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1
Winter live Project
on
Export Potential of Spices from India
Submitted by:
AKSHAT SHARMA
AYESHA AHMED
SIDDHARTH VYAS
SOUMYA SINGH
DOON BUSINESS SCHOOL
Affiliated to HNB GARHWAL UNIVERSITY, DEHRADUN
Mi-122, Behind Pharma City, Selaqui Industrial Area, Dehradun, Uttarakhand 248001
ACKNOWLEDGEMENT
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I would like to gratefully acknowledge the contribution of all the people who provided valuable
support to me during the course of this project. To begin with, I would like to offer my sincere thanks
to Prof. Sunil Madan, my project coordinator, Professor at Doon Business School, who provided
relevant suggestions, shared their rich corporate experience and helped me script the exact requisites.
I would also like to express my gratitude towards my parents and teachers for their kind cooperation
and encouragement which helped me in the completion of the project.
I’m also thankful to DBS for giving me such an amazing opportunity for making this project and
giving suitable instructions and guidelines for the project.
Last but not the least I would like to thank all my friends who shared necessary information and useful
weblinks for preparing my project.
INDEX
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S.NO. CONTENTS PAGE NO.
1. Introduction 5-8
2. Literature review 9
3. Objectives 10
4. Research Methodology 11
5. Findings 12-26
6. Conclusion 27
7. Recommendations 28-29
8. References 30
9. Bibliography 31
Abstract
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India, the home of spices, has a long history of trading the spices with the ancient civilization of Rome
and china. India is an amazing land producing all the known spices to human civilization. Many
Centuries ago, India was known to the world by its spices.
People from all over the world first came to India for want of Spices. First travel by land started
through India via Silk route From China, India, Middle East to Europe and the main commodity of
Indian Trade was Spices. In the 15th Century when Europe sailors ventured the sea, they made their
voyage in search of India Vasco da Gama from Portugal touched the shores of India for the first time
and took Indian spices back home and sold them in exchange for Gold.
The attraction for Indian spices was so high that made Columbus to take sea journey to search India
and in route after reaching South Africa he took a wrong turn towards west and landed in a new
continent known as America. One after another countries people came to India for Indian Spices and
by middle of 17th Century British people came to India and made East India company for Indian spices
and other Commodities and then history is there how India came under colonial rule got exploited for
300 years and finally, we got Independence under leadership of Mahatma Gandhi on 15th August
1947. Since then , India is no. 1 in their Spices Export and as of 2020, we are Exporting USD Million
Indian spices annually.
Introduction
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Spices always play a prominent role in the kitchen as well as in certain medicinal activities like
diuretic, carminative aperients, expectorant, and many more. Spices have been used medicinally since
early. Spices are being used as reviling for health in many diseases, for example, fenugreek, coriander,
turmeric, cinnamon, cumin, clove, and others. Traditionally spices, as part of the diets, have holistic
effects on human health. In the Indian kitchen, all spices are used from ancient times in daily food as
well as used in a traditional manner. India is a great producer of plenty of spices, from 80 types of
spices grown in the world whereas about 50 types are grown in India. Spices not only improve the
taste of food but also a good source of vitamins B and C, iron, calcium, and other antioxidants.
India, regarded as the birthplace of spices, boasts a long tradition of trade with Rome and China's
ancient civilizations. Today, given their exquisite fragrance, texture, taste, and medicinal value, Indian
spices are the most sought-after globally. In the world, India has the largest domestic spice market. In
India, spices have historically been cultivated in small landholdings, with organic farming gaining
popularity in recent times. India is the largest manufacturer, consumer, and exporter of spices in the
world, producing approximately 75 out of the 109 varieties listed by the International Organization
for Standardization (ISO) and accounting for half of the world's spice trade.
Types of spices
Indian cooking's fundamental art lies in the careful mixing of various spices to create subtle variations
in food flavor. They also intensify the flavors of virtually every food form.
In Food culture, varying blends of spices are called "masala." It can be in the form of a powder or
paste. The Indian Spices exports is governed by Spice Board of India with its head office in Cochin
Following are the Main Indian spices Classified as under: -
Hot and Aromatic Spices.
The aromatic spices might seem overwhelming when you are first introduced to Indian cuisine. There
is a combination of smells that are sweet and savory. There are a few important spices used in Indian
food that give it the distinctive fragrance that lasts for days.
● Garam masala: - In kitchens all over India, hundreds of spice mixtures are used daily to offer
food remarkably different flavors. Garam masala is one of the most familiar. It gives the food
a distinctive good aroma and taste. It combines cumin seeds, coriander seeds, garlic, cardamom
seeds, dried bay leaves, black peppercorns, cinnamon sticks and dried red chili peppers.
● Other spice mixtures: - Many more masalas or spice blends are available, such as tandoori,
Channa, Chaat, etc. Recipes for these can be found and used in particular dishes.
1. Cloves.
2. Black Pepper.
3. Cinnamon.
4. Bay leaf.
5. Saffron.
6. Nutmeg.
Seed Spices.
Seed spices are annual and seasonal herbs which are used as spices for dried seeds or fruits. Low
volume high value crops consisting mainly of coriander, cumin, fenugreek and fennel and few minor
seed spices such as ajwain, dill, anise, nigella, caraway and celery are the majority of seed spices.
These 10 main seed spice crops account for a sizable area, contributing almost 41.70 per cent of the
share of the area and 19.72 per cent of the production of total spices in the world. These seed spices
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are currently cultivated in an area of 1.65 m ha and have an annual production of 1.23 million MT.
The maximum area under cultivation and development of these seed spices in the Rajasthan and
Gujarat states is within the region. Of these seed spices, cumin and coriander account for almost 80%
of India's area and production.
1. Cumin
2. Fennel
3. Fenugreek
4. Coriander
5. Mustard
6. Carom
7. Poppy
8. Fenugreek
Curry powder Seeds
In Indian cooking, curry powder (Kari masala) and garam masala are essential. Almost any mixture
of spices can be curry powder, and most home cooks have their own blends, ground fresh right before
use. You can buy these spices, already mixed, for cooks who have less time.
A mixture of a variety of spices that are ground into a fine powder and often, apply fresh onion, garlic
and ginger root to the paste. They differ in taste and color. Some or all of these spices can be used in
curries: ground turmeric, dried red chilies, coriander seeds, black pepper, cumin seeds, fenugreek
seeds, curry leaves, mustard seeds, cinnamon, cardamom, cloves, nutmeg, bay leaves, and
peppercorns.
1. Turmeric
2. Chilly
3. Coriander
4. Cumin
5. Ginger
6. Green Mango
All of the above spices are grown in different parts of India. By a Map we will show region wise
cultivation of different Spices.
The Most Common and Flavorful Indian Spices
1. Cardamom Seeds:- Indigenous to the land of the Malabar Coast in India, this spice belongs
to the family of ginger and is that the third most costly spice within the world, primarily as a
result of its hand-harvested and needs heaps of manual work, Indigenous to the land of the
Malabar Coast in India. Whereas there's a light and lightweight eucalyptus tone to
the inexperienced cardamom, the black cardamom is spicy, smoky, and
customarily solely used for its seeds. The foremost common use for cardamom is to
reinforce the flavor of tea and puddings.
2. Turmeric Powder: - Turmeric, another spice belonging to the ginger tribe, is probably India's
most widely used spice. Turmeric was mainly used for thousands of years as a dye and in
Siddha medicine. Turmeric, derived from the roots of Curcuma Longa, a native Indian leafy
herb, has an earthy consistency and a warm aroma and taste. Turmeric, primarily used for its
taste and color, also has antiseptic properties and is thus also used for its health benefits.
3. Ginger: - In Indian cooking, it is a really important and common spice. Ground ginger, if fresh
is theoretically available, is almost never used in Indian cooking. Before being used, this
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rhizome is still peeled. The taste of ginger may be delicate, but in any dish, it tends to stand
out in a crowd of other ingredients. It is used widely in both vegetarian and meat-based recipes.
4. Chili's: - “Dried Red'' Further used to improve curries' taste. These have been used in their
entirety as well as Crushed and soiled. Ground cayenne can also be used in recipes as a
substitute. Most chilies are very spicy, but to make them less flaming, you may remove the
seeds. “Fresh Green” An essential ingredient used in almost every chutney,
vegetables, Snacks, curry, dishes with vegetables and legumes. To make them less warm, seeds
can be thrown away, but they add flavor (and bite) to the dish. The primary ingredient in chilies
that is promoted with health implications is capsaicin.
5. Pepper: - The dried unripe fruit cultivated in the crop called piper nigrum is pepper or black
pepper. It's musky odor, peppery/hot texture and wellbeing properties make pepper a
worldwide favorite spice and is widely used across cuisines. The fruit is around 5 mm (0.20
in) in diameter and radicalized and, like most other drupes, produces a single seed.
6. Ajwain Seeds: - Also known as ajwain or carom; a seed closely related to caraway and cumin.
It looks like celery seed, but has a strong thyme flavor as it contains thymol (the pungent oil
of thyme). These seeds are used in cooking, breads, biscuits, savory pastries, and in bean
dishes. Relieves flatulence and stomach-ache.
