Export Development and Promotion of Spices

Published on: Tue Oct 15 2024

Aditya Singh

LinkedIn - Aditya Singh
Export Development and Promotion of Spices

Export Development and Promotion of Spices : Enhancing Global Competitiveness

India has a long history of being recognized as the "Land of Spices." However, it boasts of a diversified spice heritage and carries a good market position in the international scene. To sustain and upgrade India's market superiority in international trade in spices, the government undertaken the Export Development and Promotion Scheme. This scheme is designed to support exporters in adopting new technologies, enhancing the processing standards, and improving the quality of spices exported from India to other countries.This article will explore the various aspects of the Export Development and Promotion Scheme, objectives it aims to achieve, and initiatives undertaken for Indian spices across the world.

1. Objectives of the Export Development and Promotion Scheme

The major objective of the Export Development and Promotion Scheme is to upgrade the quality, safety, and competitiveness of Indian spices in international markets. In particular, the scheme shall cover the following key areas:

  • Encourage high-tech processing technologies : Facilitate use of advanced technology in upgrading the process of spices.
  • Facilitate upgradation of existing facilities: Help exporters in upgradation of present processing arrangements.
  • Excellence and food safety: ensuring that the produce is prepared to the highest standards of food safety requirements for every stakeholder of the supply chain to meet the requirements of importing countries.
  • New product development: encouraging research into new applications of spices in alignment with the changing preferences of the global market.
  • Market promotion: building an international brand identity for Indian spices.

2. Infrastructure Development for Spices Export

One of the important elements of the Export Development and Promotion Scheme is infrastructure development. The Spices Parks are proposed to be established at the important centers for growing and marketing spices throughout India under the scheme. These parks are meant to provide common facilities for cleaning, grading, processing, packing, and storage of spices. With such facilities available for all, the scheme promotes the use of modern processing and raises quality consciousness.

In order to facilitate small-scale and large-scale farmers and exporters to process their produce as per international standards, the Spices Board has developed several spice parks in states such as Andhra Pradesh, Tamil Nadu, Rajasthan, and Madhya Pradesh. This has assisted the exporters in delivering a high-quality, clean and safe product to the international market due to the fact that the equipment and machinery installed are quite advanced in nature.

3. Research and Development (R&D) on Spices

One of the important elements of the Export Development and Promotion Scheme is infrastructure development. The Spices Parks are proposed to be established at the important centers for growing and marketing spices throughout India under the scheme. These parks are meant to provide common facilities for cleaning, grading, processing, packing, and storage of spices. With such facilities available for all, the scheme promotes the use of modern processing and raises quality consciousness.

In order to facilitate small-scale and large-scale farmers and exporters to process their produce as per international standards, the Spices Board has developed several spice parks in states such as Andhra Pradesh, Tamil Nadu, Rajasthan, and Madhya Pradesh. This has assisted the exporters in delivering a high-quality, clean and safe product to the international market due to the fact that the equipment and machinery installed are quite advanced in nature.

4. Promotion of Indian Spice Brands Abroad

Branding will provide a product identity in world markets. Indian spices are, therefore, to be promoted as a premium brand in the international markets. Under the scheme, through branding campaigns, exhibitions, international trade fairs, and buyer-seller meets, the strengths and capabilities of Indian spice processing and value addition will be showcased.
Some of the large fairs include Anuga held in Germany, SIAL in France, and Gulfood held in UAE. For Indian spice exporters, such fairs provide them with an opportunity to put up their products and look for more networks, brand recognition, and further awareness of their brands. These events discover any new trends in markets, and Indian exporters respond accordingly to increase their foothold to meet different consumer demands worldwide.

5. Promoting Organic Spices

Not being exempted from meeting the global demands for organic and pesticide-free products, Indian spices come under the same sweep as well. In the scheme, special programs are instituted to encourage the cultivation and export of organic spices.
Organic farming practices increase the income of farmers and further enhance the environmental aspect. The Spices Board also provides certifications, trainings, and incentives for farmers who wish to undertake organic farming. Thus, Indian organic spices acquire international standards and will find entry into the premium markets of Europe, North America, and Asia.

