Available via license: CC BY-NC-ND 4.0
Content may be subject to copyright.
Competitiveness in spice export trade from India: A review
L Thomas* & P C Sanil
ICAR-Indian Institute of Spices Research, Kozhikode-673 012, Kerala.
*E-mail: lijo.iari@gmail.com
Received 17 June 2019; Revised 11 July 2019; Accepted 15 July 2019
Abstract
Spices are one of the most traded agricultural commodities across the globe. India, as the world’s
leading producer and exporter of spices is a significant stakeholder in spices export trade. The paper
reviews the studies conducted on the spices export sector with special focus on India and the policy
issues applicable to this sector. The review focuses on the history, trade competitiveness and issues
related to regional trade agreements, trade barriers and food safety in the export trade of spices.
Research gaps on issues like linkages between economic development and spice export are identified.
The review concludes with suggestions for promoting growth and development of the spice export
sector in India.
Keywords: Spices, export, trade, competitiveness
Introduction
Trade is considered one of the most important
engines for economic development at the global
level (Riedel 1984; Wilson et al. 2005). Spices have
a long history of being one of the most highly
traded commodities across the globe. Food and
agricultural trade forms the vital functional link
between the global trade network and
developing economies (Jaffee 2005) and many
Asian countries have leveraged trade for fuelling
economic growth (Kenichi 2003; Bernhofen &
Brown 2005). Spices form an important
component of trade, which has influenced the
course of economic, social and political
development across the globe. Developing
countries including India are a dominant source
of supply for world spice trade (Jaffee
2005).Though the importance of spices and its
trade as an agent shaping the history of
economies has diminished in recent years, they
played a significant role in determining the course
of economic interaction between nations (Pollmer
2000). Trading of spices across complex trade
routes and networks, established over centuries,
played a critical role in the exchange of ideas
between the east and the west.
India is the leading producer and exporter of
spices in the world. Some commodities like black
pepper among others, have driven the trade
policies since time immemorial (DeWaal & Brito
2005). The fortunes of spice trade have significant
implications for the export performance of
Journal of Spices and Aromatic Crops
Vol. 28 (1) : 01-19 (2019) Indian Society for Spices
doi : 10.25081/josac.2019.v28.i1.5738
2
agricultural sector in the country. In value terms,
the share of spices in total agricultural exports
was 8.4% during 2017-18 and global spice exports
were valued at 4.69 billion US Dollars during
2016 (ITC 2018).
Though the general welfare gains from free trade
has been well established (Baldwin 1992; Redding
1999; Holmes et al. 2014), the specific issues
related to commodity sectors like spices have not
been exhaustively studied. The theory of
comparative advantage, which forms the
cornerstone of the theoretical foundation for
welfare gains, does not offer detailed
understanding of the underlying variables
influencing trade. Hence, a comprehensive review
of the work done with direct implications to
spices export trade is needed to develop a better
understanding of the various facets of economic
factors influencing the relative strengths,
efficiency and competitiveness of spice export
trade. This is especially relevant when the
traditional networks of spice trade, established
over the centuries are undergoing transformation
due to increase in demand coupled with stringent
quality measures (Box 1989).
Outline and scope
Though trade encompasses both export and
imports, we place our focus on export trade of
spices since they are a significant component in
India’s agricultural exports. Spices stands fourth
in terms of export value among agricultural
exports from India. After a brief overview of the
historical context and importance of spice export
trade, an outline of the policy environment for
spice export is detailed followed by a brief
examination of trade agreements and its effect
on spice exports. Major studies on trade
competitiveness in the spices sector, either as
individual commodities or as a commodity group
are presented after this. Studies on trade efficiency
and market power in global spice trade is also
examined as a part of this section along with a
description of the tools for measuring trade
competitiveness. The barriers to trade are of
special significance to spice exports and this
forms the following section which reviews the
attempts to study the trade barriers in spices,
both using tariff and non-tariff measures.
Though concerns about food safety are often used
as non-tariff barrier to agricultural trade in
general (Henderson & Lorder 2001) and spice
trade in particular (Henson & Jaffee 2007), we
treat it as a separate issue and review trade issues
and research work undertaken in the spices
sector focusing on food safety. Based on the
review of the research work on trade economy
aspects of spices, the research gaps are identified.
The last part concludes with suggestions for
improvement in the spice export trade sector in
the country.
History of spice trade
The history of spices as a traded commodity has
been examined through several means including
textual and archaeological evidences. However,
a consensus on the earliest trade contacts
through which spices produced from South
Asian region reached Mediterranean and
European regions remains elusive. Though
strong archaeological and textual evidence exist
with regard to spice trade between South Asia
and early Greek and Roman Empires, the earliest
period such spice trade could have occurred was
during 11th-12th century BCE or even earlier
(Gilboa & Namdar 2015). Spices were one of the
most important constituents of trade from the
Indian subcontinent to various parts of the
Roman Empire during the 1st to 3rd Century CE
(Galli 2017), which encompasses most of the
present-day European economies. Though the
use of spices in rituals, perfumery and medicines
were prevalent even before the medieval period,
some spices like black pepper gained prominence
across both Middle East and Europe (Van der Veen
& Morales 2015).
Ever since spices rose to prominence in the
European region, they have been given an aura
of mysticism and remained a favourite symbol
to denote an elite status in the society due to its
shortage and high cost of acquisition (Keay
2006). The European interest in spice trade was
further fuelled by the excessive control over the
spice trade maintained by Arab traders and later
by the Ottoman empire, resulting in high price
of this commodity. The unfamiliarity of the land-
based trade routes extending across the deserts
separating the Asian continent from Europe was
also one of the major reasons for the quest for a
new trade route over sea to the East.
Thomas & Sanil
3
Spices were traded through a complex network
spanning the oceans and land routes and were
the focus commodity of trade for several
centuries. The name ‘spice route’ denoting the
trade routes arises from this fact. Among the
major traded spices during the 1st to 3rd century
CE, cinnamon, ginger, cassia, cardamom and
several unspecified spices are mentioned in the
ancient nautical handbook Periplus Maris Erythraei
(Galli 2017). The discovery of direct sea routes
brought in vast changes in the social, political
and cultural linkages between the Indian
subcontinent and the rest of the world. Trade in
commodities like black pepper, clove, nutmeg,
etc., originating from the East Indies including
Indian subcontinent, flourished during the 16th
century and the trade volumes increased
progressively (Halikowski 2015). The wave of
traders from major economies of the 16th and 17th
centuries, with an eye on the lucrative spice trade
brought in acolonial culture and introduced
early capitalism in the Malabar coast (Kalidasan
2015), drastically changing the course of Indian
history. Though the relative value declined in
the 18th and 19th centuries, spices continued to be
one of the most traded commodities in the global
trade. The competitive challenges in spices trade
have increased in the recent years with multiple
sources of supply for bulk spices.
Policy backdrop for spice export trade
Trade policies adopted by the government play
an important role in shaping the export sector
of any commodity. Historically, India had a trade
surplus for centuries through export of spices,
handicrafts, textiles, etc. and no official
restrictions on imports or exports were
maintained (ICAI 2008).Though the Government
of India Act 1935 gave exclusive legislative power
to regulate trade, it was not used in practice. The
Import and Export (Control) Act, was enacted
in 1947 which guided export policies until 1992
when the Foreign Trade (Development and
Regulation) Act was passed. The trade policy in
general was generally considered to be inward
looking until 1980’s and these policies were based
on the fear that liberalized trade in agricultural
commodities like spices could lead to a secular
deterioration in terms of trade (RBI 2003). Since
the period of economic reforms in 1991, foreign
trade policies starting from the Exim Policy 1992-
97 have explicitly tried to promote exports by
rationalizing export procedures and
documentation while liberalizing imports. These
policies had direct impact on agricultural
commodities in general and spices in particular.
Though there are apprehensions that the global
trade liberalization policies could restrict domestic
income growth (Patnaik 1996), trade policies
have continued to support generation of
exportable surplus and dismantling of trade
barriers. With the formation of WTO, India was
obliged to reduce or discard several protective
trade policies. Spices are considered as sensitive
products, the imports of which are monitored
so that appropriate tariff measures can be taken
in case of import surges. This is indicative of the
domestic trade protection offered to this sector.
