Project

Export potential of spices from India to UK
CHAPTER 1
COUNTRY PROFILE
1.1 INDIA
HISTORY
POLITICAL OVERVIEW
ECONOMIC OVERVIEW
1.2 UK
HISTORY
POLITICAL OVERVIEW
ECONOMIC OVERVIEW

1
1.1 INDIA
HISTORY
The history of India begins with the Indus Valley Civiliation! which flourished in the
north"western part of the Indian subcontinent from ##$$ to 1%$$ &C' This &rone (ge
civiliation was followed by the Iron (ge Vedic period! which witnessed the rise of
ma)or *ingdoms *nown as the +aha)anapadas' In two of these! in the ,th century &C!
+ahavira and -autama &uddha were born'
It subse.uently became fragmented! with various parts ruled by numerous +iddle
*ingdoms for the next ten centuries' This period was *nown as the /-olden (ge of
India'/ 0uring the same time! and for several centuries afterwards! 1outhern India! under
the rule of the Chalu*yas! Cholas! 2allavas and 2andyas! experienced its own golden age!
during which 3induism and &uddhism spread to much of south"east (sia'
&eginning in the mid"14th century and over the next century! India was gradually
annexed by the &ritish East India Company' 0issatisfaction with Company rule led to the
5irst 6ar of Indian Independence! after which India was directly administered by the
&ritish Crown and witnessed a period of both rapid development of infrastructure and
economic decline'
0uring the first half of the 7$th century! a nationwide struggle for independence was
launched by the Indian 8ational Congress! and later )oined by the +uslim 9eague' The
subcontinent gained independence from -reat &ritain in 1:;%! after being partitioned into
the dominions of India and 2a*istan' 2a*istan<s eastern wing became the nation of
&angladesh in 1:%1'
Political ov!vi"
Locatio#$ 1outhern (sia! bordering the (rabian 1ea and the &ay of &engal!
between &erma and 2a*istan'
7
%o&!a'(ic co)o!*i#at+$ 7$$$8! %%$$ E
Ma' !,!#c$ (sia
Coa+tli#$ %$$$*m
Eco#o-. ov!vi"$

I#*ia (a+ /# o# o, t( /+t '!,o!-!+ i# t( "o!l* co#o-. i# !c#t .a!+0
/1t !a'i*l. !i+i#& i#,latio# a#* t( co-'l2iti+ o, !1##i#& t( "o!l*3+ /i&&+t
*-oc!ac. a! '!ovi#& c(all#&i#&.
India=s economy has been one of the stars of global economics in recent years! growing
:'7> in 7$$% and :',> in 7$$,' -rowth had been supported by mar*ets reforms! huge
inflows of 50I! rising foreign exchange reserves! both an IT and real estate boom! and a
flourishing capital mar*et'
India=s Economy has grown by more than :> for three years running! and has seen a
decade of %>? growth' This has reduced poverty by 1$>! but with ,$> of India=s 1'1
billion population living off agriculture and with droughts and floods increasing!
poverty alleviation is still a ma)or challenge
%DP$
2urchasing power parity"" @#'7,% trillion A7$$4 est'B @#'$,C trillion A7$$%B
Deal growth rate "" ,',> A7$$4 est'B
2er capitaE purchasing power parity""" @7!4$$ A7$$4 est'B
Co-'o+itio# /. +cto!$
#
(gricultureE 1%'7>
IndustryE 7:'1>
1ervicesE C#'%> A7$$4 est'B
I#,latio# !at$ ;'1>
I#*1+t!i+$ textiles! chemicals! food processing! steel! transportation e.uipment!
cement! mining! petroleum! machinery! software
A&!ic1lt1! '!o*1ctE Dice! wheat! oilseed! cotton! )ute! tea! sugarcane! potatoesF
onions! dairy products! sheep! goats! poultryF fish
E2'o!t+$ @1%C'% billion f'o'b' A7$$4 est'B
E2'o!t+ co--o*iti+$ petroleum products! textile goods! gems and )ewelry!
engineering goods! chemicals! leather manufactures
E2'o!t 'a!t#!$ U1 1C>! China 4'%>! U(E 4'%>! UK ;';>
I-'o!t+$ @74%'C billion f'o'b' A7$$4 est'B
I-'o!t co--o*iti+$ Crude oil and petroleum products! machinery! gems!
fertilier! chemicals'
I-'o!t+)'a!t#!$ China 1$',>! U1 %'4>! UK ,>! -ermany ;';>! 1ingapore ;';>
E2c(a#& !at$ 1U1@ G D1' 43.319
Fi+cal .a!$ 1
st
april"#1
st
march
1.2 UK
HISTORY
Hn 1 +ay 1%$%! the Kingdom of -reat &ritain was created by the political union of the
Kingdom of England and the Kingdom of 1cotland' This event was the result of the
Treaty of Union that was agreed on 77 Iuly 1%$,! and then ratified by both the 2arliament
of England and 2arliament of 1cotland each passing an (ct of Union in 1%$%' (lmost a
century later! the Kingdom of Ireland! already under English control by 1,:1! merged
with the Kingdom of -reat &ritain to form the United Kingdom with the passing of the
(ct of Union 14$$'
;
The immediate post"war years saw the establishment of the 6elfare 1tate! including
among the world<s first and most comprehensive public health services! while the
demands of a recovering economy brought people from all over the Commonwealth to
create a multiethnic &ritain' (lthough the new postwar limits of &ritain<s political role
were confirmed by the 1ue Crisis of 1:C,! the international spread of the English
language meant the continuing influence of its literature and culture! while from the
1:,$s its popular culture also found influence abroad'
The United Kingdom was one of the 17 founding members of the European Union at its
launch in 1::7 with the signing of the +aastricht Treaty' 2rior to that! it had been a
member of the EU<s forerunner! the European Economic Community AEECB! from 1:%#'
The attitude of the present 9abour government towards further integration with this
organisation is mixed! with the Hfficial Hpposition! the Conservative 2arty! favoring less
powers and competencies being transferred to the EU'
POLITICAL OVERVIEW
Hfficial nameE U#it* Ki#&*o- o, %!at 4!itai# a#* No!t(!# I!la#*
%o&!a'(.
A!a$ TotalE 7;;!47$ s. *m!landE 7;1!C:$ s. *m!waterE #!7#$ s. *m'
Ca'ital$ 9ondon
Po'1latio#$ 61,113,205
'
Cli-at$ temperateF moderated by prevailing southwest winds over the 8orth (tlantic
CurrentF more than one"half of the days are overcast'
La#&1a&+$ English! 6elsh Aabout 7,> of the population of 6alesB! 1cottish form of
-aelic Aabout ,$!$$$ in 1cotlandB
C
%ov!#-#t T.' $ 2arliamentary 0emocracy and constitutional monarchy
A*-i#i+t!ativ +1/*ivi+io#+$ EnglandE #; two"tier counties! #7 9ondon boroughs
and 1 City of 9ondon or -reater 9ondon! #, metropolitan counties! ;, unitary
authorities'
Eco#o-. Ov!vi"
%DP$ 7$$4E @7'7#1 trillion Aest'B
Mai# 2'o!t$ manufactured goods! fuels! chemicalsF food! beverages! tobacco
'
I#,latio# !at$ #'4$> p'a
T!a*$ Exports @;,4'% billion f'o'b' A7$$4 est'B
Ma5o! -a!6t+$ U1!-ermany!5rance!Ireland! 8etherlands! &elgium! 1pain! Italy'
I-'o!t+$ @,;C'% billion f'o'b' A7$$4 est'B
Mai# i-'o!t$ manufactured goods! machinery! fuelsF foodstuffs'

