54
Improved Cultivars of Turmeric and their Characteristics
Variety Source Size
Fresh
yield
(t/ha)
Average
Potential
Average
Crop
duration
(days)
Dry
recovery
(%)
Curcumin
(%) Oleoresin Essential Oil
1 BSR-1 Large 30.7 39.6 285 20.5 4.2 4 3.7
2 BSR-2 Medium 32.7 43.2 20 3.8 - -
3 Co-1 Large 30 35 285 19.5 3.2 6.7 3.2
4 IISR
Prabha Medium 37.5 - 195 19.5 6.5 15 6.5
5 IISR
Prathibha Medium 39.1 - 188 18.5 6.2 16.2 6.2
6 Krishna Medium 9.2 11.8 240 16.4 2.8 3.8 2
7 Rajendra
Sonia Medium 4.8 - 225 18 8.4 - 5
8 Ranga Medium 29 37.1 250 24.8 6.3 13.5 4.4
9 Rasmi Medium 31.3 37.5 240 23 6.4 13.4 4.4
10 Roma Medium 20.7 40 250 31 9.3 13.2 4.2
11 Sudarsana Small 28.8 54.9 190 12 5.3 15 7
12 Sugandham Medium 15 20 210 23.3 3.1 11 2.7
13 Suguna Small 29.3 60.3 190 12 7.3 13.5 6
14 Suroma Medium 20 44.9 255 26 9.3 13.1 4.4
15 Suvarna Medium 17.4 43.5 200 20 4.3 13.5 7
Source: Spices Board and Indian Institute of Spices Research
Among these, BSR -1 & 2 and Co-1 have been developed by Tamil Nadu
Agricultural University (TNAU), while IISR Prabha, IISR Prabha, Sudarsana, Suguna
and Suvarna have been developed by India Institute of Spices Research (IISR),
Kerla.
Roma and Suroma from Pottangi (Orissa), CO 1 and BSR 1 from Coimbatore (Tamil
Nadu) and Sugandham from Jagudan (Gujarat) have been released as high yielding
varieties under the All India Co-ordinated Research Project for Improvement of
Spices.
55
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
(Est.)
Value in Rs Crore
Quantity in thousand tonnes
Chart 5: Turmeric Export
Quantity ('000tonnes)
Value Rs crore
Consumption of Turmeric: Domestic demand and Export demand
Following a healthy domestic demand from household sector (for food usage) and
also from pharmacy and dyeing industries, more than 90% of the turmeric
produced is consumed internally, which leaves the economy with a smaller
exportable surplus. Since last couple of years India’s turmeric export is hovering
around 6 to 6.5% of the total domestic production (Chart 4). For e.g., as per the
latest available data, in 2009-10, only 50.8 thousand tonnes of turmeric was
exported from 793 thousand tonnes produced in the country.
After chilli, turmeric is the second largest spice exported from the country. With its
exports estimated at 79.5 thousand tonnes in 2011-12, turmeric accounted for
13.8% of the total spices exports, while in terms of value its share stood at 7.5% or
Rs 734.3 crore (Chart 5). Important turmeric varieties exported include Allepey
finger turmeric, Rajapuri, and Erode variety. Export of turmeric takes place in the
form of dry turmeric after polishing, fresh turmeric, turmeric powder, dehydrated
turmeric powder, oils and oleoresins.
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
Quantity in '000 tonnes
*: Consumption data has been arrived at without considering stocks carried forward
and imports.
Chart 4: Turmeric
Consumption*
vis-a-vis Export Export Consumption
Source: Spices Board & www.indiastats .com Source: Spices Board & www.indiastats .com
56
Major Export Markets for Turmeric
United Arab Emirates (UAE) has been the largest importer of Indian turmeric in
terms of quantity as well as value, followed by Malaysia and, Japan in 2010-11. The
three importers together account for one third of the total turmeric exported from
the country.
4.7 International Fundamentals
India is considered as the largest producer, consumer and exporter of turmeric in
the globe contributing over 70% of the world production.
Global turmeric production is estimated around 11 -11.5 lakh tonnes. Other major
producers of turmeric in Asia are China, Myanmar, Bangladesh, Pakistan, Sri Lanka,
Taiwan, Burma and Indonesia, etc. Turmeric is also produced in the Caribbean and
Latin American countries like Jamaica, Haiti, Costa Rica, Peru and Brazil.
India holds key position in world trade of Turmeric. Other major exporters are
Thailand, other Southeast Asian countries, pacific islands, Central & Latin American
countries and Taiwan.
Source: Spices Board
57
UAE, Iran and Malaysia are major importing countries. India also imports turmeric
for value addition and re-export.
4.8 Factors Influencing Prices
4.9 Turmeric Trading on NCDEX
Turmeric futures contract was launched on NCDEX platform in April 2004 and since
then it has witnessed considerable participation from various supply chain
participants. Using futures platform producers can minimize their price risk. With
ever increasing export demand, exporters can insure themselves against price risk.
Being highly liquid contract market participants can easily enter or exit the market.
Thus the NCDEX Turmeric contract provides space for every investor category.
Turmeric Prices
Domestic Fundamentals
World Production & Export
International Trading Price
Carry Forward Stocks
Sowing and
Harvesting
Climatic conditions
58
Turmeric prices, generally, start
moving lower due to fresh crop arrival
season from January onwards. Prices
remain highly pressurized from March
to June April amid peak arrival
season; nonetheless, active buying by
stockiest during this period does
provide some support. During July-
August prices move gradually as
sowing for next season crop gets
started. However, strong festive
season demand at domestic and
export front supports the prices to
trade higher. Turmeric prices tend to
peak in October-November, the lean
season.
A month-wise movement in spot prices of turmeric since introduction of its contract
on the NCDEX platform has been depicted in Chart 8. During the first two years of
the inception of turmeric
contract, its prices
remained range-bound
accompanied by sluggish
trading in terms of both
volume and value (Chart
9).
As the turmeric price were
less remunerative
comapred to other crops,
farmeres preferred sowing
other cash crops like
Soybean, cotton, gram-
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Rs per Quintal
Chart 8: Trend in Spot Prices of Turmeric:
Monthly Average
200
4200
5200
6200
7200
8200
9201
0201
1
Source: NCDEX
Source: NCDEX
59
chana etc., which resulted in lower sown acerages during 2007 and turmeric
production declined in the subsequent harvesting period. A combination of lower
output and higher export demand pushed up turmeric prices in 2008. The price hit
all-time highs in 2009 following massive reduction in turmeric output due to
drought conditions in major turmeric producing state – Andhra Pradesh (A.P.-
Nizamabad, Warangal). Upward movement in turmeric prices continued during
2010 with prices scaling to new peaks due to speculative buying on lower
production estimate, anticipation of shortage of stock and emergence of strong
overseas demand. Lower arrivals at spot market because of stock holding by
farmers/ Stokiest in lieu of further rise in price also supported upward rally.
However, prices could not
sustain at these historically
high levels for long time
after production increased
sharply in last two years.
Despite rise in exports in
last financial year, markets
fell to multiyear lows on
huge stocks. The trend has
turned up recently following
good stockiest demand and
expectation of lower crop in
the coming season.
