SECTORS AT THE INDIA PAVILION

Tea, Coffee & Spices

FLAVOUR AND FERVOUR
India Is The Largest Producer Of Spices In The World.

India - the 2nd largest producer of tea greeted 2021 with a cultivation of 16.6 million kg.

India stands 4th in the export of tea, with total exports standing at US$ 826.47 million in FY20.

The Indian Government has provided an outlay of US$ 160 million to promote the tea coffee and spice sector.

India is the 3rd largest producer and exporter of coffee in Asia, and the 5th, largest in the world.

Coffee production in India stood at 299,300 MT during 2019–20.

India is the World’s No. 1 producer, consumer, and exporter of spices.

The total value of spices exported from India in the month of August 2020 alone was US$ 308.04 million.

Ginger exports recorded the highest growth of 47% at 19,410 tonnes, followed by cardamom with a growth of 31% at 1,060 tonnes and cumin with 14% at 7,350 tonnes. Chilli exports stood at 468,500 tonnes and turmeric at 133,600 tonnes.

India has earmarked an outlay of US$ 27 million towards the “Export development and promotion of spices”

India is one of the world’s largest producers and consumers of tea, with about three-fourths of the country’s produce being consumed locally. The Indian population is among the heaviest tea-drinkers in the world. As the second largest producer of tea globally, India recorded a production of 1,339.70 million kgs in 2019. India stands fourth in the export of tea, with total exports standing at US$ 826.47 million in FY20.

A robust framework for the protection of Geographical Indications (GI), numerous processing units, continuous innovation and strategic market expansion make Indian tea the finest in the world. The country is home to a wide variety of teas, including CTC(Crush, tear and curl) tea, orthodox tea, green tea and organic tea. Unlike many other tea producing and exporting nations, India has a manufacturing base for both CTC and orthodox tea.

High-quality specialty teas, such as Darjeeling, Assam Orthodox and the high-range Nilgiris are few of India’s market offerings. 

Brands like Tea-Pot, Chaayos and Chai-point that cater to millennials have led to a mushrooming of beverage parlours across the country. New startups have attracted huge investments from international venture capital firms from the United States, Hong Kong and Singapore that are actively seeking to expand into the lucrative Tea/Coffee-chain market.

The Indian Government has provided an outlay of US$ 160 million to promote the tea coffee and spice sector during the 11th five year plan.

India is the third-largest producer and exporter of coffee in Asia, and the fifth-largest in the world. The country accounts for 3.14% of the global coffee production as of 2020. Of the total coffee produced in India, 70% is exported and 30% is consumed domestically.

Coffee production in India stood at 299,300 million tonnes (MT) during 2019–20. The total coffee export from India accounted for US$ 315.08 million from April to August 2020.

The Coffee Board of India manages the research, development, quality upgrade, and domestic and international promotion of Indian coffee. In 2002, the board introduced the India International Coffee Festival, a biennial event held in India in collaboration with other industry stakeholders.

If clove, pepper, turmeric, saffron and their entire kinsmen were asked to point at their home on earth, they would unanimously point towards India. Also known as the home of spices, India has had a long history of spice trade with the ancient civilizations of Rome and China. The taste, texture, exquisite aroma and medicinal value of Indian spices is what makes them a much sought after commodity.

India is the world’s largest producer, consumer and exporter of spices. Spices in India have generally been grown in small land holdings, with organic farming having gained prominence in the last decade. The country produces about 75 of the 109 varieties listed by the International Organization for Standardization (ISO) and accounts for half of the global trading in spices. The total value of spices exported from India in the month of August 2020 alone was US$ 308.04 million.

Spices export value stood at US$ 3.65 billion in FY20, at a growth of 10% over the previous year. The market trends in the spice sector is as follows:

  • The Government has allowed 100% FDI in the sector under the automatic route.
  • Ginger exports recorded the highest growth of 47% at 19,410 tonnes, followed by cardamom with a growth of 31% at 1,060 tonnes and cumin with 14% at 7,350 tonnes. Chilli exports stood at 468,500 tonnes and turmeric at 133,600 tonnes.
  • The most exported spices and spice products in terms of value in FY19 were chilies, mint products, spice oils & oleoresins, cumin, turmeric, pepper, curry powder/ paste, cardamom seeds, other spices like Tamarind, Asafetida, Cassia, and Garlic.
  • India has earmarked an outlay of US$ 27 million has been made towards the “Export development and promotion of spices”.

Tea, coffee and spices represent a class of commodities and beverages where India has a distinct advantage over other countries due to various historical, geographical and socio-economic factors. Secure in its strengths and confident about its future prospects,
the industry moves forward in assertive strides to capture a greater portion of the global market.