7. Asafoetida (Hing): - A light yellow to dark brown resin of dried gum. Sold in bits or pieces
Land, it is a taste acquired and used for seafood and legume (dal) dishes to season. Just a pinch
is normally applied to hot oil due to its pungent flavor (Sulphur compounds) and is permitted
to sizzle for only a few seconds before adding other ingredients. Gives dishes a taste of
garlic/onion.
8. Basil – The mint family's strong aromatic herbs give dishes a fragrant and vibrant flavor. The
Indian variety has leaf buds in the shape of an egg and is referred to as basil. Any basil in its
place can be used. Used for digestion, breathing issues, and insect bites or skin infection.
9. Bay leaves – Rice mixtures (pulao), biryani, and curry and kebab dishes are being used for
flavoring. This is one of five essential spices being used in rice and biryani dishes (cardamom,
cinnamon, cloves, and peppercorns are the other four) to give them their unique taste,
distinctive flavor and delicate fragrance). For turmeric rice.
10. Black salt – Rock salt with a recognizable and unique scent and taste. Available in powder
form, Dark brown or pinkish gravy in color. Important in Northern Indian cooking.
11. Cinnamon – One of the oldest species known. It has a soft and herbal taste and is sold as soil
or in sticks. For flavor, sticks are applied and then extracted prior to feeding. In several dishes,
ground cinnamon is indeed an essential seasoning as well as an important ingredient in making
curry powder and garam masala.
12. Cloves – Dried, unsealed, deep brown flower buds. It flavors several dishes that are sweet and
savory and is usually added whole. And is used in spiced mixtures such as garam masala as
well. For tooth and gum complications, whole cloves and clove oil are used in herbal
supplements.
13. Coriander seeds – They are medicinal, available in whole ground, and also have a slightly
sweet, lemony flavor. In vegetable and meat dishes, they are used for a great deal. To spice
yoghurt salads, roasted ground coriander can also be used to (raitas). Cilantro-young,
Coriander's fragrant leaves are being used as a garnish on many dishes. Always Use new, do
not dry or freeze well.
14. Paprika - A rust-red powder with a pungent, slightly sweet taste that adds great favor and
color. It can be used in tandoori dishes and curry sauces and is commonly used in meat curries,
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koftas and kababs in Kashmiri cuisine. Sweet German paprika is very much like Indian
paprika.
15. Saffron - The most expensive and popular spice in the world used for coloring and flavoring
many foods. These are the dry crocus stigmas of the saffron crocus. Used it as a thread or in
powdered form, to flavor the dish, just a small amount is needed. It does have a stunning yellow
color and a fantastic taste.
16. Mint Leaves: - Keep your mouth new when used as a flavoring seasoning. Used in Biryanis,
curries, kormas and chutneys. It can be used in any situation, whether fresh or dried.
17. Garlic - along with ginger and onion in nearly every curry, legume or vegetable dish, it can be
pulped, crushed or chopped. The powder is commonly used in
Spice mixtures. It is a Standard and regular ingredient. It has been used widely as a treatment
for numerous diseases in Ayurveda medicine.
18. Mango powder - One of the Indian fruity spice powders made from dried unpeeled green
mangoes is also known as Amchur powder.
19. Curry leaves – These are Similar but much smaller in appearance than bay leaves and are
available fresh or dry. New leaves freeze and are well favored. The distinct scent of curry
leaves is being used to spice rice, curry dishes, Southern Indian dishes, and chutneys. Leaves
are a gentle laxative and can be used to control diabetes.
20. Nutmeg: -This crop, applied to rich and sweet sauces, has been used carefully. In relation to
various spice mixes, it is much more common than on its own and. It gives the dishes a sweet,
nutty taste. Buy it whole and grind or grind or grind
Literature review
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Kalpana Agrawal (2012) stated that “India has a suitable topography to support production of various
spices. Cheap labor, Government support, low operating cost are some of the major strengths of India.
Inferior quality Guatemalan cardamom has helped Indian exporters to make their dominant presence
in the international market”.
Sajith Mohan., et al (2013) analyzed the performance of Indian spice exports. India is the largest
producer and consumer and exports of spices with 46 per cent share by volume and 23 per cent share
by value. Indian spice exports consist of 50 spices in whole and more than 80 per cent in value added
form. But the sector has yet to achieve the desirable target due to problems in marketing, supply chain,
pre- and post-harvesting practices, and quality requirements to match the international standards.
Morrissey and Filatotchev (2001) have analyzed implications of globalization and
trade for exports from marginalized economies. If producers in developing
economies are brought into the commodity chain merely as contract suppliers, they may continue to
be marginalized by globalization. According to Mansoob (1997 protectionism in the developed
economies directed towards the goods of the developing economies is not going to promote the
interests of unskilled workers of the former.
Objective of the study
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⮚ To understand and analyse the export potential of different spices from different regions of
India.
⮚ To identify the steps taken by the spice board of India and the collaborations from which the
export potential of spices can increase and the contribution in GDP.
⮚ To examine the average growth of the quantity of spices.
⮚ To find out the average growth of value of spices.
Research methodology
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The term ‘research’ refers to the systematic technique consisting of enunciating the problem,
formulating a hypothesis, accumulating statistics or data, analyzing the records and reaching certain
conclusions either in the shape of solutions towards the involved trouble or in certain generalizations
for some theoretical formulation.
There are more often two kinds of RESEARCH.
1. EXPLORATORY RESEARCH
2. CONCLUSIVE RESEARCH
1. Exploratory Research:
The principal goal of exploratory lookup is to provide insights into, and an appreciation of, the hassle
confronting the researcher.
3. Conclusive Research:
The insights received from exploratory lookup may be tested or quantified by means of conclusive
research.
• It is typically more formal and structured than exploratory research.
• Conclusive research is further divided into 2 types, descriptive and explanatory research.
 Descriptive research:
As the name implies, the major objective of descriptive research is to describe something-usually
market characteristics or functions (in case of business research). The goal of a descriptive study,
hence, is to offer to the researcher a profile or to describe relevant aspects of the phenomena of interest
from an individual, organizational, industry-oriented, or other perspectives.
• Conclusive research:
• Explanatory research tries to clarify why and how there is a relationship between two elements of a
situation or phenomenon. Explanatory lookup is an attempt to join special ideas and to recognize the
different reasons, causes and their effects.
• Explanatory research implies that the lookup in query is meant to explain, as an alternative than
certainly describe, the phenomenon studied.
During the research, my research design was Explanatory Research.
⮚ DATA COLLECTION METHOD:
Data collection is a procedure of amassing data from all the relevant sources to find answers to the
lookup problem, check the speculation and consider the outcomes.
Data collection methods can be divided into two categories: primary data and secondary data
a. PRIMARY METHOD OF DATA COLLECTION:
Primary data collection is required in many instances mainly when the want for facts is
company/institution specific.
b. SECONDARY METHOD OF DATA COLLECTION:
Secondary data is the already existing data, collected by the investigator agencies and organizations
earlier.
For my study, I have chosen the Secondary method of Data Collection.
Findings
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● Review of export performance of spices during 2019-20
The outbreak of coronavirus around the world has affected the supply chain at global level and
have brought the economies in a recessionary condition. The foreign trade in India during 2019-
20 has already registered a negative growth. The main reason was due to the slowdown of the
export of goods and services during the end of march, 2020. Despite this pandemic the export of
spices from India has continued its upward trend during the year 2019-20. It has crossed the US$3
billion mark for the first time in the history of spices export. The estimated export during the
financial year of 2019-20has been 11,83,000 tons valued at US $ 3033.4 million against 11,00,250
tons valued at US $ 2805.50 million during the last financial year. The total spice export during
the last financial year of 2019-20 achieved an all-time record in terms of value and volume. If we
compare it to last year, then the export has shown a 10% increase in rupee value and 8% in quantity.
If we see it in terms of dollars then the increase is 8%.
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Environmental Conditions required for growing different spices in India
Pepper:
Among the spices, black pepper, “the king of spices” is the most important dollar earning crop which
has a decisive role in our national and state economies. It is an important spice which is used for
flavoring foodstuffs. It is a tropical plant which requires a minimum of 10°C and maximum of 30°C
temperature.
A well distributed rainfall of 200-300 cm helps its growth. The plant grows as a vine and needs support
from other trees for its growth. It thrives well on deep, friable, well drained loamy soils, overlaying
the lateritic hill tops of Western Ghats, though it can also be grown on red and laterite soils. It can be
grown well from almost sea level to an altitude of 1,200 m but the coastal sandy plains are not much
suited for its growth.
India is the second largest producer of pepper after Indonesia. Production has more than trebled from
21 thousand tons in 1950-51 to 64 thousand tons in 2002-03. Its distribution is highly concentrated in
Kerala, Karnataka and Tamil Nadu. Kerala produced 60 thousand tons (93.95% of India) of pepper in
2002-03.
Though it is produced in almost all the districts of Kerala, the largest production comes from Kannur
district, followed by Kottayam, Thiruvananthapuram, Kollam, Kozhikode and Emakulam. Karnataka
is a distant second contributing only 3 percent of the total production of India. Kodagu and Uttar
Kannad are the major contributing districts. Tamil Nadu also produces small quantities of pepper.
About one third of total production of pepper finds its way to the foreign markets. India exports pepper
to as many as 80 countries. The Russian Federation, the USA, Canada, East and South European
countries, Sudan and Egypt are the main buyers.
