Review of literature

Anupam K.R Sachan, Sunil Kumar, Kiran Kumari and Deepti Singh (2018): They have
been analysed in their article entitled on “Journal of Medicinal Plants Studies” spices had
played a vital role in the lifestyle of people from certain parts of the world. Herbs and spices
have been used for generations by humans as food and to treat ailments. Bio-molecules in the
plants play a crucial role in health maintenance and promotion. They have served numerous
roles through history, including as coloring agents, flavoring agents, preservatives, food
additives and medicine. The active photochemical derived from these spices have provided
the molecular basis for these actions. There are several medicinal uses of spices in our daily
life, many spices are used in kitchen and have certain medicinal activity like purgative,
laxative, expectorant, carminative, diuretic etc.

K Pavithra and Mahantesh R. Nayak (2019): They have been analysed in their article
entitled on “Challenges in online marketing of dry chilli in selected APMC of Karnataka,
India” In traditional method of agricultural marketing farmers were exploited by the
middlemen by taking major share in the consumer’s price. In view of multiple benefits of
online trading, the farmers in Karnataka were taking their business online, because of Unified
Marketing Platform (UMP) an initiative by the state govt. The present study attempts to
assess the challenges in online marketing of dry chilli in Hubballi Agricultural Produce
Market Committee. There is need to create awareness about online marketing through
training, campaigns and other extension activities to farmers.

Daljit S Arora, Jasleen Kaur (1999): They have been analysed in their article entitled on
“Antimicrobial activity of spices” Spices have been shown to possess medicinal value, in
particular, antimicrobial activity. This study compares the sensitivity of some human
pathogenic bacteria and yeasts to various spice extracts and commonly employed
chemotherapeutic substances. Of the different spices tested only garlic and clove were found
to possess antimicrobial activity. The bactericidal effect of garlic extract was apparent within
1 h of incubation and 93% killing of Staphylococcus epidermidis and Salmonella typhi was
achieved within 3 h. Yeasts were totally killed in 1 h by garlic extract but in 5 h with clove.

Vibha Vij, Elizabeth Ailes, Cecilia Wolyniak, Frederick J. Angulo, and Karl C.
Klontz (2006): They have been analysed in their article entitled on “Recalls of Spices Due to
Bacterial Contamination Monitored by the U.S. Food and Drug Administration: The
Predominance of Salmonellae” From 1980 to 2000, the annual per capita consumption of
spices in the United States increased by 60% . Although spices are known to harbor various
molds, fungi, and bacteria, relatively few reports have documented this group of foods as the
cause of human illness. In recent years, however, the U.S. Food and Drug Administration
(FDA) has noted an increased number of recalls of dried spices due to bacterial
contamination. Accordingly, we reviewed spice recalls that took place in the United States
from fiscal years 1970 to 2003. During the study period, the FDA monitored 21 recalls
involving 12 spice types contaminated with bacterial pathogens.

Table No.1

SPICE WISE AREA OF CULTIVATION FROM 2007-17(In Hectares)

Figure No.1

SPICE WISE AREA OF CULTIVATION FROM 2007-17(In Hectares)

Data Interpretation:

The table no. 2 is explaining about the growth rate in area of cultivation in hectares of spices
in India during 2007-08 to 2016-17. To measure the growth rate, I have used compound
annual growth rate method (CARG). Out of all spices Fenugreek cultivated area is raised by
0.16 percent in 2016-17 which is 218430 hectares. Next is the Cinnamon by 0.07 per cent,
pepper is 0.05 per cent, Cumin is 0.05 per cent, Coriander is 0.04 per cent, there is no change
in chilly and turmeric area of cultivation. It shows that growth rate in seed spices are good
because of weather conditions, soil, water facilities, good seeds and marketing facilities and
spices Board initiatives. But, because of local conditions, weather, climate change, lack good
seed material and marketing problems.

Date Analysis:

The table No. 2 is revealing about the spices production in India during 2007-08 to 2016-
17.As per the statistical tool Compound annual Growth Rate analysis the seed spices
production growth rate is very good. Area and production growth rate of fenugreek is good
by 0.14 per cent, next is the Coriander production by 0.09 per cent, Cumin and small
cardamom is 0.07 per cent, Chilly Nutmeg, and Clove is 0.04 percent respectively and
Turmeric is 0.02 per cent. This is because of good climatic conditions, availability of good
seeds and marketing facilities.

