Chilli export to exceed target of 70,000 tonnes in ‘07: Assocham

Chilli export to exceed target of 70,000 tonnes in ‘07: Assocham

New Delhi: Fiscal 2006-07 will see the export of chillies exceeding 2,00,000 tonnes in view of growing demand in countries such as Malaysia, Sri Lanka, USA and Bangladesh as against the government’s target of 1,35,000 tonnes, according to Assocham.

Based on feedback received from various chilli producers , chilliy export is pegged at 1,48,500 tonnes though the spice board has estimated that export in 2007-08 would be 1,35,000 tonnes.

India is one of the largest consumer and exporter of chillies. It consumes around 6.2 million tonnes i.e. about 90% of the total produce of the country. The demand from the chilli powder-producing sector constitutes 30% of total production in the country. Chilli powder, dried chillies, pickled chillies and chilli oleoresins are some of the forms in which this crop is exported.

It is estimated that around 25-30% of the chilli crop is used for powder preparation, with branded chilli powder manufacturers accounting for around 5% of total volumes. India is the only country that is rich in many varieties of chilli and there is immense potential to further grow and export the different varieties that are required by different markets around the world.

Key Findings

* Chilly producers are largely concentrated in J&K, Punjab, partly Haryana, Himachal & Uttranchal, Andhra Pradesh, Karnataka, Maharashtra, Uttar Pradesh, Tamil Nadu, Rajasthan

* Chilly exports from India during 2006-07 were 1,48,500 tonnes valued at Rs807.75 crore against 1,13,174 tonnes valued at Rs403.01 crore in 2005-06. Exports increased by 31% in volume inspite of increasse in price.

* Demand for Indian chilli in Malaysia, Bangladesh, Sri Lanka and USA has been growing on an average between 20 - 25% because of its quality and price competitiveness

*Indian Chillies are considered to be pungent less and their seeds are good for heart and other health aliments in moderate quantities

* Malaysia is the largest buyer of Indian chilli followed by other traditional buyers like Bangladesh, Sri Lanka and USA; export accounts for 48% in terms of quantity and 28% in terms of value of total export of spices from India; presently India is the main source of red chilli for international market

* China imported over 900 tonnes from India during 2006-07 despite being one of the traditional growers of chillies; Malaysia imported 43,625 tonnes compared to 26,804 tonnes in 2005-06; Bangladesh 28,425 tonnes comapred to 671 tonnes in 2005-06; other major buyers like Sri Lanka imported 21,822 tonnes, USA 13,058 tonnes and UAE 11,819 tonnes in 2006-07

* Chilli crop is a much simpler crop to cultivate and can survive on different soil types and several climatic conditions

* India produces 14 lakh tonnes of chillies and is one of the largest consumer


* Subsidies and low cost fiscal assistance to chilly growers will motivate them to expand production capacities