The spices sector also benefitted from general
schemes and programmes intended for export
promotion in the agricultural sector as a whole.
The concept of agri-export zone was introduced
in EXIM policy 1997-2001with the primary
objective of boosting agricultural exports. Some
of the agri-export zones were specifically
designated for spice crops like ginger, turmeric,
chillies and seed spices (APEDA 2015). A
comprehensive approach to incentivize spice
exports is seen under the Vishesh Krishi Upaj Yojana
(VKUY) (Special Agricultural Produce Scheme)
introduced in the Foreign Trade Policy 2004-2009,
under which spice exporters could get duty
credit equivalent to 5% of the free on-board value
(FOB value) of exports. However, the scheme
excluded black pepper, chillies and cardamom
(DGFT 2005). In 2006-07, VKUY was renamed as
Vishesh Krishi and Gram Udyog Yojana (VKGUY)
(Special Village and Agriculture Industry
Scheme). In the Foreign Trade Policy 2009-14,
spices were excluded from the ambit of VKGUY
and placed under the Focus Products Scheme
(FPS) where the incentive of duty credit was only
2% for spice exporters as against 5% under the
VKGUY. The current Foreign Trade Policy (2015-
2020) has sought to merge several export
promotion schemes like FPS, Focus Market
Scheme, VKGUY etc. into a single scheme namely,
Merchandise Export Scheme from India (MEIS).
Exported spice commodities are eligible for
incentive duty credit under this scheme (GoI,
2015).
Competitiveness in spice export trade from India
4
Apart from enabling policy stance, institutional
support has also been provided for promoting
export of spices. The Spices Export Promotion
Council was established in 1960 with this explicit
objective. Later Spices Board was established as
a commodity board in 1987 by merging Spices
Export Promotion Council and Cardamom
Board. Several schemes for supporting spice
exporters are operated by the Board (Spices Board
2019). The spice parks, established by Spices
Board, providing advanced infrastructure
facilities for quality improvement, grading,
packing, warehousing etc. is one such scheme,
with an objective of enhancing the quality and
safety of spices from India (Chawla 2016). At the
policy level, trade facilitation and infrastructure
are often taken in the general sense and only
partly address the specific issues related to the
reduction of risks and transaction costs in the
context of agricultural exports. The invisible
infrastructural facilitation such easy
documentation, customs procedures, and fair
regulatory regimes specific to the export
commodities are required to enhance trade from
developing countries (Kumar 2011).
Trade Agreements
While several factors like foreign direct
investment, movement of exchange rates and
domestic demand affect the export performance
(Sharma 2003), trade agreements among nations
are gaining significance in determining the
quantum of trade and the gains from trade. Apart
from being a signatory of the multilateral World
Trade Agreement, India has also effected regional
trade agreements which has shaped the spice
exports from the country. The major regional
trade agreements include Free Trade Agreement
with Association of South East Asian Nations
(ASEAN) for trade in goods and South Asia Free
Trade Agreement (SAFTA) which are of particular
importance because the member countries in the
agreement are major producers and market
competitors for several spice commodities. The
multilateral trade agreements with significant
implications for spice exports is presented in Table
1. Apart from these multilateral trade agreements,
there are also bilateral trade agreements for spice
exports. Among them bilateral agreements with
Sri Lanka, Malaysia, Singapore and Japan are
important.
The nature and extent of benefits to the
agricultural export sector from trade agreements
are subject to debate. While the net benefits of
trade liberalization in agriculture through
multilateral trade agreements are suggested to
be positive (FAO 2003), there have been some
counter arguments also. Francis (2011) states that
India’s relative share in global exports of labour-
intensive and natural resource-based
commodities like spices have declined during the
first decade of the 21st century as a result of
liberalized trade agreements. The study by Jeromi
(2007) argues that in the absence of safety nets
trade liberalization could lead to economic decline
of export oriented agricultural sector in
developing countries. Bellmann et al. (2010) also
concluded that poorer developing countries
could be the worst affected from global economic
slowdown. The analysis of the impact of regional
trade agreements usually traces the movements
in terms of trade of various sectors.
The Global Trade Analysis Project model (GTAP)
was employed in studies by Ahmed (2010) and
Sikdar & Nag (2011) to analyse the welfare and
trade impact Indo ASEAN agreement for trade
in goods on the agricultural sector. Both the
studies conclude that there will be welfare gains
for both India and ASEAN, but they also point
out that terms of trade for India will decline
arising from allocative inefficiency. The
comprehensive analysis of SAFTA indicate that
all the member countries stand to gain
substantially in terms of trade growth and
economic growth (Ahmed et al. 2010). The
gravity model, a standard analytical tool to
estimate trade flows between countries (based on
factors such as countries’ income, proximity and
trade agreements) has been used in analysing
multilateral trade agreements like SAFTA
(Baroncelli 2007), GSTP (Masahiro 2005) and
ASEAN-India FTA (Veeramani& Saini 2010).All
these studies, while affirming the benefits from
the trade agreement, also flag potential issues like
the need for domestic institutional reforms and
infrastructural development to reap full benefits
from these agreements. Harilal (2009 & 2014)
contends that the tropical commodities like spices
could also become more vulnerable to price
fluctuations and the share of producers in the
value chain could be adversely affected with the
implementation of ASEAN-India free trade
Thomas & Sanil
5
agreement. A similar conclusion was put forth
earlier by Harilal & Joseph (1999) in their analysis
of India-Sri Lanka Free Trade Agreement. The
study also highlights the role of factors beyond
the control of primary producers of commodities
like the relative value of currency and rates of
inflation which can determine the gains from
such regional trade agreements.
Competitiveness and market power in spice
trade
The concept of competitiveness has been defined
as a measure of a country’s advantage or
disadvantage in selling its products in the
international markets (OECD 2014). Typically,
export competitiveness is linked to or measured
in terms of export growth, shares of export
markets etc. competitiveness in spice trade also
can be assessed in a similar manner. The colonial
control of spice trade starting from the 16th
century meant that the producers of spices in the
East Indies and South Asia could not garner a
significant share of the profits from the trade.
Driven partly by the competition among the
colonial powers for spices, the availability of
spices increased through increased production
and spread of the crops in non-traditional areas
(Pickersgill 2017). Spice exports from India
continued unabated during 17th and 18th
centuries mainly through British East India
Company, United East Indies Company and
French East India Company (Robins 2012) and
later under the British rule from 1857 till
independence in 1947. Spices export trade from
India has witnessed substantial growth in terms
of volume and value in recent decades. One of
the first attempts on a detailed analysis of the
export parameters and potential of spice crops
Table 1. Multilateral trade agreements with significant impact on spice exports
Name Member countries Nature of trade
agreement
Asia Pacific Trade Agreement (APTA) Bangladesh, China, Republic of Korea, PTA
Sri Lanka, India
India ASEAN Trade in Goods Brunei, Cambodia, Indonesia, Laos, FTA
Agreement Malaysia, Myanmar, Philippines,
Singapore, Thailand, Vietnam, India
Global System of Trade Preferences Algeria, Argentina, Bangladesh, Benin, PTA
(GSTP) Bolivia, Brazil, Cameroon, Chile,
Colombia, Cuba, Democratic People’s
Republic of Korea, Ecuador, Egypt,
Ghana, Guinea, Guyana, Indonesia, Iran,
Iraq, Libya, Malaysia, Mexico, Morocco,
Mozambique, Myanmar, Nicaragua,
Nigeria, Pakistan, Peru, Philippines,
Republic of Korea, Romania, Singapore,
Sri Lanka, Sudan, Thailand, Trinidad
and Tobago, Tunisia, Tanzania, Venezuela,
Viet Nam, Yugoslavia, Zimbabwe, India
South Asia Free Trade Agreement Pakistan, Nepal, Sri Lanka, Bangladesh, FTA
(SAFTA) Bhutan, Maldives, India
PTA =Preferential Trade Agreement; FTA=Free Trade Agreement
Source: Department of Commerce, Government of India
Competitiveness in spice export trade from India
6
was by the Spices Enquiry Committee
constituted by the Indian Council of Agricultural
Research in 1951. The committee, which
submitted its report in 1953 studied four major
export earning spice crops namely, black pepper,
ginger, turmeric and cardamom, along with
cashew nut and lemon grass oil (ICAR 1953). The
report highlighted the trends in the export
quantity and earning from these crops during
the two decades leading up to 1950’s and pointed
out the importance of these spices as foreign
exchange earners. The report also indicated the
potential forces of competition and their
implications for exports in these commodities.