Table No. 2.
SPICE WISE PRODUCTION OF FROM 2007-08 to 2016-17 (IN MT)

Figure No.2

SPICE WISE PRODUCTION FROM 2007-17(IN MT)

Table No.3

Commodity wise export of spices from India during 2007-08 to 2016-17 (Quantity in tonnes)
Source: spices Board India

Table No.4

Commodity wise export of spices from India during 2007-08 to 2016-17 (Value in Rs. lakhs)

Source: Spices board statistics.

Major state wise area and production of spices in India

Source: State Agri/Horticulture Departments/DASD Kozhikkode

Estimated export of Spices from India

Source: Indian Horticulture Database, NHB and Horticulture Division.

Estimated export of Spices from India during April- March 2017-18 compared with April –
March

Item April –March 2017-18 April - March 2016-17 % change in

2017-18 Qty
Value
Qty Value (Rs Rate Qty Value (Rs Rate Qty Valu
(Tonnes) Lakhs (Rs/kg) (Tonnes Lakhs (Rs/kg) e
)
Chilli 443,900 425,633.00 95.88 400,250 507,075.00 126.69 11 -16%
%
Mint 21,500 322,835.0 1501.5 22,300 252,750.00 1133.4 -4% 28%
products 6 1
Spice oils 17,200 266,172.40 1547.5 12,100 230,775.00 1907.2 42 15%
and 1 3 %
olearesine
Cumin 143,670 241,799.50 168.30 119,000 196,320.00 164.97 21 23%
%
Turmeric 107,300 103,567.00 96.52 116,500 124,189.00 106.50 -8% -17%
Pepper 16,840 82,078.00 487.40 17,600 114,312.50 649.50 -4% -28%
Curry 30,150 61,619.50 204.38 28,506 59,910.00 218.21 6% 3%
powder/
paste
Cardamo 5,680 60,908.50 1072.3 3,856 42,150.00 1094.8 48 45%
m (s) 3 1 %
Other 38,305 60,192.75 157.14 40,216 50,595.00 125.83 -5% 19%
spices
Garlic 46,980 30,936.00 65.85 32,200 30,711.50 95.38 46 1%
%
Coriander 35,185 27,274.00 77.52 30,300 29,207.50 96.33 16 -7%
%
Fennel 34,550 25,905.50 74.98 35,150 30,875.50 87.84 -2% -16%
Nutmeg 5,500 22,094.30 401.71 5,070 23,641.65 466.30 8% -7%
and mace
Ginger 22,605 21,606.55 95.58 24,950 25,705.00 103.03 -9% -16%
Other 22.175 16,045.80 72.36 18,100 15,455.00 85.39 23 4%
seeds %
Fenugreek 29,280 12,688.90 43.34 34,686 18,276.50 52.70 - -31%
16
%
Curry 6,486 5,950.40 91.83 6,250 6,246.00 99.94 4% -3%
Cardamo 760 5,646.00 742.89 780 8,265.50 1059.6 -3% -32%
m (L) 8
Total 1,028,06 1,792,955.3 174.40 947,790 1,766,460.6 186.38 8% 1%
0 0 5
Value in 2781.46 2,633.29
million US
$
Source : Estimate Based on Dll from customs, report from RO’s and last years export trend
etc.

Major findings:

