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Volume Issue 1
BKAP541
[1-5]
REVIEW ARTICLE Bhartiya Krishi Anusandhan Patrika, Volume Issue : ()
Growth and Instability in Production of Selected Major Spices
and their Export Scenario for India: A Review
Arpan Buragohain, Sangita Borah 10.18805/BKAP541
ABSTRACT
India is known as the land of spices. It is one of the largest producers, consumer and exporter of spices in the world. Even though the
spice is a highly demanded commodity in the international market. The export fluctuation is observed for the product. This s tudy trying
to identify the reasons of fluctuation for s ome selected major spices export from India. For that data collected for area production and
productivity of major spices mainly chilli, ginger and turmeric and analyzed its growth and variability. These three crops were selected
as they covered the highest per centage of production share in the year 2021. In this study data were collected from the year 2010-11
to 2019-20 to analyze the growth and instability in production of major spices and its impact on their export. Compound annual growth
rate analysis was done to see the growth in area, production and productivity of the selected spices along with the growth performance
of spice export f rom India. The variability in area, production and productivity along with the export instability was calculated with the
help of instability index. Ourstudy examined thatarea and production of spices in India was growing continuously from the year 2010-
11 to 2019-20. The compound annual growth rate analysis reflected a positive growth in area under gi nger (2.53 per cent) and
Turmeric (1.08 per cent), while it was negative for c hilli (-0.99 per cent). During the entire period chilli and ginger recorded a positive
and significant growth in production and productivity of the crop. Export was found to be related with the productivity of the crop. The
export variability was found to be lowest for chilli (3.98), while ginger recorded a very high instability index (33.36) for the period. W ith
increase productivity export of chilli increases. As the quantity exported for chilli was highest among the three crops so the export
value of the same was also found highest during the entire period.
Key words: Growth, Instability index, Major spices, Spice export.
Spice is a plant product which is used in cooking to add
flavor to food. It comes from a dried plant and is usually
used as a powder or seed. From time immemorial India has
been known as the Land of Spices. It is one of the largest
producers, consumer and exporter of spices in the world.
India on an average exports around 546 thousand tonnes
of spices annually. The country produces about 75 of the
109 varieties of spices listed by International Organization
for Standardization (ISO). (www.ibef.org). The chilli, black
pepper, turmeric, ginger, cardamom, coriander and cumin
were the major exporting spices from India (Bagal et al.
2020). Almost all of the states in India produces spices. The
area of spices at around 3.15 million hectares (Chaitra and
so nnad 2 019) in the coun try. Out of t he total spic es
production, Indian households consume about 70-75 per
cent either in whole form or in value added form (powder or
masalas ), 5-1 0 per cen t is util iz ed b y ole ores in s,
pharmaceuticals and cosmetics companies, 15-20 per cent
is exported and the remaining 5 per cent goes for seed
purposes (www.commodityindia.com). Despite the COVID-19
Pandemic, export of spices from India continued its upward
trend during 2020-21 and crossed the 3.5 billion US $ mark.
Estimated export of spices/spice products from the country
during 2020-21 is 15,65,000 tons valued Rs.27193.20 crores
(US $3624.76 million) against the 12,08,400 tons valued
Rs.22062.80 crores (US $3110.63 million) of the previous
financial year. Export of spices attained an all-time record
in terms of both volume and value in the year registering an
increase of 30% in volume, 23% in rupee terms and 17% in
dollar terms of value compared to the previous year (source:
Spice Board of India). The world consumption of spices is
growing steadily year after year. Expansion of spices export
is important to maintain the share of spices export at the
same level. For that increase productivity of spices and their
quality management is important.
This increase export indicates the high d emand of
sp ic es in th e interna tional mark et. Even th o u g h th e
demand for the spices from India is growing continuously
but the export scen ario reflected variation for some o f
the spices over the years. The stu dy was conducted to
analyze the growth in area production and productivity of
some selected major spices and its variation, along with
the impact of those factors on the export scenario of the
selected spices. In India chilli, ginger and turmeric recorded
Depart ment of Agr i cu ltu ral Economic s , Assa m Agri c ul tur al
University, J orhat-785 013, Assam, India.