,

CHAPTER 7 2
SPICES
2.1 I#t!o*1ctio# o, +'ic+
2.2 Hi+to!. o, +'ic+
2.8 Ma5o! S'ic+ &!o"# i# I#*ia
2.9 S'ic+ &!o"i#& +tat+ i# I#*ia
2.: I#*ia# +'ic+ t!a** i# UK -a!6t
2.; Ma5o! /!a#* o, +'ic '!+#t i# /ot( -a!6t+
2.< I#*ia3+ +(a! i# "o!l* t!a* o, S'ic+ 2==<)=>
2.> S(a! o, +'ic+ i# /ot( -a!6t+
2.? I#*ia# t!a* +tati+tic
E2'o!t *ata o, I#*ia# +'ic+ i# la+t ,iv .a!
2.1= P!o*1ctio# o, +'ic+ i# I#*ia
2.11 E2'o!t o, +'ic+ to UK
%
2.1 I#t!o*1ctio# to +'ic+
India is *nown as the <T( (o- o, +'ic+@. There is no other country in the world that
produces as many *inds of spices as India' The climate of the country is suitable for
almost all spices' In India! spices are the important commercial crop from the point of
view of domestic consumption and export'
1pices constitute an important group of agricultural commodities which are virtually
indispensable in the culinary art' In India! spices are important commercial crops from
the point of view of both domestic consumption and export' &esides! huge .uantities of
spices are also being consumed within the country for flavouring foods and are also used
in medicine! pharmaceutical! perfumery! cosmetics and several other industries'
(ccording to the International Hrganiation 5or 1tandardiation AI1HBF The term
<spices and condiments< applies to such natural plant or vegetable products or mixtures
thereof! in whole or ground form! as are used for imparting flavour! aroma and pi.uancy
to and for seasoning of foods/'
There are over 4$ spices grown in different parts of the world and around C$ spices are
grown in India' The spices that India can offer in abundant .uantities are pepper!
ginger! turmeric! chilli! cardamom! celery! fenugree*! fennel! cumin! dill! coriander!
cinnamon! a)owan Abishop<s weedB! cassia! clove! nutmeg and mace'
+a)or spices of export are pepper! cumin! cardamom! ginger! turmeric and chillies' Hther
minor spices include a)owan! aniseed! celery seed! caraway! fennel! fenugree*! coriander!
garlic! onion! saffron! vanilla etc' (mong the spices exported! pepper has the leading
position in terms of both .uantity and value realised' The <(lleppey -reen< Cardamom is
considered the best grade available in the world'
4
(mong the spices exported pepper has the leading position in term of both .uantity
and value realied' The alleppey green cardamom is considered the best grade available
in the world'
2.2 Hi+to!. o, +'ic+

The history of Indian spices dates bac* to %$$$ year in the past' The fame of Indian
spices is older than the recorded history' It is believed that the 2arthian wars were being
fought by Dome largely to *eep open the trade route to India' It is also said that Indian
spices and her famed products were the main lure for crusades and expeditions to the
east' The people of those times used spices! as we do today! to enhance or vary the
flavor of their foods'
1pices have played a dramatic role in the development of western civiliation' 1pices
today are plentiful and are used mostly as flavorings' 3owever! in ancient and medieval
times! they were rare and precious products! used for medicine! perfume! incense! and
flavoring'
1pices have been the catalysts of some of the greatest adventures in the human history!
li*e Christopher Columbus! voyage' 1till today! spices empower us as explorers! even if
we never )ourney beyond the *itchen counter' They energie our daily adventure in
food and remind us of )ourney to toxic places and favorite meals with loved ones'

