Spices Informatics Network and Value Chain for Open Innovation and Value Creation Network

Spices are important for human cuisine, human health, and wellness since ancient times. India is the largest producer, consumer, and exporter of spices and spice products and produces about 75 of the 109 Spices listed by the International Organization for Standardization (ISO). The country is also known for its spices not only because of the production quantum and diverse range but because of their rich aroma, taste, and texture. The diverse climatic conditions – from tropical to subtropical to temperate – are favorable for almost all spices grown splendidly in India. The North Eastern Region of India which grows a lot of key and major spices, viz., ginger, turmeric, chili, black pepper, large cardamom, and bay leaf, witnesses major challenges, which are impeding farmers’ endeavor to explore and exploit best markets and prices. The Indian spice market is about US $ 11 billion in which its domestic market is about US $ 8 billion and its export market is nearly US $ 3 billion. As of 2020, the world spices trade was expected to touch US $ 18 billion and that of India would be the US $ 3.5 billion. The worldwide “natural” and “clean” label movement – evolving consumer dietary requirements and trends – is driving greater interest in herbs, spices, and spice products, particularly in the light of dramatically increased demand for Indian spices constituting key ingredients in treating Covid-19 patients. India’s black pepper (king of spices), ginger, and turmeric are getting global attention to manage the Covid-19 pandemic, bearing testimony to renewed interest in using Indian traditional medical knowledge and practice. As a result, going back to define the future of medical treatment is gaining importance in view of the proven track record of treating patients using Indian spices. A “value chain” in agriculture identifies the set of actors and activities that bring a basic agricultural product from production in the field to final consumption, where at each stage value is added to the product. A value chain can be a vertical linking or a network between various independent business organizations and can involve processing, packaging, storage, transport, and distribution. The terms “value chain” and “supply chain” are often used interchangeably. A “value chain” brings all the stakeholders engaged in the production system on a common platform to contribute their best, while ensuring fair deal. Transparency and accountability in practicing biodynamic organic cultivation practices provide strength for enhancing productivity, semi-processing for further processing, and further processing into final value-added products in open innovation and value creation network. Value chain includes all the input suppliers, technology delivering agencies, scientists indirectly engaged in developing appropriate technologies, and extension officers who are involved in capacity building and providing various services to farmers. Taking a holistic and market-driven view of the entire value chain from “consumer to supplier” creates the right enabling environment for creating the required enhanced adaptive capabilities and skills to use modern technology and devices and to commercialize new knowledge to foster subsector-wide development. Digital platforms are changing who participates in “global value chains” (GVCs) and unveiling unlimited opportunities for developing economies and micro-, small-, and medium-sized enterprises. As per the India’s Agriculture Export Policy 2018, India strives to double India’s share in world agri-exports, and India therefore needs to integrate with GVCs at the earliest. It necessarily entails the need to comply with international standards and quality control norms. The third trench of economic stimulus of Atmanirbhar Bharat Abhiyan (2020) had “key measures,” viz., a) boosting farm-gate infrastructure through agricultural cooperative societies, farmer producer organizations (FPOs), and startups, b) formalization of micro-food enterprises and following cluster-based farming approach, and c) promotion of herbal cultivation, which is relevant for the spices sector. The Government of India could achieve its target of “Doubling Farmers’ Income by 2022” in this sector, by really giving emphasis on “value-added products” of spices. Powders, emulsions, and solvent extractants are forms normally used, in addition to whole forms as in curry leaf, mace, cinnamon, clove, and garcinias. It is not an exaggeration to say that oils, oleoresins, pigments, and lipids are highly value-added products. Possible challenges in spices value chain, as reported, include (1) lack of networking arrangement between small-scale producers and medium- and large-scale exporters/producers, (2) weak farmer organization structures, (3) lack of suitable finance and credit facilities to farmers, (4) inadequate good-quality seed and other planting materials and other farm inputs, (5) inadequate resources (financial and human resource) to support research and development of horticultural produce, and (6) low adoption of research outputs in support of horticultural development for export. In addition, the spices trade has also imbibed problems, viz., trust deficit between the farmers/FPOs and the buyers during the transaction, limited market accessibility, absence of proper quality check, uncertainty of payments, unstructured supply chain ecosystem, and absence of real-time tracking of consignments. In most of the cases, the issues are, viz., orders are booked over calls or WhatsApp messages without proper documentation, sellers have limited access to data on purchase pattern of the buyers, minimal access to working capital, etc., which need to be eliminated, overcome, or thing of the past. Digitalization and disintermediation of spices trade will play a major role in overcoming such problems. This chapter reviews emerging digital technologies for digitalization of agricultural system in general and spices subsector in particular. Farm-level challenges and opportunities in establishing “spices value chain” are looked into, as also various digitalized agricultural value chains operational in the country for their operational efficiency. A detailed account of an operational turmeric value chain “the Masala Market” and “chili value chain” is provided. The “Spice Exchange Portal”, launched in January 2022 acts as a meeting point between the Indian spice exporters and the buyers all over the world. The National Informatics Centre on Spices (NICS) of the Indian Institute of Spices Research (IISR), Kozhikode, maintains global scientific literature, e-journals, offline and online databases, Internet connectivity, and data storage facility. In order to take advantage of the emerging platform economy, both in India and globally, there is an urgent need for establishing a “Spices Informatics Network Value Chain,” post-Covid-19 pandemic, to create new and dynamic sources of exploiting emerging opportunities for all stakeholders of the spices sector, including SMEs and startups, to be a part of emerging digitalized “global value chain.” The proposed Informatics Network Value Chain is necessary to build around Data Empowerment and Protection Architecture (DEPA) and as an organized, connected, secured, auditable, and verifiable information on the blockchain and Market 6.0., resulting in a digital twin ecosystem (physical and digital) for the Indian spices sector. Indian Council of Agricultural Research (ICAR), State Agricultural Universities, Indian Council of Medical Research (ICMR), Council of Scientific and Industrial Research (CSIR), and Spices Board, among the others, are involved in research and development of the spices sector in the country. These institutions develop sustainable technologies and products for increasing spice farmers’ income in the spices sector, and this would facilitate development of “agri-startups” in spices value chain in an effective manner in all the districts where spice production is predominant. The North Eastern Region of India needs to have such digital infrastructure – “digital twin ecosystem” – in place at the earliest. The earlier spice route has to take digital enablement, with renewed characteristics now, to become a Spices Informatics Network Value Chain in India and facilitates the world to be part of it. The proposed Spices Informatics Network Value Chain will facilitate open innovation and value creation network in a digitalized world for self-reliant economy. Making optimal use of the well-established institutional framework for rendering technical assistance and business support services is the key to rekindle new and dynamic sources of growth and thereby unlock the development potential of Indian spices.