Corresponding Author: Arpan Buragohain, Department of Agricultural
Economics, Assam Agricultural University, Jorhat-785 013, Assam,
India. Email: arpan.buragohain.amj20@ aau.ac.in
How to cite this article: Buragohain, A. and Borah, S. (2022).
Growth and Instability in Production of Selected Major Spices and
th ei r Expor t Sc en ar i o for India: A Revi ew. Bh art iya Kri shi
Anusandhan Patrika. DOI: 10.18805/BKAP541.
Submitt ed: 23-05-2022 Accepted : 14-07- 2022 Online: 15-08-2022
Bhar tiya Kr ishi Anusandh an Patrika
2
Growth and Instability in Production of Selected Major Spices and their Export Scenario for India: A Review
highest production share in th e year 2021 (Spice Board
of Ind ia). For that these th ree sp ic e c rops were selected
for the st ud y.
Data sources
The study was conducted based on secondary data which
was collected for 2010-11 to 2019-20 from Annual Reports
of Spice Board of India, Handbook of Indian Spice Board
an d fr o m var io u s publica tio n s whic h is cit ed in th e
references, official records and web sources.
Compound annual growth rate analysis
Compound annual growth rate analysis was done to see
the growth rate of area, production and productivity in major
spices of India. Calculation was done by using the exponential
function of the following specification.
Growth analysis:
Y = abt
Where,
Y= Dependent variable (area/production/produc tivity/export
quantity/export value).
a = Inte rcep t.
b = Slo pe.
t= Time variable in years taking the value of 1, 2, 3,..., n.
The compound annual growth rate (CAGR) derived from
the logarithmic form of the equation as:
In y=ln a + t ln b
The CAGR (%) will be estimated using the following relationship.
r= (Anti log of b - 1) 100
The significance of ‘r’ was tested by working out t-value.
t= b/SE(b)
where ‘t’ follows student’s t-distribution with (n-2) degrees
of freedom.
Instability index
The Instability Index was calculated by using cuddy-Della
Valle index formula to see the variation in area production
and productivity of selected spices with export variation.
Where,
CV=Coefficient of variation.
SD=Standard deviation of area, production and productivity/
export quantity/export value.
Mean = Average of area, production and productivity/export
quantity/export value.
The formula used to compute the degree of variation
around the trend:
Instability index = CV 1-R^2
Where,
R^2 = RSS/TSS = Goodness of fit.
RSS= Regression sum of square
TSS= Total sum of square.
Area and production of spices for India and World from
2010-11 to 2019-20
Table 1, represented the area and production of spices from
2010-11 to 2019-20 for India and the World. It is found that
the growth in area and production for spices are slightly
inc reasing for bo th the cases. Com pound growth rate
analysis represented a positive and significant growth in
area and production for India (2.91 and 0.66 per cent) and
the world (3.15 and 1.74 per cent). The instability index for
area and production of spices in India was 6.67 and 3.22. It
was found to be 2.76 and 4.67 for area and production of
spices in the entire world. This means that farmers are
interested in cultivation of spices as the production of spices
brings good return to them.
CV= 100
SD
Mean
Table 1: Area and production of spices for India and World from
2010-11 to 2019-20.
India World
Year Area Production Area Produc tion
(lakh ha) (lakh MT) (lakh ha) (lakh MT)
2010-11 7.77 14.75 10.39 21.96
2011-12 7.41 17.00 10.08 25.21
2012-13 7.4 14.97 10.12 23.68
2013- 14 6.8 15.00 9.51 24.4
2014- 15 7.37 15.04 10.14 24.37
2015- 16 7.68 12.92 10.56 22.44
2016- 17 8.96 15.28 11.85 25.44
2017-18 8.92 14.35 12.17 26.12
2018- 19 9.01 15.46 12.45 26.75
2019-20 9.25 15.75 13.01 27.12
CAGR 2.91* 0.66* 3.15* 1.74*
Instability index 6.67NS 3.22NS 2.76NS 4.67NS
Source: Spice Board of India.