The volume of spice exports from India crossed
1lakh tonnes for the first time during the late
1970’s. From that point, the volume doubled in
a short span of two and a half decades. At present
India exports more than 1million tonnes of spices
valued at 2.8 billion USD (Spices Board 2019).The
share of spice exports in India’s agricultural
exports have also increased consistently during
the last four decades (Table 2).
One of the major debates in India regarding
competitiveness in spice exports relate to the
impact of trade liberalization policies
implemented in the Indian economy. This is of
importance in spices where the country had a
comparative advantage in the decades prior to
trade liberalization. The impact of trade
liberalization on Indian agricultural exports
have been examined by several researchers
(Chand 2004; Chand & Bajar 2012, Harilal &
Dhanya 2015; Ghosh 2017) and most of the
studies indicated a better integration of Indian
agriculture with the global trade. The impact of
trade liberalization on spices exports has also
been examined in detail. Shinoj & Mathur (2008),
using revealed comparative advantage approach,
concluded that India has been able to retain its
competitiveness in spice exports in the Asian
context. Predominantly tropical commodities like
spices suffer from typical commodity problems,
such as short-runinstability in prices and long-
term deterioration of the terms of trade which is
also related to the nature of demand and supply.
The demand for primary commodities does not
grow as fast as income does and if supply is not
adjusted accordingly, the prices and terms of
trade would decline for the producing centres of
these primary commodities (Harilal & Dhanya
2015).Upward mobility along the commodity
value chain is suggested as a remedy to solve this
situation which could be appropriate for
commodities like spices. Though most of the
impact studies looked at the aggregate spice
sector, individual commodity level studies have
also been attempted. The study on the impact of
globalization on turmeric trade from India by
Angles et al. (2011) is one such study. Ghosh
(2017) reported that spices have increased their
share in agricultural exports in the post reforms
period. The impact of globalization and trade
liberalization measures ultimately affected the
competitiveness of spices exports.
Price instability at the international level has the
potential to affect the trade patterns and benefits
from trade along the value chain with rising
Table 2. Trend in share of spice exports in total agricultural exports (nominal value)
Year Export value (Rs Crore) Share of spices in total
agricultural exports (%)
Spices Agriculture & allied products
1980-81 11 2057 0.5
1990-91 239 6317 3.8
2000-01 1619 28,582 5.7
2010-11 8043 111,393 7.2
2016-17 19,111 226,775 8.1
Source: Economic Survey, 2017-18, Ministry of Finance, Government of India
Thomas & Sanil
7
prices affecting importing countries and the
falling prices adversely affecting producers and
exporting countries (Bale & Lutz 1979). Thought
higher magnitude of international price
instability continues to be major argument
against trade liberalization in agriculture, the
study by Sekhar (2003) finds no evidence for
significant differences in price volatility at
domestic and international markets. However,
even though the variability in world prices has
been almost entirely transmitted to developing
countries in the dollar value of their export unit
values, it has not been fully transmitted to
average producer prices since real exchange rates,
domestic marketing arrangements and
government interventions buffered price
movements in the interest of producers in many
developing countries (Hazell et al. 1990).
Tools for measuring competitiveness
The use of Revealed Comparative Advantage
(RCA) as an instrument for analysis of the
relative trade competitiveness of individual spice
commodities and spices as an aggregate has been
resorted to by several researchers. The RCA,
which is developed and modelled on the basic
tenets of David Ricardo’s theory of comparative
advantage, assumes that the countries will
specialize on those commodities where it has a
comparative advantage and export those
commodities at a relatively lower cost (Balassa
1965).
RCA is usually expressed as
Where, Xij=Exports of country ‘i’ of commodity
‘j’; Xik=Exports of country ‘i’ of a set of
commodities ‘k’; Xnj=Exports of a set of countries
‘n’ of commodities ‘j’ and Xnk=Exports of a set of
countries ‘n’ of a set of commodities ‘k’
Among the several factors which can influence
RCA economic factors, trade structure, world
demand scenario and trade specialization can be
of immediate significance (Shinoj & Mathur
2008). The Variations of RCA like Revealed
Symmetric Comparative Advantage (RSCA) has
also been similarly employed. The study by
Jambor et al. (2018) measured stability of
comparative advantage of individual countries
in spice trade treating spices as an aggregate
commodity. They found evidence of a general
weakening in comparative advantage enjoyed by
several countries. The RCA has been found to
vary depending on the level of aggregation
(Batra & Khan 2005), which calls for exercising
caution while using this measure. The Lafay
index (Lafay 1992) addresses some of the
shortcomings of the RCA technique by
incorporating import flows in the analysis. The
index is employed in Indian trade competitiveness
analysis by Alessandrini et al. (2007).
Another economic tool frequently employed in
the analysis of trade performance is the Nominal
Protection Coefficient (NPC). The NPC is usually
expressed as the ratio between domestic price of
the commodity of interest to its external reference
price (Gulati et al. 2013), which could cost
insurance freight price (CIF price) in case of
exportable commodities like spices (the external
reference price would be free on board when the
commodity is an import substitute). In general,
both RCA and the NPC have been used
extensively across studies to measure the trends
in trade competitiveness. While the NPC stresses
on the price factor, RCA is an over measure of
the export performance resulting from several
underlying factors. A selection of studies on
export competitiveness of Indian spices
undertaken since the turn of this century is given
in Table 3. Apart from RCA and NPC, other tools
like the movements in export unit values (EUV)
(Nagoor 2010), trade intensity index (Subhash
2016) and producer price ratios (Suresh & Mathur
2016) have also been used in analysis of spice
trade competiveness. An econometric approach
using a modified production function was used
for studying export competitiveness of Indian
spices in the pre- liberalization and post-
liberalization period by Sunil & Nair (2018).
Determinants of trade competitiveness
Efforts of producing regions and economies to
remain competitive in spice trade is as old as the
history of spice trade itself. While the consuming
economies searched for cheaper sources and
lower transactions cost, the producing regions
were able to retain their trade advantage through
Competitiveness in spice export trade from India
8
a virtual monopoly on supply and control over
market and trade information. Understanding
the determinants of trade competitiveness in the
globalized economy is critical for spice trade from
India. Several studies have attempted to analyse
the factors that lead to sustainable trade
competitiveness in spice commodities. The market
power enjoyed by an entity, as determined by
the ability to influence market parameters, can
determine the nature of agricultural trade and
the effectiveness of public policies aimed at
influencing the market (Karp & Perloff 2002). The
market power enjoyed by countries in specific
commodities arising from the nature of
concentrated production of the commodity was
one of the major sources of trade competitiveness
in spices in the earlier decades. Thus India, which
was the major and most often the only
significant, source of global supply of black
pepper, cardamom and turmeric enjoyed a trade
competitiveness leveraged on its status as the
major producer and supplier of these
commodities (ICAR 1953). This enabled the
country to emerge as a price setter without being
challenged by other competing sources. Gilbert
(1996) argues that most of the attempts at
cartelization (by the major producing countries)
in several agricultural commodities including,
nutmeg and black pepper failed to attain its
objectives. Cartelization as a means for artificial
protection of trade advantage through exercising
market power for a group of producing countries
had limited scope in spice commodities.