4.10 Major Trading Centres for Turmeric
Indian Market
Alleppey-(Kerala);
Erode-(Tamil Nadu);
Cudappah, Nizamabad, Duggirala, Guntur-(Andhra Pradesh)
Sangli-(Maharashtra)
Source: Spices Board
Source: NCDEX
0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
1400.0
1600.0
1800.0
0.0
2000.0
4000.0
6000.0
8000.0
10000.0
12000.0
Jul-04
Dec-04
May-05
Oct-05
Mar-06
Aug-06
Jan-07
Jun-07
Nov-07
Apr-08
Sep-08
Feb-09
Jul-09
Dec-09
May-10
Oct-10
Mar-11
Aug-11
Jan-12
Jun-12
Nov-12
Volume ('000 Tonnes)
Value (Rs Crore)
Chart 9:Turmeric Turnover on NCDEX
(Jul 2004-Dec 2012): Monthly AverageVolume (Thousand Tonnes) Value (Rs crore)
60
4.11 Policy Initiatives Undertaken For Promoting Turmeric Production
• Individual growers are provided subsidy for construction of concrete /
cemented drying yards (area up to 150 sq.mt);
• Community drying yards by NGOs/Farmers’ Groups (SHGs), Association of
Farmers & Agri. Market Committees are given 50% of the cost of construction
of concrete/cemented drying yards as subsidy;
• Organic cultivation of Lakadong turmeric (much preferred by the exporters for
extraction of the colour) is promoted in Meghalaya and other North Eastern
states. Rs.12500/- per hectare is provided as subsidy towards 50% of the cost
of planting material;
• To popularize the practice of using improved polishers for polishing turmeric,
turmeric growers having area up to 8 ha. are funded with 50% of the cost of
the polisher or Rs.16000/- per polisher whichever is less, as a subsidy;
• To popularize the use of turmeric boilers among turmeric growers for
production of quality turmeric suitable for exports, turmeric growers having
area up to 8 ha are provided with 50% of the cost of the boiler or Rs.4000/-
per boiler whichever is less, as a subsidy.
The first meeting of Task Force Committee on Turmeric, held on 18th May, 2012
recommended following measures:
1. Developing a mechanized system for harvesting of Turmeric by
associating with Central Institute of Agriculture Engineering, Bhopal and
Tamil Nadu Agriculture University (TNAU);
2. Spices Board may write to the State Governments to consider
implementation of the minimum support price for Turmeric;
3. The data on high curcumin variety released from various Institutes may
be made available to the state horticultural departments of the turmeric
producing states for conducting field trials. These high curcumin varieties
shall be recommended to the turmeric growers thereby popularizing
production of the same;
61
4. Spices Board may support initiatives for developing more value added
products of turmeric, to increase export volume and for enhancing the
domestic use;
5. Introduction of drying yard schemes for post-harvest management and
supply of Silpaulin sheets to Turmeric growers in Tamil Nadu and
Karnataka;
6. Assessing the possibility of Linkage of markets through NCDEX;
7. Requesting the state governments of Tamil Nadu, Karnataka & Andhra
Pradesh to consider establishing Warehousing facility for turmeric in the
major production centres.
61
5. Coriander or Dhaniya
5.1 Introduction
Coriander or Coriandrum sativum, commonly known as ‘Dhaniya’ belongs to the
Umbelliferae, or carrot family. It is an annual herb, all parts of which, viz., tender
stem, leaves, flowers and the fruits, have pleasant aromatic odour and are edible.
Coriander leaves also known as Chinese parsley, or cilantro (particularly in North
America), and coriander seeds essentially form the commercial parts of the plant.
5.2 Origin
Though often considered an Asian herb, coriander is a native to Mediterranean and
parts of south-western Europe and is believed to be in use since 5000 BC. Its
references are found in early Sanskrit documents, the Bible and ancient Chinese
and Middle Eastern countries. Its seeds have been found in Egyptian tombs of the
21st dynasty. Coriander seems to have been cultivated in Greece at least since the
second millennium BC. The herb was one of the first (along with dandelions) to be
brought to the Americas from Europe. It was brought into Mexico by the
conquistadors (Spanish conquerors or adventurers) in the 1500s. Before 1670 it
was introduced into Massachusetts and was one of the first spices cultivated by
early settlers. At present, in many temperate and tropical countries it has become a
frequent weed in cultivated fields.
5.3 Usage
Coriander is considered to be one of the first spices to be known and used by
mankind. All parts of this herb are edible. Fresh leaves of coriander are used for
flavouring and garnishing salads, soups and curries. They are the main ingredient in
Vietnamese food, chutney and other dishes in southeast and southern Asian,
Chinese and Mexican cuisine. The roots of the herb are also used in Thai cuisine.
The fruits (seeds) are widely used as condiments with or without roasting in the
preparation of curry powders, sausages and seasonings. It is an important
62
ingredient in the manufacture of food flavourings, in bakery products, meat
products, soda & syrups, gelatine and puddings, candy preserves and liquors.
Coriander leaves are considered as one of the richest sources of A and C Vitamins.
Various characteristics of
coriander, such as carminative,
refrigerant, diuretic, tonic,
stomachic, etc., make it an
important component in the
manufacture of a number of
medical products. Under the
homeopathy system of medicine,
alcoholic extracts of coriander are
treated as mother tincture.
Coriander oil is extracted from the
crushed ripe coriander seeds by
steam distillation, which yields 0.8 - 1.0% oil. The essential oil from this ancient
herb is used in aromatherapy. Good quality oleoresin is also extracted from
coriander seeds, which is been used for flavouring beverages, pickles, sweets, etc.
Coriander oil and oleoresins are primarily used in seasonings for sausages and
other meat products.
Coriander Powder is used as a flavouring agent in a number of pharmaceutical
preparations, especially the digestive medicines.
5.4 Domestic Fundamentals
Cultivation Practice
Coriander is usually cultivated during rabi season. It requires cool climate during
growth stage and warm dry climate at maturity. It can be cultivated in all most all
types of soils but well drained loamy soil suits well. In India, coriander is sown
during 15th October to 15th November in an area free from severe frost during
63
February when the crop flowers and sets its seeds. The sowing period generally
lasts till December and harvesting extends from January to April, while arrivals start
from January and continue till April. The crop matures in about 110 to 140 days. At
maturity, seeds turn to yellowish green colour.
Crop Cycle
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Sowing Harvest Peak Arrival Lean Arrival
It is observed that when the crop is grown in colder regions & at high altitudes
quality of seed is superior & essential oil content is more. Composition of coriander
seeds varies depending upon its country of origin and agro climatic conditions in
which it is grown, harvested, dried and stored.
Coriander Seeds Processing
64
Area, production and Yield
Area and production of coriander during 1991-92 to 2009-10 have shown vast
variations. As per the latest data available from the Ministry of Agriculture, during
the last two decades, area sown under coriander in India has remained sluggish to
mark a decline of 1.2% in its compound annual growth rate (CAGR). Area under
coriander showed a reasonable growth during early 1990s increasing from 3.5 lakh
hectares in 1991-92 to 6.6 lakh hectares in 1997-98; however, it shrank thereafter
to 2.9 lakh hectares in 2002-03. In late 2010s, area grew once again but failed to
cross the peak reached in late 2000s and ranged between 3.5 lakh hectares to 4
lakh hectares by the end of the decade (Chart 1).
0
50
100
150
200
250
300
350
400
450
0
100
200
300
400
500
600
700
1991-9
2
1992-9
3
1993-9
4
1994-9
5
1995-9
6
1996-9
7
1997-9
8
1998-9
9
1999-0
0
2000-0
1
2001-0
2
2002-0
3
2003-0
4
2004-0
5
2005-0
6
2006-0
7
2007-0
8
2008-0
9
2009-1
0
Pro
duction ('0
00 T
onnes)
Are
a ('0
00 H
ecta
res)
Chart 1: Trend in Area, Productiona and Yield of
Coriander : India
Area (in '000 Hectares) Production (in ''000 Tonnes)
453
475
438
448
481 5
64
514 556
576 6
54
744
609
806
711
656 7
27 8
06
610 658
Yield (Kg/ hectare)
Source: Ministry of Agriculture
Coriander production has increased at a snail's pace recording a CAGR of just 1.7%
from 1.6 lakh tonnes in 1991-92 to 2.4 lakh tonnes in 2009-10. During these two
65
decades, the production ranged between 1.5 - 3 lakh tonnes; however output was
higher than 3 lakh tonnes on a couple of occasions touching a peak of 3.9 lakh
tonnes in 2003-04.