Than*s to the vogue of international travel! we can engage in our own spice con.uest
now' 6e can stroll through mar*et stalls around the world spices! perfumes! and exotic
plants and flowers enchant the sense' (nd when we ta*e these scents and tastes of far"
reaching places bac* to our home! we are again compelled to discover the allure of the
un*nown'
:
2.8 Ma5o! S'ic+ &!o"# i# I#*ia
(safoeti
( popular spice in foods and medicines
Cardamom
The Jueen of all spices
Chilli
-rown throughout the country and is used in almost all dishes'
Cinnamon
It is the dried bar* of an evergreen busy tree'
Cumin
It has a particular value in the blending of Indian curry powder'
5ennel
The dried ripe fruit of a perennial aromatic herbaceous plant'
-inger
( ma)or crop cultivated in India mar*eted as fresh and dried spice'
+ustard
It is used for its appetising flavour and preservative value
2arsley
Hne of the best *nown and used in culinary spices
2omegranate
It is endowed with excellent medicinal properties'
Turmeric
The spice is .uite popular in foreign countries'
&ishops 6eed
( native Indian plant is an aromatic spice'
Cassia
The dried hus* of a small! bushy evergreen tree
Clove
Hne of the oldest spices in the world'
Coriander
The fragrant spice has its own medicinal properties'
5enugree*
The ripe! dried fruit of an annual leguminous herb'
-arlic
It has an attractive flavour and ac*nowledged medicinal value'
1$
+int
+int is the erec plant with dar* green leaves with pleasant flavour
Hnion
Hne of the oldest spices *nown to human race'
2epper
The *ing of all spices and best *nown in the world
Dosemary
The spice is .uite popular in foreign countries'
Vanilla
Vanilla is a seed pod of a tropical climbing orchid'
2.8 S'ic+ &!o"i#& +tat+ i# I#*ia
1tates 1pices
(ndhra 2radesh Chilli! ginger! turmeric
(runachal 2radesh -inger! te)pat! turmeric
(ssam (niseed! turmeric
&ihar (v)oin! garlic! turmeric
-u)arat Chilli! cumin! dilseed! fennel! garlic
3aryana -arlic
3imachal 2radesh -inger
Iammu K Kashmir (v)oin! saffron! cardamom! chilli! garlic!
clove! ginger! pepper! turmeric! vanilla
Karnata*a Cardamom! clove! ginger! pepper! pepper!
cinnamon K cassica! mace
Kerala Turmeric! vanilla
+adhya 2radesh Chilli! garlic! ginger
+aharastra Turmeric! chilli! garlic! pomegrated seed
11
+eghalaya -inger! turmeric
+ioram -inger
Hrissa Chilli! garlic! ginger! turmeric
2un)ab (niseed! celery
Da)asthan Chilli! cumin! coriander! dilseed! garlic!
fennel
1i**im Cardamom! ginger! te)pat
Tamil 8adu Turmeric! vanilla
Tripura Turmeric! aniseed! celery! chilli! cumin!
fennel! garlic
Uttar 2radesh Turmeric
6est &engal Cardamom! chilli! ginger! turmeric
2.: I#*ia# +'ic+ t!a** i# UK -a!6t
Ca'+ic1-
8ame Capsicum
&otanical name Capsicum annum! Capsicum 5rutescence
1ource of supply Karnata*a! Da)asthan
5orm of use 5resh vegetable! whole dried spice! ground powder!
oleoresin! tincture'
17
(pplication Used in coo*ing and the flavorings industry
chilli oleoresin are used in burn creams'

P''!

8ame 2epper
&otanical name 2iper nigrum! 2iper longum
1ource of supply Karnata*a! IKK
5orm of use 6hole dried corns! ground! essential oil! oleoresin'
(pplication &lac* pepper is used in coo*ing and industrial flavorings!
long pepper in traditional medicine'
Sa,,!o#
8ame 1affron
&otanical name Crocus 1ativa
1ource of supply IKK
1#
5orm of use 0ried stamens! extract'
(pplication 1affron is a costly flavorings and food colorant and
Is used ayurvedic medicine'
T1!-!ic
8ame Turmeric
&otanical name Curcuma 9onga
1ource of supply 6est &engal! Uttar 2radesh! and +eghalya'
5orm of use 0ried whole rhiome! fingers! oleoresin! spray"dried
extract'
(pplication ( spice used as a domestic and industrial floavourant
and coloring' Cur cumin powder is also used in
ayurvedic +edicine'
Va#illa
8ame Vanilla
&otanical name Vanilla 2lanifolia
1ource of supply Tamil 8adu! *erala! IKK
1;
5orm of use Cured whole bean! chopped bean! extract! tincture'
(pplication 0omestic and industrial flavorings! particularly in
the dairy and confectionary industry'

2.; Ma5o! /!a#* o, +'ic+ '!+#t i# /ot(
Ma!6t
MDH

+03 is the number one brand in Indian spices having won a huge number of
international awards worlds over'

The blend of various spices has been a traditional secret transferred from generation to
generation'
It all began way bac* in the year 1:1:! with a humble beginning! as a modest 1pice
manufacturer and trader' Through these glorious seven and a half decades! +03 has
1C
witnessed a growth which is both phenomenal and remar*able' +03 has not only
pioneered the mar*eting of powdered spices in handy attractive consumer pac*s! but has
also established as the leader by his own right and trustworthy processor of 2ure K 3igh
.uality mixed blended 1pices and condiments'
Keeping in pace with the modern times! +03 has been constantly been updating and
moderniing its units! by evolving blended spices and condiments powders for
preparation of popular and exclusive dishes for specific cuisines! which India is famous
for'
+03 stands a class apart! being India<s leading manufacturer of blended spices! through
fully automated plants located at 8ew 0elhi! 3aryana and Da)asthan'
+03 has always believed that .uality comes first before anything else'
&ecause of its commitment to .uality! +03 has the distinction of being co"opted as a
member of various committees of the bureau of Indian 1tandards! which is a nodal
agency! responsible for Indian spices and condiments and their blends within and outside
India'
The demand for +03 spices is increasing rapidly in the Exports horion' (part form the
millions of Indian families abroad! even foreigners! who are always .uality K 3ealth
conscious have reposed their faith in +03 1pices' Thus! the Export performance has
risen tremendously'
EVEREST
EVEDE1T +(1(9( is the leading brand among blended spices in India with an
exciting range of 1% perfect blends including the most popular -aram +asala! 2avbha)i
and Chhole +asala'
1,

(s popular Indian cuisine is increasingly becoming the rage of overseas palates!
EVEDE1T +asala is now available in countries as far flung as the UK! U1(! +iddle
East! (ustralia! Canada and 1outh East (sia' EVEDE1T is also one of the ma)or Indian
spices brand'
2roduct detail

FLAVOURIT
The 59(VHUDIT brands of spices are .uality assured by the spice board and
mar*eted by the 1TC9 will be distributed in the state of Karnata*a! *erala! Tamil
8adu and +aharashtra by nest condiments! which already bagged the deal from
spices board to mar*et the brand in UK! Iapan! (ustralia! and +iddle East
countries'
1%

T3E demand for L5lavourit< brand of spices launched by the 1pices &oard in +arch
last is slowly pic*ing up with the sales crossing Ds # la*h as on +ay 7$' Total sales
during the year are expected to cross Ds 1$ la*h'
+oisture content would not exceed #4 per cent and vanillin content not less than 1'%C
per cent' The idea behind this venture is also aimed at establishing the identity of the
once popular Indian spice grades such as T-E& pepper and (lleppy green extra bold
A(-E&B cardamom'