However, the crop registers a low productivity of 306 kg/ha as compared to other producing countries
like Thailand with a productivity of around 4,000 kg/ha. India’s hitherto unquestioned status
throughout history as the largest producer and exporter of black pepper in the world is now under
threat with preliminary forecasts on production and export data from Vietnam.
In the post WTO period, India’s share (in quantity) in world exports was found nearly halved from 27
per cent in 1996 to 12.7 per cent in 2000. While the quantity of export registered a compound annual
growth rate of 5.79 per cent in the pre-WTO period, it was an alarming (-) 5.73 per cent in the post-
WTO period.
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Cardamom:
Cardamom is known as the ‘queen of aromatic spices’ and is mainly used for masticatory, flavoring
and for medicines. It grows well in climates of high heat and humidity with temperatures ranging
between 15°C and 32°C and a fairly distributed annual rainfall of 150 – 300 cm.
Well drained forest loams, deep red and laterite soils with plenty of humus and leaf mould are some
of the soils which are ideally suited to its successful growth. Tropical rain forests at an altitude of 800-
1,600 meters above sea level provide the most congenial environment for its growth. It is a shade
loving plant and is grown under shady trees.
India produces about 90 per cent of the world’s total cardamom. The production and productivity of
cardamom in India have increased in spite of decrease in cardamom area from 1.05 lakh hectares in
1987-88 to 0.72 lakh hectares in 1999-2000. The production of cardamom in India was 10,450 tons in
2000-01.
Demand for cardamom is increasing in the world market. To meet this demand the productivity will
have to be increased from the present level of 145 kg/ha to 250 kg/ha. The entire production comes
from three states viz., Kerala, Karnataka and Tamil Nadu and these states contribute 53 42 and 5 per
cent respectively of the total production of India, (see Fig. 24.7).
In Kerala, the crop is largely concentrated in the Cardamom hills. Idukki, Palakkad (Palghat),
Kozhikode and Kannur are the leading producing districts. In Karnataka the main producing districts
are Kodagu, Hassan, Chikmagalur, Uttar and Dakshin Kannad. Madurai is the most outstanding
district of Tamil Nadu. This is followed by Salem, Coimbatore, Ramnathpuram, the Nilgiris and
Tirunelveli.
About half of the total production is exported. More than 60 countries buy our cardamom but our
major customers are Saudi Arabia, Russia, U.K., Germany, Sweden, Finland, Kuwait, Afghanistan
and Bahrain. India enjoyed near monopoly in area, production and export of cardamom up to the early
1980s.
As Guatemala stepped up its production from the mid-1980s, India was relegated to second position
in production, productivity and export of cardamom. India needs to boost up its production to regain
the lost eminence of cardamom trade.
Presently Guatemala has emerged as the top producer and exporter of cardamom sharing 90 per cent
of the world export of cardamom. India’s share in the world market has come down from 60 per cent
in 1985-86 to around 3 per cent in 2003-04.
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Chilies:
Chili is another important spice produced in India. It requires temperatures ranging from 10° to 30°C
and moderate annual rainfall of 60 cm to 125 cm. too scarce or too heavy rainfall is harmful. It can be
grown on a wide variety of soils including black cotton soil, and different types of loamy soils. It can
be grown up to elevations of 1,700 meters.
The production of chilies has almost trebled from 351 thousand tons in 1950-51 to 970 thousand tons
in 2002-03 with a record production of 1,053 thousand tons in 2000-01. Although all states of India
produce some quantity of chilies, Andhra Pradesh with half of the all-India production was the largest
producer in 2002-03.
Guntur, Warangal, Khammam, East and West Godavari and Prakasam are the main chilly producing
districts. Maharashtra and Orissa shared second position, although way behind Andhra Pradesh. The
other major producers were Rajasthan, West Bengal, Karnataka, Tamil Nadu, Gujarat, Uttar Pradesh,
Madhya Pradesh and Assam.
Most of the chilies produced in India are consumed within the country and only 5 to 7 per cent are
exported, mainly to Sri Lanka, the USA and Russia.
Ginger:
Ginger is used both as a spice and for making medicines. It is grown in tropical and sub-tropical
climates and requires 10° to 25 °C temperature and 125-250 cm rainfall. Well drained sandy, clayey
or red loams and laterites are best suited soils for its cultivation. It can be grown from sea level to an
altitude of 1,300 m above sea level.
India is the largest producer of ginger in the world producing about 80 percent of the world production.
The production of ginger has increased by more than 21 times from a mere 15 thousand tons in 1950-
51 to 318 thousand tons in 2002-03. This crop occupied an area of 91 thousand hectares resulting in
an average yield of 35.1 quintals/hectare in 2002-03.
Kerala, Meghalaya, Sikkim, Orissa, Mizoram and West Bengal are the main producing states and
account for nearly 84 per cent of the total production of the country. Kerala is the largest producer. In
2002-03, Kerala produced about one-third of the total production of India. Most of it is produced in
Kottayam, Kozhikode, Malappuram, Palakkad and Ernakulam districts. Meghalaya, Sikkim, Orissa,
Mizoram and West Bengal are the other major producing states.
About 80-90 per cent of the total production of ginger is consumed within the country and still India
is a major exporter of ginger in the international market and accounts for about half of the total world
trade. About 80 percent of our exports go to the West Asian countries.
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Turmeric:
Turmeric is the native of the tropical lands of South-East Asia. It is an important condiment and is
used in dyes and medicines also. It requires tropical climate and well drained sandy and clayey loams,
medium black, red or alluvial soils for its growth.
India is an important producer of turmeric in the world. Its production recorded more than fourfold
increase from 152 thousand tons in 1950-51 to 658 thousand tons in 2002-03 with a record production
of 714 thousand tons in 2001-02. The area under this crop has recorded an increase from 1.30 lakh
hectares in 1996-97 to 1.68 lakh hectares in 2001-01 with an annual growth rate of 5.37 per cent.
Andhra Pradesh is the largest producer, producing about half of the total production of India in 2002-
03. Guntur and Cudahy districts account for two-thirds of the state’s total production. The neighboring
Karnataka state is the second largest producer, producing about 20 percent of the total production of
India. Mysore and Belgaum are outstanding producers.
Third place is occupied by Tamil Nadu, which produced more than 10 per cent turmeric of the country.
Coimbatore accounts for 60 per cent of the state’s production. Orissa produced 9.7% where Phulbani
and Koraput are the main producing districts. The other producers are Gujarat, West Bengal,
Maharashtra, Bihar, Assam and Tripura.
About 90 per cent of the total production is consumed within the country and only 10 per cent is
exported. The leading buyers of Indian turmeric are the USA, Russia, Japan, Sri Lanka and Singapore.
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COMPARATIVE STATEMENT OF EXPORT OF SPICES DURING THE PERIOD OF 6
MONTHS OF 2020 AND 2019.
19
ESTIMATED EXPORT OF SPICES FROM INDIA DURING APRIL - DECEMBER 2019
COMPARED WITH APRIL - DECEMBER 2018
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MAJOR COUNTRIES IMPORTING SPICES FROM INDIA
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Major projects by spice board of India to enhance the export potential of spices
1. AGRONOMY AND SOIL SCIENCE DIVISION
● Crop production technologies include standardization of agro techniques, Land preparation,
soil and water management, nursery management, planting techniques, plant nutrition, weed
management and other cultural practices.
● Integrated Nutrient Management (INM) strategies for cardamom.
● Organic farming packages for cardamom.
● Evaluation of organic inputs and validation of farmer's practices and traditional knowledge for
creating scientific databases.
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● Recording of meteorological data.
● Development of a mathematical model to predict the outbreak of capsule rot disease using data
on weather variables, disease incidence, spore load and crop husbandry practices
● Monitoring pesticide residue in cardamom samples.
● Agro-techniques for other spices (include vanilla, pepper, ginger, turmeric, clove, garlic, and
herbal spices)
● Farm mechanization, evaluation and development of machineries suited for cultivation and
processing of cardamom.
● Fertigation techniques in cardamom.
● Post-harvest handling, processing techniques, packing and storage of spices.
2. CROP IMPROVEMENT DIVISION
● Germplasm collection, conservation, evaluation and cataloguing of gene pool in cardamom
and allied genera for qualitative and quantitative characters.
● Development of location specific high yielding varieties of cardamom having superior quality
capsules by selection and hybridization techniques.
● Breeding for tolerance to biotic (pest and diseases) and abiotic (drought, shade) stresses
● Field adoption trials of varieties of cardamom in farmers' field
● Multi-location field-testing of varieties in collaboration with other agencies like, ICAR, SAUs,
DBT etc.
● Physiological studies in cardamom
● Adaptive trials on other spices
3. BIOTECHNOLOGY DIVISION
● Molecular markers for
1. Genetic diversity analysis of small cardamom
2. Genetic diversity analysis of large cardamom
3. Gender detection in Nutmeg at seedling stage.
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4. Genetic diversity analysis of Fusarium isolates from cardamom.
5. Identifying archaeo-botanical samples of spices
6. Identifying adulterants in spices
● Tissue Culture protocols via. somatic embryogenesis in cardamom
● Molecular marker-assisted
1. Virus indexing of Black pepper field samples.
2. Virus indexing of small & large cardamom field samples.
● Microsatellite markers in small cardamom.
● Cardamom Transcriptome sequencing as resources for future genetic and genomic studies and
for gene localization for accelerating breeding.