During the period of two decades, average coriander yield hovered around 605
kg/hectare, varying from a low of 438 kg/ hectare in 1993-94 to a peak of 806
kg/hectare in 2003-04. Coriander productivity has improved in the last decade
compared to that during 1990s.
A glance at a state-wise bifurcation reveals that coriander is grown in as many as
12 states in India, though its cultivation is mainly concentrated in north-western
and central parts of the country, with Rajasthan being the top cultivator as well as
producer followed by Madhya Pradesh (Charts 2 & 3).
Source: Ministry of Agriculture
As per the latest available data, in 2007-08, area under cultivation in Rajasthan
stood at 2.13 lakh hectares followed by Madhya Pradesh at around 1 lakh hectares.
Rajasthan and Madhya Pradesh together accounted for around 80% of the total
sown acreages under coriander in 2007-08 (Chart 2).
66
In terms of production, Rajasthan alone contributed around 79% of the total
production in 2007-08, with coriander output touching 245 thousand tonnes
followed by Madhya Pradesh at just 30 thousand tonnes (Chart 3).
Source: Ministry of Agriculture
However, coriander yield in
Rajasthan has consistently been lower
than that reported in Haryana over
the years; however, both these states
have recorded coriander productivity
higher than All-India average. Though
coriander productivity was the highest
in Haryana till mid-2010s, off late
Meghalaya has reported the highest
yield of around 3000 kg per hectare
followed by Haryana and Rajasthan
(Chart 4).
Source: Ministry of Agriculture
67
Varieties of Turmeric
Domestically major varieties are Badami, Eagle, Scooter, Double Parrot, Single
Parrot, and Super Green. Badami variety accounts to about 65 to 70% of total
production.
Improved varieties like Guj.Coriander-1, Guj.Coriander-2, RCr-41, UD-20, Rajendra
Swati (RD-44), CS-287, CO-1, CO-2, CO-3, Sadhana, Swati and Sindhu are also
been cultivated to get high yield.
Salient features of some of Improved Cultivars of Coriander are as follows:
Commercial Varieties of Coriander
Variety Characteristics Maturity Average Yield
RCr 41
A tall variety of coriander with small grains; highly
resistant to stem gall and wilt; moderately tolerant to
powdery mildew;
130–140
days;
9.2 q/ha.
RCr 20
Medium tall variety of coriander with bushy and spreading
growth habit; produces oval, large-sized grains;
moderately tolerant to powdery mildew, wilt as well as
stem gall;
100–110
days;
10q/ha.
RCr 435 An early variety of coriander with medium-sized grains; 110–130
days;
10.5 q/ha.
RCr 436 Another early-growing variety of coriander with bold
grains;
90–100
days;
11.09 g/ha
RCr 446 Erect-growing leafy variety of coriander with medium-
sized grains;
110–130
days;
12 q/ha.
GC 1
Erect-growing variety of coriander with medium-sized,
round, yellow colored grains; moderately tolerant to wilt
and powdery mildew;
112 days; 11q/ha.
GC 2
A medium-tall variety of coriander with semi-spreading
growth habit with dense, dark green foliage and medium-
sized grains; moderately tolerant to wilt and powdery
mildew;
110 days; 14.5 q/ha.
Sindhu
Dwarf variety of coriander with medium-bold, oval, straw-
coloured grains; tolerant to wilt and powdery mildew, and
resistant to aphids;
102 days; 10.5 q/ha.
68
Commercial Varieties of Coriander
Variety Characteristics Maturity Average Yield
Sadhna
Medium-tall variety of coriander with semi-erect stems
and bold, oval, straw–coloured grains; tolerant to white
fly and mites;
100 days; 10.3 q/ha.
Swathi Semi-erect growing variety of coriander with medium-bold, oval,
brownish-yellow grains; tolerant to whitefly, grain moulds and wilt;
8.89 q/ha
Co 1
Dwarf variety of coriander with globular, small–sized,
dusty brown grains;
100–120
days with
an
4.0 q/ha
Co 2
Erect-growing variety of coriander with oblong, medium-
sized dull yellowish-brown grains;
90–110
days with
an
5.2 q/ha and
green yield of
100 q/ha
Co 3
Dwarf variety of coriander with medium-bold, oblong,
brownish-yellow grains; tolerant to wilt, powdery mildew
and grain mould;
86–104
days
6.5 q/ha
CS 287
Early-maturing variety of coriander with medium-sized,
oblong, straw grains; tolerant to wilt and grain mould;
matures
78–97
days
6.0 q/ha
RD 44
(Rajendra
Swathi)
A medium variety of coriander with fine, round, aromatic
grains; resistant to stem gall and moderately resistant to
wilt, aphids and weevil;
100 days 13 q/ha.
DH 5 Medium-tall variety of coriander with bushy growth and
round attractive grains of medium-size;
120–130
days
18–20 q/ha
Source: http://www.myagrihortico.com/tutorialsview.php?id=107
Consumption of Coriander: Domestic Demand +Export demand
Among spices, Coriander is the fourth largest spice exported from the country in
terms of quantity. With its exports estimated at 28.1 thousand tonnes in 2011-12,
coriander accounted for around 5% of the total spices exports, while in terms of
value its share stood at a meagre 1.7% or Rs 164 crore (Chart 5).
69
Following a healthy domestic demand from household sector (for food usage) and
also from spice powder making industries, more than 90% of the turmeric produced
used to be consumed internally, leaving the economy with a smaller exportable
surplus. However, since last couple of years, India’s coriander export has picked up
pace on account of increase in consumption of more spicy foods, especially in
developed countries and large population from Indian origin staying in foreign
countries. For e.g., as per the latest available data, in 2009-10, 47.3 thousand
tonnes of coriander was
exported from 237
thousand tonnes
produced in the country
accounting for almost
20% of the domestic
production. This was
significantly higher
compared to 2006-07,
when coriander exports
have stood at 21.4
thousand tonnes forming
only 9.2% of the total
coriander produced in
the country.
Major Export Markets for Coriander
Malaysia has been the largest importer of Indian turmeric in terms of quantity as
well as value, except in 2009-10 when imports by Pakistan had surpassed those
from Malaysia. UAE has been the second largest importer of Indian coriander since
last few years with its share hovering around 13% in terms of both quantity and
value. Malaysia and UAE together account for slightly above one-third of the total
coriander exports from India (Charts 5A and 5B).
Source: Spices Board
70
5.5 International Fundamentals
The global production of coriander seed is estimated to be around 5-6 lakh tonnes.
However, official estimates are rarely available for this crop in most producing
countries. Additionally, coriander is widely grown in home gardens on a small scale,
which is never included in official statistics.
Major producers are Morocco, Canada, India, Pakistan, Romania and the former
Soviet Union. Other producers include Iran, Turkey, Egypt and Israel in the Middle
East; China, Burma and Thailand in Asia; and Poland, Bulgaria, Hungary, France
Source: Spices Board
71
and the Netherlands in Europe. The United States, Canada, Argentina and Mexico
are producers in the Americas.
India is the world’s largest producer and consumer of Coriander. India contributes
around 50-60% in the total world production, while domestic consumption in India
is been estimated around 4 lakh tonnes.
