Paper presented at the IFEAT International Conference in Singapore, 4 - 8 November 2012 ‘Essential Asia’ Pages 39-49 in the printed ConferenceProceedings INDIA’S SPICE OLEORESIN INDUSTRY: WAY FORWARD INITIATIVES Shanavas Bavu Synthite Industries Ltd, Kolenchery, Cochin – 682311, India [email protected] “Globalization began with the spice trade. It was the world’s first long distance exchange, its most profitable and for two millennia its most mysterious.” Source: Historical classic, ‘The Spice Route’ by John Keay INTRODUCTION The Indian story of value added spice products began in the early 1970s. Over the years, with investments in quality and supply chain management, it has emerged to be the largest in the world. It is not only a local sourcing and processing point but also changed itself as a value addition hub for the spice crops from the Asia-Pacific region and elsewhere across the globe. This paper reviews the industry’s current position, the challenges and its efforts to maintain the progress and deliver the best to the world. OVERVIEW OF THE INDUSTRY The export of spice oleoresins and essential oils from India amounts to 7,800 tonnes in volume and US$ 255 million in value 7800 7600 7400 7200 7000 6800 6600 6400 6200 6000 2007-08 Quantity, MT 2008-09 2009-10 2010-11 2011-12 Figure 1: Oleoresins & Essential Oils Exports (Volume) 39 -'. Oleoresin Products from India Black pepper Coriander Capsicum Coriander Cardamom Cumin Cassia Curry Leaf Celery Decalepis Cinnamon Dill Seed Clove Fennel Coffee Fenugreek Essential oils from India Ajowan Citronella Aniseed Clove Bud Basil Clove Leaf Black Pepper Coriander Calamus Cumin Seed Cardamom Curry Leaf Cassia Davana Cedarwood Dill Seed Celery Seed Fennel Cinnamon Bark Garlic Cinnamon Leaf Ginger * The list excludes mint oil and mint products. and the industry leveraged on this to become a processing hub ensuring competitiveness and managing the supply chain effectively.' Figure 2: Oleoresins & Essential Oils Exports(Value) The industry has witnessed steady growth in volume and value since the beginning.&!!" %#!" %!!" $#!" $!!" #!" !" %!!'(!)" %!!)(!*" %!!*($!" %!$!($$" %!$$($%" !"#$%&'()##)*+'. Ginger Grass Green Pepper Hing Horse Radish Juniper Berry Lemongrass Mace Marjoram Mustard Nutmeg Olibanum Palmarosa Parsley Seed Pimento Rosemary Spearmint Thyme Turmeric Valerian Root Vetivert White Pepper Garlic Ginger Hing Jalapeno Pepper Mace Mustard Nutmeg Onion Paprika Pimento Rosemary Tamarind Turmeric White Pepper 40 . The post liberalisation economic environment in India facilitated the import of raw materials from Asia-Pacific regions. 00 2.40 2. 3. oleoresin paprika and oleoresin capsicum constitute 40% of the volume. There is considerable effort from the government agencies and industry towards proliferation of spices cultivation.Product Mix (volume) Chilli extracts.90 2. Turmeric Vanilla 6% Pepper 19% Herbs Nutmeg & Mace 4% Ginger 3% Onion & Garlic Others 13% Seed Spices Clove 4% Chillies 46% Cardamom Cinnamon & Cassia Figure 3: Oleoresins & Essential Oils .Product Mix The pie-chart shows the relative volumes of product mix from the Indian oleoresin industry.30 2005 – 2006 – 2007 – 2008 – 2009 – 06 07 08 09 10* million hectares Figure 4: Crop Area for Spices 41 .94 million hectares that forms only 2% of the total 142 million hectares of agricultural land in India. Crop Area Spices are cultivated in a total crop area of 2.60 2.50 2.70 2. The results are apparent from the growth of crop area over the last 5 years.80 2. These are concentrated in the northern states of Rajasthan. fennel. there have been government incentives to upgrade the processing and quality assurance /quality control infrastructure. This includes the uncertified. dill and ajowan. Gujarath. and was keen on adopting the latest processing equipment. 42 . Punjab and Uttaranchal. SUSTAINABILITY INITIATIVES The industry has been proactive in its initiatives toward sustainability.94 million hectares. Cinnamon Vanilla Clove Tamarind 2% Onion & Garlic 6% Nutmeg Saffron Pepper 7% Cardamom 3% Chilli 28% Seed Spices 41% Turmeric 6% Figure 5: Crop Area Distribution Ginger 5% The major part of the cropped land is used for seed spices namely cumin. celery. Approximately 10% of the crop area is covered under Integrated Pest Management (IPM) farming. coriander. In addition. Chillies being the next major crop are mainly grown in the southern states of Karnataka and Andhra Pradesh. 7% is utilized for organic farming. Uttar Pradesh. In order to ensure the availability of raw materials and consistency. The emphases were on the supply chain and processing. The industry made considerable investments in process technologies. but organically grown farming area in the north-eastern states. the industry and government agencies promoted backward integration in major spice crops.Within the total area of 2. fenugreek. • • • • • Growing urbanisation Scattered farms Diminishing agricultural incomes Lack of labour force Less scope for mechanization Raw Material Sustainability Programme Figure 6 : Raw material sustainability program The stakeholders in the programme are. • • • • Contract farmers Spice Growers Co-operatives (SGS) Government Agencies NGOs 43 .Raw Material Sustainability Initiatives The objectives of the backward integration programme are: • • • • • • Raw material availability Sustainability Traceability Predictability Contaminant control Regulatory requirements The conditions that challenge spices cultivation in India are. The