● Crop production technologies include standardization of agro techniques, Land preparation,
soil and water management, nursery management, planting techniques, plant nutrition, weed
management and other cultural practices.
● Integrated Nutrient Management (INM) strategies for cardamom.
● Organic farming packages for cardamom.
● Evaluation of organic inputs and validation of farmer's practices and traditional knowledge for
creating scientific databases.
● Recording of meteorological data.
● Development of a mathematical model to predict the outbreak of capsule rot disease using data
on weather variables, disease incidence, spore load and crop husbandry practices
● Monitoring pesticide residue in cardamom samples.
● Agro-techniques for other spices (include vanilla, pepper, ginger, turmeric, clove, garlic, and
herbal spices)
● Farm mechanization, evaluation and development of machineries suited for cultivation and
processing of cardamom.
● Fertigation techniques in cardamom.
● Post-harvest handling, processing techniques, packing and storage of spices.
4. POST HARVEST TECHNOLOGY
26
● Post-harvest handling, processing techniques like cardamom curing, vanilla processing, herbal
spices drying etc.
● Packing and storage of spices
● On-farm value addition techniques for white pepper production, vanilla curing etc.
5. TRANSFER OF TECHNOLOGY
● This division aims at bridging the gap between scientists and planters by transferring the
achievements in the institute for application in the planters’ field. This is mainly achieved
through training programmers, conducting seminars, group discussions, exhibitions,
organizing spice clinics etc. Scientists of the institute serve as the resource personnel in
seminars and planters’ meetings
● Training programs on production, protection and post-harvest technology & management of
cardamom, vanilla and other important spices for farmers and entrepreneurs.
● Two months residential training programme on Good Agricultural Practices (GAP) for quality
spice production for unemployed youth.
● Hands-on training programme on Bio-agent production (Trichoderma, Pseudomonas, EPN)
for farmer groups and NGOs.
● Training to extension functionaries from the Development Department of Spices Board, State
Agricultural Department etc. on latest technology/ developments.
● Mobile spice clinics and farmer scientist interface programs in different cardamom growing
locations to address field level problems.
SWOT Analysis of Spice Industry
STRENGTHS
● It is one of the fastest growing
industries.
● The exports of spices are
increasing day by day.
● Easy availability of raw material.
● Less investment is required.
● Easily availability of manpower.
● No substitute available.
WEAKNESS
● The products can’tbe stored for a
long time.
● Environmental factors affect the
raw materials and thus the final
productmay be affected.
● Transportation costis higher as
compared to other industries.
27
OPPORTUNITIES
● There is a vast market to capture.
● Good foreign demand for the
product.
● The market of packed spices is
increasing day by day.
THREATS
● Loosespices in the market are a
major threat to the industry.
● Stocking habits of consumers and
not purchasing when needed also
affect the sales.
● Cutthroat competition.
28
PEST ANALYSIS
Political Legal
Change in tax structure, policy matters have got a profound effect on this relatively undifferentiated
industry. In the recent year's budget fm intended to levy excise in branded spices to the tune of 8%,
though this proposal had been rolled back but such kind of taxes fosters the growth of loose market at
the cost of branded market.government's strict regulation on quality entails the installation of costly
machines, which in turn leads to increase in prices of branded product as a result of this the sale of
loose spices increases, it must be noted that we are not criticizing quality policy of government but
sale of low quality loose spices should be checked
Policy of different mandis from which the material is procured changes from time to time, such a
change affects the industry. The spice getting industry was formerly an SSI reserve, which also had
its shares of effects in shaping the industry. The liberalization drive by the government will also affect
the shape of the grinding industry as bigger players like HUL and Nirma are contemplating an entry
in this market. Policy matters regarding this industry are bound to change the face of the spice grinding
industry. As India is a member of WTO so it has the obligation of enforcing product patents by 2005
AD. This will affect many new phenomena emerging in this industry.
Economic Factors
The fate of the spice grinding industry to a large extent depends on the monsoon. A favorable monsoon
leads to low prices as a result of which people opt for slightly better branded spices where’s if the
prices are high loose is sold more because of its slightly lower prices.Any national or international
level change in situation leads to speculation and widespread change in this industry.Export scenario
also affects the domestic industry, if exports are high and profitable many big players focus more on
exports and competition gets diluted back home where’s a decrease in exports leads to stiffer
competition in domestic market
Socio-cultural Factors
29
People are seeking quality products nowadays and this has led to a steady increase in the packed spice
market. Increase in consumer attitude has led to increase in brand acceptance and brand awareness as
people link it to quality and accountability. Such atrend is favorable to the packed spice industry.
Housewives' drive towards convenience has also led to an increase in the packed spice business. A
working housewife is not in a position to grind the spices as it takes time and so she seeks convenience.
In today’s society as women are becoming more assertive and career oriented the future of packed
spice business looks bright
Technology
Technology is supposed to be simpler in this industry but sticker PFA and Agmark norms and US,
and other ISO requirements require more than the existing technology. Any other technology change
keeping in line with ISO and U.S. requirements may be forced to change as almost all and those are
involved in the export market with varying degrees of intensity. During conventional grinding process
there is a considerable heat evolved which results in losses of volatile oil which adversely affect the
yield and quality of the product. This was the reason whyRamdev and others came up with new
technology with less heat involvement. This had a significant effect in shaping this industry.
30
Conclusion
It can be concluded from the above decision, an attempt was made to present the importance of the
study, various research studies conducted on export performance Indian spices across the world.
Further, the finding of the study observed that the previous close linkage between commodity exports
and balance of payments has been declining and the traditional role of commodity exports and the
emerging unfavorable conditions, for the commodity exports of developing countries, have a mixed
impact on their economies. Some of the developing countries are slowly shifting the exports of raw
commodities to process and semi processed commodities and intermediate manufactured goods. The
above discussion is that India is performing well as far as export of spices are concerned. It seems that
various factors appear to play a large role determining the performance of exports.
Still, it has the potential to perform better under such circumstances the GOVT should design
supportive policies and development of strategies for spices export.
31
Recommendations
OBJECTIVES OF INDIAN ORGANIC SPICES:
● To analyze and forecast the market size of India Organic Spices market.
● To classify and forecast India Organic Spices market based on product type, company, and
regional distribution.
● To identify drivers and challenges for the India Organic Spices market.
● To examine competitive developments such as expansions, new product launches, mergers &
acquisitions, etc., in the India Organic Spices market.
● To conduct pricing analysis for India Organic Spices market.
● To identify and analyze the profile of leading players operating in the India Organic Spices
market.
India Organic Spices market was valued at around $ 200 million in FY 2020 and is forecast to
grow at a healthy CAGR (Compound Annual Growth Rate) of 11% over the next five years
predominantly due to increasing awareness regarding the harmful effects of chemicals, pesticides
and additives. Other aspects like the changing trends in food consumption and the popularity of
ethnic and exotic food are expected to accelerate growth in the coming years. Moreover, increasing
consumer preference for ready-to-use spices to save time while cooking without losing the taste is
also expected to fuel demand for spices in powdered form. Growing value of authentic flavors
with a fusion of ethnic flavors will remain a key driving factor for market growth over coming
years. Along with adding authentic taste and flavor to food, spices also have specific health
benefits which will fuel the market in the coming years.
India organic spices market is segmented based on Type, By Form, By Distribution Channel, and
By Region. Based on Type, the market is segmented into Basil, Garlic, Ginger, Turmeric, Cumin,
Cinnamon, Chili, Clove, Cardamom, and Others. Among these, Turmeric held the largest share
because of its anti-inflammatory, antibacterial, and antiseptic qualities and its use as a natural
painkiller and healer. Also, it is believed to help in various health conditions including Alzheimer’s
disease, cancer, and joint pains.
Based on Form, the market is categorized into powdered form, whole form, minced form and
others. Powdered form segment is expected to dominate the market during the forecast period as
it is ready to cook and saves overall cooking time. Regionally, the country’s spices market is
divided into North, East, South, and West. The western area dominated India's organic spice
market in 2019 due to the large production of spices in Rajasthan and Gujarat.
32
Major players operating in India Organic Spices market include Geo Fresh Organic, Carmel
Organics, Live Organics, PDS Organic Spices, Pro Nature Organic Foods Pvt Ltd, McCormick
India, Earthen Delight Agro Products Pvt. Ltd, Simply Organic, West India Spices Inc., Star west
Botanicals, The Spice Hunter, Yogi Botanicals, The Spice House, among others.
33
References
⮚ Morrissey and Filatotchev, Globalization and Trade; The Implications for exports
From marginalized economies, Macmillan press Ltd., London.2001
⮚ Mansoob, S.” does trade with the south disadvantage unskilled workers in the north “In gupta
satya dev(ed.)’ The political Economy of globalization” Kulwer Academic publishers,
Massachusetts, p.129.1997
⮚ Dr. Kalpana Agrawal, Harshit Baranwal, Ishita Tandon , “A study on export potential of
various spices from India”, Research Journal of commerce and Behavioral science, Vol.1, 09,
pp.37-44.
⮚ Sajith Mohan., Sheena, S, Rajan., Unnikrishnan, G. “Marketing of Indian Spices as a Challenge
in India”, International Journal of Business and Management Invention, Vol. 2, 2, pp. 26-31.