1. The study implies that 88% of respondents belongs to male. Hence, study explore that
male traders are more than female traders.
2. The study indicates that 32% belonging to 31-40 years and are more involved in the
marketing activities.
3. The study reveals that 96% are business people. It clearly shows that business people
are leading markets in highest range.
4. The study states that 28% of the respondents are having 1.5 to 3 lakh. It shows the
annual income of the respondents out of the 50 traders.
5. The study implies that 86% of the respondents are married.
6. The study states that 70% of the respondents are of higher education. From this we
can conclude that traders have background of higher education.
7. The study states that 70% of the respondents are GM. The study clearly describes that
GM category traders are more in the market.
8. The study states that 92% of the respondents deals with all kinds of spices set.
9. The study states that 82% of the respondents sell loose packaged of spice. It
concludes the traders will sell this spice of loose packaged.
10. The study states that 66% of the respondents are of daily purchases. It concludes daily
purchases are more than weekly products.
11. The study states that 92% of the respondents have the transport facility. It concludes
that most of traders transport facility.
12. The study shows that 96% of the traders are wholesaler purchases. The trader are
purchasing spice in bulk quantity from wholesaler.
13. The study shows that 38% of the respondents have satisfied with excellent experience.
14. The study shows that 68% of the respondents are selling their spice to consumers.
15. The study shows that 56% of the respondents says about rent on shop and godown.
16. The study shows that 80% of the them are selecting spices to make profit.
17. The study shows that 52% of the customer are given good reactions.
18. The study shows that 70% of the respondents have adopted the latest technologies.
This table explores that most of the people are adopted to modern technology.
19. The study shows that 64% of the respondents are following traditional and modern
marketing. Most traders are following both traditional and modern marketing.
20. The study shows that 66% of the respondents sell the spice to customer. Most of the
traders sells through direct customer.
21. The study shows that 100% of the respondents are get benefit from this marketing.
22. The study shows that 62% of the respondents says customer gives importance to
quality
23. The study indicates that 68% of respondents take loan to run the businessmen.
24. The study shows that 92% of the respondents says that according to marketing
condition they set prices.
25. The study implies that 76% of the respondents says they prefer commercial area. So,
Most of them prefer to conduct their business in commercial area.
26. The study shows that 56% of them says the price determination. It clearly shoes that
prices determination is the major problem faced by traders.
 27. The study shows that 48% of the respondents have the problem of price
determination.
28. The study shows that 56% of the respondents have the major challenge of marketing
stock. The most of the challenges faced by the traders are keeping the inventories.
29. The study implies that 76% of the respondents says the marketing of spices is price
fluctuations.
30. The study shows that 68% of the respondents suggest that government should increase
the price.

Suggestion:

Based on findings emerged from the analysis of the data collected through
questionnaires and the following suggestions are offered to improve marketing of spices.

1. Government should encourage the female respondents because female should give
more value in this society
2. The company should collect spices directly from the farmers. The company should
adopt direct marketing.
3. Government should give more importance to self employed persons.
4. Producers should share the profit resulting from the process.
5. Government should provide educational qualification for backward people.
6. Government should demand for organic agricultural products.
7. Government should increase the standard pricing practices should be implemented at
the curliest.
8. All the category person should equal value in the society to sell the spices.
9. Government should increase all types of the purchases.
10. Government should give more transport facilities for the traders.
11. Government should give more chance to conduct there business in commercial area.
12. They should follow both traditional and modern marketing.
13. All the people should be adopted to modern technology.
14. Producers should increase the quality of spice to so, it can be easily selled.
15. The major problem faced by traders is price determination that should be reduced.
 QUESTIONNAIRE

Respected Sir/ Madam:

I am Inchara K L, student of final year MA in Economics, I.D.S.G
Government College, Chikkamagaluru. I conduct of project work entitled
“Challenges and Problems of Markets of Spices: A Study of
Chikkamagaluru Taluk”. For partial fulfilment of my degree under the
guidance of Prof. Laxmikanth K N, Assistant Professor, Department of PG
studies in Economics, I.D.S.G Government College, Chikkamagaluru, I shall be
grateful to you if you could spend on couple of minutes to answer the following
questions.
1. Name : _________________________________________
2. Address : _________________________________________
 _________________________________________

3. Gender
a. Male [ ]
b. Female [ ]
4. Age
a. Below 30 years [ ]
b. 31-40 Years [ ]
c. 41-50 Years [ ]
d. Above 50 years [ ]
5. Occupation of family
a. Business [ ]
b. Self employment [ ]
c. Government employee [ ]
d. Others [ ]