2.< I#*ia3+ +(a! i# "o!l* t!a* o, S'ic+ 2==<)=>
6ith the support of the 1pices &oard! exporters have established ade.uate infrastructure
for improving .uality on a sustained basis' Juality improvement and technological up
gradation are ta*en up by exporters as an on"going programme' These developments are
in tune with the changing levels of mar*et acceptance' Hther areas focused upon by the
&oard are export promotion in identified mar*ets! interaction with policy ma*ers in the
importing countries! development of new end uses! farm level training for farmers etc'
I#*ia+@+ +(a! i# "o!l* t!a* o, +'ic+ 2==<)=>
14
2.> Ma!6t +(a! o, +'ic+ i# /ot( t( -a!6t
0omestic and industrial consumption of spices has steadily increased around the world
during the past few decades due to changing lifestyles affecting traditional eating
patterns! greater consumption of processed and convenience foods! and a return to
healthier eating habits in developed countries' 6orldwide! demand for reliable supplies
of .uality material from sustainable production system has conse.uently increased! and is
expected to continue increasing in the foreseeable future'
Consumption of spices in UK has increased in line with global trend and this is expected
to continue' UK is a net importer of dried spices! producing fewer than 1$> of its
re.uirements! but the import data collected by UK customs do not differentiate the
product sufficiently! and hence are of no real value to growers' Hpportunities therefore
exist to provide material both for import replacement in the domestic mar*et! and export
sales' The ma)ority of spices consumed within UK are produced domestically'
6ith a relatively clean environment! ready availability of suitable land in a range of
climatic ones! extensive agriculture and technical expertise! and a history of mechanied
production! UK growers can produce spices crops of the highest .uality! and conceivably
increase their global mar*et share' (dditionally! crops can be produced here in the
northern hemisphere off season! when overseas buyer are see*ing product'
The domestic mar*et is still immature and many growers are currently experiencing
difficulties in realiing anticipated returns' 9arge export mar*ets exist but the volume of
production in UK is relatively small' The individualistic nature of UK growers tending to
1:
compete with one another rather than co"operating to increase the pool of product
available for these export mar*ets! holds the industry bac*' The challenge for UK
producers are to meet the larger contracts! providing high .uality product at reasonable
cost to the buyer! while continuing to maintain themselves in a sustainable production
system'

2.? I#*ia# T!a* Stati+tic
Value in U1@ million
7$$7"$# 7$$#"$; 7$$;"$C 7$$C"$, 7$$,"$% 7$$%"$4M
Export to UK C$;'1
4
C4;'7: %7$'7C 471'7# :7;'$C ;$7',,
Import from UK 1##,'%
:
7,;:'77 #47;'C# ;:;%'71 %$$7'C# ;C4,'41
Total export of India 7!%1:';# ,#!4;7'CC 4#!C#C':; 1$#!$:$'C; 17,!7,7',
4
#C!$C1'#,
Total import of India ,1!;17'1
#
%4!1;:'11 111!C1%';; 1;:!1,C'%# 14C!,$;'1
$
C,!C#C';$
Exchange rateE A1U1@
G Ds'B
;4';:#C ;C':C1, ;;':#1C ;;'7%#C ;C'74;: ;1'7#;;

E2'o!t o, +'ic+ i# I#*ia i# la+t ,iv .a!+ i# t( "o!l*
Near JuantityAtonesB Value AcroreB ValueAU1@ millionB
7$$#"$; 7C;#4# 1:11',$ ;1,'C,
7$
7$$;"$C ##C;44 77$$'$$ ;:$',$
7$$C"$, #7$C7% 77:C'7C C1%'$$
7$$,"$% #%#%C$ #C%C'%C %7:':C
7$$%"$4M #%%$$$ #%4C';$ :;$';%
A 0ata for the year 7$$%"$4 is from (pril to 8ov'
1ourceE 0-CIK1
2.1= P!o*1ctio# o, +'ic+ i# I#*ia
7$$,"$% 7$$%"$4A(pr"IanB
2roduct 2roductionAtonesB ValueAcroreB 2roductionAtonesB ValueAcroreB
2epper 7;1,$ 7C$'7; #1%C$ ;,,'#4
Coriander 1%4:$ ,C'#C 77%C$ :;'#7
1pice oil K
oleoresins
C,CC ;,7'1% C%,$ ;:$'%1
Chilli 17###$ ,,4';; 1,:$$$ :$,';;
Turmeric C;41,';1 1%7'%; 1C#%7 ;,'#$
+int 2roduct 1C$7$ 1$1,'#C 1%C$$ 1$%,'#4
1ourceE www'commerce'nic'in
71
2.11 E2'o!t o, +'ic+ to UK
7$$,"$% 7$$%"$4 A(pr"IanB M
2roduct 2roductionAtonesB ValueAcroreB 2roductionAtonesB ValueAcroreB
Vanilla #,C':% 7:'$: ;77'$1 #;':4
Turmeric C,%'4: ;C':, C:4'$4 ;4'%#
2epper 7#:'$% #7',% #71'$# ;1'$%
1affron 4%'$1 17'#; ,;'$: 4'1#
Capsicum 1%4':4 17':% 144'C; 1;'#7
Coriander 71,'$$ :4'4# 77C'47 177'#7
-arlic 1$'#C ,':: 7'7: 7'%$
+int
product
1;'71 111':1 1$'77 %,',$
Cumin 7$7'%4 14%'1$ 1C1'C1 1#4',%
5ennel C1',% #%';; ,,'#% ,$':$
1HUDCEE 0-CIK1'! C(9CUTT(O1'&I99OEP2HDTED1 DETUD81

77
CHAPTER 8
SPICE 4OARD OF INDIA
8.1 T( /ac6&!o1#* o, /oa!*
8.2 T( activiti+ o, /oa!*
8.8 A++ociatio# "it( i#t!#atio#al a&#ci+
8.9 Ma5o! +t!at&i+ ,o! B1alit. i-'!ov-#t
8.: 4oa!* i#itiativ ,o! 2'o!t *vlo'-#t C '!o-otio# o, S'ic+
8.; T!#* i# I#*ia3+ +'ic 2'o!t
7#

