CHAPTER I1SPICES AN OVERVIEW Contents of the chapter Page No. History of spices trade Global spices trade - Present scenario Major centres of pepper cultivation and trade Major centres of cardamom cultivation and trade lntemational Pepper Exchange 32 42 43 53 55 Indian spices trade -Present scenario Spices in Kerala Spices Board of India - Role and functioning 61 66 70 SPICES - AN OVERVIEW It is not at all an exaggeration to say that the history of the world is highly obliged to the history of spices. The continuous efforts of the Westerners to explore the original sources of spices led to many adventurous ventures and resulted in the discovery of many continents, economic rivalries and in certain cases economic tie ups among different countries, war and what else! So any study about spices will be incomplete if proceeded without observing their historical background and significance. 2.1. History of spices trade The f i r s t authentic records about spices, though hgmentary, belong to the pyramid age of Egypt approximately 2600 to 2100 B.C. There are plenty of historical evidences asserting the significance of south India as a source of high quality spices even from the periods of Babyloman and Assyrian civilizations. I Until the beginning of the Christian era the source of spices was a mystery to the western world. Oriental spices were popular as priceless assets during the periods of Egyptian civilization. The ancient Egyptians used oils prepared from spices to preserve the dead bodies in 'mummies'. Ebers Pappirus written in B.C 1500 says about the medicinal values of pepper and cinnamon. Pany (1969) writes that Cinnamon formed part of the aromatics used by the Egyptian queen Hatshepsuth. There are evidences for proving that Hatshepsuth sent five ships to the east for procuring spices. He continues that Marduk the leader God of Assyrians used to consume wine made from sesame and consequentIy sesame became the first spice recorded in the Semitic civilization. In the second and third millenium B.C., Arabian traders had the monopoly of carrying goods between east and west among which spices and other aromatic resins were the most important. Similarly, excavations in the Indus Valley have substantiated the fact that spices were abundantly used during that period. Arthasasthra written in the third century B.C. has plenty of remarks about spices including pepper, cardamom, ginger, fenugreek, coriander and mustard. Greek medical science also r e c o r n the importance of medicinal values of spices. Hippocrates (460 - 377 B.C.), known as the father of modem medicine, the Greek philosopher and scientist Theophrastus (372- 287 B.C), Dioscorides, known as the fa& of Botany (A.D. 40 - 90) all had mentioned about spices in their writings. These all clearly indicate that spices were inevitable part of l i e even 6om the very early stages of human history. ' Romans were very lavish in the use of spices, which they used not only for cooking but as cosmetics also. It was customary for them to use cosmetics heavily for which they used spices extensively. Spice flavored vines were very popular while scents, balms, and oils made fiom spices were used as after bath. Spices were expensive during the middle ages and were in great demand among those who could afford them. History says that peppercorns were used as currency in ancient times to pay taxes, tolls, rents and even dowries. 6 observing that they reversed their direction twice a year. some by land. balms and sandalwood. During the age of the Roman Emperor Claudius (A. and black pepper 4 Dinaries per pound. almost all other spices were in use during the period. 'Small in bulk. As a result. says even about the price of pepper at that time. 40).h p n t spices came &om those hot regions of Asia that were abundantly exposed to sun. Pliny. gems. high in price and steady in demand'.12 According to hun the price of long pepper was 15 Dinaries. their prices got doubled. Along with pepper and cardamom. in some early written reports.D. spices were specially desirable articles of commerce. 14 Several ancient trade routes were used to transport spices and other luxury goods ftom India to the western world. . white pepper 7 Dinaries. storms. silk. Roman coins unearthed recently on the west coast of India substantiate the same. Plmy continues that by the time the spice reached Rome. It has also been remarked that the balance of trade of Rome with India became highly unfavourable during the period amounting to some 20 million Dinars a year by which large amounts of gold and silver were shipped to the East to pay imported articles. During his time Rome developed an active spice trade with Saudi Arabia and India Critical observers blamed the constant drain of gold h m Rome to the East was due to the high prices paid for spices. an effort was made to incorporate the Saudi Arabian 'spice kingdom' into the Roman Empire by Augustus but the attempt was a failure. robberies and the insatiable greed of the Arabian merchants. a Greek merchant named Hippalus discovered the full power of the wind system of Indian Ocean and the monsoons. 13 The prices of these imported luxuries had gradually become exorbitant due to losses by shipwrecks. some by sea and some by the combiiation of the two. b in the East. Cosmas Indicopleustes from Alexandria who visited India and Ceylon. By the middle of the eighth century the great influence of Muslim philosophy extended some 7000 miles from Spain in the West to C people. the role and importance of the Arabian spices traders declined soon and led to the ruin of many Arabian cities. which again influenced the trade history of spices and the world as a whole. which was subsequently incorporated into a Spicer's . 