Cost of production and productivity levels of the
commodity can significantly influence
competitiveness of a country (Harilal & Joseph
1999). Technological progress in production
economy, as expressed through enhancement in
yield levels and robust growth in Total Factor
Table 3. Recent research on trade competitiveness in spices
Sl No Authors Commodities studied Methodology
1 Batra & Khan 2005 Spice exports from India RCA
(Aggregated and
disaggregated levels)
2 Shinoj & Mathur 2008 Spices (aggregate) RCA
3 Burange & Chaddha 2008 Spices RCA
4 Nagoor 2010 Black pepper, cardamom RCAExport Unit Value
5 Rajur & Patil 2013 Chilli NPC
6 Lakra et al. 2014 Spices RSCA
7 Idris et al. 2015 Spices RCA
8 Karthick et al. 2015 Ginger NPC
9 Soumya et al. 2015 Cumin NPC
10 Suresh & Mathur 2016 Spices RCAProducer prices
11 Jagadambe 2016 Spices RCA Index Trade Intensity Index
12 Jambor et al. 2018 Spice traded from multiple RCA
countries
13 Meena et al. 2018 Seed spices Export Growth Rate
14 Sunil & Nair 2018 Spices Econometric model
15 Kaur Arvinder 2018 General trade Factor analysis and composite
index
Thomas & Sanil
9
Productivity (TFP) can raise the export
competitiveness of agricultural commodities
including spices (Suresh & Mathur 2016). The
government can also influence the level of trade
competitiveness indirectly through its policy
interventions in currency exchange rates
(Bautista & Valdes 1993). One such indirect route
espoused is through the exchange rate policies.
The exchange rate affects the export
competitiveness both directly and indirectly
(Schiff & Valdes 2002). This means that a currency
devaluation could boost, at least in the short run,
the exchange prospects of spice commodities.
This indirect influence is especially strong in
developing countries, where the share of
agricultural exports is significant.
Price competitiveness is established as one of the
key prerequisites for trade competitiveness in
horticultural commodities including spices
(Sengupta & Roy 2011) while they also hint at
the significant influence of non-price factors in
determining overall trade competitiveness. The
producer prices of several agricultural
commodities in India has remained competitive
even after the period of liberalization (Suresh &
Mathur 2016). Though India has raised its
output and productivity in several spices, the
growth in export volumes has not mirrored this
growth. However, Jambor et al. (2018) concluded
that productivity enhancements in land and
labour inputs could positively influence
competitive advantage in spice export trade. The
high expenditure elasticity of spices (Joshi &
Kumar 2016) could mean that the rising per
capita income could lead to more domestic
demand for spices leading to a reduction in
exportable surplus.
The export trade stability and trade direction in
spices sector has also received considerable
attention among economists. Stability in exports
can contribute to export competitiveness. Export
trade stability is also important for the exporting
countries to implement long-term policy
interventions in the export sector. Joshi et al.
(2015) using the Markov chain approach
analysed the stability of Indian spice exports and
found that the level of spice export stability was
highly variable across export destinations. A
similar study for Indian turmeric had been done
by Naik & Hosamani (2013) which suggested the
use of the results from Markov chain analysis
for targeting stable export destinations for
strengthening export profile. The Markov Chain
model seems to be the economic model of choice
for the analysis of export stability of agricultural
commodities like spices (Kumar &
Muraleedharan (2007); Angles et al. 2011;
Sivasankari & Rajesh (2014); Joshi et al. 2015).
The trade competitiveness of spices, like other
agricultural commodities, can be sustainable
only if continuous efforts are made in technology
upgradation, production efficiency enhancement
and sustenance of cost advantages.
The sources of supply for spices have diversified
over the decades and India faces stiff competition
from other countries for marketing its produce.
The emergence of alternate sources of global
supply of spices has implications for
competitiveness of Indian spice exports. The
changes in global export sources of selected
spices for the five-year period ending 1990 and
2016 is given in Table 4.
For spices like black pepper and ginger, India’s
share in quantity exported from top five export
sources has declined whereas it has increased for
seed spices group of anise, fennel and coriander.
India has also been able to enhance its position
in the commodity group consisting of nutmeg,
mace and cardamoms. The changes in export
sources also indicate the sources of export
competition for each commodity.
Volatility of farm harvest, domestic and export
prices have been found to move together in spices
like black pepper (Hema et al. 2007) and this
indicates that domestic price volatility could affect
export competitiveness also. The domestic price
volatility has also been found to affect the
volatility of export in commodities like onion
(Paul et al. 2015) indicating that the
competitiveness of a country could be
significantly affected by domestic price volatility.
The availability of sufficient exportable surplus
is a pre-requisite for spice export trade. The
efficiency and productivity of the domestic spice
production system influences the creation of an
exportable surplus. There is significant yield gap
in several spice crops at the national level and it
was found to account for a production deficit of
about 50,000 tonnes of black pepper during 2013-
Competitiveness in spice export trade from India
10
Table 4. Changes in global supply of selected spice commodities
1986-1990 2012-2016
Spice Country Quantity Country Quantity
(tonnes) (tonnes)
Pepper India 38,709 Vietnam 136,841
Indonesia 38,490 Indonesia 51,285
Singapore 29,201 Brazil 32,624
Brazil 26,046 India 30,784
Malaysia 20,633 Singapore 16,217
India’s share 25.3% India’s share 11.5%
Ginger Singapore 14,389 China 409,926
China 12,391 Netherlands 36,668
India 7504 Thailand 31,998
Thailand 6645 India 31,132
Indonesia 6638 Nepal 30,305
India’s share 15.8% India’s share 5.8%
Anise, Egypt 13,407 India 184,313
Fennel, Iran 13,387 Syria 28,835
Coriander Morocco 10,725 Bulgaria 21,805
Turkey 9402 Russian Federation 21,573
India 970 Egypt 14,140
India’s share 2.0% India’s share 68.1%
Nutmeg, Guatemala 10,371 Guatemala 32,814
Mace and Indonesia 6801 Indonesia 21,400
Cardamoms Singapore 5055 India 10,134
Grenada 2330 Nepal 4072
India 1481 UAE 3546
India’s share 5.7% India’s share 14.1%
Source: FAOSTAT
Thomas & Sanil
11
14 (IISR 2015). The gap between achievable yield
and realized yield in seed spices is also
considerable (Lal 2018). The high level of yield
gap in spices is a latent potential for the Indian
spices sector since domestic availability and
exportable surplus can be enhanced through
focused efforts for effective technology
dissemination.
Barriers to spice trade
Trade barriers are considered as increasingly
important in determining the extent of global
agricultural trade (Roberts et al. 1999). Quality
and safety standards are gaining importance in
determining the export competitiveness of
agricultural commodities since 1990’s (Aquila &
Caccamisi 2007). Spices being one of the most
traded agricultural commodities, understanding
trade barriers in international trade could offer
better insights on the policies for enhancing
global trade share. Trade standards and trade
regulations are two aspects which are gaining
importance due to their potential use as a trade
barrier. The inappropriate use of both trade
standards and trade regulations (a document
which lays down product characteristics or their
related processes and production methods,
including the applicable administrative
provisions) can lead to increased trade inefficiency.
Trade standards are defined as “a document
approved by a recognised body that provides,
for common and repeated use, rules, guidelines
or characteristics for goods or services, or related
processes and production methods” (UNECE
1998). In the context of the globalized trade, both
non-tariff measures and non-tariff barriers are
important. Though used interchangeably, there
is a subtle difference between the two terms. Non-
tariff measures are permissible under WTO to
achieve specific and legitimate objectives. A non-
tariff measure becomes a non-tariff barrier when
it is used to impede trade rather than to achieve
a specific legitimate objective.