The global trade in coriander is estimated to be around 0.85 – 1 lakh tonnes per
annum. While, India, Turkey, Egypt, Romania, Morocco, Iran and China are the
major exporters, Middle East, South-east Asia, USA, UK, Germany etc. are the
major importers.
Table 1: Coriander Trade in 2008
Major Exporting Countries Major Importing Countries
Quantity
(tonnes)
%
share
Quantity
(tonnes)
%
share
India 30,200 32.2 Pakistan 12,258 13.0
Bulgaria 10,000 10.7 Malaysia 11,607 12.4
Canada 9,341 10.0 Indonesia 10,734 11.5
Romania 9,816 10.5 UAE 6,760 7.2
Syria 5,430 5.8 South
Africa
6,000 6.4
China 5,329 5.7 USA 5,552 5.9
Morocco 8,633 9.2 UK 4,135 4.4
Others 15,000 16.0 Saudi
Arabia
3,771 4.0
Total 93,749 100.0 Japan 3,519 3.8
Source: http://www.worldspicecongress.com/pre-cong/08.pdf
72
5.6 Factors Influencing Prices
5.7 Trading in Dhaniya on NCDEX:
Coriander futures contract
was launched on August
2008. The supply fluctuation
due to underlying
fundamental factors leads to
prices being volatile. For
example, average volatility in
spot prices of coriander at
7.75% per month for the
period of 53 months, i.e. from
August 2008 to December
2012. Higher volatility in
prices makes coriander
Spot
2000
3000
4000
5000
6000
7000
8000
9000
10000
Aug-0
8
Dec-0
8
Apr-
09
Aug-0
9
Dec-0
9
Apr-
10
Aug-1
0
Dec-1
0
Apr-
11
Aug-1
1
Dec-1
1
Apr-
12
Aug-1
2
Dec-1
2
Rs p
er Quin
tal
Source: NCDEX
Chart 6: Trend in Spot and Near Month
Futures Prices of Coriander
Near Month Futures
73
amenable for hedging and because of its liquidity on the Exchange platform trading
in coriander has been attractive for all market participants. Thus, the Coriander
contract provides space for every investor category.
A month-wise movement in spot prices of Dhaniya since introduction of its futures
contract on the NCDEX platform has been depicted in Chart 7. Coriander prices kept
on tumbling almost for two year since the launch of coriander contract,
accompanied by trivial trading volume and insignificant trading turnover in terms of
value (Chart 8).
In fact, coriander prices, which were trading at their peak (slightly above Rs 9000
per quintal) in the very first month of its trading on the NCDEX platform on account
of lower output in
rabi season 2008
and strong export
demand, plunged
sharply by the end
of December 2008
to drop below Rs
5000 per quintal and
the declining trend
continued till March
2009 with prices
further falling below
Rs 4000 per quintal
mark.
Source: NCDEX
The freefall in coriander prices was triggered when many market players resorted to
profit-booking at higher prices and prices got dragged down further on reports of
improved sowing acreages under coriander following higher price realisation
witnessed by coriander grower in the earlier months and stockiest selling their crop
74
ahead of onset of dhaniya harvesting season in the country. However, coriander
prices saw some correction and started picking up from March 2009; but buoyancy
was short-lived as prices once again came under pressures amidst the expectations
of lower demand and so, the less off-take of coriander, which kept prices lingering
around Rs 4000 per quintal till the end of the calendar year 2009 showing marginal
upward as well as downward fluctuations on seldom occasions and sinking further
in the subsequent year 2010 to touch a low of around Rs 2600 per quintal. During
the calendar year 2010, coriander prices traded in the range from Rs 2600 per
quintal to Rs 4100 per quintal.
Lower price realisation from coriander encouraged coriander grower to cultivate
more lucrative crops like mustard seed in Rajasthan and jeera in Gujarat. The
resultant fall in acreages in major coriander growing regions lowered the output
estimates in 2011 harvesting season and coriander prices shot up to cross Rs 5000
per quintal mark in January 2011. Increased export demand drove up by lower
price levels witnessed in the previous year also contributed to this upward rally in
coriander prices seen in the beginning of the year 2011. However, onset of peak
arrival season in the
country dented coriander
prices till June amidst
higher output of coriander.
Prices bounced backed
thereafter till September to
cross a level of Rs 6000 per
quintal on reasons like
contraction of inventories
and rising export demand.
Nonetheless, at that higher
level, export demand
started waning, once again
pulling down prices towards
the end of the year 2011. Source: NCDEX
75
Coriander prices, which remained suppressed during the first half of the recently
concluded year 2012, showed some uptick as a result of the limited stocks on
restricted arrivals from the major growing belts till August and once again saw
correction dropping for next couple of months. However, with a delay in the harvest
of the kharif crop and poor sowing in major coriander seed growing areas of
Rajasthan and Madhya Pradesh prices went up from October 2012 till the of the
year. Expected strong export demand for the Indian coriander in the current year
due to lower production in major coriander seed producing countries such as
Ukraine, Bulgaria and Romania and even in the eastern European countries on
account of unfavourable weather conditions, also supported uptrend in coriander
prices.
5.8 Major Trading Centres for Coriander
Baran, Kotta, Ramgunj -Rajasthan
Ramganj - Mandi
Guntur, Varavakonda, Nandyal - Andhra Pradesh
Thiruchirappilly, Virudhunagar - Tamil Nadu
Davangore - Karnataka
Varanasi, Jaunpur - Uttar Pradesh
Guna – Madhya Pradesh
Source: Spices Board
76
6. CUMIN SEED
6.1 Introduction
Cumin or Cuminum cyminum is an annual herb in the parsley family. Cumin seed,
commonly known as 'jeera', which forms the commercial part of the plant, is the
dried fruit of the plant used in both whole and ground form. Cumin seed is an
oblong shaped, sharp flavoured and dark coloured aromatic spice that is placed
second to pepper in the context of importance.
6.2 Origin
Cumin is indigenous to Levant and Upper Egypt, though it is widely cultivated in
Syria, the Mediterranean region, Iran and India. It is an ancient spice having a
history of over 5000 years. Bible has mentioned about jeera as a famous spice in
the historical times and also as a currency to pay taxes. Cumin has also played a
very important part as an agent among the ingredients to mummify pharaohs. In
Greece and Rome, it was a practice to keep cumin powder on the dining table. It
was introduced to the Americans by Spanish and Portuguese colonists.
6.3 Usage
Cumin seeds have an aromatic odour
and bitter taste. Cumin is used as a
condiment, and is an ingredient in curry
powders, seasonings of breads, cakes
and cheese, salsas, soups and
marinades. It features in Indian,
Eastern, Middle Eastern, Mexican,
Portuguese and Spanish cookery, where
highly spiced foods are preferred.
It is not only widely used as a spice but
also used in various medicinal preparations all over the world. In the West, it is
77
used mainly in veterinary medicine, as a carminative, but it remains a traditional
herbal remedy in the East. Besides being used in Ayurvedic medicines, cumin is
also used as a stimulant, carminative, stomachic and astringent.
Cumin seed oil is used in perfumery and for flavouring liqueurs and cordials.
6.4 Domestic Fundamentals
Cultivation Practice
Cumin is a tropical plant. It thrives well in a hot, tropical climate, but can also be
cultivated in the cooler regions in a green house. The cumin crop can be produced
on almost all soil types but a well-drained, fertile sandy loam and medium soil suits
the best to this crop. It requires less water and more cold for its better growth with
ideal temperature of 25 to 30 degree.
Jeera crop is highly sensitive to rain. High humidity during flowering & fruit bearing
stage causes fungal diseases in this crop.