6. Special Initiatives for North East Entrepreneurs

The North East region of India has huge opportunity in terms of richness in biodiversity and crops such as ginger, turmeric, black pepper, and chillies. In support of entrepreneurs from this region, special initiatives have been launched by the Export Development and Promotion Scheme.
This allows the Indian government to arrange programs for them to avail the required training, infrastructure, and financial assistance to boost production and exports of North Eastern spices. It not only stimulates regional development but also introduces international buyers to the unique and exotic spices of India.

7. Ensuring Food Safety and Quality Control

Maintaining standards for food safety and quality would be of extreme importance to India's spice industry if it is to compete in the world market. The scheme thus shall stress the fact that spices exported from India should aptly comply with stringent global food safety regulations.
It trains its exporters on good manufacturing practices, Hazard analysis critical control points, and ISO standards in terms of international food safety requirements. The quality-centric approach is also that which makes Indian spices remain the most competitive, reliable, and preferred over others worldwide.

8. Participation in International Trade Fairs and Exhibitions

The Spices Board is actively participating in international trade fairs and exhibitions to focus attention on the strength and capabilities of Indian spice processing and value addition. This provides linkage with potential buyers and endorses India as a principal exporter of spices of quality.
It also enlightens the Spices Board on emerging market trends, competitors' activities, and consumer preferences, through which Indian exporters can strategize and plan accordingly.

General Guidelines / Procedures to avail of Export Development Schemes

1. Submission of Application:

The application form (available on website: www.indianspices.com) , attaching all required enclosures as specified in the annexure for each scheme, shall be submitted by the applicant in duplicate. Applications can be submitted to the nearest regional office of the Spices Board.

2. Roles of the Applicant

The applicant shall provide all the information and documents as mandated under the scheme guidelines. Incomplete applications will be rejected and returned if required documents are not enclosed.

3. Receipt of Acknowledgment:

When the application along with enclosures reaches the Board/Regional Office (RO), an acknowledgment will be issued.
However, an acknowledgment in itself does not mean that the application is approved.

4. Scrutiny of Application:

All the applications will be scrutinized at Regional/Head office level.Where applications are found to be complete, a letter of acceptance will be issued to the applicant.

5. Final Scrutiny and Evaluation:

Acceptance is only for clearance that does not ensure approval. Application needs to be approved after final scrutiny and technical evaluation.

6. Correction of Deficiencies:

Where any ineligibility is noticed during scrutiny, applicant will be intimated and allowed 15 days for correction of deficiencies or submission of requisite documents.The whole application and enclosures will be returned for re-submission in case of non-compliance.

7. Application Rejection:

Unsigned or undated applications will be rejected on the spot.

8. Scheme Assistance Limit:

Assistance shall be sanctioned by the Board more than once during the XII Plan period without exceeding the cumulative assistance above the maximum limit of the scheme.

9. Submission of Claim for Payment:

Claims for payment shall be submitted, if applicable, within the same plan period/year according to the scheme.Claims pending clarification or documents from the exporter would not be further processed beyond the plan period.

Conclusion

The Spices Board of India's Export Development and Promotion Scheme is an all-round attempt at developing the global competitiveness of Indian spices. It has invested in infrastructural, research, quality control, branding, and regional development initiatives; through all these, it ensures that Indian spices continue to have a say in the international market. With its rich history, variety, and quality, the spice sector is awaiting opportunities for its growth with the government's initiatives and the dedication of its farmers and exporters.

FAQs on Export Development and Promotion of Spices

What is the Export Development and Promotion Scheme all about?

The idea behind this is to encourage the adoption of high-tech processing technologies, ensure food safety, and promote high-quality spice exports from India.
How does the scheme help entrepreneurs in the North East?

The scheme allows for training, finance, and infrastructure development for the enhancement of spice production and export from the North East.

What is the role of Spices Parks in this scheme?

The common facilities such as cleaning, grading, processing, packaging, and storage are provided by Spices Parks. Encouraging quality control and modern processing techniques is the point of these parks.

Thereby, with successful utilization of the Export Development and Promotion Scheme, India would be able to maintain its history at the top of the world spice trade and bring this unique flavor and aroma back home to kitchens everywhere.


Also Read : Export Credit Guarantee Corporation of India (ECGC)

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