548. by talung advantage of these winds showed that it was possible to make the round trip between Berenice. As a result of this.Hippalus. which was mainly due to the trading habits of the Arab '' During the reign of Henry I1 a peppers guild of wholesale merchants was established in London (A.D.1180). which also resulted in sharp decline in the price of spices. the European spice traders and apothecaries of the Middle Ages prepared their spices drinks and other pharmaceutical preparations from spices. to visit the East was a sixth century merchant and traveler. One of the earliest Westerners. In A. which came to an end when the Arabs conquered Alexandria in A. a voyage that had taken at least two years previously. In 1453 Constantinople was captured by the Turks. Following the examples of Arabs. There were well-organised spices trade between India and Rome. on the Egyptian coast of the Red Sea and the pepper producing Malabar coast in less than one year.D. He anived at Malabar in India and in his book described accurately how pepper was harvested in the hill country including the manner in which this pungent spice was dried and prepared for market.D. 641. he wrote a book entitled 'Topographia Christians' in which he described the importance of spices trade in Ceylon. Many European traders kept their accounts in pepper and 'fortunate brides' received pepper as dowry. the need for a sea route to the orient became more urgent than ever. A German price table of A.S cents and over $ 1 in England.D. stones or pearls he wodd bring to Spain. 1429.I6 Prince Henry of Portugal established a naval college at Sages in A. tolls and rents partly because of shortage of gold and silver coins. This guild was granted a charter by Hetuy VI permitting wholesale trade in spices and medicinal products. 1418 which gave a great impetus to the exploration of spices. and a tax free share of 1 Opercent of the spices. Without finding spices he went back to Spain. In 1493.1393 lists a pound of nutmeg as worth seven fat oxen. Peppercorns were accepted as currency to pay tax. Muslim rulers imposed heavy duties on spices trade.D. He started his voyage along with his crew and after much troubles and toils he reached Bahamas Islands and then Cuba. By the late middle ages oriental spices were valued roughly as one pound of saffron cost the same as a horse. one pound of ginger as much as a sheep. Columbus started his second voyage with 1500 . mistaken as Indian shores.D. After the fall of Constantinople to the Turks in A. which practically ruined the European spices trade. Christopher Columbus of Spain was appointed in the year 1492 as the Admiral of the Ocean sea and Viceroy and Governor General of all the lands and Islands he would discover.D. The spread of Ottoman Empire made the old land routes to the sources of silk and spices unsafe.1493. two pounds of mace could buy a cow. In the thirteenth century one pound of pepper cost the equivalent of 60 U.guild and later named as Grocers Company in A. under Albuquerque had won several naval battles over the Muslims by A.D. the Dutch managed to drive the Portuguese out of the Spices Islands achieving a monopoly in spices trading. 18 . Their entry in the field increased rivalry in spice trade. Between A. one of the most important landmarks in the history of India and the spices trade as well.men to establish Spanish power in the 'new world' and continue the search for gold and spices. " During 1497 and 1498.D. thereby. was formed with sufficient share capital to undertake ambitious ventures. 1600 as 'The Governor and Company of the Merchants of London Trading into the East Indies'. England took up the search for sea route to Asia By the order of Henry VII. The British founded their East India Company in A. During the same period. gaining control over many spices producing areas like Malabar Coasf Ceylon. Two years later the United East India Company of the Dutch.D. Italian navigators undertook voyages to the east in search of spices. The Portuguese. Portugal grew rich directly from spice trade while the Dutch prospered indirectly by providing ships and crew to carry goods northward and subsequently they expanded spices trade to the Far East. The Portuguese imperial taxes in Ceylon included a land tax to be paid one third in pepper and two third in currency. which was not fruitful as expected. King Manuel I of Portugal ordered Vasco de Gama to search for a sea route to India He started his voyage and taking advantage of monsoon winds. 151 1. 3 605 and 1621. Gama arrived at Calicut on May 20" 1498. Java and Sumatra. This was due to the ruthless competition between the Dutch. having achieved stature as a national power. pepper is being produced in the Latin American counby of Brazil on large scale. However in A. 2. After 1846. The inception of an international pepper exchange under the auspices of IPSTA is the latest development in the history of global spices trade. However piracy was so common that the United States authorized the arming of the American merchant vessels to fight off such attacks. The exchange was . Substantial spice plantations were established in the Central and South American countries. Soon the American port of Salem became a major trade centre of spices. Cardamom is produced now in large quantities in Guatemala. the British and the Portuguese for domination over the spices producing countries and trade. the overproduction of spices brought a general decline in the trade. Similarly. Modern spice trade The international spices market was exclusively centered in India until the 16" century but the situation has changed