Speech on Export Award Function of Spices Board at Cochin on 9th April 2010

Dear Mr. Kurian, Chairman Spices Board
Dear Dr. Viju Jacob, Vice Chairman, Spices Board
Distinguished award winners, invitees
Ladies & gentlemen,

I am pleased to be present in this prestigious Award Function.

Export of Spices is expected to grow from 1 Billion US Dollars to 10 Billion US Dollars by 2020. 40% of this is in whole form while 60% is expected from value added forms. With increased upgradation in technology, the scope for produced and value added products will increase in developed markets. To meet product standards of advanced markets, higher product consistency is desired. Further integration of spice and medical plant production will be required since most spices also share some ayurvedic interests. For instance the Blue variety of Turmeric from Nagaland is known to cure abdominal pain and swollen body parts. Spice production has undergone substantial standardization and can contribute to ayurvedic medical systems.


While prospects for growth does exit, it should not be forgotten that our strength in a major crop like pepper needs substantial boost. The replanting and rejuvenation programme started by the Spices Board in Idukki district needs to succeed. An assistance of Rs.120 crores is made available to the Spices Board from the National Horticultural Mission for 64 villages of Idukki. The activities under the project are supported by the Indian Institute of Spices Research, Kozhikode.

With increased trade engagement with South East Asia more opportunities are in the offing. The concerns of spice producers have been duly addressed by using the provision to park them in the sensitive list. There is time to catch up with the competition till 2019. Similarly any conflict of interest arising between production of spices and forward trading will be avoided. I am sure that the higher effort of our farmers combined with timely policy support from Government of India will increase our competitiveness to ward off any fear of a deluge by cheap imports. Use of Geographical indicators to protect indigenous varieties like Malabar Pepper must be resorted to. We need to beef up the import quality control also. I understand that the Spices Board is leading an initiative to establish country wide network of laboratories also.

The 'Spices Parks' initiative of the Board is another noteworthy endeavour. They have infrastructural facilities of cleaning, grading, colour sorting, packing, and warehousing, which will definitely benefit the spice farmers with better price realization. The parks will also find remedies to several basic problems the farmers in rural India face since the Spices Parks are coming up right in the rural, growing regions. The Spices Parks with modern processing facilities being set up by the private entrepreneurs will definitely create awareness among the farmers about the need for increasing production of spices, growing quality spices and so on. The exporters and processors will also get benefited since they can source the garden-fresh produce continuously for processing with no considerable transportation cost. I am very happy to note that when the Spices Board has not alienated any farming land, as agreed upon three years back, for establishing the Spices Park in Idukki district, the board itself took the initiative to set up the Park at Puttady on the land purchased with the Cardamom Development Fund with the active involvement of cardamom growers. This park, benefiting the Cardamom and Pepper farmers of Kerala State, is to be commissioned shortly.

On one side, we want to give higher price to the farmers for the agricultural produce; on the other, we want to make available the essential commodities provided by the agricultural produce at cheaper rates. Our exporters also want to remain in the international markets competitive price-wise. We can do all this only if we increase production and productivity of crops. If the average productivity of pepper is around 300 Kg. per hectare in India, it is 2000 kg. per hectare in Vietnam and 600 kg. per hectare in Indonesia. Here, it is worth-mentioning that during the year 2009-10, according to an estimate from the Spices Board, one of the Cardamom (Small) farmers in Kerala has achieved an yield of 3650 kgs. per hectare as against the average production of around 200 to 225 kgs. per hectare. While recognizing such farmers, it is also essential that such success stories are promoted and followed by other cardamom farmers and similar exercises may be made by the Spices Board for the benefit of Pepper farmers also. High cost of production in our country has also caused the spice cultivation here less profitable. For example, while the per day cost of labour in Indonesia is around US$ 3 and in Vietnam it is US$ 2 per day, the labour cost in Kerala is US$ 6 per day. We cannot demand the denial of monetary benefits to the labourers. But, at the same time, there arises the need to reduce the cost of production. Organic cultivation is not only an important alternative to reduce the cost of production but to increase the quality of produce without any contamination from pesticides. I am happy to know that the organic cultivation of spices is gaining momentum in the country, especially in the North Eastern part of our country.

I am so thankful to the Spices Board, particularly, Mr. V. J. Kurian, Chairman for inviting me to this esteemed function. I also heartily congratulate all the winners of the awards and trophies for their relentless efforts in increasing exports and wish they could scale newer and greater heights in future so that the name and fame of the Indian spices and the country reach every nook and corner of the world. Their efforts will definitely inspire others also in the field and I look forward to seeing them receiving the awards in the years to come. It is also heartening to note that the Spices Board is separately recognizing the Women farmers and entrepreneurs under the spices productivity and export award categories which will definitely lead to the empowerment of women in the nation building activities. I hope that the Spices Board's efforts in the field of export promotion of spices bears ample fruits.

I am very happy to distribute the awards, trophies and certificates of merits to you today in this pleasant evening.

Thank you all once again,