S'ic 4oa!* o, I#*ia
8.1 T( 4ac6&!o1#*
6ithin the past one decade the international trade in spices has grown by leaps and
bounds' (n estimated C$$!$$$ tones of spices and herbs valued at 1C$$ million U1
dollars are now imported globally every year' (n impressive ;,> of this supply comes
from India' India<s exports of spice extracts have shown spectacular growth attaining over
C$ percent of the global mar*et within a short span'
The Indian export of spices has crossed the 4C$ million U1 dollar mar* during 7$$%"$4
and has reached 4%, million U1 dollar' This remar*able achievement is born of a sea
change in the industry scenario' 5rom traditional commodity exports! Indian 1pices have
evolved into a state"of"the"art industry' (bsorbing technology! broad basing its products
range! developing value added products! identifying niche mar*ets! forging strategic
alliances clinching global collaborations and )oint ventures'
The 1pices &oard India A+inistry of Commerce! -overnment of IndiaB is the apex body
for the export promotion of Indian 1pices' Established in 1:4%! the &oard is the catalyst
of these dramatic transitions' The &oard has been with the Indian 1pice industry every
step of the way' The &oard plays a far reaching and influential role as a developmental!
regulatory and promotional agency for Indian 1pices'
7;
8.2 T( activiti+
The &oard is a lin* between the Indian exporters and the importers abroad'
Its broad"based activities includeE
5ormulation and implementation of .uality improvement systems'
Desearch and development programmes'
Education and training of farmers! processors! pac*ers and exporters on post
harvest handling and registration and licensing of traders and exporters'
It acts as a data ban* and communication channel for importers and exporters and
promotes Indian 1pices abroad'
8.8 4oa!* (a+ clo+ a++ociatio# "it( i#t!#atio#al a&#ci+ li6$
1' International Trade Centre AITCB -eneva'
7' United 8ations 0evelopment 2rogrammes AU802B'
#' International 2epper Community AI2CB Ia*arta'
;' European 1pice (ssociation AE1(B'
C' (ll 8ippon 1pice (ssociation A(81(B Iapan'
,' 5ood and (gricultural Hrganiation A5(HB'
8.9 S'ic+ 4oa!* (a+ a*o't* t"o -a5o! +t!at&i+ ,o! B1alit.
i-'!ov-#t.
Introduction of the Indian 1pices 9ogo
The 1pice 3ouse Certificate'
8.: 4oa!*3+ i#itiativ+ ,o! 2'o!t *vlo'-#t C '!o-otio# o, S'ic+
1pices exports have registered substantial growth during the last one decade' It has
increased from 1$:,#, tones valued U1@ 1#C million in 1::$":1 to 7#C,11 tones valued
U1@ ;%7 million in 1:::"7$$$' 0uring the year 7$$%"$4! the spices export .uantity has
touched an all"time high of #%%!$$$ tones' 3owever! the export value has reached to
:7%';C U1 @ million' The decline was due to low volume of pepper exports coupled with
7C
low unit value realiation' 1till India commands a formidable position in the 6orld 1pice
Trade with ;;> share in Volume and #C> in Value'
(ward of 1pice 3ouse Certificate for good manufacturing practices! award of 9ogo for
.uality of the product and accreditation under I1H :$$$ for international acceptance are
the three certification systems adopted by the &oard' Net another area of activity centered
upon by the &oard is Value (ddition' India can now boast as the monopoly supplier of
spice oils and oleoresins the world over' In the case of curry powders! spice powders!
spice mixtures and spices in consumer pac*s! India is in a formidable position' The
consistent effort of the &oard during the last one decade has improved the share of the
value added products in the export bas*et to C:>'
6ith the support of the 1pices &oard! exporters have established ade.uate infrastructure
for improving .uality on a sustained basis' Juality improvement and technological up
gradation are ta*en up by exporters as an on"going programme' These developments are
in tune with the changing levels of mar*et acceptance' Hther areas focused upon by the
&oard are export promotion in identified mar*ets! interaction with policy ma*ers in the
importing countries! development of new end uses! farm level training for farmers etc'
EDPORT DEVELOPMENT C PROMOTION OF SPICES 7
EP!o-otio# o, I#*ia# S'ic 4!a#*+ A/!oa*F
%1i*li#+ G "o!6i#& '!oc*1!
To assist exporters in penetrating the developed mar*ets through launchingOpromoting
own brands or buying out existing brands' The scheme aims to promote Indian 1pice
&rands in new! sophisticated and affluent segments in foreign mar*ets! targeted beyond
the ethnic Indian population in European countries' There are two activities assisted
under the scheme vi'! Q1R 2roduct and 2ac*aging 0evelopment and &ar Coding Q7R
&rand 2romotion'
7,
1. P!o*1ct a#* Pac6a&i#& Dvlo'-#t a#* 4a! Co*i#&$
Effective brand promotion programmes for identified products and its pac*ing! which
involves high cost of development! are supported' U nder this activity the assistance will
be given for developing appropriate product! pac*aging and compliance with other
statutory re.uirements in force in the target mar*et including traceability details and &ar
Coding' 1imilarly the &oard provides assistance to exporters to develop products to
promote different valuesOapplications of spices' &oard will also provide assistance to the
exporters to buy out existing foreign brand to capture that mar*et and expand the range of
Indian products through this brand'
2. 4!a#* P!o-otio#$
Under this component! positioning of specified brands in the identified outlets in selected
cities as well as necessary promotional measures for brand building such as +edia
promotion! 2romotional trips abroad participation in international fairs etc'! are
considered for financial assistance' The &oard will underta*e the re.uired mar*et studies
and mar*eting strategy development for promoting branded products and it will be
disseminated to the exporters for mar*et penetration'
Eli&i/ilit.$
(ll registered exporters of spices who have registered their brands with the &oard!
13CO9ogo holders and holders of organic certification are eligible to avail the benefits
under the scheme' (n expert committee constituted by the 1pices &oard will evaluate the
proposal and approve' The facility will cover spices in all forms exported in institutional
pac*s upto 7C *gs and consumer pac*s of spices in all form including curry powders and
mixed ground spices upto C *gs will be .ualified for availing the assistance'
Scal o, A++i+ta#c$
Interest free loan upto 1$$> for slottingOlisting fee and promotional measures and C$> of
the cost of product development! sub)ect to a maximum of Ds'7'C$ crores per brand and
Ds'C'$$ crores where brand buyout is involved for AaB 2roduct and 2ac*aging
0evelopment and &ar Coding and AbB &rand 2romotion will be considered per exporter
during the PI plan period' 5or underta*ing the brand promotion and other related
7%
campaign the exporter has to meet the entire foreign exchange re.uirement' This
assistance is restricted to the first three years of promoting the brand'
Mo* o, O'!atio#$
Hn the basis of the mar*et study! an appropriate mar*eting strategy will be evolved and
implemented by the exporter in consultation with the &oard' &ased on the mar*et study
conducted and indications about sufficient potential! prospective exporterO exporters
willing to ta*e part in the scheme will be identified' 6hen the loan is approved the &oard
will provide the funds to the exporters for meeting their estimated annual expenditure for
brand promotion in accordance with the programmes approved by the &oard and in the
manner stipulated' The exporter who has availed the loan should submit half yearly
progress report to the &oard' This would be reviewed by a committee constituted by the
&oard for the purpose'
The repayment of loan shall be in e.ual annual installments commencing from the ;T3
year and end in the 4th year from the date of receipt of the fund by the applicant exporter'
1pices &oard will periodically review the progress of implementation of the schemeF
expenditure! export growth etc and continuation of the assistance will depend largely
based onE
iB Jualitative analysis of the brand acceptance in the mar*et
iiB 1tability and reach of the brand in the mar*et
iiiB -rowth and competence of the brand
ivB Export growth in real terms'
(n exporter can avail the assistance under the scheme for promoting the given brand in a
maximum of C countries in the PI plan period' (t the end of the third year! a detailed
review will be made by the &oard to determine the impact and need for continuation of
assistance! if re.uired! from the fund for a further period
S1/-i++io# o, '!o'o+al+$
The exporter who desires to avail of the assistance under this component has to submit an
application in the prescribed format along with copies of detailed proposal covering
details of the mar*et promotion to be underta*en with cost brea* up in each segment
separately'
74
Co#*itio#+$
aB Total approved amount for the programme will be released in three e.ual installments
at the beginning of each year'
bB &efore the release of the loan! the applicant has to provide a ban* guarantee in the
prescribed format for an amount e.uivalent to the loan sanctioned on a stamp paper' This
guarantee is to be renewed well before the date of expiry' The guarantee also needs to be
enhanced as and when further installments of loan are sanctionedOreleased and an
amended agreement on stamp paper should also be executed to the &oard'
cB &y the end of every six months the loanee has to give a detailed report of the activities
underta*en along with a progress report and an expenditure statement that the loan has
been fully utilied for the sanctioned purpose should be submitted at the end of the each
year'
dB 1upporting documentary evidence for the expenditure incurredOcommitted has to be
produced'
eB (n export obligation of C times of the loans availed over a period of 4 years from the
drawl of the 1st installment of loan'
fB In the event of any misuse of funds from the loan amount the exporter has to refund the
entire loan together with existing rate ban* interest plus 7 > period interest thereon
immediately to the &oard'
gB In the event of default in repayment! the &oard reserves the right to invo*e the ban*
guarantee executed by the loanee and recover the loan amount'
hB The loan shall be paid in Indian currency only'
iB In the case of any dispute! the decision of the committee shall be the final'
7:
8.;T!#* i# I#*ia@+ +'ic 2'o!t