Though the tariff levels have eased during the
last two decades, agricultural commodities
continue to be more susceptible to trade barriers
(Bown & Crowley 2016). The non-tariff
measures have been proliferating and the lack of
transparency associated with their use poses new
challenges as they act as non–tariff barriers
(Hooker & Caswell 1999). Several studies
analysing of the level of tariffs and their effect on
agricultural commodities including spices trade
mainly use classical analytical techniques as seen
in Gulati & Sharma (1994), Rao (2001) and Gulati
(2002). Non-tariff barriers also play an
increasingly important role in agricultural trade
and in commodities like spices. These barriers can
significantly affect trade variables and create trade
frictions between nations (Disdier & Tongeren
2010). The non-tariff barriers take various forms
like import licensing, rules of origin, sanitary and
phytosanitary rules, import quotas, technical
barriers, etc. The study by Disdier et al. (2008)
indicated that the imposition of non-tariff
barriers significantly reduced the volume of
agricultural exports from developing countries
to OECD countries. Hooker & Caswell (1999)
studied the role of SPS measures in restricting
trade flows between countries. Similar to
agricultural commodities, the major non-tariff
barrier to trade in spices include technical barriers
to trade (TBT) and sanitary and phytosanitary
measures (SPS) (Henson & Loader 2001).
Packaging, and labelling requirements along
with SPS rules, though classified as non-
protectionist policies (Deardorff 2012),
significantly affected spice trade from India.
Studies by Muthupandi et al. (2018) and Rajur &
Patil (2013) on trade barriers in chilli exports
identified the lack of uniformity in food safety
standards among the importing countries. This
coupled with issues related to pesticide residues
created significant barrier for trade in the
commodity. The SPS measures and most of the
labelling and packaging requirements have food
safety as their justification. Research on food
safety aspects in spice trade requires a separate
analysis in this context. The export rejections
have always remained a significant issue
associated with spices exports from India. This
is more important in case of exports to European
Union, which has one of the most stringent
terms of regulations on imported products (Jaffee
& Henson 2005).
Food safety issues in spice trade
Though spices are consumed in small quantities,
they are used in a wide range of food products
and therefore constitute a unique segment within
the food sector (Székács et al. 2018). The usage of
Competitiveness in spice export trade from India
12
spices and herbs by consumers is increasing,
because these products are appreciated as
completely natural ingredients, rather than
artificial additives. The rise in exports of
agricultural commodities from India and the
increasing consumer awareness at the domestic
level and across the globe has acted as important
drivers for increased attention to food safety in
India (Umali Deininger & Sur 2007). The spice
trade network is one of the most complex among
the agricultural-food trade networks and has
several features, which makes it substantially
vulnerable (Lakner et al. 2018). The rapidly
growing trade volume also means that the
mechanisms for direct oversight by the importing
countries could be compromised and the
consumers could be at risk (Buzby & Roberts
2010). Idris et al. (2015) undertook a detailed
study on the impact of food safety standards
imposed by USA and the European Union on
horticultural exports from India including spices
and found that spices were among the
commodities most affected due to non-
compliance with required food safety parameters.
However, a study by Kumar & Muraleedharan
(2007) finds little evidence for SPS standards
adversely affecting India’s export trade of black
pepper and capsicum to OECD countries. They
suggested that the global demand supply
scenario is the dominant factor determining trade
volume. Henson et al. (1999) finds that there is
lack of unity among the major producing
countries with respect to SPS standards and by
creating a consensus among these countries,
some of the constraints related to SPS measures
could be addressed. The developed countries have
also progressively raised the bar for food safety
and quality which are very difficult to attain for
most of the developing countries leading to their
exclusion from the export markets (Wilson &
Otsuki 2003).
The sanitary and food safety parameters and
border clearance issues are the most common
hindrances for spices exported from India to EU.
A detailed analysis of export rejections of spices
and herbs from other countries to EU and United
States for the period 2002 to 2008 (Henson &
Olale 2011) is illustrative of the magnitude of the
problem faced by India. The average rejections
were 38.9 for EU whereas it was 194.9 for the
US. The rejection rate (Number of rejections per
million USD) was 0.208 for EU and 1.666 for US
for the period 2006-08. According to the study,
in terms of unit rejection rate also, India fared
poorly among developing countries. Kumar
(2016) analysed the pattern of notifications issued
on Indian spice exports by export destinations
in European Union based on the data from the
Rapid Alert System for Food and Feed (RASFF).
He identifies a gradual increase in the number of
notifications over 2001 to 2014 with an average
of 28 notifications per year during the first 7 years
and 53 notifications per year during 2008-14.
Apart from increased monitoring of the
agricultural imports, the increased vulnerability
of spices and herbs to contamination has led to
interventions like “Securing the spices and herbs
commodity chains in Europe against deliberate,
accidental or natural biological and chemical
contamination” (SPICED) to address the
challenges of food safety (European Commission
2013).
Based on a study on the export value chain in
Indian black pepper Aarathi et al. (2018) contend
that dissemination of knowledge on Good
Agricultural Practices (GAP) among the primary
producers holds the key to meet the food safety
challenges along the value chain. There are
evidences of imposition of trade restrictions
under the guise of health concerns (Peterson et
al. 1988). The safety of spices also can be
compromised due to economically motivated
adulteration along the complex supply chains
(Galvin-King et al. 2018) which necessitates
deployment of quick detection methods for
adulteration. A comprehensive review of the cost
of compliance and coping strategies necessitated
by stringent product standards in high value
food products like spices was done by Jaffee
(2005). This study identified the lack of
harmonization of international standards (which
added cost for exporters) as one of the major
hurdles for Indian spice exports. Spices Board
has taken up the issue of the permissible average
daily intake of certain chemicals and chemical
compounds in spice commodities before the
Pesticide Residue Committee of Codex
Alimentarius Commission. The argument calls
for differential treatment of spices in matters of
food safety since spices constitute a very
miniscule proportion of the servings of food and
hence the Maximum Residue Limits (MRLs) fixed
Thomas & Sanil
13
for directly consumed agricultural products
cannot be applied to spices (Das 2008). In short,
it is important to examine the legitimate objective
behind standards applied on India’s spice exports
and analyse the risk of non-fulfilment. Such risks
should commensurate with the effort involved
to meet the standard as well as the compliance
costs (Mehta et al. 2003).
The growth of trade in organic spices can also
be understood in the backdrop of concern for
food safety since it is one of the factors (along
with inter alia higher income, urbanization and
perceptions regarding quality) which has
influenced the demand for organic products
(Regmi 2001). There is a growing global demand
for organic spices with an annual growth rate
of about 20% and the price premiums have been
observed to be between 10-30% (Parthasarathy
et al. 2008). This is another area where spice trade,
where higher value realization is possible along
the trade value chain.
The role infrastructural facilities gain significance
amid increasing concerns of food safety. Detailed
audits of physical facilities in the country along
the procurement, handling, processing, and
packing processes need to be undertaken for
ensuring food safety. With regard to trade with
the USA the suppliers of spices are asked to
address a set of food security concerns including
access to factories and laboratories and preventive
measures against product tampering and
tracking to ensure safety of the food materials
like spices (Jaffee 2005). The development of state
of the art processing and handling facilities for
spices can enhance the capability of the country
to address the food safety concerns while
enhancing its reputation as a source of safe spices.
Research gaps and future directions
Indian spices have created a niche for itself
through its historical allure and attributed
quality parameters. Spice export trade has been
subjected to considerable analysis for its growth,
trade direction and competitiveness. However,
some of the focus on these areas of spice trade
analysis have come at the cost of scanty
information with respect to the developmental
Table 5. Information gaps in research on spice trade
Research gap Area of application and utility
Information on the specific impact pathways and OSpice sectoral development policy
quantification of spice trade expansion to
producer welfare
Linkage between domestic productivity gains and OResearch investment prioritization
export competitiveness ORegional crop planning
Returns to investment in crop specific export OCrop specific policy design for export promotion
promotion schemes for spice crops
Optimizing spice export portfolio for sustainable OExport facilitation
growth in spice exports OExport portfolio planning
In-depth analysis of underlying factor influencing OTargeted development programmes for
RCA in spices export enhancing competitiveness
Role of Total Factor Productivity (TFP) in changes OStudy impact of technology investments
in export competitiveness and exportable surplus
Factors underlying demand fluctuations in export OExport capacity planning
destinations OTrade intelligence analysis
Movement of terms of trade in spice exports with OTo understand the relative competitiveness of
various regions/economies spices for policy planning
Competitiveness in spice export trade from India
14
linkages of the spice export sector with the
general economy. The spices export sector in the
country has developed by leveraging the demand
rather than any detailed planned approach. The
increased forces of competition and nature of the
emerging regulatory scenario across the major
export destination economies necessitate astute
planning in the developmental process in spices
export sector. The portfolio approach for Indian
spices export using mean variance optimization
(Rao 2013) indicates a step in this direction. We
have identified some of the key missing themes
in the research narrations focusing on spices.
