“A STUDY ON EXPORT PERFORMANCE OF SPICE INDUSTRY” (PEPPER,
CARDAMOM (SMALL&LARGE), TURMERIC AND CUMIN)
INTRODUCTION
An export is any good or commodity, transported from one country to another country in a
legitimate fashion, typically for use in trade. In national accounts “exports” consist of transaction
in goods and services (sales, barter, gifts or grants) from residents to non-residents.
Methods of exports include a product or good or information being mailed, hand-delivered,
shipped by air, shipped by boat, unloaded to an internet site, or downloaded from an internet site.
Exports also include the distribution of information that can be sent in the form of an email, an
email attachment, a fax or can be shared during a telephone conversation.
The main advantages of exporting are, ownership advantage are the firm’s specific assets,
international experience, and the ability to develop either low-cost or differentiated products
within the contracts of its value chain. The locational advantages of a particular market are the
benefits of retaining a core competence within the company and threading it though the value
chain rather than obtain to license, outsource, or sell it. The main disadvantages of export are
financial management effort, customer demand, communication technologies improvement,
management mistakes.
The exporting process includes the licenses and documentation necessary to leave the
country, an international carrier to transport the goods, and fulfilment of the requirements
necessary to get the shipment legally in to another country. These mechanics of exporting are
sometimes considered the essence of foreign marketing. Although their importance cannot be
minimized they should not be seen as the primary task of international marketing.
The immediate task of the exporter is to acknowledge the export order, which is different
from its acceptance. Then he would proceed to examine the export order carefully in respect of
items specification, reshipment inspection, payment conditions, special packaging, labelling and
making requirements, shipment and delivery date, marine insurance etc… If the exporter is
satisfied on these aspects a formal conformation of the export under should be sent to the buyer
and the exporter should proceed to enter into a formal contract with the overseas buyer.
1.1 Profile of Indian Spice Industry
World history is very associated with Indian Spices. The Vedas, the Bible, and Quran are all
replete with reference – direct or indirect to Indian Spices. The earliest literacy record in Indian
Spices is the Rig Veda (around 6000 BC), and other three Vedas- Yajur, Sama, Atharva. The
history and culture of Indian Spices is probably as old as human civilisation itself. If spices were
not abundant in India, any of the voyage that led to discovery of new nations would not have
taken place. It was the flavour of the Indian Spices, which attracted the Portuguese, the Dutch,
the French and the British to the India.
India with favourable climatic zones, is well placed in respect of spices. The country is
blessed with a wide range of agro-climatic conditions from tropical to temperate zones, coastal
plains to high attitudes and semi-arid to highly humid evergreen forests. It has been able to curve
out a niche as a prime producer of spices for the world and is the largest producer, consumer and
exporter of spices. Nearly 50 % of the world demand of spices is met by India.
Today India exports 52 spices and spice oils products like spice oils, oleoresins, curry
powder, spice powders and spice mixtures. The contribution of export of value added products
like curry powder, spice oils and oleoresins accounts for about 20%. The present thrust is to
export as much value added products of spices instead of our conventional practice of exporting
spices in the whole form. The shift in emphasis from commodities in the whole form to value
added products has given a new dimension to the spice industry in the country.
India enjoyed a predominant position in respect of pepper, turmeric in the world market.
India enjoys the distribution of being the single largest supplier of spice to the world. These
products are consistently competitive because out strong production base, high productivity and
strong technical advantage to meet international quality requirements. The changed food habits
with an accent on the western type of eating paved the way to boost the exports of value based
products. Non availability of indigenously produced quality spices at international parity prices
in the country in required quality has become a major impediment to raise the export of spices.
1.2 Product Profile
The term spice is derived from the Latin word ‘speces romotacea” which means ‘fruits of the
earth’. The most popular application of spices is in food flavouring. They are also valued as
ingredients for perfumes, cosmetics and medicines. Spices come in the following form for
adding the aroma, taste or character desired in the final product.
Whole Spices: - They are spices in their primary form with intact cellular structure
and locked in favour principles.
Ground Spices: - These are whole spices milled to a certain degree of fineness
required by the food processor.
Spice Extracts: - Spice extracts serve an alternatives to whole and ground spices and
provide the stability and consistency required in food formulations. They can be
customized to meet specific products needs for solubility/dispersibility, aroma, taste
and colour and are micro biologically stable.
1.3 Objectives of the study
Objectives are the systematic immersation for the study.
To study the India’s production and export of Pepper, Cardamom (Small & Large),
Turmeric and Cumin.
To analyse the export performance of Pepper, Cardamom (Small & Large), Turmeric and
Cumin.
To find out the future trends of the export.
To offer suggestion for the improvement.
1.4 Scope for the Study
The study would help the pepper, cardamom, turmeric and cumin producers to increase
their export.
New exporters can have a glance about the pepper, cardamom, turmeric and cumin
performance in the export field.
Helps to find out profitable market for pepper, turmeric and cumin.
1.5 Research Methodology
1.5.1 Research Design
Research design is the arrangement for collection and analysis of data in a manner that
aims to continue relevance to research purpose with economy in procedure.
1.5.2 Data Source
Secondary data is used for the purpose of the project study. These data are collected from
the reports of the Spices Board and from various journals, magazines, newspaper and websites,
which gave lots of information to complete this, project a successful one.
1.5.3 Tools and Techniques used
The data analyzed through the application of various statistical tools such as percentage,
ranking and trend projection method.
1.6 Limitations of the Study
The study was mainly based on secondary data
Due to the time constraints, extensive data collection was not possible in depth.
1.7 Chapterisation
Chapter I Introduction
Chapter II Details about the product
Chapter III Review of Literature
Chapter IV Analysis and Interpretation
Chapter V Findings, Suggestions and Conclusion