1ourceE 0ata collected from economictimes'com
So1!c$ Data collct* ,!o- """.co#o-icti-+.co-
#$
0
500
1000
1500
2000
2500
3000
3500
4000
2003-04 2004-05 2005-06 2006-07 2007-08*
Quantity in '0 MT Value in crore
CHAPTER 9
4ILATERAL TRADE RELATION WITH UK
9.1 TRADE
9.2 INDIAN IN THE UK
9.8 OPPORTUNITIES
9.9 4ILATERAL A%REEMENTS 4ETWEEN INDIA AND UK
9.: TRADE AND INVESTMENT WITH UK
#1
9.1 T!a*
UK! which remained at second position in India<s leading trade partner till 7$$7! has
become India<s fifth leading partner last year' Countries li*e china! U(E and &elgium
have ta*en 7nd! #rd and ;th position resp'
India exports to UK are textiles and readymade garments! gems and )ewellery! footwear!
leather and leather goods! engineering goods! metal manufactures! power generating
e.uipment! software services! pharmaceuticals! chemicals! marine products! rice! tea and
other agricultural products li*e nuts and preserved fruits and vegetables'
India<s imports from the UK includeE non"ferrous metals! gold! rough diamonds! power
generating and telecom e.uipment! transport e.uipment! industrial machinery and
chemicals' 9oo*ing from UK<s perspective! India was UK<s 1Cth largest export mar*et!
and the UK<s largest exporting mar*et in the developing world Aahead of ChinaB' (mong
the countries where bul* of UK<s import come from! partners! India is the 7Cth largest
exporter to the UK'
UK@+ T!a* "it( I#*ia H2==<I
HI# J -illio#I
Total 2==1 2==2 2==8 2==9 2==: 2==;
2==<
HKa#.)
A1&.I
E2'o!t+
o, &oo*+
1%%7 1%CC 774; 77#C
7%:4 7,:C 1:$$
I-'o!t+
o, &oo*+
141, 14$; 7$:# 77:$
7%4# #1#, 7C$7
Total
T!a* i#
%oo*+
#C44 #CC: ;#%% ;C7C
CC41 C4#1 ;;$7

