Pepper, chilli drive up spices exports 26% in April-August

MUMBAI: Spices exports in April-August rose 26% by volume to 187,000 tonne on good demand for pepper, chilli, cardamom (large), a Spices Board release said on Thursday.

In value terms, exports increased 34% to Rs 1,725 crore. In the first five months of 2007-08, spices exports achieved 49% of the full-year target in volume terms. India is likely to export 380,000 tonne in 2007-08, according to Spices Board.

Pepper exports in value terms rose 124% to Rs 183 crore during the period, while in volume terms it rose 31% to 12,900 tonne. The international supply situation in pepper is likely to benefit Indian exporters, experts said. Global pepper supplies are expected to be around 329,000 tonne this year while demand is estimated at 376,500 tonne, leaving a deficit of 47,500 tonne. Chilli exports rose 116% to Rs 487 crore. India exported 88,000 tonne of chilli in April-August, up 86%.

Exports of some spices like cumin, garlic and vanilla fell short of last year’s performance, both in value and volume. Spice oils and oleoresins including mint products contributed 40% of the total export earnings during the five-month period. Chilli contributed 28% followed by pepper at 11%, cumin 5% and turmeric 4%.

Meanwhile, in futures, pepper closed marginally down on Thursday amid lack of demand, particularly from cautious exporters eyeing a strong rupee, analysts said.

“Even though there is talk of a lower crop in Vietnam, the market is bearish mainly because of the way the rupee has strengthened,” said Alex Mathews, head of research at Geojit Financial Services.

Another analyst at Motilal Oswal Commodities Broker said the market tried to test higher levels earlier in the day, but was overpowered by speculative selling.

Mr Mathews said the October contract on the National Commodity and Derivatives Exchange may see the same trend on Friday and may find support at Rs 11,889 per 100 kg. Open interest for the October pepper on the NCDEX was at 7,809 lots, down from 7,937 a day ago.