Export performance of Indian chilli

Abstract

India is called as spice wealthy nation as its total production of spices is around 101.25 lakh tonnes from an area of about 43 lakh hectares. This study was entirely based on secondary data. During the year 2020-21, India exported 15.65 lakh tonnes of spices worth of Rs.27143.2 crores. Chilli alone accounts for 38.43 per cent in volume and 31 per cent in value to total export of spices. Exports of chilli grew from 37191 tonnes worth Rs.12246 lakh in the year 2000-01 to 601500 tonnes worth Rs.842975 lakh in the year 2020-21 with an increasing growth rate of 14.47% and 24.48 per cent respectively. China, Thailand, Sri Lanka, UAE and Bangladesh are the major buyers for Indian chillies. Destination wise export of chilli showed that China was the most loyal importer of Indian chilli with retention of 95.09 per cent while Sri Lanka showed zero retention in importing Indian chillies. India had enjoyed a comparative advantage in chilli and NPC for chilli are less than one which clearly indicated that Indian chillies are competitive in the international market. The rigorous quality measures implemented by the Spices Board and the lower output by other competing countries like China and Pakistan had also helped India to achieve record performance.