INTRODUCTION

 Since ancient times India has been the largest

producer of spices in the world. Spice became
one of the first and most enduring links
between Asia and Europe. It was this spice
trade that led to intense competition among
various European nations. They tried to extend
their influence throughout India gradually in
order to gain monopoly in this trade. The
demand for Indian spices was very high in
Europe and elsewhere. Therefore many
European nations set up companies like the
British East India Company established in
1600.
 OVERVIEW
 Spice industry has been witnessing phenomenal
growth rates both in the international and domestic
sector. The growth in this sector can be attributed to
the change in the lifestyle patterns of the consumers
all over the world. The shift in the consumption trend
toward natural products has also contributed to the
increased global demand of spices and culinary
herbs. Spice and derivatives market is booming
because these products find applications in a
number of industries including pharmaceutical,
medicine, beverages, food processing, personal
hygiene products to name a few.
 INDIAN SPICE INDUSTRY
 India produces 2.5 million tonnes to 3
million tonnes of spices annually. India
produces spices of different categories
worth around US$ 3 billion.
 In terms of volume and value, India
accounted for 46 percent and 23 percent in
value of global spice trade. (Source: Spices
Board India) India accounts for 25-30 per
cent of world’s pepper production, 35 per
cent of ginger and about 90 per cent of
turmeric production.
MAJOR SPICES EXPORTED
Chilies 33%

Seed spices 22%

Turmeric 14%

Spice Oils and 7%

oleoresins
Pepper 7%

Cardamom 1.1%

Ginger 2.7%
 EXPORT OF SPICES
 Spices exports have registered substantial growth
during the last one-decade, registering an annual
average growth rate of 13.1% in value and 9% in
volume. During the year 2009-10, spices export from
India has registered an all time high both in terms of
quantity and value. In 2009-10 the export of spices
from India has been 502,750 tonnes value. India
commands a formidable position in the World Spice
Trade with 48% share in Volume and 44% in Value.
Valued Rs.5560.50 crores (MLN US $ 1173.75
million) as against 470,520 tonnes valued
Rs.5300.25 crores (MLN US $ 1168.40) in 2008-09,
registering an increase of 7% in volume and 5% in
rupee.
 STRENGHTS

THREATS
SWOT WEAKNESS

ANALYSIS

OPPORTUNITIES
 STRENGTH
• GEOGRAPHICAL LOCATION
• MANPOWER

• FERTILE LAND
• AROUND 60% OF THE POPULATION DIRECTLY OR INDIRECTLY
DEPENDES ON AGRICULTURE

• LARGEST PRODUCER OF SPICES

• VAST DOMESTIC AND INTERNATIONAL MARKET
• OUT OF THE 105 SPICES,75 SPICES ARE GROWN IN INDIA
 WEAKNESS
• WEAK INFRASTRUCTURE
• POOR FINANCING
• INADEQUATE RESEARCH

• POOR IRRIGATION FACILITIES

• NON PROPER STORAGE FACILITIES

• DIFFICULT TO TRAIN FARMERS AND EDUCATE THEM

• INCREASED PRESSURE ON LAND DUE TO INCREASING POPULATION
 OPPORTUNITIES
• OUR COUNTRY IS RICH IN LAND,HUMAN,WATER RESOURCES
• HUGE POSSIBILITIES OF TRADE DUE TO THE LOCATION

• INTRODUCTION OF NEW TECHNOLOGIES

• INCREASING RESEARCH IN THE AGRICULTURE FIELD

• PRIVITILATION OF COMMUNICATION,IRRIGATION
• FACILITATION OF EASIER CREDIT TO FARMERS
 THREATS
• UNCERTAINITY OF THE MONSOONS
• THOUGH COMPETION FROM FOREIGN COUNTRIES

• THREAT FROM NATURAL CALAMITIES LIKE FLOODS,DROUGHTS

• LOSS OF MANPOWER TO OTHER INDUSTRIES

 CASE STUDY
 For better understanding of the given
topic a case study was carried out at
‘‘Kanwal Foods and Spices Pvt Ltd’’, it
provided first hand experience and
helped understand the topic.
 BIBLIOGRAPHY
 1. SPICE: The history of a temptation by Tom Standage
 2. THE HINDU- BUSINESS LINE: Business Daily from THE
HINDU group of publications. India tops in output, trade of
several seed spices
Thursday, Feb 11, 2010
 3. www.kanwalspices.com/profile.html
 4. www.spice-trade.com/indian-spice-market.html