considerably during the subsequent centuries.D. which ended in the demise of the Salem pepper trade.1. particularly pepper.4. especially pepper. entered the scene of world spices trade. However by the time Salem had produced some of the fust milliners of America. the United States. The most remunerative trade of the time was that of spices.It has been aptly remarked by Rosengarton that the story of spices in the East Indies in the seventeenth and eighteenth centuries was written in blood. By the end of the eighteenth century.1799 the Dutch East India Company went bankrupt due to many reasons and the Dutch ports of Malabar Coast were taken over by English. which is a Central American country. Mariner Hippalus discovered the velocity of wind system of Indian Ocean. Remarks about spices in Epics. Pepper referred to in Eber's papyrus. Sulaiman visited Kerala coast. Chinese traveler. recorded the black pepper cultivation and trade with China . 2. Panini recorded the use of pepper in spicing wine. Charaka. Customs duty imposed on black pepper imported to Alexandria.i n a u p t e d on 17th Kovember 1997 at Cochin in Kerala The Forward Markets Commission of lndia regulates it and it functions under a steering committee constiMed by the Government of India for the purpose. 19 Important Landmarks in the History of Spices at a Glance Remarks about the importance and use of spices in Vedic texts. and Susrutha mentioned the use of pepper in medicine 4&Century 1'' Century Theophrastus described the use of pepper. A Chinese envoy visited the Malabar Coast in search of pepper. The Arabs regain control over spices trade.5.1. Pliny reported about South Indian spices. Pyrarmd age remarks about spices in Egyptian history and the use spices in 'Mummies' as preservative. Fall of Rome Alaric demands a ransom of 3000 pounds of pepper !?om Romans. Rome Captured Egypt and the ancient pepper trade came under the control of Rome. The Identity of Pepper as the fruit of vine growing in the Malabar coast of India was established. The exchange is only at the early stages of functioning and in future it may help our country to regain the past glory of being the centre of the world spice trade. The Greek physician Dioscorides mentioned about the medicinal use of spices. The rise of British presence in Malabar who entered into contracts with local rulers to ensure for monopoly of spices trade. Pedro Alvares Cabral landed in Calicut and established supremacy of Portugal over spices trade in the Malabar coast. China imports large quantity of pepper from Malabar Coast and Java Marcopolo described in detail the pepper growing regions of Java Nicolo Contai described the pepper trade in Kollam and Kozhikkodu of Malabar coast and pepper cultivation in Sumatra. Portuguese was in full control of black pepper trade. British landed in India on 24 August. Dutch conquered Malacca and the entire pepper trade from Far East came under their control The Portuguese were driven out from their settlements in Cochin and Cannonore by the Dutch and the Dutch East India Company gets control over the splces trade.Bali Islands ( at present Indonesia) which were major spices growing regions of the time Reign of Henry 11 in England and the formation of pepper's wild. The French came for spices trade. Vasco de Ciama discovered the sea route to India and anived at calicut.Raja Raja Chola and his son Rajendra. British East India Company reached Sumatra and started trading in pepper. America entered the pepper trade Brazil and some African regions Pepper introduced ir~ First research station for pepper established in India at Panniyur. Establishment of the British East India Company for trading in spices. Dutch suffered defeat at the hands of the King of Travancore . The establishment of United East India Company by Dutch merchants British started export of spices f?om Malabar Coast. 1600 at Surat. Kerala. the powerful South Indian Kings extended their empire to Malay Archipelago and to Java . . Albuquerque sailed to Malacca and captured the land and spices trade. 2. 2. pepper rules the spice trade both in terms volume and value. pepper is called the 'King of Spices'. So at this juncture an overview of the present global spices scenario will be appropriate before going deep into the problems and prospects of the sector. (IISR) Establishment of International pepper exchange at Mattancherry. From the above. Intemational Trade Centre-UNCTAD has estimated that pepper contributes 34 percent of the total of spice trade by volume followed by chilly at 22 percent. turmeric 5 percent. During the process. Naturally there arises a question. ginger 4 percent.Establishment of Intemational Pepper Community at Jakarta (Indonesia) Establishment of National Research Centre for Spices (NRCS) NRCS Upgraded as Indian Institute of Spice Research. That is why. it is obvious that the present scenario of spices production and trade is the result of thousands of years of events and changes. culture and even the economic and diplomatic relations between countries. spices directly or indirectly became the cause for changes in the standard of living. thanks to her significance in the international market As noted elsewhere. Global Spices Trade The world spices trade 1s mainly concentrated on black pepper because it is the largest traded spice in the international market both in terms of quantity and value. seed spices 17 percent tree spices 14 percent. Kerala Source: Compiled kom various books and journals. cardamom 3 percent and vanilla at lpercent -" . cardamom is the 'Queen of Spices'. who is the queen? No doubt. health and beauty segments.3.In terms of value and volume.85. the usage of pepper in food industry has increased substantially because of its taste. 