Cumin is usually cultivated during rabi season in India. It is sown in the winter
season during 15th October to 15th December. It takes 120-125 days for the plant to
mature and the plant gets ready to harvest when it turns yellowish brown. The
harvesting starts from February, and extends up to April. The crop normally arrives
in the market in the month of March. After the crop gets harvested, it is dried in the
threshing yard and is thrashed to separate the seeds. The cumin seeds are cleaned
up through the winnowing process.
Crop Cycle
Oct Nov Dec Jan Feb Mar Apr
All India Sowing Harvest
Region Sowing Period Harvesting Period
Saurashtra 20 Oct. to 20 Nov. 15 Jan. to 15 Feb.
North Gujarat 01 Nov. to 25 Nov. 01 Feb. to 15 Mar.
Rajasthan 10 Nov. to 10 Dec. 01 Mar. to 31 Mar.
78
Area, production and Yield
Area and production of cumin seeds during 1991-92 to 2006-07 have shown vast
variations; however, since 2007-08 onwards both have shown gradual increase for
the period of 3-4 years. As per the latest data available from the private source
(www.indiastat.com), during the last two decades, area sown under cumin seeds in
India has grown from 163.6 thousand hectares in 1991-92 to an estimated 507.9
thousand hectares in 2010-11, recording a compound annual growth rate (CAGR) of
4.3% (Chart 1).
Production of cumin seeds has risen at a CAGR of 6.6% from around 65 thousand
tonnes in 1991-92 to an estimated 314 thousand tonnes in 2010-11. Average
production during 1991-00 decade stood at 111 thousand tonnes, while in the
following decade it almost doubled to touch 226 thousand tonnes.
Source: Ministry of Agriculture
79
During the period of two decades, average jeera yield hovered around 437
kg/hectare, varying from a low of 258.5 kg/ hectare in 2002-03 to a peak of 619
kg/hectare estimated in 2010-11.
The All-India area and production data mentioned above pertain mainly to Gujarat
and Rajasthan. The two states account for more than 95% of jeera output produced
in the country. Banaskantha and Mehsana districts in Gujarat and Barmer, Jalore,
Jodhpur and Nagaur districts in Rajasthan are the prominent jeera producing areas
in the two states. West Bengal, Uttar Pradesh, Andhra Pradesh and Punjab also
contribute to Indian jeera output to some extent.
It can be seen from charts 2 & 3 that Area under jeera has been persistently
declining in Rajasthan since 2002-03 onwards, as the crop is highly vulnerable to
weather condition in the state and the yield is less. With this, the output has also
suffered, falling continuously over last few years. On the other hand, Gujarat state
has witnessed continuous increase in acreage and output.
Source: www.indiastats.com
80
The quality of cumin seeds of Rajasthan is better than that of Gujarat, but due to
the high stalk content its price is usually lower than the cumin seed produced in
Gujarat.
Varieties of Cumin
The two main types of cumin seeds are white and black cumin seeds. White cumin
seeds are the most common type, while black cumin seeds are popular in Iran. The
seeds of black cumin are smaller and have a sweeter aroma than the white seeds.
They are sometimes confused with nigella, another seed that is used in Indian
cookery.
Improved varieties of cumin seeds include S-404, MC-43 Gujarat Cumin-1(GC-1),
GC-2, GC-3, RS-1, UC-198, RZ-19, etc. Jeera cultivars evolved by Agricultural
Universities of Gujarat and Rajasthan having higher yield potential are useful for
cultivation.
Source: www.indiastats.com
81
Salient features of some of Improved Cultivars of Cumin seed are as follows:
Table 1: Commercial Varieties of Cumin Seed
Variety Characteristics Maturity Average Yield
RZ 19 A tall variety of cumin with erect stems, pink flowers
and bold pubescent grains; tolerant to wilt as well as blight
120–140
days
5.6 q/ha
RZ 209 An erect-growing variety of cumin with pink flowers and bold, grey, pubescent grains, resistant to wilt and blight diseases
140–150 day
6.5 q/ha.
GC 1 An erect-growing variety of cumin with pink flowers
and bold, linear, oblong, ash brown colour grains; tolerant to wilt disease
105–110
days
7.0 q/ha
Source: http://www.myagrihortico.com/tutorialsview.php?id=107
Consumption of Cumin Seeds: Domestic Demand +Export demand
Among spices, Cumin seed is the third largest spice exported from the country in
terms of quantity. With its exports estimated at 45.5 thousand tonnes in 2011-12,
jeera accounted for around
7.9% of the total spices
exports, while in terms of
value its share stood at 6.6%
or Rs 644 crore (Chart 4).
Following a healthy domestic
demand from household
sector (for food usage) and
also from spice powder
making industries, more than
90% of the cumin seed
produced is consumed internally, leaving the economy with a smaller exportable
surplus. However, post 2006-07, India’s cumin exports gained momentum on
account of increase in consumption of more spicy foods and unstable jeera output
Source: www.indiastats.com and Spices Board
0.0
100.0
200.0
300.0
400.0
500.0
600.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
Value (Rs Crore)
Quantity ('000 Tonnes)
Chart 4: Cumin seed Export
Quantity ('000tonnes)
Value (in RsCrore)
82
in other major producing countries. Cumin exports from India touched a record high
in 2008-09 to stand at 52.6 thousand tonnes (worth Rs 544 crore), accounting for
18.6% of the total domestic production.
Since Jeera is harvested in the month of February in India, much earlier than other
major producing countries harvest in August–September, Indian jeera seeds find a
good market overseas till
the new crop from other
producing countries enters
the global market.
However, jeera exports
from India have fallen
since last couple of years
amidst the stiff
competition from the
countries like Turkey and
Iran as a bulk of their
production is used for export purposes and also because these countries are able to
provide the spice at much cheaper rates as compared to India. In 2010-11, only
10.3% of the domestically produced jeera, equivalent to 32.5 thousand tonnes
worth Rs 396 crore were exported from India.
Major Export Markets for Cumin Seeds
Though USA and UAE have been the largest importers of Indian cumin seeds in
terms of both quantity and value, of late imports from these countries have fallen
while those from UK, Brazil, Pakistan, etc. have shown a gradual pick-up. As per
the latest available data, in 2011-12, Brazil has emerged the largest importer of
Indian Jeera in terms of quantity with its import estimated at 2.6 thousand tonnes,
accounting for 7.9% of the total cumin seeds exported from the country; followed
by UK (with import pegged at 2.5 thousand tonnes or a share of 7.6%) and USA
83
(with import pegged at 2.2 thousand tonnes or a share of 6.8%). In terms of value,
UK has taken the top most position in 2010-11 with its cumin imports from India
estimated at Rs 32.4 crore accounting for 8.2% share in total exports. While USA
has remained at the second position with its share in total cumin exports in value
terms standing at 7.5% (Rs 29.8 crore), Brazil has been placed at the third position
having a share of 7.4% worth Rs 29.1 crore (Charts 6A and 6B).
Source: Ministry of Agriculture
Source: Spices Board
84
6.5 International Fundamentals
Besides India, which is the largest producer and consumer of cumin seeds, cumin is
cultivated in countries such as Syria, Iran, Turkey, China and Latin America.
Cumin seed: Crop Cycle across Major Producing Countries
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
India Harvest Sowing
Syria Sowing Harvest
Turkey Sowing Harvest
According to statistics provided in the World Spices Congress 2012, India, Syria and
Turkey contribute more than 90% of world cumin seed production. While India’s
share stands at 77%, Turkey accounts for 9% and Syria for 5%. Despite India
holding a giant share in the global jeera production, the fundamentals in major
producers Syria and Turkey play a significant role in determining the Jeera prices in
the global market, as these countries export more than 90% of their domestic
produce, unlike India.