Table 5 summarizes the identified gaps in
information with respect to Indian spice export
trade and the utility of such information.
Spice export trade constitutes an important
segment of the Indian agricultural exports, but
there are significant gaps in information either
in case of individual crops or the spice export
sector. The identified gaps need to be addressed
by researchers to ensure better planning and
inclusive development of the sector.
Spice crops are treated as crops with an export
orientation even though the domestic market
consumes nearly 90% of the total spices
production in the country. With increasing
evidence that regions within the country which
diversified into export-oriented crops fared much
better in terms of agricultural development
(Pingali et al. 2019), spice export trade is of
significance for agricultural development in the
country. Research on spice export trade has
mostly concentrated on analysing the past
performance of the sector or individual crops
within the sector, and a few of them offered an
analysis of the underlying factors. The issues
covering barriers to spice trade and food safety
concerns regarding spices have also been
examined in substantial detail at the global level.
The urgent need for coordination of production
effort with demands of the global value chains,
while remaining cost competitive through
reductions in transaction and organizational cost
(Sengupta & Roy 2011; Pingali et al. 2019) is
perceptible across the studies. The efforts for
bringing in transformational change in spices
trade through policy interventions should make
conscious efforts to avoid market distortions.
Apart from addressing the challenges arising
from regional and multilateral trade agreements,
the sectoral policies should address inter alia,
investment facilitation in technology
development for post-harvest technologies,
promotion of good agricultural practices in
primary production, sustainable cost
effectiveness across products, trade portfolio
planning at the macro level, efforts for
harmonization of trade standards across
destinations and development of actionable trade
intelligence services.
References
Aarathi L R, Kumar S, Negi D S & Singh D R 2012
Prevailing standards and dimensions
governing Sanitary and Phyto-Sanitary
compliance in Indian black pepper supply
chain. Agric. Econ. Res. Rev. 25: 69–78.
Agriculture & Processed Foods Export
Development Agency (APEDA) 2015 Agri
Export Zones of India, Agriculture &
Processed Foods Export Development
Agency, New Delhi.http://apeda.gov.in/
apedawebsite/index.html.
Ahmed S 2010 India-ASEAN trade agreement: A
sectoral analysis. SSRN Electronic J. http://
dx.doi.org/10.2139/ssrn.1698849.
Ahmed S, Kelegama S & Ghani E (Eds.) 2010
Promoting Economic Cooperation in South
Asia: Beyond SAFTA. Sage Publications, New
Delhi. 434pp.
Alessandrini M, Fattouh B & Scaramozzino P 2007
The changing pattern of foreign trade
specialization in Indian manufacturing. Oxf.
Rev. Econ. Policy 23: 270–291.
Angles S, Sundar A & Chinnadurai M 2011 Impact
of globalization on production and export of
Turmeric in India – An economic analysis.
Agric. Econ. Res. Rev. 24: 301–308.
Aquila D C & Caccamisi D 2007 Accessing Market
Opportunities: Quality and Safety Standards.
In: Deep Ford J R, Dell’C Aquila & Conforti
Piero (Eds.) Agricultural Trade Policy and
Food Security in the Caribbean (pp.263–288).
Food and Agriculture Organization, Rome.
Balassa B 1965 Trade liberalisation and revealed
comparative advantage. Manchester Sch.
Econ. Soc. Stud. 33: 99–123.
Baldwin R E 1992 Measurable dynamic gains from
trade. J. Polit. Econ. 100: 162–174.
Thomas & Sanil
15
Bale M D & Lutz E 1979 The effects of trade
intervention on international price
instability. Am. J. Agric. Econ. 61: 512–516.
Baroncelli E 2007 The peace dividend: SAFTA and
Pakistan–India trade. In: Zareen Fatima
Naqvi & Philip Schuler (Eds.) The Challenges
and Potential of Pakistan-India Trade (pp.59-
68). The World Bank, Washington DC.
Batra A & Khan Z 2005 Revealed comparative
advantage: An analysis for India and China.
Working Paper 168, Indian Council for
Research on International Economic
Relations (ICRIER), New Delhi. pp.91.
Bautista R M & Valdes A (Eds.) 1993 The Bias Against
Agriculture: Trade and Macroeconomic
Policies in Developing Countries.
International Centre for Economic Growth
and International Food Policy Research
Institute, Washington DC. pp.339.
Bellmann C, Biswas T & Chamay M 2010 Recent
trends in world trade and international
negotiations. Int. Dev. Policy. 1: 161–187.
Bernhofen D M & Brown John C 2005 An empirical
assessment of the comparative advantage
gains from trade: Evidence from Japan. Am.
Econ. Rev. 95 : 208–225.
Bown C P & Crowley M A 2016 The empirical
landscape of trade policy. In: Kyle Bagwell
Staiger & Robert W (Eds.) Handbook of
Commercial Policy. 1: 3–108.
Box H 1989 Developments in the spices trade: A
review. Brit. Food J. 91: 15–18.
Burange L G & Chaddha S J 2008 India’s revealed
comparative advantage in merchandise
trade. Working Paper UDE28/6/2008,
University of Mumbai, Mumbai. pp.38.
Buzby J C & Roberts D 2011 Food trade and food
safety violations: What can we learn from
import refusal data?. Am. J. Agric. Econ. 93:
560–565.
Chand R & Bajar S 2012 Agricultural trade
liberalization policies in India: Balancing
producer and consumer interests. In: Banga
R & Das A (Eds.) Twenty Years of India’s
Liberalization: Experiences and Lessons
(pp.27–42). UNCTAD: Geneva.
Chand R 2004 Impact of trade liberalization and
related reforms on India’s agricultural sector,
rural food security, income and poverty.
Paper presented at Global Development
Network, Fifth Annual Conference, New
Delhi.http://agris.fao.org/agris-search/
search.do?recordID=GB2013201182
Chawla S 2016 Supply chain issues in Indian spices
export to USA. Int. J. Mod. Sci. Engg. Technol.
3: 6–12.
Das K 2008 Coping with SPS Challenges in India:
WTO and Beyond. J. Int. Econ. Law. 11: 971–
1019.
Deardorff A 2012 Easing the burden of non-tariff
barriers. Int. Trade Forum 3: 26–27.
DeWaal C S & Brito G R G 2005 Safe food
international: A blue print for better global
food safety. Food Drug Law J. 60: 398–405.
Directorate General of Foreign Trade (DGFT) 2005
Public notice number 4(RE 2005)/2004-2009
dated 27 April 2005.Directorate General of
Foreign Trade, New Delhi. https://dgft.gov.in/
Disdier A C & Tongeren F V 2010 Non-tariff
measures in agri-food trade: What do the
data tell us? Evidence from a cluster analysis
on OECD imports. Appl. Econ. Perspect.
Policy. 32: 436–455.
Disdier A C, Fontagné L & Mondher M 2008 The
impact of regulations on agricultural trade:
Evidence from the SPS and TBT Agreements.
Am. J. Agric. Econ. 90: 336–350.
European Commission 2013 Securing the spices and
herbs commodity chains in Europe against
deliberate, accidental or natural biological
and chemical contamination. http://
spiced.linux17.webhome.at/the-project/
FAO (Food and Agriculture Organization) 2003
Trade reforms and food security:
Conceptualizing the linkages. Commodities
and Trade Division, Food and Agriculture
Organization of The United Nations, Rome.
pp.315.
Francis S 2011 A Sectoral Impact Analysis of the
ASEAN-India Free Trade Agreement. Econ.
Polit. Weekly 46: 46–55.
Galli M 2017 Beyond frontiers: Ancient Rome and
the Eurasian trade networks. J. Eurasian
Stud. 8: 3–9.