34
Bibliography
● https://indianspices.com/sites/default/files/exportsep2015.pdf
● https://indianspices.com/sites/default/files/cou172018123_new.pdf
● https://indianspices.com/major-projects-0.html
● https://indianspices.com/collaborative-projects.html
● https://www.indianspices.com/
● https://commerce.gov.in/

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Export Potential of Spices of India.docx

  • 1. 1 Winter live Project on Export Potential of Spices from India Submitted by: AKSHAT SHARMA AYESHA AHMED SIDDHARTH VYAS SOUMYA SINGH DOON BUSINESS SCHOOL Affiliated to HNB GARHWAL UNIVERSITY, DEHRADUN Mi-122, Behind Pharma City, Selaqui Industrial Area, Dehradun, Uttarakhand 248001 ACKNOWLEDGEMENT
  • 2. 2 I would like to gratefully acknowledge the contribution of all the people who provided valuable support to me during the course of this project. To begin with, I would like to offer my sincere thanks to Prof. Sunil Madan, my project coordinator, Professor at Doon Business School, who provided relevant suggestions, shared their rich corporate experience and helped me script the exact requisites. I would also like to express my gratitude towards my parents and teachers for their kind cooperation and encouragement which helped me in the completion of the project. I’m also thankful to DBS for giving me such an amazing opportunity for making this project and giving suitable instructions and guidelines for the project. Last but not the least I would like to thank all my friends who shared necessary information and useful weblinks for preparing my project. INDEX
  • 3. 3 S.NO. CONTENTS PAGE NO. 1. Introduction 5-8 2. Literature review 9 3. Objectives 10 4. Research Methodology 11 5. Findings 12-26 6. Conclusion 27 7. Recommendations 28-29 8. References 30 9. Bibliography 31 Abstract
  • 4. 4 India, the home of spices, has a long history of trading the spices with the ancient civilization of Rome and china. India is an amazing land producing all the known spices to human civilization. Many Centuries ago, India was known to the world by its spices. People from all over the world first came to India for want of Spices. First travel by land started through India via Silk route From China, India, Middle East to Europe and the main commodity of Indian Trade was Spices. In the 15th Century when Europe sailors ventured the sea, they made their voyage in search of India Vasco da Gama from Portugal touched the shores of India for the first time and took Indian spices back home and sold them in exchange for Gold. The attraction for Indian spices was so high that made Columbus to take sea journey to search India and in route after reaching South Africa he took a wrong turn towards west and landed in a new continent known as America. One after another countries people came to India for Indian Spices and by middle of 17th Century British people came to India and made East India company for Indian spices and other Commodities and then history is there how India came under colonial rule got exploited for 300 years and finally, we got Independence under leadership of Mahatma Gandhi on 15th August 1947. Since then , India is no. 1 in their Spices Export and as of 2020, we are Exporting USD Million Indian spices annually. Introduction
  • 5. 5 Spices always play a prominent role in the kitchen as well as in certain medicinal activities like diuretic, carminative aperients, expectorant, and many more. Spices have been used medicinally since early. Spices are being used as reviling for health in many diseases, for example, fenugreek, coriander, turmeric, cinnamon, cumin, clove, and others. Traditionally spices, as part of the diets, have holistic effects on human health. In the Indian kitchen, all spices are used from ancient times in daily food as well as used in a traditional manner. India is a great producer of plenty of spices, from 80 types of spices grown in the world whereas about 50 types are grown in India. Spices not only improve the taste of food but also a good source of vitamins B and C, iron, calcium, and other antioxidants. India, regarded as the birthplace of spices, boasts a long tradition of trade with Rome and China's ancient civilizations. Today, given their exquisite fragrance, texture, taste, and medicinal value, Indian spices are the most sought-after globally. In the world, India has the largest domestic spice market. In India, spices have historically been cultivated in small landholdings, with organic farming gaining popularity in recent times. India is the largest manufacturer, consumer, and exporter of spices in the world, producing approximately 75 out of the 109 varieties listed by the International Organization for Standardization (ISO) and accounting for half of the world's spice trade. Types of spices Indian cooking's fundamental art lies in the careful mixing of various spices to create subtle variations in food flavor. They also intensify the flavors of virtually every food form. In Food culture, varying blends of spices are called "masala." It can be in the form of a powder or paste. The Indian Spices exports is governed by Spice Board of India with its head office in Cochin Following are the Main Indian spices Classified as under: - Hot and Aromatic Spices. The aromatic spices might seem overwhelming when you are first introduced to Indian cuisine. There is a combination of smells that are sweet and savory. There are a few important spices used in Indian food that give it the distinctive fragrance that lasts for days. ● Garam masala: - In kitchens all over India, hundreds of spice mixtures are used daily to offer food remarkably different flavors. Garam masala is one of the most familiar. It gives the food a distinctive good aroma and taste. It combines cumin seeds, coriander seeds, garlic, cardamom seeds, dried bay leaves, black peppercorns, cinnamon sticks and dried red chili peppers. ● Other spice mixtures: - Many more masalas or spice blends are available, such as tandoori, Channa, Chaat, etc. Recipes for these can be found and used in particular dishes. 1. Cloves. 2. Black Pepper. 3. Cinnamon. 4. Bay leaf. 5. Saffron. 6. Nutmeg. Seed Spices. Seed spices are annual and seasonal herbs which are used as spices for dried seeds or fruits. Low volume high value crops consisting mainly of coriander, cumin, fenugreek and fennel and few minor seed spices such as ajwain, dill, anise, nigella, caraway and celery are the majority of seed spices. These 10 main seed spice crops account for a sizable area, contributing almost 41.70 per cent of the share of the area and 19.72 per cent of the production of total spices in the world. These seed spices
  • 6. 6 are currently cultivated in an area of 1.65 m ha and have an annual production of 1.23 million MT. The maximum area under cultivation and development of these seed spices in the Rajasthan and Gujarat states is within the region. Of these seed spices, cumin and coriander account for almost 80% of India's area and production. 1. Cumin 2. Fennel 3. Fenugreek 4. Coriander 5. Mustard 6. Carom 7. Poppy 8. Fenugreek Curry powder Seeds In Indian cooking, curry powder (Kari masala) and garam masala are essential. Almost any mixture of spices can be curry powder, and most home cooks have their own blends, ground fresh right before use. You can buy these spices, already mixed, for cooks who have less time. A mixture of a variety of spices that are ground into a fine powder and often, apply fresh onion, garlic and ginger root to the paste. They differ in taste and color. Some or all of these spices can be used in curries: ground turmeric, dried red chilies, coriander seeds, black pepper, cumin seeds, fenugreek seeds, curry leaves, mustard seeds, cinnamon, cardamom, cloves, nutmeg, bay leaves, and peppercorns. 1. Turmeric 2. Chilly 3. Coriander 4. Cumin 5. Ginger 6. Green Mango All of the above spices are grown in different parts of India. By a Map we will show region wise cultivation of different Spices. The Most Common and Flavorful Indian Spices 1. Cardamom Seeds:- Indigenous to the land of the Malabar Coast in India, this spice belongs to the family of ginger and is that the third most costly spice within the world, primarily as a result of its hand-harvested and needs heaps of manual work, Indigenous to the land of the Malabar Coast in India. Whereas there's a light and lightweight eucalyptus tone to the inexperienced cardamom, the black cardamom is spicy, smoky, and customarily solely used for its seeds. The foremost common use for cardamom is to reinforce the flavor of tea and puddings. 2. Turmeric Powder: - Turmeric, another spice belonging to the ginger tribe, is probably India's most widely used spice. Turmeric was mainly used for thousands of years as a dye and in Siddha medicine. Turmeric, derived from the roots of Curcuma Longa, a native Indian leafy herb, has an earthy consistency and a warm aroma and taste. Turmeric, primarily used for its taste and color, also has antiseptic properties and is thus also used for its health benefits. 3. Ginger: - In Indian cooking, it is a really important and common spice. Ground ginger, if fresh is theoretically available, is almost never used in Indian cooking. Before being used, this
  • 7. 7 rhizome is still peeled. The taste of ginger may be delicate, but in any dish, it tends to stand out in a crowd of other ingredients. It is used widely in both vegetarian and meat-based recipes. 4. Chili's: - “Dried Red'' Further used to improve curries' taste. These have been used in their entirety as well as Crushed and soiled. Ground cayenne can also be used in recipes as a substitute. Most chilies are very spicy, but to make them less flaming, you may remove the seeds. “Fresh Green” An essential ingredient used in almost every chutney, vegetables, Snacks, curry, dishes with vegetables and legumes. To make them less warm, seeds can be thrown away, but they add flavor (and bite) to the dish. The primary ingredient in chilies that is promoted with health implications is capsaicin. 5. Pepper: - The dried unripe fruit cultivated in the crop called piper nigrum is pepper or black pepper. It's musky odor, peppery/hot texture and wellbeing properties make pepper a worldwide favorite spice and is widely used across cuisines. The fruit is around 5 mm (0.20 in) in diameter and radicalized and, like most other drupes, produces a single seed. 6. Ajwain Seeds: - Also known as ajwain or carom; a seed closely related to caraway and cumin. It looks like celery seed, but has a strong thyme flavor as it contains thymol (the pungent oil of thyme). These seeds are used in cooking, breads, biscuits, savory pastries, and in bean dishes. Relieves flatulence and stomach-ache. 7. Asafoetida (Hing): - A light yellow to dark brown resin of dried gum. Sold in bits or pieces Land, it is a taste acquired and used for seafood and legume (dal) dishes to season. Just a pinch is normally applied to hot oil due to its pungent flavor (Sulphur compounds) and is permitted to sizzle for only a few seconds before adding other ingredients. Gives dishes a taste of garlic/onion. 