So1!c$ DTI Eco#o-ic+ C Stati+tic+ Di!cto!at0 UK
#7
9.2 I#*ia i# t( UK
5igures for the last 5N 7$$%"$4 showE %C inward investment pro)ects from India' A8o' of
pro)ects up by 4>'B
1' 7$$%"$4 saw India retain its position as one of the world=s fastest"growing sources of
investment into the UK! especially in IT and life science'
7' Indians secured 7$! $$$ )obs in the UK last year! which is the 7nd highest number of
)obs! secured by a foreign employer in the UK' AThis includes Tata<s S1'1Cbn ac.uisition
of IaguarO9and Dover last year secured 1;!$$$ )obs'B
#' Indian investment in the UK continues to grow across all sectors' +K( is the
preferred method of investment for the ma)ority of inward investors to the UK' 6e
anticipate that with the cash rich Indian investors wanting to get to the heart of business
.uic*ly! UK will see more +K(<s in future years'
;' The UK is the most preferred nation for investments by India Inc' in 7$$4 so far!
accounting deals worth @, billion' Atill (ug=$4B'
C' 5orce India AIndia=s formula one teamB is based in the UK' AM8oteE : out of the 17
5ormula one teams are based in the UK'B
,' 9ondon 1toc* Exchange hosts C7 Indian companies! with a combined Mmar*et cap of
S: billion' Indian firms have raised a total of S# billion through listings on the exchange'
AM+ar*et cap G aggregate value of a company HD the sum derived from the current stoc*
##
price per shareB
%' India is the fastest growing source of Inward Investment 2ro)ects from (sia into the
UK'
4' Tata=s @ : bn ac.uisition of Corus in 7$$,"$% has made Tata 1teel one of the world<s
top five steel ma*ers'
:' The main factors for increasing Indian 50I into the UK are tax and s*ills base' QThe
UK has the lowest main Corporation Tax rate A74>B in the - %'R
1$' Indian companies have also been going offshore to fund their expansions! particularly
with capital which has until recently been cheap' The UK is the destination of choice T as
both the leading global financial services centre and the single most internationally
focused financial mar*etplace in the world'
M1ourceE UKTI Inward Investment report 7$$%"$4
+ore examples Osuccess stories of Indian Cos' in the UKE
E#&i#!i#&$
U &angalore"based 0ynamatic Technologies is the largest producer of hydraulic gear
pumps in (sia and one of the top five worldwide' In Iune 7$$%! it ac.uired the assets of
the 1auer"0anfoss operation based in 1windon! where the main focus is the manufacture
of gear pumps! valves and integrated hydraulic pac*ages' 6ith a strong emphasis on
DK0! this was seen as an excellent opportunity for the business to grow in the
UKOEuropean mar*et'
U (mte* too* over the Triplex"Ketlon -roup in 7$$%"$4'
U &harat 5orge ac.uired a forging plant in 0oncaster in 7$$%"$4'
4iotc( a#* '(a!-a$
U (lmost all the ma)or India &iotech and 2harma companies such as Hrchid! 1hasun
#;
Chemicals! 0abur! 0D9! Danbaxy! 8icolas 2iramal! &iocon! (urobindo pharma have set
up base in the UK for activities ranging from manufacturing to mar*eting'
Fi#a#cial +!vic+$
U Deligare Capital +ar*ets< ac.uired bro*ing firm 3ichens 3arrison K Co' 2lc' for S C$
million'
U +a)or Indian ban*s! including 1tate &an* of India! ICICI &an*! &an* of &aroda and
2un)ab 8ational &an* have a presence in 9ondon' (mong Indian insurance cos'! 8ew
India (ssurance and the country=s official reinsurer! -IC are present in the UK'
ICT$
U (ll ma)or Indian IT players " TC1! Infosys! 3C9 and 6ipro have their presence in the
UK'
L&al +!vic+$
U India=s largest law firm 5ox+andal 9ittle has opened its office in 9ondon recently' The
office will practise Indian law only! focusing on attracting EU"based clients see*ing to
invest in India'
9.8 O''o!t1#iti+
2otential for Indo"UK cooperation exists in information technology! biotechnology both
plant and human! drugs and pharmaceuticals! infrastructure development including roads!
ports! airports and railways! power sector! mining! oil and natural including 98-! water
management! soil conservation and waste disposal! food processing and agribusiness!
film and television! processing of gems and )ewellery! tourism! and education'
9.9 4ilat!al a&!-#t+ /t"# I#*ia a#* UK
UK is India=s largest trading partner in Europe with ,'; percent mar*et share' The India"
UK bilateral trade in the first 4 months of 7$$% was up 1#'7 percent over the comparable
period of 7$$,' The total bilateral trade in goods has grown from S#'C4 billion in 7$$1 to
SC'4# bn in 7$$, with UK being the second largest importer of Indian goods after U1'
The total trade in goods and services in last five years A7$$7"7$$,B grew $ver %C percent
to S 4'%; bn in 7$$C from S ;':: bn in 7$$7' 6ith the presence of more than #C$ Indian
#C
companies! India is the eighth largest investor in the UK in terms of number of pro)ects'
Hf this! 7%C firms are from Information and Communications Technology' UK ran*s
third in terms of foreign investments in India after +auritius and the U1'
India has one of t( ,a+t+t &!o"i#& co#o-i+ i# t( "o!l*' The Indian mar*et
provides opportunities for UK companies goods and services' India is the UK<s 1Cth
largest export mar*et' In 7$$#! UKGI#*ia /ilat!al t!a* "a+ "o!t( a!o1#* J:.>
/illio#. The volume of bilateral trade in goods between India and the UK in 7$$; was
S;'C billion' UK Trade K Investment 7$$CO, business plan for India has identified 1,
proactive sectors where we believe there are real opportunities for UK companies to
increase their profitability and international competitiveness'
%lo/al 'a!t#!+ a#* t( P!i- Mi#i+t!3+ I#itiativ+
&ritain and India share a global vision and democratic values' UK and India both play a
proactive role in international affairs' &oth have a strong interest in success of
multilateralism' &oth play vital roles in the U8! 6TH! Commonwealth and range of
other bodies'
P!i- Mi#i+t!+3 I#itiativ
(s the 2+s agreed in 1eptember 7$$C! the bilateral relationship has never been better'
Hur coToperation is underpinned by then 2rime +inisters= Initiative signed on 7$
1eptember 7$$;! setting out a new strategic partnership between the UK and India'
The Initiative identifies *ey areas for co"operationE
1' 5oreign and 0efence 2olicy including the fight against the proliferation of weapons of
mass destruction'
7' 3ome (ffairs issues! such as combating illegal immigration and building on our
excellent cooperation on counter"terrorism'
#' Economic and trade issues! both developing bilateral trade and wor*ing together on
international issues'
;' 1cience and technology! by tapping the rich vein of innovative talent we both share'
C' 1ustainable 0evelopment! as we help to solve the world<s environmental problems'
,' Expanding on our flourishing educational and cultural lin*s'
#,
9.: T!a* C I#v+t-#t "it( UK
T"o)"a. t!a* o, &oo*+ a#* +!vic+ between India and the UK (a+ *o1/l* +i#c
1??8L Hver 7;;% new Indo"&ritish )oint ventures have been approved by the -overnment
of India since (ug 1::1' 5or the period (ugust 1::1 to Iuly 7$$,! the number of
technical collaborations approved from UK stands at 4C1! which is 1$'4:> of the total
technology transfer approvals'
Total t"o)"a. t!a* Agoods and servicesB &!" /. a/o1t 2=M i# 2==: Ato S %': bnB'
UK exports to India grew by 71'#> in 7$$C Agoods up by 7C'#>F services up by 17'#>B'
The UK is India=s fifth largest trading partner after the U1( A1$',#>B! China A,'::>B!
United (rab Emirates AC'1#>B and -ermany A#'41>B! and accounted for #'C,> of
India=s total foreign trade in goods in 5N7$$CO$,'
UK has the third largest share of new investment approved since 1::1 till +arch 7$$,
A1$'$; >B! well ahead of -ermany A#'%4>B! Iapan A;',%>B and 5rance A7'C:>B'
UK has the fifth largest share of new investments implemented since 1::1 till Hctober
7$$, AC';#> cumulative shareB! behind +auritius A;1'$:>B U1( A1#':;>B! Iapan AC',>B
and 8etherlands A,'7;>B' In addition! there is also significantly (i&( !i#v+t-#t /.
UK co-'a#i+ already established in India! which is not included in the new investment
figures'
I#*ia# i#v+t-#t+ i#to t( UK i#c!a+* /. a +ta&&!i#& 11=M in 7$$C"$, recording
a total of %, investment pro)ects from India creating 1;;: )obs' IT +cto! *o-i#at*
with 7, pro)ects followed by pharmaceuticals A17 pro)ectsB' India now ran*s third among
foreign investors in the UK globally Awith an investment of S 1'$7 bnB and the second
largest from (sia 2acific region behind only the U1( and Iapan'
The UK imported S#'$Cbn of goods and services from India' In 7$$C the UK imported
S#':bn of goods and services from India' In the last few years! UK i-'o!t+ ,!o- I#*ia
have increased substantially'
#%
CHAPTER :
SWOT ANALYSIS
#4
1trength
1' 5avorable climatic condition'
7' 3aving large area for production'
#' Emerging mar*ets li*e Europe and other developed countries'
;' 9arge numbers of exporters are involved in export of spices
6ea*ness
1' Juality is not as per the international standards
7' Use of more chemical
ExampleE UK denied importing chilli powder from India few years ago'
#' 9ac* of s*illed entrepreneurs'
Hpportunities
1' India can be the largest exporter in the world as this time it captures the ma)or
international +ar*et share'
7' (s the increase of its consumption in developed country there can be export at a large
.uantity'
#:
Threat
1' 0ue to not having the standard .uality of spices India may lose its grip in International
+ar*et'
7' The ma)or competitors li*e 1ri 9an*a! &angladesh! and 2a*istan etc are also growing
at good pace'
#' Hther countries having good technical aspect for its production'
;$
CHAPTER ;
COMPARATIVE TRADE ANALYSIS
;1
Co-'a!ativ t!a* a#al.+i+