Galvin-King P, Haughey S A & Elliott C T 2018 Herb
and spice fraud; The drivers, challenges and
detection. Food Control 88: 85–97.
Competitiveness in spice export trade from India
16
Ghosh M 2017 WTO, trade liberalization and Indian
agriculture. In: Sharma S K & Bathla S (Eds.)
Indian Agriculture Under Multilateral and
Regional Trade Agreement - Competitiveness
and Food Security Concerns (pp.19-43).
Centre for WTO Studies, New Delhi and
Bookwell, New Delhi.
Gilbert C 1996 International commodity
agreements: An obituary notice. World Devel.
24: 1–19.
Gilboa A & Namdar D 2015 On the beginnings of
South Asian spice trade with the
Mediterra-nean region: A review.
Radiocarbon 57: 265–283.
GoI (Government of India) 2015 Foreign Trade Policy,
1st April 2015–31st March 2020, Mid Term
Review, Ministry of Commerce and Industry,
Government of India. pp.150. http://
dgftcom.nic.in/exim/2000/policy/ftp-
plcontent0910.pdf.
Gulati A & Sharma A 1994 Agriculture under GATT:
What it holds for India. Econ. Polit. Weekly
29: 1857–1863.
Gulati A 2002 Indian Agriculture in a globalizing
world. Am. J. Agric. Econ. 84: 754–761.
Gulati A, Jain S & Hoda A 2013 Farm trade: Tapping
the hidden potential. Discussion Paper 3.
Commission for Agricultural Costs and
Prices, Ministry of Agriculture, Government
of India, New Delhi. pp.32.
Halikowski S S 2015 In the shadow of a pepper-
centric historiography: Understanding the
global diffusion of capsicums in the sixteenth
and seventeenth centuries. J.
Ethnopharmacol. 167: 64–77.
Harilal K N & Dhanya V 2015 The WTO agreement
on agriculture and tropical commodities: A
study in the context of south India. Rev.
Agrar. Stud. 5: 39–60.
Harilal K N & Joseph K J 1999 India -Sri Lanka free
trade accord.Econ. Polit. Weekly 34: 750–753.
Harilal K N 2009 India- ASEAN Free Trade
Agreement: Implications for primary
commodities of South India. Ind. J. Politics Int.
Relat. 2: 308–328.
Harilal K N 2014 Regional cooperation for whom?
A study of ASEAN–India FTA in the context
of plantation/tropical products. Millennial
Asia 5: 137–155.
Hazell P B, Jaramillo M & Williamson A 1990 The
relationship between world price instability
and the prices farmers receive in developing
countries. J. Agric. Econ. 41: 227–241.
Hema M, Kumar R & Singh N P 2007 Volatile price
and declining profitability of black pepper
in India: Disquieting future. Agric. Econ. Res.
Rev. 20: 61–76.
Henson S & Jaffee S 2007 Developing country
responses to the enhancement of food safety
standards. In: Grote U, Basu A K & Chau N H
(Eds.) New frontiers in environmental and
social labelling. Sustainability and
Innovation (pp.193–205). Physica-Verlag HD.
Henson S & Loader R 2001 Barriers to agricultural
exports from developing countries: The role
of Sanitary and Phytosanitary
Requirements. World Devel. 29: 85–102.
Henson S & Olale E 2011 What do border rejections
tell us about trade standards compliance of
developing countries? Analysis of EU and US
Data 2002–2008. UNIDO Working Paper. pp
64.https://www.unido.org/fileadmin/
user_media/Services/
Henson S J, Loader R J, Swinbank A, Bredahl M &
Lux N 1999 Impact of Sanitary and
Phytosanitary Measures on Developing
Countries. Department for International
Development, London. pp.105.
Holmes T J, Hsu Wen-Tai & Lee S 2014 Allocative
efficiency, mark-ups, and the welfare gains
from trade. J. Int. Econ. 94:195-206.
Hooker N H & Caswell J A 1999 A framework for
evaluating non-tariff barriers to trade related
to sanitary and phytosanitary regulation. J.
Agric. Econ. 50: 234–246.
ICAI (Institute of Chartered Accountants of India)
2008 Handbook on Foreign Trade Policy and
Guide to Export &Import.Institute of
Chartered Accountants of India, New Delhi.
133pp.
ICAR (Indian Council of Agricultural Research) 1953
Report of the Spices Enquiry Committee.
Indian Council of Agricultural Research, New
Delhi, 218pp.
Idris S, Singh A & Praveen K V 2015 Trade
competitiveness and impact of food safety
regulations on market access of India’s
horticultural trade. Agric. Econ. Res. Rev. 28:
301–309.
Thomas & Sanil
17
IISR (Indian Institute of Spices Research) 2015
Annual Report 2014-15. ICAR-Indian
Institute of Spices Research, Kozhikode.
106pp.
ITC (International Trade Centre) 2018 These are the
world’s three most traded spices. ITC News,
06 February 2018. http://www.intracen.org/
news/.
Jaffee S 2005 Delivering and taking the heat: Indian
spices and evolving product and process
standards, Agriculture and Rural
Development Discussion Paper 19. The World
Bank, Washington, 48pp.
Jaffee S & Henson S J 2005 Agro-food exports from
developing countries: The challenges posed
by standards. In: Aksoy A & John C Beghin
(Eds.) Global agricultural trade and
developing countries (pp.91–114). The World
Bank, Washington DC.
Jagadambe S 2016 Analysis of export
competitiveness of Indian agricultural
products with ASEAN countries. Working
Paper 356, Institute for Social and Economic
Change, Bangalore. 24pp.
Jambor A, Toth A T, Koroshegyi D 2018
Competitiveness in the trade of spices: A
global evidence.Paper presented at 30th
International Conference of Agricultural
Economist, July 28–August 2, 2018,
International Association of Agricultural
Economists Vancouver.
Jeromi P D 2007 Farmers’ indebtedness and suicides:
Impact of agricultural trade liberalization in
Kerala. Econ. Polit. Weekly 42: 3241–3247.
Joshi D, Singh H P & Gurung B 2015 Stability
analysis of Indian spices export – a Markov
chain approach. Econ. Aff. 60: 257–262.
Joshi P K & Kumar P 2016 Food demand and supply
projections to 2030: India. In: Brouwer F &
Joshi P K (Eds.) International Trade and Food
Security: The Future of Indian Agriculture,
Part 2 (pp.29–63). CABI Publishing, Boston.
Kalidasan V K 2015 The routes of pepper: Colonial
discourses around the spice trade in Malabar.
In: Shiju Sam Varughese & Satheese Chandra
Bose (Eds.) Kerala Modernity: Ideas, Spaces
and Practices in Transition, Orient
Blackswan, New Delhi. 237pp.
Karp L S & Perloff J M 2002 A synthesis of
agricultural trade economics. In: Gardner B
& Rausser G (Eds.) Handbook of Agricultural
Economics, Volume 2 (pp.1945–1998). Elsevier
Science B.V.
Karthick V, Alagumani T & Anbarassan A 2015
Growth and export performance of ginger in
India- An economic analysis. Econ. Aff. 60:
207–214.
Kaur A 2018 Factors affecting trade competitiveness
of BRICS countries. Ind. J. Econ. Dev. 6: 1–8.
Keay J 2006 The Spice Route: A History. University
of California Press, Berkeley. 304pp.
Kenichi K 2003 The impact of free trade agreements
in Asia. Discussion Paper Series 03-E-018. The
Research Institute of Economy, Trade and
Industry (RIETI).
Kumar N C & Muraleedharan V R 2007 SPS
regulations and competitiveness: An analysis
of Indian spice exports. South Asia Econ. J. 8:
335–346.
Kumar N C 2011 Agricultural Trade Facilitation in
Asia: Prioritising the Invisible Infrastructure.
Millennial Asia. 2: 3–22.
Kumar N C 2016 Sensitivity of India’s agri-food
exports to the European Union: An
institutional perspective. Working Paper 366.
The Institute for Social and Economic Change,
Bangalore. 24pp.