6. Annual family income

a. Below Rs. 1.5 Lakh
b. Rs. 1.5 – 3 Lakhs
c. Rs. 3 – 5 Lakhs
d. Above Rs. 5 Lakh
7. Marital status
a. Married [ ]
b. Unmarried [ ]
c. Widow [ ]
d. Divorce [ ]
e. Others [ ]
8. Level of education
 a. Illiteracy [ ]
b. Primary education [ ]
c. Secondary education [ ]
d. Higher education [ ]
e. Others [ ]
9. Category
a. SC [ ]
b. ST [ ]
c. CAT IIA [ ]
d. CAT IIB [ ]
e. CAT IIIA [ ]
f. CAT IIIB [ ]
g. GM [ ]
10.Do you sell all kinds of spices?
a. Yes [ ]
b. No [ ]

11.Which type of spices do you sell?

a. Loose Packaged [ ]
b. Branded [ ]
c. Packaged substandard [ ]
d. Packaged standard [ ]
e. Self packed [ ]
f. Own branding [ ]
g. Raw [ ]
12.How frequently will you deliver the stock or order?
a. Daily [ ]
b. Weekly [ ]
 c. Monthly [ ]
d. Fortnight [ ]
13.Do you have transport facilities?
a. Yes [ ]
b. No [ ]
14.From whom you purchase?
a. Growers [ ]
b. Wholesaler’s [ ]
c. Agency’s [ ]
d. Others [ ]
15.Rate the quality of spices available in your service range?
a. Poor [ ]
b. Good [ ]
c. Satisfactory [ ]
d. Excellent [ ]
16.To whom you are going to sale the spices
a. Retailers [ ]
b. Wholesalers [ ]
c. Consumers [ ]
d. Others [ ]
17.Which is the most expensive activity while selling spices?
a. Transportation charges [ ]
b. Rent on shop and godown [ ]
c. Electricity charges [ ]
d. Packing charges [ ]
e. Loading and unloading [ ]
f. Labour [ ]
18.What are the reasons for selecting spices for trading?
a. Profit [ ]
 b. Easy marketing [ ]
c. Risk free [ ]
d. More convincing job [ ]
19.How does the customers reacts toward new product in the market?
a. Good reaction [ ]
b. Bad reacting [ ]
c. Medium reaction [ ]
d. Poor reaction [ ]
20.Have you adopted latest technologies in market
a. Yes [ ]
b. No [ ]
21.What kind of marketing do you prefer.
a. Traditional marketing [ ]
b. Modern [ ]
c. All of the above [ ]
22.What are the distributional channels do you prefer
a. Wholesalers [ ]
b. Retailers [ ]
c. Direct customers [ ]
d. Agents [ ]
23.Will you get benefit from this marketing?
a. Yes [ ]
b. No [ ]
24.Will customer give their importance for quality or price
a. Quality [ ]
b. Price [ ]
c. Both [ ]
d. Cheap rate [ ]
25.Have you taken this loan to develop this market?
 a. Yes [ ]
b. No [ ]
26.How the price purchase is determined?
a. Pre decided by the supplier [ ]
b. According to marketing condition [ ]
c. Auction sale [ ]
d. Bargaining at the live of single purchase [ ]
27.Which place do you prefer for marketing?
a. Residential areas [ ]
b. Central markets [ ]
c. Commercial markets [ ]
d. Trade centers [ ]
28.Problems of the purchasing of spices marketing
a. Regular supply [ ]
b. Price determined [ ]
c. Transportation [ ]
d. Credit facility [ ]
29.Selling problems?
a. Price determined [ ]
b. Bargaining [ ]
c. Storage [ ]
d. Quality [ ]
e. Others [ ]

30.Which is the major challenge of marketing of these spices?

 a. Delivery [ ]
b. Retailing [ ]
c. Hoarding [ ]
d. Stocking [ ]
e. Others [ ]
31.Which is the most hectic marketing problems of spices?
a. Poor packing [ ]
b. Storage facility [ ]
c. Lack of transport [ ]
d. Lack of holding port [ ]
e. Lack of tax structure [ ]
f. High charges of market [ ]
g. Existence of middleman [ ]
h. Concentration of market [ ]
i. Lack of existence of marketing practices [ ]
j. Marketing centres [ ]
k. Cooperative marketing [ ]
l. Price fluctuations [ ]
m. Others [ ]
32. Any suggestions:

______________________________________

_______________________________________

Date : ____________________

Place : ____________________

Signature of the Respondent

THANKS FOR YOUR KIND CO-OPERATION