The year 7$$% saw spices board turning out yet another pea* performance when the
spices exports attained all time high export revenue of U1@ :;$';% million'
The export value in dollar terms reached U1@:;$ million against the target of #%%$$$
tones the achievement was registered an increase of 74>' 1imilarly in value terms the
achievement was nine percent more than the target'
E2'o!t o, +'ic+ ,!o- I#*ia
The export performance during the year was better in respect of pepper! cardamom
AsmallB! cardamom AlargeB! turmeric! garlic! nutmeg and mace! vanilla! curry
powderOpaste! mint products! spice oils and oleoresins'
The improvement was spectacular in the case of garlic when the country exported 7:7C$
tonnes of garlic during the year as compared to 77C$ tonnes during the previous year'
Though there was decline of 1%':> in .uantity of exports! chilli continued to be the
largest exported item during 7$$,"$% with an export of 11#7C$ tonnes' The average unit
value realiation of the spices export as a whole during the year has increased to Ds'
%1',1 per *g from Ds' ,C'C4 per *g in 7$$C"$,'
Hne of the positive aspects of the exports during the year was increased in export of
cardamom during 7$$%"$4'
;7
CHAPTER <
FINDIN%S
;#
Currently Indian spices are unli*ely to do well in international mar*et! medium
and long term strategies for improving the trade in world'
UK has potential to grow as a spices mar*et'
Indian spices are in great demand in UK as well as in world mar*et'
India is a ma)or player in world spices mar*ets'
The export value of spices has increased continuously'
8ew variety of spices K value added product of spices has been added to export
of these particular commodities'
;;
CHAPTER >
LIMITATION0 SU%%ESTIONS AND CONCLUSION
;C
LIMITATIONS
1tudy is based on secondary data'
1pices are growing more and more! it might be necessary to review K reconsider
the report in view of the existing whenever the entrepreneurs refer this report'
0ue to lac* of time K resources for the collection of primary data! certain critical
factors may go unnoticed leaving outcome to debate'
It wouldn=t be possible to discuss uncontrolled variables of the world mar*et!
however it shouldn=t influence study as it is one of the most transparent mar*ets
K with which most of the Indian supplier are familiar to do business with'
SU%%ESTIONS
0etermine which spices are most appropriate for production in UK'
Improve yield and the .uality of active constituent
2rovide cost effective production system'
(chieve high .uality UK products with national and international acceptance'
1upport research across a wide range of spices for which commercial interest
exists from UK growers or processors'
0evise and establish improved post harvest handling and drying procedures'
0evelop cost effective .uality testing and certification systems for active
constituents in crops and processed products'
2rovide cost effective mechanied implements and physical practices for the
control of weds and other farm"related problems in organic farming system'
;,
CONCLUSION
1pices! the fastest growing commodity in history'
UK has never been a ma)or player in spices cultivation and therefore is arguably
behind in the serious cultivation of conventional spices'
0ue to government support production has shown about ;4> increase in last three
year'
Value added product of spices has now great demand in UK as well as in world'
;%
REFERENCE
WE4LIO%RAPHY
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4I4LIO%RAPHY
Export management! 2'K'K3UD(88(
+againeE spice India
;4

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Export potential of spices from India to UK

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