8. Basil – The mint family's strong aromatic herbs give dishes a fragrant and vibrant flavor. The Indian variety has leaf buds in the shape of an egg and is referred to as basil. Any basil in its place can be used. Used for digestion, breathing issues, and insect bites or skin infection. 9. Bay leaves – Rice mixtures (pulao), biryani, and curry and kebab dishes are being used for flavoring. This is one of five essential spices being used in rice and biryani dishes (cardamom, cinnamon, cloves, and peppercorns are the other four) to give them their unique taste, distinctive flavor and delicate fragrance). For turmeric rice. 10. Black salt – Rock salt with a recognizable and unique scent and taste. Available in powder form, Dark brown or pinkish gravy in color. Important in Northern Indian cooking. 11. Cinnamon – One of the oldest species known. It has a soft and herbal taste and is sold as soil or in sticks. For flavor, sticks are applied and then extracted prior to feeding. In several dishes, ground cinnamon is indeed an essential seasoning as well as an important ingredient in making curry powder and garam masala. 12. Cloves – Dried, unsealed, deep brown flower buds. It flavors several dishes that are sweet and savory and is usually added whole. And is used in spiced mixtures such as garam masala as well. For tooth and gum complications, whole cloves and clove oil are used in herbal supplements. 13. Coriander seeds – They are medicinal, available in whole ground, and also have a slightly sweet, lemony flavor. In vegetable and meat dishes, they are used for a great deal. To spice yoghurt salads, roasted ground coriander can also be used to (raitas). Cilantro-young, Coriander's fragrant leaves are being used as a garnish on many dishes. Always Use new, do not dry or freeze well. 14. Paprika - A rust-red powder with a pungent, slightly sweet taste that adds great favor and color. It can be used in tandoori dishes and curry sauces and is commonly used in meat curries,
  • 8. 8 koftas and kababs in Kashmiri cuisine. Sweet German paprika is very much like Indian paprika. 15. Saffron - The most expensive and popular spice in the world used for coloring and flavoring many foods. These are the dry crocus stigmas of the saffron crocus. Used it as a thread or in powdered form, to flavor the dish, just a small amount is needed. It does have a stunning yellow color and a fantastic taste. 16. Mint Leaves: - Keep your mouth new when used as a flavoring seasoning. Used in Biryanis, curries, kormas and chutneys. It can be used in any situation, whether fresh or dried. 17. Garlic - along with ginger and onion in nearly every curry, legume or vegetable dish, it can be pulped, crushed or chopped. The powder is commonly used in Spice mixtures. It is a Standard and regular ingredient. It has been used widely as a treatment for numerous diseases in Ayurveda medicine. 18. Mango powder - One of the Indian fruity spice powders made from dried unpeeled green mangoes is also known as Amchur powder. 19. Curry leaves – These are Similar but much smaller in appearance than bay leaves and are available fresh or dry. New leaves freeze and are well favored. The distinct scent of curry leaves is being used to spice rice, curry dishes, Southern Indian dishes, and chutneys. Leaves are a gentle laxative and can be used to control diabetes. 20. Nutmeg: -This crop, applied to rich and sweet sauces, has been used carefully. In relation to various spice mixes, it is much more common than on its own and. It gives the dishes a sweet, nutty taste. Buy it whole and grind or grind or grind Literature review
  • 9. 9 Kalpana Agrawal (2012) stated that “India has a suitable topography to support production of various spices. Cheap labor, Government support, low operating cost are some of the major strengths of India. Inferior quality Guatemalan cardamom has helped Indian exporters to make their dominant presence in the international market”. Sajith Mohan., et al (2013) analyzed the performance of Indian spice exports. India is the largest producer and consumer and exports of spices with 46 per cent share by volume and 23 per cent share by value. Indian spice exports consist of 50 spices in whole and more than 80 per cent in value added form. But the sector has yet to achieve the desirable target due to problems in marketing, supply chain, pre- and post-harvesting practices, and quality requirements to match the international standards. Morrissey and Filatotchev (2001) have analyzed implications of globalization and trade for exports from marginalized economies. If producers in developing economies are brought into the commodity chain merely as contract suppliers, they may continue to be marginalized by globalization. According to Mansoob (1997 protectionism in the developed economies directed towards the goods of the developing economies is not going to promote the interests of unskilled workers of the former. Objective of the study
  • 10. 10 ⮚ To understand and analyse the export potential of different spices from different regions of India. ⮚ To identify the steps taken by the spice board of India and the collaborations from which the export potential of spices can increase and the contribution in GDP. ⮚ To examine the average growth of the quantity of spices. ⮚ To find out the average growth of value of spices. Research methodology
  • 11. 11 The term ‘research’ refers to the systematic technique consisting of enunciating the problem, formulating a hypothesis, accumulating statistics or data, analyzing the records and reaching certain conclusions either in the shape of solutions towards the involved trouble or in certain generalizations for some theoretical formulation. There are more often two kinds of RESEARCH. 1. EXPLORATORY RESEARCH 2. CONCLUSIVE RESEARCH 1. Exploratory Research: The principal goal of exploratory lookup is to provide insights into, and an appreciation of, the hassle confronting the researcher. 3. Conclusive Research: The insights received from exploratory lookup may be tested or quantified by means of conclusive research. • It is typically more formal and structured than exploratory research. • Conclusive research is further divided into 2 types, descriptive and explanatory research.  Descriptive research: As the name implies, the major objective of descriptive research is to describe something-usually market characteristics or functions (in case of business research). The goal of a descriptive study, hence, is to offer to the researcher a profile or to describe relevant aspects of the phenomena of interest from an individual, organizational, industry-oriented, or other perspectives. • Conclusive research: • Explanatory research tries to clarify why and how there is a relationship between two elements of a situation or phenomenon. Explanatory lookup is an attempt to join special ideas and to recognize the different reasons, causes and their effects. • Explanatory research implies that the lookup in query is meant to explain, as an alternative than certainly describe, the phenomenon studied. During the research, my research design was Explanatory Research. ⮚ DATA COLLECTION METHOD: Data collection is a procedure of amassing data from all the relevant sources to find answers to the lookup problem, check the speculation and consider the outcomes. Data collection methods can be divided into two categories: primary data and secondary data a. PRIMARY METHOD OF DATA COLLECTION: Primary data collection is required in many instances mainly when the want for facts is company/institution specific. b. SECONDARY METHOD OF DATA COLLECTION: Secondary data is the already existing data, collected by the investigator agencies and organizations earlier. For my study, I have chosen the Secondary method of Data Collection. Findings
  • 12. 12 ● Review of export performance of spices during 2019-20 The outbreak of coronavirus around the world has affected the supply chain at global level and have brought the economies in a recessionary condition. The foreign trade in India during 2019- 20 has already registered a negative growth. The main reason was due to the slowdown of the export of goods and services during the end of march, 2020. Despite this pandemic the export of spices from India has continued its upward trend during the year 2019-20. It has crossed the US$3 billion mark for the first time in the history of spices export. The estimated export during the financial year of 2019-20has been 11,83,000 tons valued at US $ 3033.4 million against 11,00,250 tons valued at US $ 2805.50 million during the last financial year. The total spice export during the last financial year of 2019-20 achieved an all-time record in terms of value and volume. If we compare it to last year, then the export has shown a 10% increase in rupee value and 8% in quantity. If we see it in terms of dollars then the increase is 8%.
  • 13. 13
  • 14. 14 Environmental Conditions required for growing different spices in India Pepper: Among the spices, black pepper, “the king of spices” is the most important dollar earning crop which has a decisive role in our national and state economies. It is an important spice which is used for flavoring foodstuffs. It is a tropical plant which requires a minimum of 10°C and maximum of 30°C temperature. A well distributed rainfall of 200-300 cm helps its growth. The plant grows as a vine and needs support from other trees for its growth. It thrives well on deep, friable, well drained loamy soils, overlaying the lateritic hill tops of Western Ghats, though it can also be grown on red and laterite soils. It can be grown well from almost sea level to an altitude of 1,200 m but the coastal sandy plains are not much suited for its growth. India is the second largest producer of pepper after Indonesia. Production has more than trebled from 21 thousand tons in 1950-51 to 64 thousand tons in 2002-03. Its distribution is highly concentrated in Kerala, Karnataka and Tamil Nadu. Kerala produced 60 thousand tons (93.95% of India) of pepper in 2002-03. Though it is produced in almost all the districts of Kerala, the largest production comes from Kannur district, followed by Kottayam, Thiruvananthapuram, Kollam, Kozhikode and Emakulam. Karnataka is a distant second contributing only 3 percent of the total production of India. Kodagu and Uttar Kannad are the major contributing districts. Tamil Nadu also produces small quantities of pepper. About one third of total production of pepper finds its way to the foreign markets. India exports pepper to as many as 80 countries. The Russian Federation, the USA, Canada, East and South European countries, Sudan and Egypt are the main buyers. However, the crop registers a low productivity of 306 kg/ha as compared to other producing countries like Thailand with a productivity of around 4,000 kg/ha. India’s hitherto unquestioned status throughout history as the largest producer and exporter of black pepper in the world is now under threat with preliminary forecasts on production and export data from Vietnam. In the post WTO period, India’s share (in quantity) in world exports was found nearly halved from 27 per cent in 1996 to 12.7 per cent in 2000. While the quantity of export registered a compound annual growth rate of 5.79 per cent in the pre-WTO period, it was an alarming (-) 5.73 per cent in the post- WTO period.