However, Indian cumin seed output has an edge over that produced in Syria and
Turkey. With Jeera sowing in India taking place in October-December and
harvesting in February-April period, the fresh crop from India comes into the global
market when it is the ending season in the other major producers, adding to the
gains in India’s Jeera exports.
The major consumers of jeera are China, Indonesia, UAE, UK, US, Singapore,
Malaysia, Bangladesh and Nepal besides India.
6.6 Trading in Cumin Seed on NCDEX:
Jeera futures contract was launched on NCDEX platform on February 2005 and has
witnessed considerable volatility since its launch. It serves as a hedging platform
for the Producers and Exporters. The Cumin contract is highly liquid and provides
85
easy entry and exit to all market participants. Thus the Jeera contract provides
space for every investor category.
Jeera prices generally remained pressurised in the beginning of the year from
February onwards amid the arrival of fresh crop in the market and as stockeist sell
of their produce ahead of the onset of the jeera harvesting season in the country.
Prices tend to move upward from June, as the crop arrival season concludes in
India. Stockeist buying and
lack of supply from other
countries also support this
uptrend in prices which
continues till August -
September when prices start
retreating once again with
fresh jeera supply coming
from Syria and Turkey.
Prices trade at lower level till
October and again begin to
firm up with receding
arrivals from all countries.
A month-wise movement in spot prices of jeera since introduction of its contract on
the NCDEX platform has been depicted in Chart 8. During the first one and half
years since the lauch of jeera contract, its prices remained range-bound
accompanied by sluggish trading in terms of both volume and value (Chart 9).
Jeera prices started increasing gradually from April 2006 following lower than
normal jeera output in the country. However, prices soared to their all-time high
crossing Rs 13,000 per quintal for the first time in April 2007, touching their peak in
June 2007. Fall in jeera production for two consecutive year 2005 and 2006 coupled
with reports of crop damage in Syria a major competitor in global market fueled
this rally in prices. However, prices started receding from August 2007 onwards on
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
3-Feb-05
3-Jun-05
1-O
ct-05
29-Jan-06
29-M
ay-06
26-S
ep-06
24-Jan-07
24-M
ay-07
21-S
ep-07
19-Jan-08
18-M
ay-08
15-S
ep-08
13-Jan-09
13-M
ay-09
10-S
ep-09
8-Jan-10
8-M
ay-10
5-S
ep-10
3-Jan-11
3-M
ay-11
31-A
ug-11
29-D
ec-11
27-A
pr-12
25-A
ug-12
23-D
ec-12
Rs per Quintal
Chart 7: Trend in Spot and Near Month Futures
Prices of Jeera (Feb 2005 - Dec 2012)
Spot
Near Month
Futures
Source: NCDEX
86
lower demand and improved sowing activities, though they hovered at a level
higher than those reached by December 2006. Prices dropped in the beginning of
calendar year 2008 following better output and aarival of jeera in domestic market,
but reports of lower output in Syria and Turkey and strong export growth from
India prompted second upward rally in jeera prices during June-July 2008.
However, from September 2008 onwards prices fell due to slowdown in buying
reaching Rs 10500-10600 per quintal level in December 2008 as was seen a year
ago.
Jeera prices remained stable trading in the range of Rs 10900 –Rs 11900 per
quintal in calendar year 2009 but shot up above Rs 13,000 per quintal in November
2009 and on an average, sustained at this level during the subsequent year 2010.
Lower than expected
jeera production,
heavy export orders
and increased
domestic demand
sustained and
stabilised jeera prices
at this higher level
during this period
showing some spikes
at intermittent
intervals.
The beginning of calendar year 2011 saw jeera prices accelerating to record high in
the month of February crossing Rs 16000 per quintal on the back of low carryover
stocks, estimation of lower production due to unfavourable weather conditions at
the time of sowing and increase in export demand. However, as farmers and
traders cashed out on the record high prices in the market prices lost their
strength. Fresh crop arrival accompanied with lower offtake and waning export
Source: NCDEX
87
demand also simultaneously pressurised prices to some extent. However, due to
geo-political tensions in Syria and Turkey their exports declined resulting into
higher export demand for Indian jeera that were trading at comparatively lower
level and in turn, triggered uptrend in prices.
Jeera prices come under heavy pressure in the beginning of calendar year 2012 till
April 2012 following new
crop arrival. However,
with reports of lower
estimates of jeera crop in
Syria and Turkey, jeera
prices in India begin rising
gradually on increased
export demand; but prices
didn’t sustain this
momentum and moved
southwards reportedly
amid lower domestic
demand accompanied by
crop arrival seasons in Syria and Turkey to hover around Rs 15000 per quintal at
the end of 2012.
6.7 Major Trading Centres for Cumin seeds
Gujarat Rajasthan
Unjha, Jaipur,
Palan, Kisangarh
Mohsana, Kokri
Visnagar Jodhpur
Source: Spices Board
Source: NCDEX
88
6.8 Factors Influencing Prices
89
Appendix I: State-wise Production Estimates for Spices ('000 Tonnes)
Black Pepper
2001-
02
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2007-
08
2008-
09 (E)
2009-
10 (E)
2010-
11 (E)
2011-
12 (E)
2012-
13 (F)
Goa 0.1 0.1 0.10 0.10 0.14 0.17 0 0.2 0.2 0.2 0.2
Karnataka 2.2 2.3 2.36 2.84 3.24 3.00 4 3.2 3.3 3.2 3.4 3.4
Kerala 58.2 67.4 69.02 68.36 87.61 64.26 42 74 68.9 68.6 70.2 72.2
Meghalaya 0.68 0.68 0.68 0.70 1 0.7 0.7 0.7
Tamil Nadu 1.0 1.0 0.90 0.91 1.14 0.84 1 0.9 0.9 0.9 0.8 0.9
A & N Islands 0.9 1.0 0.12 0.12 0.12 0.04 0 0.2 0.1 0.1 0.1 0.1
All India 62.4 71.7 73.18 73.01 92.93 69.01 47.06 78.3 73.3 73.7 75.4 77.5
E: Estimate, F: Forecast
Blank space indicates that data is either not available or not reported.
Source for data up to 2007-08 is Ministry of Agriculture and from 2008-09 onwards is CMIE.
Coriander
2001-
02
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2007-
08
2008-
09 (E)
2009-
10 (E)
2010-
11 (E)
2011-
12 (E)
2012-
13 (F)
Chhattisgarh 1.0 1.0 1.20 1.00 1.10 1.00 1.00 1 1 1 1 1
Haryana 7.1 2.1 2.20 2.20 2.90 2.63 2.90 3.5 2.4 3.2 2.9 2.8
Himachal Pradesh 0.10
Karnataka 1.8 1.1 1.20 1.50 1.40 1.00 1.00 1.1 1 1.5 1.5 1.5
Madhya Pradesh 38.0 12.7 47.00 45.00 42.00 43.60 30.20 28 40.1 41 40.5 42
Meghalaya NR 0.30 0.30 0.30 0.30 0.30 0.3 0.3 0.3 0.4 0.4
Orissa 3.9 9.0 9.00 9.10 9.00 9.00 9.00 8 9 9 9 10
Rajasthan 234.0 122.7 300.10 169.80 142.40 155.10 245.40 205 213.5 225 230 230
Tamilnadu 7.0 6.9 8.10 5.50 6.40 5.70 5.10 5.5 5.5 5.7 5.7 5.7
Uttar Pradesh 2.7 3.1 3.20 3.20 3.20 3.20 3.00 3 3.1 3.1 3.2 3.2
Andhra Pradesh 10 11.3 13 12.8 13
Bihar 1.5 1.6 1.6 1.6 1.6
All India 295.5 158.6 372.30 237.60 208.70 221.53 298.00 266.9 288.8 306.5 310.8 311.2
E: Estimate, F: Forecast
Blank space indicates that data is either not available or not reported.
