Vol. 15 No. 2
Performance and prospects of spice trade in India: An economic analysis
Abstract: This paper is an attempt to analyse the international trade potential of Indian spices along with its constraints in the global markets. Spice exports from India experience high growth rate along with significant instability. The results of the revealed symmetric comparative advantage indicate that India is having unique comparative advantage in exports of turmeric, cardamom and seed spices. Decomposition analysis of the value of Indian spice exports suggested the contribution of change in mean export quantity to be highest for pepper (1152%), chilli (231%), ginger (95%) and cardamom (63%); however for crops like turmeric, nutmeg and seed spices, it was contributed by the change in mean export unit value. SPS measures were also studied by finding import detentions from USFDA. During 2017, out of 448 import detentions, a lion share of 232 was found to be in spice lots. The major cause for these detentions are adulteration, misbranding, filthy and presence of unsafe additives and colours. Indian spice exports face significant challenges including poor post-harvest handling, inadequate legal provisions, insufficient quantity of legal spices and loss of indigenous products.
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