Lafay G 1992 The measurement of revealed
comparative advantages. In: Dagenais M G &
Muet PA (Eds.) International Trade Modelling
(pp.209–234). Chapman & Hill, London.
Lakner Z, Szabó E, Szûcs V & Székács A 2018
Network and vulnerability analysis of
international spice trade. Food Control. 83:
141–146.
Lakra K, Bairwa S L, Meena L K & Saket K 2014
Comparative advantage in export of major
agricultural commodities in India: A post-
reforms analysis. Econ. Aff. 59: 107–116.
Lal G 2018 Scenario, importance and prospects of
seed spices: A review. Curr. Inves. Agric. Curr.
Res. 4: 491–498.
Masahiro E 2005 The effects of the GSTP on trade
flow: mission accomplished?. Appl. Econ. 37:
487–496.
Competitiveness in spice export trade from India
18
Meena M D, Lal G, Meena S S & Meena N K 2018
Production and export performances of major
seed spices in India during pre and post-WTO
period. Int. J. Seed Spices 8: 21–30.
Mehta R, Saqib M & George J 2003 Addressing
sanitary and phytosanitary agreement: A
case study of select processed food products
in India. RIS-Discussion Paper 39/2003,
Research and Information System for the
Non-Aligned and Other Developing
Countries, New Delhi, 70pp.
Muthupandi P, Sekhar C & Karunakaran K R 2018
Barriers to trade and their impact on
production and export of red chilli in India.
Indian J. Econ. Devel. 6: 1–16.
Nagoor B H 2010 Trade aspect of plantation sector
of India. National Research Programme on
Plantation Development. Discussion Paper
No 8. Centre for Development Studies,
Thiruvananthapuram, 82pp.
Naik V R & Hosamani S B 2013 Growth and export
dimensions of Indian turmeric. Int. Res. J.
Agric. Econ. Stats. 4: 91–97.
OECD (Organisation for Economic Co-operation and
Development) 2014 Glossary of Statistical
Terms. https://stats.oecd.org/glossary/
detail.asp?ID=399.
Parthasarathy V A, Kandiannan K & Srinivasan V
(Eds.) 2008 Organic Spices. New India
Publishing Agency, New Delhi. 694pp.
Patnaik U 1996 Export oriented agriculture and food
safety in developing countries and India.
Econ. Polit. Weekly. September 1996: 2429–
2447.
Paul R K, Saxena R, Chaurasia S, Zeeshan & Rana S
2015 Examining export volatility, structural
breaks in price volatility and linkages
between domestic and export prices of onion
in India. Agric. Econ. Res. Rev. 28: 101–116.
Peterson E W, Paggi M & Hemy G 1988 Quality
restrictions as barriers to trade: The case of
European Community regulations on the use
of hormones. Western J. Agric. Econ. 13: 82–
91.
Pickersgill B 2017 The British East India company,
John Bradby Blake and their interests in
spices, cotton and tea. Curtis’s Bot. Mag. 34:
379–401.
Pingali P, Aiyar A, Abraham M & Rahman A 2019
Transforming Food Systems for a Rising
India. Palgrave Studies in Agricultural
Economics and Food Policy. Springer Nature,
Switzerland, 382pp.
Pollmer U 2000 The spice trade and its importance
for European expansion. Migr. Diff. 1: 58–72.
Rajur B C & Patil B L 2013 Export performance of
chilli – An analysis. Karnataka J. Agric. Sci.
26: 233–237.
Rao H C H 2001 WTO and viability of Indian
agriculture. Econ. Polit. Weekly 36: 3453–
3457.
Rao S D 2013 Building an optimal trade portfolio
for Indian spices exports by mean variance
optimization. Ind. J. Finance 7: 45–50.
RBI (Reserve Bank of India) 2003 Report on External
Sector dated 31 March 2003. Reserve Bank of
India, Mumbai. https://www.rbi.org.in/
scripts/
Redding S 1999 Dynamic comparative advantage
and the welfare effects of trade, Oxf. Econ.
Pap. 51: 15–39.
Regmi A (Ed.) 2001 Changing structure of global food
consumption and trade. Agriculture and
Trade Report WRS01-1, Market and Trade
Economics Division, Economic Research
Service, US Department of Agriculture,
Washington DC.107pp.
Riedel J 1984 Trade as the engine of growth in
developing countries, revisited. Econ. J. 94: 56–
73.
Roberts D, Josling T E & Orden D 1999 A framework
for analyzing technical barriers in
agricultural markets. Economic Research
Service, USDA Washington, DC. 52pp.
Robins N 2012 The Corporation that changed the
world: How the East India Company shaped
the modern multinational. Asian Aff. 43: 12–
26.
Schiff M & Valdes Alberto 2002 Agriculture and the
macroeconomy, with emphasis on
developing countries. In: Gardner B & Rausser
G (Eds.) Handbook of Agricultural Economics,
Vol. 2 (pp.1945–1998). Elsevier.
Sekhar C S 2003 Volatility of agricultural prices -
An analysis of major international and
domestic markets. Working Paper 103. Indian
Council for Research on International
Economic Relations (ICRIER), New Delhi.
pp.78.
Thomas & Sanil
19
Sengupta U & Roy S S 2011 Behaviour of India’s
horticultural exports: does price
competitiveness play a determining role?.
Ind. J. Agric. Econ. 66: 230–241.
Sharma K 2003 Factors determining India’s export
performance. J. Asian Econ. 14: 435–446.
Shinoj P & Mathur V C 2008 Comparative advantage
of India in agricultural exports vis-á-vis Asia:
A post-reforms analysis. Agric. Econ. Res. Rev.
21: 60–66.
Sikdar C & Nag B 2011 Impact of India-ASEAN Free
Trade Agreement: A cross-country analysis
using applied general equilibrium modelling.
Working Paper 107. Asia-Pacific Research
and Training Network on Trade (ARTNeT),
Bangkok. pp.64.
Sivasankari B & Rajesh R 2014 A study on growth
and direction of black pepper trade in India-
a Markov chain approach, Trends Biosci. 7:
3200–3205.
Soumya X, Burark S S, Lathika S & Sita R 2015
Export competitiveness of Indian cumin, Ind.
J. Agric. Mark. 29: 180.
Spices Board 2019 Review of export performance of
spices during 2017-18.Spices Board, Kochi.
http://www.indianspices.com/export/
Sunil A & Nair K S 2018 Marketing opportunities
and export competitiveness of Indian spices:
An econometric analysis. Eur. J. Bus. Manag.
10: 41–56.
Suresh A & Mathur V C 2016 Export of agricultural
commodities from India: Performance and
prospects. Ind. J. Agric. Sci. 86: 876–883.
Székács A, Wilkinson M G, Mader A & Appel B 2018
Environmental and food safety of spices and
herbs along global food chains. Food Control
83: 1–6.
Umali Deininger D & Sur M 2007 Food safety in a
globalizing world: opportunities and
challenges for India. Agric. Econ. 37: 135–147.
UNECE (United Nations Economic Commission for
Europe) 1998 Standards and Regulations in
International Trade. United Nations
Economic Commission for Europe, Geneva.
http://www.unece.org/
Van der Veen M & Morales J 2015 The Roman and
Islamic spice trade: New archaeological
evidence. J. Ethnopharmacol.167: 54–63.
Veeramani C & Saini G K 2010 Impact of ASEAN-
India FTA on India’s plantation commodities:
A simulation analysis. Working Paper 2010-
004, Indira Gandhi Institute of Development
Research, Mumbai. pp.22.
Wilson J & Otsuki T 2003 Balancing risk reduction
and benefits from trade in setting standards.
In: Unnevehr L J (Ed.) Food Safety in Food
Security and Food Trade. A 2020 Vision for
Food, Agriculture and the Environment
(pp.13–14). International Food Policy
Research Institute, Washington, DC.
Wilson J S, Mann C L & Otsuki T 2005 Assessing the
benefits of trade facilitation: A global
perspective. World Econ. 28: 841–871.
Competitiveness in spice export trade from India