*Significant at P0.05; NS- Non Significant at P>0.05.
Table 2: Growth and instability in area for chilli, ginger and turmeric
in India from 2010-11 to 2019-20.
Year Chilli Ginger Turmeric
(‘000 ha) (‘000 ha) (‘000 ha)
2010-11 716.4 167.4 232.0
2011-12 793.9 125.3 251.8
2012-13 787.5 134.4 194.3
2013- 14 791.9 148.0 207.5
2014- 15 766.6 153.1 178.4
2015- 16 742.9 156.9 183.4
2016- 17 859.7 171.7 247.6
2017-18 678.8 168.9 231.6
2018- 19 721.1 173.5 245.2
2019-20 682.5 172.0 245.9
CAGR -0.99 2.53* 1.08NS
Instability index 6.87NS 7.98NS 12.37NS
Source: Spice Board of India.
*Significant at P0.05; NS- Non Significant at P>0.05.
Volume Issue 3
Growth and Instability in Production of Selected Major Spices and their Export Scenario for India: A Review
Growth and instability in area for chilli, ginger and turmeric
in India from 2010-11 to 2019-20
In Table 2, we are trying to represent the growth in area for
chilli, ginger and turmeric in India considering these three
as the major spices as they hold a major share in overall
spices exports from India. From the year 2010-11 to 2019-
20 the growth in area for chilli was found to be declining
(716.4 thousand ha to 682.5 thousand ha). But for ginger
(167.4 thou sand ha to172.0 thousand ha) and turmeric
(232.0 thousand ha to 245.9 thousand ha) the area under
the crop was observed to be increasing. The compound
growth rate analysis reflected that the area under ginger is
found to be positive and significant (2.53 per cent) but for
chilli the growth rate was negative and non-significant (-0.99
per cent). Turmeric presented a positive growth rate in area
under t he crop (1.08 per cent). Instability index showed
that a high variation of area under the turmeric crop (12.37)
as compared to chilli (6.87) and ginger (7.98) during the
entire period.
Growth and instability in production of chilli, ginger and
turmeric in India from 2010-11 to 2019-20
Table 3 represented the growth and instability in production
of chilli, ginger and turmeric in India from 2010-11 to 2019-
20. It was observed from the Table that chilli and ginger
recorded a positive and significant growth (3.88 and 12.25
per cen t ) in pr oduc t ion th roug h o ut the years , while
production of turmeric was negative but significant (-3.92
per cent) during the period. It is due to the instability in area
under the turmeric for the entire period. The instability index
for the production of chilli, ginger and turmeric all are found
to be very high. This may be due to bad weather condition
or non-adoption of high yielding varieties by the farmers.
Growth and instability in productivity of chilli, ginger
and turmeric in India from 2010-11 to 2019-20
Growth and instability in productivity of chilli, ginger and
turmeric in India from 2010-11 to 2019-20 was represented
in the Table 4. From the Table it was clearly observed that
productivity was increasing for ginger crop after 2016-17,
while Turmeric reflected a negative growth in productivity of
the cro p. Produ ctivity of chilli was found to be slow ly
increasing during the entire period. Compound growth rates
for productivity was highest for ginger (12.56 per cent) but
negative and significant for turmeric (-4.95 per cent). Chilli
recorded a positive and significant growth (4.88 per cent) in
productivity through out the p eriod. Ginger showed h igh
instability rate due to environmental conditions like flood,
poor weather, landslides etc.
Export scenario of chilli, ginger and turmeric from India
in quantity (In ‘000 tonnes) during 2010-11 to 2019-20
Table 5 represented the export scenario of chilli, ginger and
turmeric from 2010-11 to 2019-20. At present spices export
from India continued its upward trend and has crossed the
US $ 4 billion mark for the first time in the history of Spices
export (Spices Board 2020-21). This reflected that compound
Table 3: Growth and instability in production of chilli, ginger and
turmeric in India from 2010-11 to 2019-20.