focal crops in the backward integration program are. The respective crops are indicated. the supply of agricultural materials and technical advice. ensuring regional welfare. Successful regions have been rewarded with incentives that provide additional income to the farmers. Figure 8 : Backward Integration Programme in India 44 . and financial aid. The industry provides further support by channelling the Corporate Social Responsibility (CSR) activities in the growing regions.The methodologies include training as well as awareness programmes. Chillies Seed spices Cardamom Turmeric Nutmeg Pepper Marigold Vanilla Rosemary Mustard Ginger Vetiver Figure 7 : Rosemary Crop The map of India shows the regions of major backward integration programmes. The steps involved in the process are as below. integrating the industry data. the IPM programme have been effectively implemented in major crops like chillies. TOOLS AND METHODOLOGIES Figure 9 : Distribution of Farm Sizes (Spices) The industry leverages on IT tools like SAP to maintain traceability. • • • • • Soil conditioning Bio agents and organic manure Insect traps (visual / pheromone) and bird perches Border crops and trap crops Approved plant protection chemicals Figure 11 : Chilli Field under an IPM Programme 45 . Figure 10 : Traceability .SAP Tracking Process IPM PROGRAM In order to maintain the quality requirements on contaminants and toxins. The national database is being setup by the government agencies. This makes the programme more labour intensive and difficult to handle. • • • Scattered farms Lack of awareness Cultural and barriers 34'1*''9:' "56%0'' 948' ''(*6%' 12"+'9:' "56%0'' 348' /%00'12"+'' 34'"56%0'' 748' linguistic The pie-chart indicates the distribution of farm extents in India for spices. seed spices and cardamom.The major challenges in the implementation of the backward integration programme are. 70% of the farms are of less than 10 acres in area. garlic and mustard. high yield and faster processing. Methodical sampling and local assays. An IPM program is completed along with the postharvest handling of the spice. productivity and cost. The industry was proactive in upgrading the facilities for these requirements. for essential oil. Over the years. nutmeg etc. Investment in the Figure 14 : Steam Distillation Kettles 46 . Spinning cone type thin film distillation is employed for fresh spices like ginger.• • • • Protective microorganisms Natural plant protective chemicals Fortnightly monitoring and data recording. Figure 12 : Post Harvest Handling of Ginger PROCESS TECHNOLOGIES The industry uses a blend of conventional and modern process technologies to achieve optimum levels of quality. there had been changes in regulatory requirements for the type of solvents and residue levels. Special emphasis is placed here on controlling mycotoxin incidence. This technology results in a superior aroma profile. Figure 13 : Steam Distillation Plant Traditional steam distillation units are still being used for processing spices like ginger. The national programme for backward integration involves setting up Spice Growers Cooperatives and the installation of regional testing labs. All major spice oleoresins are still being produced by solvent extraction. less thermal impact and lower cost-in use. and exact replication of the spice raw material.supercritical CO2 extraction equipment is the way forward to keep up with the residual solvent regulations in future. The current focus on process technologies is to produce extracts that are not thermally degraded. This technology yields the benefits of a better flavour profile. This technology could replace steam distillation and solvent extraction at least in some spices in the near future in view of the overall cost benefits. Figure 15 : Batch Type Solvent Extraction Plant Figure 16 : Continuous Type Solvent Extraction Plant Figure 17 : Supercritical CO2 Extraction Plant (SCFE) 47 . Thin Film Evaporator DOMESTIC MARKET IN INDIA Finally. Over the last 5 years. in million US $ 70 60 50 40 30 20 10 0 2007-08 2008-09 2009-10 2010-11 2011-12 Figure 19 : Domestic Sale of Oleoresins & Essential Oils 48 . • Shifting food habits of the population due to rapid urbanisation. the industry has registered a steady growth of 20% volume year-on-year. Value. a review of the domestic consumption in India is provided. • Increased usage of oleoresins by traditional spice blenders – in view of cost-in use and regulatory requirements. The factors that propelled this growth are.Figure 18 : Centritherm . It is aiming at a steady increase of agricultural productivity. He has been in the oleoresin field for 5 years and has a total experience of 17 years in industry. focusing on quality and reducing environmental impact. With raw material imports. Investments in advanced process technologies and the QC infrastructure are definite priorities. 49 . Shanavas Bavu has been leading the team of researchers and application specialists in the New Products Division of Synthite for the last two years. the industry is transforming into a processing hub for materials from AsiaPacific area and other global locations. driven by quality.CONCLUSIONS Indian exports of spice oleoresins are growing. There have been conscious efforts from industry towards sustainability in farming and supply chain management. His core experience is in process engineering and he has considerable exposure in setting up and commercialising extraction technologies like SCFE and SCC. cost and consistency.