  • 15. 15 Cardamom: Cardamom is known as the ‘queen of aromatic spices’ and is mainly used for masticatory, flavoring and for medicines. It grows well in climates of high heat and humidity with temperatures ranging between 15°C and 32°C and a fairly distributed annual rainfall of 150 – 300 cm. Well drained forest loams, deep red and laterite soils with plenty of humus and leaf mould are some of the soils which are ideally suited to its successful growth. Tropical rain forests at an altitude of 800- 1,600 meters above sea level provide the most congenial environment for its growth. It is a shade loving plant and is grown under shady trees. India produces about 90 per cent of the world’s total cardamom. The production and productivity of cardamom in India have increased in spite of decrease in cardamom area from 1.05 lakh hectares in 1987-88 to 0.72 lakh hectares in 1999-2000. The production of cardamom in India was 10,450 tons in 2000-01. Demand for cardamom is increasing in the world market. To meet this demand the productivity will have to be increased from the present level of 145 kg/ha to 250 kg/ha. The entire production comes from three states viz., Kerala, Karnataka and Tamil Nadu and these states contribute 53 42 and 5 per cent respectively of the total production of India, (see Fig. 24.7). In Kerala, the crop is largely concentrated in the Cardamom hills. Idukki, Palakkad (Palghat), Kozhikode and Kannur are the leading producing districts. In Karnataka the main producing districts are Kodagu, Hassan, Chikmagalur, Uttar and Dakshin Kannad. Madurai is the most outstanding district of Tamil Nadu. This is followed by Salem, Coimbatore, Ramnathpuram, the Nilgiris and Tirunelveli. About half of the total production is exported. More than 60 countries buy our cardamom but our major customers are Saudi Arabia, Russia, U.K., Germany, Sweden, Finland, Kuwait, Afghanistan and Bahrain. India enjoyed near monopoly in area, production and export of cardamom up to the early 1980s. As Guatemala stepped up its production from the mid-1980s, India was relegated to second position in production, productivity and export of cardamom. India needs to boost up its production to regain the lost eminence of cardamom trade. Presently Guatemala has emerged as the top producer and exporter of cardamom sharing 90 per cent of the world export of cardamom. India’s share in the world market has come down from 60 per cent in 1985-86 to around 3 per cent in 2003-04.
  • 16. 16 Chilies: Chili is another important spice produced in India. It requires temperatures ranging from 10° to 30°C and moderate annual rainfall of 60 cm to 125 cm. too scarce or too heavy rainfall is harmful. It can be grown on a wide variety of soils including black cotton soil, and different types of loamy soils. It can be grown up to elevations of 1,700 meters. The production of chilies has almost trebled from 351 thousand tons in 1950-51 to 970 thousand tons in 2002-03 with a record production of 1,053 thousand tons in 2000-01. Although all states of India produce some quantity of chilies, Andhra Pradesh with half of the all-India production was the largest producer in 2002-03. Guntur, Warangal, Khammam, East and West Godavari and Prakasam are the main chilly producing districts. Maharashtra and Orissa shared second position, although way behind Andhra Pradesh. The other major producers were Rajasthan, West Bengal, Karnataka, Tamil Nadu, Gujarat, Uttar Pradesh, Madhya Pradesh and Assam. Most of the chilies produced in India are consumed within the country and only 5 to 7 per cent are exported, mainly to Sri Lanka, the USA and Russia. Ginger: Ginger is used both as a spice and for making medicines. It is grown in tropical and sub-tropical climates and requires 10° to 25 °C temperature and 125-250 cm rainfall. Well drained sandy, clayey or red loams and laterites are best suited soils for its cultivation. It can be grown from sea level to an altitude of 1,300 m above sea level. India is the largest producer of ginger in the world producing about 80 percent of the world production. The production of ginger has increased by more than 21 times from a mere 15 thousand tons in 1950- 51 to 318 thousand tons in 2002-03. This crop occupied an area of 91 thousand hectares resulting in an average yield of 35.1 quintals/hectare in 2002-03. Kerala, Meghalaya, Sikkim, Orissa, Mizoram and West Bengal are the main producing states and account for nearly 84 per cent of the total production of the country. Kerala is the largest producer. In 2002-03, Kerala produced about one-third of the total production of India. Most of it is produced in Kottayam, Kozhikode, Malappuram, Palakkad and Ernakulam districts. Meghalaya, Sikkim, Orissa, Mizoram and West Bengal are the other major producing states. About 80-90 per cent of the total production of ginger is consumed within the country and still India is a major exporter of ginger in the international market and accounts for about half of the total world trade. About 80 percent of our exports go to the West Asian countries.
  • 17. 17 Turmeric: Turmeric is the native of the tropical lands of South-East Asia. It is an important condiment and is used in dyes and medicines also. It requires tropical climate and well drained sandy and clayey loams, medium black, red or alluvial soils for its growth. India is an important producer of turmeric in the world. Its production recorded more than fourfold increase from 152 thousand tons in 1950-51 to 658 thousand tons in 2002-03 with a record production of 714 thousand tons in 2001-02. The area under this crop has recorded an increase from 1.30 lakh hectares in 1996-97 to 1.68 lakh hectares in 2001-01 with an annual growth rate of 5.37 per cent. Andhra Pradesh is the largest producer, producing about half of the total production of India in 2002- 03. Guntur and Cudahy districts account for two-thirds of the state’s total production. The neighboring Karnataka state is the second largest producer, producing about 20 percent of the total production of India. Mysore and Belgaum are outstanding producers. Third place is occupied by Tamil Nadu, which produced more than 10 per cent turmeric of the country. Coimbatore accounts for 60 per cent of the state’s production. Orissa produced 9.7% where Phulbani and Koraput are the main producing districts. The other producers are Gujarat, West Bengal, Maharashtra, Bihar, Assam and Tripura. About 90 per cent of the total production is consumed within the country and only 10 per cent is exported. The leading buyers of Indian turmeric are the USA, Russia, Japan, Sri Lanka and Singapore.
  • 18. 18 COMPARATIVE STATEMENT OF EXPORT OF SPICES DURING THE PERIOD OF 6 MONTHS OF 2020 AND 2019.
  • 19. 19 ESTIMATED EXPORT OF SPICES FROM INDIA DURING APRIL - DECEMBER 2019 COMPARED WITH APRIL - DECEMBER 2018
  • 20. 20 MAJOR COUNTRIES IMPORTING SPICES FROM INDIA
  • 21. 21
  • 22. 22
  • 23. 23 Major projects by spice board of India to enhance the export potential of spices 1. AGRONOMY AND SOIL SCIENCE DIVISION ● Crop production technologies include standardization of agro techniques, Land preparation, soil and water management, nursery management, planting techniques, plant nutrition, weed management and other cultural practices. ● Integrated Nutrient Management (INM) strategies for cardamom. ● Organic farming packages for cardamom. ● Evaluation of organic inputs and validation of farmer's practices and traditional knowledge for creating scientific databases.
  • 24. 24 ● Recording of meteorological data. ● Development of a mathematical model to predict the outbreak of capsule rot disease using data on weather variables, disease incidence, spore load and crop husbandry practices ● Monitoring pesticide residue in cardamom samples. ● Agro-techniques for other spices (include vanilla, pepper, ginger, turmeric, clove, garlic, and herbal spices) ● Farm mechanization, evaluation and development of machineries suited for cultivation and processing of cardamom. ● Fertigation techniques in cardamom. ● Post-harvest handling, processing techniques, packing and storage of spices. 2. CROP IMPROVEMENT DIVISION ● Germplasm collection, conservation, evaluation and cataloguing of gene pool in cardamom and allied genera for qualitative and quantitative characters. ● Development of location specific high yielding varieties of cardamom having superior quality capsules by selection and hybridization techniques. ● Breeding for tolerance to biotic (pest and diseases) and abiotic (drought, shade) stresses ● Field adoption trials of varieties of cardamom in farmers' field ● Multi-location field-testing of varieties in collaboration with other agencies like, ICAR, SAUs, DBT etc. ● Physiological studies in cardamom ● Adaptive trials on other spices 3. BIOTECHNOLOGY DIVISION ● Molecular markers for 1. Genetic diversity analysis of small cardamom 2. Genetic diversity analysis of large cardamom 3. Gender detection in Nutmeg at seedling stage.
