Economics, Marketing, and Export of Spices: Status and Prospects

Spice production in India is characterized by its diversity, importance in regional diets and its high degree of export orientation. This chapter attempts a holistic analysis of spices sector in the country in terms of production trends, export composition, and marketing. SWOT analysis of the spices sector presents the varied aspects of the strengths of the sector in the country. The key opportunities and the inherent weaknesses of the spices sector along with the significant threats faced by the sector helps in identifying elements of policy response required for sustaining the growth of this sector in the country. The broader canvas in which the spices sector operates includes its political, economic, social, technical, legal, and environmental aspects, which are briefly presented. The production trends, state-wise contribution to domestic output, and export performance of important spices like black pepper, cardamom, chilies, ginger, turmeric, seed spices, and trees spices are presented in detail, bringing out the specific crop scenario in each of these crops. The data from last five decades has been analyzed to bring out the general trends in area, production, and productivity of important spices. A strong performance in terms of output growth, productivity gains, and area expansion can be noticed in most of the major spice crops in the country. In case of exports, both the absolute quantity and the share of value-added products witnessed robust growth in several important spices. The export destinations of the spices exported from the country is also presented for each of these spice crops. The chapter also includes a summary of the developmental initiatives in promoting spice exports. The emerging trend in the spices sector, which has significant implications for the sector in India, is provided before the concluding section. Understanding the production systems, marketing, and trade of spice commodities can help in designing policies for the overall development of the spice economy.