Year Chilli Ginger Turmeric
(Lakh tonnes) (Lakh tonnes) (Lakh tonnes)
2010-11 12.9 9.37 12.68
2011-12 14.48 9.24 13.98
2012-13 13.78 6.69 9.86
2013- 14 13.76 6.83 10.92
2014- 15 16.21 7.95 8.46
2015- 16 14.97 10.25 9.67
2016- 17 24.11 18.30 9.25
2017-18 17.18 17.94 8.63
2018- 19 16.89 18.45 9.29
2019-20 17.02 18.43 9.38
CAGR 3.88* 12.25* -3.92*
Instability index 15.01NS 27.67NS 13.44NS
Source: Spice Board of India.
*Significant at P0.05; NS- Non Significant at P>0.05.
Table 4: Growth and instability in productivity of chilli, ginger and
turmeric in India from 2010-11 to 2019-20.
Year Chilli Ginger Turmeric
(tonne/ha) (tonne/ha) (tonne/ha)
2010-11 1.81 5.59 5.46
2011-12 1.82 7.37 5.55
2012-13 1.75 4.97 5.07
2013- 14 1.73 1.00 5.26
2014- 15 2.11 5.19 4.74
2015- 16 2.01 6.53 5.27
2016- 17 2.80 10.6 3.73
2017-18 2.53 10.61 3.72
2018- 19 2.34 10.63 3.79
2019-20 2.49 10.71 3.81
CAGR 4.88* 12.56NS -4.95*
Instability index 9.35NS 36.99NS 7.52NS
Source: Spice Board of India.
*Significant at P0.05; NS- Non Significant at P>0.05.
growth rate of export was increasing for all the three spices.
But the instability index represented high variability in export
of ginger (33.36) throughout the years. Export instability for
turmeric and chilli was 11.12 and 3.98. This represented
that export of chilli was growing continuously from India
because of high demand in the international market. Chitra
GB and JS Sonnad (2019) study also reflected that chilli
enjoyed the positive and increasing trend of comparative
advantage in international market in exports.
Export scenario of chilli, ginger and turmeric for India
in values (Rupees in Crores) from 2010-11 to 2019-20
In Table 6, export scenario of chilli, ginger and turmeric for
India in value term from 2010-11 to 2019-20 was trying to
represent. As quantity exported increases for all the three
crops so export values also increases at the same level. In
Bhar tiya Kr ishi Anusandh an Patrika
4
Growth and Instability in Production of Selected Major Spices and their Export Scenario for India: A Review
ginger recorded a positive and significant growth (3.88 and
12.25 per cent) in production throughout the years, while
production of turmeric was negative but significant (-3.92
per cent) during the period. Even though the high produc-
tion instability was observed from all the three crops but
productivity was found increasing for ginger after 2016-17.
Likewise, chilli recorded a positive and significant growth in
productivity throughout the period. Export was found to be
related with the productivity of the crop. The compound
growth rate of export was increasing for all the three spices.
The variability of export was found to be lowest for chilli,
while ginger recorded a very high instability index for the
period. W ith increase productivity export of chilli increases.
Due to high demand of chilli in the international market in-
stability index for export of chilli was very low (3.98). As the
quantity exported for chilli was highest among the three crops
so the export value of the same was also found highest
during that period. The export scenario of the three crops
showed that chilli export was increasing with less variability
while ginger reflected a huge variation in export which was
related with the production and productivity of the crop in
the country. Export variability of Turmeric was found lower
than the ginger.
Policy suggestions
• Farm incentives should be made available to farmers through
the agriculture ministry’s scheme in o rd er to improve
production and productivity of spices in India.
• Su itable warehouse facility is very much important for
storing spices in accordance with the weather conditions
to minimize loss.
• Farmers encouragement by different level extension workers
is required to go fo r produc tion of h igh export demand
commercial crops (i.e. King Chilli).
• Contract farming may be one of the choices available to
farmers in the future to increase qu alit y of commodit y
available for export by the traders.
• Government should set up spice parks at different region
to encourage value addition and support farmers to go for
bulk production of spices at their level.
