Production scenario and performance of Indian spices trade - An economic analysis

India is referred to as the land of spices. India is also a large exporter of chilli, turmeric, cumin, pepper and other spices and it also imports several spices such as cardamom, ginger, coriander, poppy seed, garlic, cassia, etc. to meet its requirement Andhra Pradesh is the largest spice producing state in India. Gujarat, Karnataka, Rajasthan, Tamil Nadu, Assam, Kerala, Madhya Pradesh, Maharashtra, Odisha, Uttar Pradesh and West Bengal are the other major spices producing states in India. Most of our spices are exported to West European countries and North American countries. In the world, there is 3.19 % growth rate in estimated demand for spices. But, India’s growth in spices export is reasonable but not remarkable. This study utilizes the secondary data collected from different sources like Spices Board of India, Export Statistics for Agro and Food products, Department of Horticulture, Bangalore and the the websites of Agricultural Processed Products Export Development Authority (APEDA) and Food and Agricultural Organization (FAO).The data collected pertains to the period 1985-86 to 2015-16. The change in production was found to be the highest for coriander (36.68%) followed by pepper (35.66 %), fenugreek (18.15 %), cardamom (11.75 %), chillies (9.30 %) and ginger (5.71 %). As far as the export was concerned Vietnam was importing majority of the spices from India followed by Indonesia, U.S.A, Malaysia, U.A.E, United Kingdom and Saudi Arabia. However, India imported the spices mainly from Nigeria, Afghanistan, Indonesia, Burma, Nepal, Pakistan, Vietnam, Ethiopia and China. The biggest handicaps that Indian spices face in the international market are the high cost of the product and high level of microbial contaminants including myco-toxin in the finished product. We need to make concerted efforts for producing clean spices at competitive prices. India can withstand the competition only by increasing productivity and reducing cost of cultivation leading to low cost per unit of production.