Source for data up to 2007-08 is Ministry of Agriculture and from 2008-09 onwards is CMIE.
90
Chilli
2001-
02
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2007-
08
2008-
09 (E)
2009-
10 (E)
2010-
11 (E)
2011-
12 (E)
2012-
13 (F)
Andhra Pradesh 591.0 409.0 797.00 749.00 538.00 766.00 772.00 729 711.4 765.2 773.2 768
Arunachal Pradesh 2.1 2.3 2.40 2.60 2.60 2.70 3.60 3.3 3.5 3.7 3.8 3.8
Assam 10.0 10.0 9.70 9.20 9.50 10.00 10.00 13.4 13.1 13.5 14 14
Bihar 4.3 2.3 2.20 2.20 3.10 3.00 3.90 3.6 3.8 3.9 3.8 3.8
Chhattisgarh 3.8 5.7 4.20 3.30 1.50 1.70 2.60 2 2.1 2.1 2.2 2.2
Gujarat 12.1 10.5 8.40 5.70 5.70 5.70 8.00 6.7 6 7 8 8
Haryana 1.7 1.6 1.20 1.20 68.00 0.60 0.70 1.3 2 1.3 1.8 1.6
Himachal Pradesh 0.0 0.1 0.10 0.10 0.10 0.20 0.30 0.4 0.2 0.3 0.3 0.3
Jammu & Kashmir 1.0 1.0 1.00 1.00 1.00 0.60 0.70 0.7 0.5 0.6 0.7 0.7
Karnataka 126.4 153.4 94.50 94.50 94.50 148.00 155.00 145.1 142.8 147.6 149.9 150
Kerala 0.2 0.8 0.70 0.70 1.20 1.40 1.30 1.1 1.2 1.2 1.3 1.3
Madhya Pradesh 22.0 31.7 38.40 39.60 35.60 40.81 44.75 42.2 43.6 43.8 44 44
Maharashtra 59.0 53.0 44.00 44.00 50.00 47.00 44.00 47 46 45.7 46.2 46.5
Manipur 4.5 6.1 8.00 8.00 3.90 3.90 4.30 4 4 3 4 4
Meghalaya 1.2 1.2 1.20 2.10 1.30 1.40 1.40 1.5 1.4 1.5 1.5 1.5
Mizoram 2.1 0.9 0.80 0.80 0.80 0.80 0.80 0.8 0.8 0.8 0.8 0.8
Nagaland 1.2 7.9 0.90 0.90 0.90 1.00 1.00 1.5 1.7 2.1 2.2 2.2
Orissa 59.2 62.9 63.20 63.20 63.30 63.90 63.90 63.9 62.5 63.3 63.4 64
Punjab 5.4 4.5 4.20 4.20 4.20 4.20 4.20 3.7 4 3.8 4.1 4.1
Rajasthan 49.1 15.0 31.40 31.10 17.50 15.40 27.40 26 26.8 26.7 27 27
Tamil Nadu 42.0 40.6 40.10 44.60 31.80 42.70 34.10 38.3 35 38 39.9 40
Tripura 2.8 2.4 2.30 2.30 2.30 2.30 2.50 2.4 2.4 2.4 2.4 2.4
Uttar Pradesh 13.4 10.8 12.80 12.80 16.10 14.30 15.00 14.7 14.8 14.9 15.1 15.1
Uttarakhand 2.00
West Bengal 54.5 60.5 66.30 61.40 60.70 63.60 93.70 72.7 76.7 81 76.8 80
A & N Islands 0.4 0.70 1.00 1.00 0.90 0.70 0.6 0.7 0.5 0.7 0.7
All India 1069.0 894.6 1235.7 1185.5 1014.6 1242.1 1297.6 1,231.60 1,211.90 1,279.20 1,289.60 1,288.00
Blank space indicates that data is either not available or not reported.
Source for data up to 2007-08 is Ministry of Agriculture and from 2008-09 onwards is CMIE.
91
Turmeric
2001-
02
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2007-
08
2008-
09 (E)
2009-
10 (E)
2010-
11 (E)
2011-
12 (E)
2012-
13 (F)
Andhra Pradesh 249.5 283.5 321.00 418.00 519.00 401.00 416.00 425 406.2 438.9 450 454
Arunachal Pradesh 2.1 2.0 1.50 1.80 1.60 2.00 2.10 3 3 3.2 3.5 3.2
Assam 8.0 8.0 8.00 8.40 8.50 9.00 9.00 11.4 10.6 9.5 10.6 10.4
Bihar 2.6 2.9 2.80 2.80 3.40 3.00 3.30 3.3 3.3 3.4 3.3 3.3
Chhattisgarh 0.6 0.6 0.60 0.60 0.60 0.60 0.70 0.7 0.7 0.7 0.7 0.7
Gujarat 12.2 14.7 11.20 14.10 14.10 14.10 14.10 21 19 14 17 16
Haryana 4.8 7.0 7.00 7.00 9.60 4.60 3.88 6.1 7.9 6.7 6.9 6.8
Himachal Pradesh 0.0 0.1 0.10 0.10 0.10 0.10 0.10 0.1 0.2 0.1 0.2 0.2
Karnataka 36.4 28.6 26.40 26.40 26.40 37.75 64.72 55.8 49.1 49.4 50.3 50
Kerala 9.0 6.9 5.70 5.80 8.20 10.00 7.40 7.3 7.2 7.5 8 8
Madhya Pradesh 0.4 0.5 0.70 0.50 0.50 0.40 0.40 0.4 0.5 0.5 0.5 0.5
Maharashtra 9.0 3.0 9.00 9.00 8.00 9.00 8.00 8 8 9 9 9
Manipur 0.2 0.2 0.40 0.40 0.10 0.10 0.30 0.3 0.3 0.2 0.3 0.3
Meghalaya 8.6 8.6 8.70 8.80 9.40 14.30 10.00 15.2 17.2 14.3 14.6 14.8
Mizoram 2.8 2.8 2.30 2.30 2.30 2.30 2.30 2.3 2.3 2.3 2.3 2.3
Nagaland NR 3.1 3.10 3.10 3.10 0.50 0.50 0.5 0.5 0.5 0.5 0.5
Orissa 65.8 56.0 56.40 56.80 57.10 59.40 59.40 60.5 60.4 56.8 57.3 58
Rajasthan 0.5 0.2 0.40 0.20 0.20 0.60 0.50 0.5 0.5 0.5 0.5 0.5
Sikkim 1.2 1.2 1.70 1.70 1.70 1.70 2.60 2.6 2.6 2.8 2.7 2.6
Tamil Nadu 118.0 64.5 67.30 118.50 143.40 175.40 146.00 148.8 147 145 145.8 148
Tripura 6.6 4.3 4.30 4.30 4.30 4.30 4.00 4.2 4.2 4.1 4.2 4.2
Uttar Pradesh 2.5 2.0 1.60 2.30 4.40 6.00 4.00 4.8 6.3 6 6 6
West Bengal 22.0 21.3 24.50 24.50 25.00 30.10 34.60 39 39.5 37.5 39 40
A & N Islands NR 0.2 0.20 0.70 0.70 0.50 0.50 0.4 0.5 0.3 0.5 0.5
All India 562.8 522.2 564.90 718.10 851.70 786.75 794.40 821.2 797 817.8 838.3 839.8
Source for data up to 2007-08 is Ministry of Agriculture and from 2008-09 onwards is CMIE.