  • 25. 25 4. Genetic diversity analysis of Fusarium isolates from cardamom. 5. Identifying archaeo-botanical samples of spices 6. Identifying adulterants in spices ● Tissue Culture protocols via. somatic embryogenesis in cardamom ● Molecular marker-assisted 1. Virus indexing of Black pepper field samples. 2. Virus indexing of small & large cardamom field samples. ● Microsatellite markers in small cardamom. ● Cardamom Transcriptome sequencing as resources for future genetic and genomic studies and for gene localization for accelerating breeding. ● Crop production technologies include standardization of agro techniques, Land preparation, soil and water management, nursery management, planting techniques, plant nutrition, weed management and other cultural practices. ● Integrated Nutrient Management (INM) strategies for cardamom. ● Organic farming packages for cardamom. ● Evaluation of organic inputs and validation of farmer's practices and traditional knowledge for creating scientific databases. ● Recording of meteorological data. ● Development of a mathematical model to predict the outbreak of capsule rot disease using data on weather variables, disease incidence, spore load and crop husbandry practices ● Monitoring pesticide residue in cardamom samples. ● Agro-techniques for other spices (include vanilla, pepper, ginger, turmeric, clove, garlic, and herbal spices) ● Farm mechanization, evaluation and development of machineries suited for cultivation and processing of cardamom. ● Fertigation techniques in cardamom. ● Post-harvest handling, processing techniques, packing and storage of spices. 4. POST HARVEST TECHNOLOGY
  • 26. 26 ● Post-harvest handling, processing techniques like cardamom curing, vanilla processing, herbal spices drying etc. ● Packing and storage of spices ● On-farm value addition techniques for white pepper production, vanilla curing etc. 5. TRANSFER OF TECHNOLOGY ● This division aims at bridging the gap between scientists and planters by transferring the achievements in the institute for application in the planters’ field. This is mainly achieved through training programmers, conducting seminars, group discussions, exhibitions, organizing spice clinics etc. Scientists of the institute serve as the resource personnel in seminars and planters’ meetings ● Training programs on production, protection and post-harvest technology & management of cardamom, vanilla and other important spices for farmers and entrepreneurs. ● Two months residential training programme on Good Agricultural Practices (GAP) for quality spice production for unemployed youth. ● Hands-on training programme on Bio-agent production (Trichoderma, Pseudomonas, EPN) for farmer groups and NGOs. ● Training to extension functionaries from the Development Department of Spices Board, State Agricultural Department etc. on latest technology/ developments. ● Mobile spice clinics and farmer scientist interface programs in different cardamom growing locations to address field level problems. SWOT Analysis of Spice Industry STRENGTHS ● It is one of the fastest growing industries. ● The exports of spices are increasing day by day. ● Easy availability of raw material. ● Less investment is required. ● Easily availability of manpower. ● No substitute available. WEAKNESS ● The products can’tbe stored for a long time. ● Environmental factors affect the raw materials and thus the final productmay be affected. ● Transportation costis higher as compared to other industries.
  • 27. 27 OPPORTUNITIES ● There is a vast market to capture. ● Good foreign demand for the product. ● The market of packed spices is increasing day by day. THREATS ● Loosespices in the market are a major threat to the industry. ● Stocking habits of consumers and not purchasing when needed also affect the sales. ● Cutthroat competition.
  • 28. 28 PEST ANALYSIS Political Legal Change in tax structure, policy matters have got a profound effect on this relatively undifferentiated industry. In the recent year's budget fm intended to levy excise in branded spices to the tune of 8%, though this proposal had been rolled back but such kind of taxes fosters the growth of loose market at the cost of branded market.government's strict regulation on quality entails the installation of costly machines, which in turn leads to increase in prices of branded product as a result of this the sale of loose spices increases, it must be noted that we are not criticizing quality policy of government but sale of low quality loose spices should be checked Policy of different mandis from which the material is procured changes from time to time, such a change affects the industry. The spice getting industry was formerly an SSI reserve, which also had its shares of effects in shaping the industry. The liberalization drive by the government will also affect the shape of the grinding industry as bigger players like HUL and Nirma are contemplating an entry in this market. Policy matters regarding this industry are bound to change the face of the spice grinding industry. As India is a member of WTO so it has the obligation of enforcing product patents by 2005 AD. This will affect many new phenomena emerging in this industry. Economic Factors The fate of the spice grinding industry to a large extent depends on the monsoon. A favorable monsoon leads to low prices as a result of which people opt for slightly better branded spices where’s if the prices are high loose is sold more because of its slightly lower prices.Any national or international level change in situation leads to speculation and widespread change in this industry.Export scenario also affects the domestic industry, if exports are high and profitable many big players focus more on exports and competition gets diluted back home where’s a decrease in exports leads to stiffer competition in domestic market Socio-cultural Factors
  • 29. 29 People are seeking quality products nowadays and this has led to a steady increase in the packed spice market. Increase in consumer attitude has led to increase in brand acceptance and brand awareness as people link it to quality and accountability. Such atrend is favorable to the packed spice industry. Housewives' drive towards convenience has also led to an increase in the packed spice business. A working housewife is not in a position to grind the spices as it takes time and so she seeks convenience. In today’s society as women are becoming more assertive and career oriented the future of packed spice business looks bright Technology Technology is supposed to be simpler in this industry but sticker PFA and Agmark norms and US, and other ISO requirements require more than the existing technology. Any other technology change keeping in line with ISO and U.S. requirements may be forced to change as almost all and those are involved in the export market with varying degrees of intensity. During conventional grinding process there is a considerable heat evolved which results in losses of volatile oil which adversely affect the yield and quality of the product. This was the reason whyRamdev and others came up with new technology with less heat involvement. This had a significant effect in shaping this industry.
  • 30. 30 Conclusion It can be concluded from the above decision, an attempt was made to present the importance of the study, various research studies conducted on export performance Indian spices across the world. Further, the finding of the study observed that the previous close linkage between commodity exports and balance of payments has been declining and the traditional role of commodity exports and the emerging unfavorable conditions, for the commodity exports of developing countries, have a mixed impact on their economies. Some of the developing countries are slowly shifting the exports of raw commodities to process and semi processed commodities and intermediate manufactured goods. The above discussion is that India is performing well as far as export of spices are concerned. It seems that various factors appear to play a large role determining the performance of exports. Still, it has the potential to perform better under such circumstances the GOVT should design supportive policies and development of strategies for spices export.
  • 31. 31 Recommendations OBJECTIVES OF INDIAN ORGANIC SPICES: ● To analyze and forecast the market size of India Organic Spices market. ● To classify and forecast India Organic Spices market based on product type, company, and regional distribution. ● To identify drivers and challenges for the India Organic Spices market. ● To examine competitive developments such as expansions, new product launches, mergers & acquisitions, etc., in the India Organic Spices market. ● To conduct pricing analysis for India Organic Spices market. ● To identify and analyze the profile of leading players operating in the India Organic Spices market. India Organic Spices market was valued at around $ 200 million in FY 2020 and is forecast to grow at a healthy CAGR (Compound Annual Growth Rate) of 11% over the next five years predominantly due to increasing awareness regarding the harmful effects of chemicals, pesticides and additives. Other aspects like the changing trends in food consumption and the popularity of ethnic and exotic food are expected to accelerate growth in the coming years. Moreover, increasing consumer preference for ready-to-use spices to save time while cooking without losing the taste is also expected to fuel demand for spices in powdered form. Growing value of authentic flavors with a fusion of ethnic flavors will remain a key driving factor for market growth over coming years. Along with adding authentic taste and flavor to food, spices also have specific health benefits which will fuel the market in the coming years. India organic spices market is segmented based on Type, By Form, By Distribution Channel, and By Region. Based on Type, the market is segmented into Basil, Garlic, Ginger, Turmeric, Cumin, Cinnamon, Chili, Clove, Cardamom, and Others. Among these, Turmeric held the largest share because of its anti-inflammatory, antibacterial, and antiseptic qualities and its use as a natural painkiller and healer. Also, it is believed to help in various health conditions including Alzheimer’s disease, cancer, and joint pains. Based on Form, the market is categorized into powdered form, whole form, minced form and others. Powdered form segment is expected to dominate the market during the forecast period as it is ready to cook and saves overall cooking time. Regionally, the country’s spices market is divided into North, East, South, and West. The western area dominated India's organic spice market in 2019 due to the large production of spices in Rajasthan and Gujarat.
  • 32. 32 Major players operating in India Organic Spices market include Geo Fresh Organic, Carmel Organics, Live Organics, PDS Organic Spices, Pro Nature Organic Foods Pvt Ltd, McCormick India, Earthen Delight Agro Products Pvt. Ltd, Simply Organic, West India Spices Inc., Star west Botanicals, The Spice Hunter, Yogi Botanicals, The Spice House, among others.
  • 33. 33 References ⮚ Morrissey and Filatotchev, Globalization and Trade; The Implications for exports From marginalized economies, Macmillan press Ltd., London.2001 ⮚ Mansoob, S.” does trade with the south disadvantage unskilled workers in the north “In gupta satya dev(ed.)’ The political Economy of globalization” Kulwer Academic publishers, Massachusetts, p.129.1997 ⮚ Dr. Kalpana Agrawal, Harshit Baranwal, Ishita Tandon , “A study on export potential of various spices from India”, Research Journal of commerce and Behavioral science, Vol.1, 09, pp.37-44. ⮚ Sajith Mohan., Sheena, S, Rajan., Unnikrishnan, G. “Marketing of Indian Spices as a Challenge in India”, International Journal of Business and Management Invention, Vol. 2, 2, pp. 26-31.
  • 34. 34 Bibliography ● https://indianspices.com/sites/default/files/exportsep2015.pdf ● https://indianspices.com/sites/default/files/cou172018123_new.pdf ● https://indianspices.com/major-projects-0.html ● https://indianspices.com/collaborative-projects.html ● https://www.indianspices.com/ ● https://commerce.gov.in/