• Introduction of export orientated cou rse curriculu m at
different level of education can encourage people to go
for export oriented crop production.
REFERENCES
Anonymous, (2016). Spices Statistics Handbook-2016.
Bagal, N.U. (2020). Export of spices from India: An instability analysis.
International Research Journal of Agricultural Economics
and Statistics. 11(1): 55-63.
Chaitra, G.B. and Sonnad, J.S. (2019). Export performance of chilli
and cumin from India: An empirical analysis. Journal of
Pharmacognosy and Phytochemistry. 8(2): 2014-2020.
Devi, P.B. and Thyagarajan, M. (2020). An investigation on production
and productivity export performance of significant spices
in the Countr y Indi a. Indian Jour nal of Science and
Technology. 13(48): 4699-4707.
Table 6: Export scenario of chilli, ginger and turmeric for India in
values (Rupees in Crores) from 2010-11 to 2019-20.
Year Chilli Ginger Turmeric
2010-11 153.5 12.1 70.2
2011-12 214.4 20.4 73.4
2012-13 238.0 18.7 55.4
2013- 14 272.2 25.6 66.6
2014- 15 351.7 33.1 74.4
2015- 16 399.7 27.5 92.1
2016- 17 507.0 25.7 124.1
2017-18 425.6 21.6 103.5
2018- 19 541.1 19.6 141.6
2019-20 622.1 44.9 121.6
CAGR 15.64NS 7.58* 9.35*
Instability index 9.61NS 26.86NS 14.98NS
Source: Spice Board of India.
*Significant at P0.05; NS- Non Significant at P>0.05.
Table 5: Export Scenario of Chilli, Ginger and Turmeric from India
in quantity (In ‘000 tonnes) during 2010-11 to 2019-20.
Year Chilli Ginger Turmeric
2010-11 240.0 15.7 49.2
2011-12 241.0 21.5 79.5
2012-13 301.0 22.2 88.5
2013- 14 312.5 23.3 77.5
2014- 15 347.0 40.4 86.0
2015- 16 347.5 24.8 88.5
2016- 17 400.2 24.9 116.5
2017-18 443.9 22.6 107.3
2018- 19 468.5 18.1 133.6
2019-20 484.0 50.4 136.0
CAGR 8.62NS 5.67NS 9.51*
Instability index 3.98NS 33.36NS 11.12NS
Source: Spice Board of India.
*Significant at P0.05; NS- Non Significant at P>0.05.
value term also highest instability in export was observed
for ginger crop (26.86), while turmeric (14.98) and chilli (9.61)
recorded less variability in export as compared to ginger
during the period. Due to high instability in production and
productivity of the ginger highest export variation wasalso
observed for the crop in that period.
CONCLUSION
The study conducted on growth and instability of produc-
tion for major spices and its impact on their export scenario
for India from the year 2010-11 to 2019-20. Chilli, ginger
and turmeric are the major spices for India as they contrib-
ute highest share of export among the spices. Growth in
area for chilli was found to be declining (716.4 thousand ha
to 682.5 thousand ha) but for ginger and turmeric the area
under the crop was observed to be increasing. Chilli and
Volume Issue 5
Growth and Instability in Production of Selected Major Spices and their Export Scenario for India: A Review
Muthupandi, P., Sekhar, C., Karunakaran, K.R. (2018). Production
and export performance of spices from India. H orticultInt
J. 2(6): 425-430.
Palani, S. (2019). An analysis of spices export in India. Scienc e.
Technology and Development. 8(8): 114-122.
Lamba, S., Midha, K. et al. (2015). Export of spices. International
Journal of Recent Research in Commerce Economics
and Managem ent (IJ RR CEM) . 2(4): 256-266. ISS N
2349- 7807.
Vasavada, K.M. and Shiyani, R.L. (2021). Growth and instability of
exports of vegetable products from India. Econ omic
Affairs. 66(3): 363-369.
www.ibef.org
www.commodityindia.com.
www.apeda.gov.in
www.dgciskol.gov.in
www.indianspices.com