92
Appendix II: World Trade in Select Spices
(Top 5 Trading Countries)
Qty: Tonnes, Value: Thousand US Dollar
Coriander Seeds
2001 2005 2010 2011 2001 2005 2010 2011
Export in Qty Export in Value
World No Quantity 93972 112350 121033 World 36340 52886 156028 124032
India 11910 27984 28862 32498 India 8205 16440 34646 34011
Bulgaria 18897 25837 23587 27036 Bulgaria 6416 9602 18049 18743
Ukraine 1318 1524 5420 11878 Italy 44 298 8680 9605
Morocco 3243 4410 6100 Morocco 3750 7884 9230
Italy 26 179 5400 5630 Ukraine 360 485 4207 7681
Import in Qty Import in Value
World No Quantity 98269 124387 118656 World 39392 54737 114706 118610
Indonesia 9244 6223 13616 15111 Malaysia 6198 7182 11447 13690
Sri Lanka No Quantity 9905 12068 13302 Sri Lanka 3700 2842 9492 9895
Malaysia 9358 11290 12059 11451 United Kingdom 2499 3571 7133 8764
Pakistan 15999 13551 7892 Japan 2159 4088 6962 6654
United Kingdom 3208 4095 5015 6385 India 256 1640 5289 5869
India 452 1556 3428 4342
Cumin Seeds
2001 2005 2010 2011 2001 2005 2010 2011
Export in Qty Export in Value World 59108 107591 81426 97261 World 127289 117248 208097 283155
India 15818 10660 42005 47325 India 30748 16652 91152 137165
Syrian Arab
Republic 18282 38738 5066 20829
Syrian Arab
Republic 53072 34931 22097 57115
Turkey 5668 7202 7695 7316 Turkey 12561 10718 17814 20424
China 90 39 7120 4476 China 131 52 18087 13008
Iran (Islamic
Republic of) 6073 10033 5606 3222 Singapore 7993 5414 6473 8442
Import in Qty Import in Value World 68803 101308 108074 101087 World 146929 121625 231205 284614
United States of
America 7250 9500 10283 11030
United States of
America 16649 16216 28537 35410
Egypt 12438 7925 Egypt 15330 21435
United Arab
Emirates 14432 5938 7052
United Arab
Emirates 8265 14744 19763
Brazil 4251 4892 4494 5513 Bangladesh 12438 14732 16264
Bangladesh 11400 5766 5344 Brazil 10196 6786 10255 15805
India 1059 1460 1054 669 India 1607 2180 2591 1914
93
Contd...
Pepper of the genus Piper, ex cubeb pepper, neither crushed nor ground
2001 2005 2010 2011 2001 2005 2010 2011
Export in Qty Export in Value
World 255291 228441 290150 255480 World 504011 425474 1070653 1408716
Viet Nam 45400 76033 102394 87744 Viet Nam 91237 151538 362070 442327
Indonesia 53594 34137 62213 35568 Indonesia 100384 57863 244373 208587
Brazil 36622 33990 30717 32646 Brazil 59299 46391 107989 197836
India 18399 12558 19464 28219 India 44232 23387 55551 147169
Malaysia 24659 16840 12759 12712 Malaysia 44086 27424 53425 80606
Import in Qty Import in Value
World 240746 258666 302382 253561 World 987147 1331060 114706 118610
United States
of America 55189 59400 57860 56211
United States
of America 213988 332836 11447 13690
Germany 19784 20040 27375 19961 Germany 110907 129586 9492 9895
Netherlands 18437 11187 16795 18317 Netherlands 51547 82705 7133 8764
India 5709 19651 14009 13319 India 44940 72843 6962 6654
Viet Nam 337 266 23020 10092 Viet Nam 68196 66797 5289 5869
Turmeric (Curcuma)
2001 2005 2010 2011 2001 2005 2010 2011
Export in Qty Export in Value World 39478 70175 151451 109813 World 24827 53832 204655 242085
India 27939 50080 107924 94093 India 15955 36579 145325 194400
Indonesia 30 1330 6119 2672 Netherlands 1015 1552 4528 7179
Myanmar 14439 1962 China 1002 1511 6200 5244
Ethiopia 389 438 1196 1794 Indonesia 101 1089 7545 4502
Netherlands 835 803 1191 1471 Myanmar 7298 3822
Import in Qty Import in Value World 45078 66349 97309 97673 World 28538 54150 187579 233759
United Arab Emirates
9229 19661 19940 United Arab
Emirates 4134 25875 35079
Bangladesh 1202 6655 6970 Japan 3562 5731 13485 19610
Malaysia 2263 3722 6272 5215
United
States of
America
2950 5968 13368 19558
Japan 4396 4177 3798 5093 Bangladesh 830 8992 13629
United States of America
2437 2895 3522 4649 Malaysia 1004 2913 14175 13491
India 99 3373 3698 2532 India 31 3358 8343 6858
• The world aggregation represents the sum of reporting and non-reporting countries
• Data based on the partner reported data (Mirror data) are shown in orange.
• Italics indicate that India does not feature among top 5 exporting or importing countries.
Source: ITC calculations based on UN COMTRADE statistics.
94
Appendix III: List of Proposed Spices Parks and their Operational Status
Sr
No Location/State Spices Covered Status
1 Chhindwara, Madhya
Pradesh Garlic & Chilly Started functioning
2 Puttady, Kerala Pepper &Cardamom Started functioning
3 Guntur, Andhra Pardesh Chilli Operational by Jul-Aug,
2012
4 Sivaganga, Tamilnadu Turmeric, Chilli &
Coriander
Operational by Jul-Aug,
2012
5 Guna, Madhya Pradesh Coriander, Fenugreek &
Garlic
Operational by Nov-Dec,
2012
6 Mehsana, Gujarat Cumin, Fennel &
Coriander
Waiting for land
clearance
7 Jodhpur, Rajasthan Cumin, Coriander &
Fenugreek Completed
8 Kota, Rajasthan Coriander, Cumin Operational by Jan-Feb,
2013
9 Hamirpur, Himachal
Pradesh Ginger & Turmeric Waiting for land
10 Raebareli, Uttar Pradesh Mint Waiting for land
Source: Spices Board
95
References
1. Spices Board of India, www.indianspices.com
2. Directorate of Economics and Statistics, Ministry of Agriculture,
www.eands.dacnet.nic.in
3. Indian Institute of Spices Research, www.spices.res.in
4. Forward Markets Commission, http://www.fmc.gov.in
5. Office of the Economic Adviser to the Government of India
http://www.eaindustry.nic.in/
6. APEDA Agri-exchange, www.agriexchange.apeda.gov.in
7. World Spice Congress, www.worldspicecongress.com
8. Tanu Agritech Portal, Tamil Nadu Agriculture University,
http://agritech.tnau.ac.in/
9. IndiaStat.Com - India's Comprehensive Statistical Analysis, www.indiastat.com
10. Commodities, Centre for Monitoring Indian Economy Pvt. Ltd. (CMIE),
www.cmie.com
11. International Trade Centre, www.intracen.org
12. International Pepper Community, www.ipcnet.org
13. FAO: Food and Agriculture Organization of the United Nations, www.fao.org
14. www.wikipedia.org
15. www.commoditiescontrol.com
16. www.appropedia.org
17. www.indianfood.indianetzone.com
18. www.indianfood.indianetzone.com
19. www.agmarknet.nic.in
20. www.shodhganga.inflibnet.ac.in
Disclaimer: This report has been prepared by the Knowledge Management Department of NCDEX Limited for the
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