2.000 tonnes of pepper annually.. whlch now contributes more than 95percent of the country's .000 hectares of land are used in India for Pepper cultivation and we produce about 60. In developed countries. Major growth of spices is accounted for by the industrial & food service sectors. Major centres of pepper cultivation and trade Pepper is cultivated in about 26 countries and majority of them are Asian ~ountries.S. Spices market world over.5 to 2 billion and 400 to 450 Thousand Metric Tonnes in quantity. In developing countries 90 percent of the pepper is consumed in the household segment.1. Chmese and Thai are having a growing impact in many countries and expanding to cover a wide range of tastes in food. flavor and seasoning characteristics. Kerala is the homeland of black pepper. Ethnic foods particularly Indian. is growing and significant growth has been noticed in specific spice segments like hot spices in U. More than 60 percent of pepper is consumed in industrial and food service sectors and the balance is used for domestic consumption. aromatic culinary herbs in France etc. About 1. India India is the leading country in terms of area of cultivation and volume of production of black pepper. 23. perfume. medicines.~' The area of cultivation and quantity and production of pepper is briefly outlined below. the global spice trade is estimated at US $ 1. Indonesia (then known as Dutch East Indies) was the largest pepper producing country In the world with an annual production of over 50.393 tonnes .000 acres in Banka and about 2.25.500 acres in Java.S. Brazil Brazil entered the field of commercial pepper cultivation in 1933 when a group of Japanese immigrants started pepper cultivation on a large scale. Espirito Santo ans Ceara in the state of Para where the pepper estates are owned by the members of the co-operative Agricola Mista ( Mixed agricultural Co-operative) and in the area of Belem the pepper gardens are owned by individuals. There was remarkable success and Brazil became one of the major pepper producing countries and started exports to the nearby market of U.33. In the pre-war days there were about 40.109 tonnes.A.050 hectares and the annual production is 26.000 acres of pepper gardens in Sumatra 20. 2. The states of Karnataka and Tamilnadu contribute the remaining Indian pepper. At present the total area of pepper cultivation in Indonesia is about 1.132 hectares and the average annual production is estimated as 48.000 tonnes.area and production. Now pepper production is restricted to certain areas and the Indonesian Government is trying to recapture the past glory through developmental activities. The average area of pepper cultivation in Brazil is 28. Indonesia is the second most ancient pepper growing country. Currently pepper is grown in Paraiba. During the Japanese occupation of Indonesia most of the plantations were abandoned and pepper production declined sharply. Prior to the Second World War. Malaysia The European settlers introduced black pepper in Malaysia during the early seventeenth century. Pepper is grown in some parts of Malaysian main land also.3.058 tonnes.160 tonnes from an area of 4. Their average production comes to 2.915 hectares and the annual production is 2 1. Malagasy Republic The pepper cultivation of Malagasy started after the Second World War when there was huge hike in the price of pepper. which led Sarawak to achieve high productivity levels. with an average annual production of 5.5.4. The average area under pepper cultivation in Malaysia is about 9. The foreign occupation of Sri Lanka was responsible for the expansion of pepper cultivation to other areas especially to the province of Kandy. The total area of pepper cultivation in Sri Lanka is estimated as 12.2. especially in Johore region. . Sri Lanka Pepper is grown as a mixed crop in Sri Lanka in cocoa plantations and in house compounds.128 hectares. The most important growing regions are the Dumbara valley and the Matale district. Here the pepper cultivation is concentrated in the east and northeast coasts on the Comoro and Nossi-Be Islands and in plains of Samb~rano and Mohavavq in Maunga province.6. 23. Major cultivation is in the dry zones of elevation of less than 600 meters from MSL. pepper cultivation is concentrated in SarawakHere pepper cultivation is in the hands of Chinese farmers and they evolved an intensive production technology.080 hectares.3 10 tonnes. The cultivation practices are similar to that of India. 2. In Malaysia.3. The civil war and military insurgency in the country had a devastating influence on Combodian pepper production The production of the country is around 2. Pepper production in Vietnam is fast shooting up and at present their average production is around 60.23. Vietnam started pepper production much early but it became common during the post war period. per hectare.000 tomes annually. Thailand practices an intensive production technology.808 hectares of cultivation. Pepper is grown on a large scale in Thailand. and South Korea The productivity of pepper in Thailand is very high which comes around 4. which is believed to be copied from the Chinese. Vietnam is one of the important countries raising a severe threat to all other pepper producing countries.856 hectares of land. Under the French occupation there was considerable progress in pepper production but it declined during 60's and 70's.000 tonnes from 13.500 kg. South East Asian Countries Commercial production of black pepper in South East Asian nations started only after the Second World War. Vietnam. .7. However it is expected that their potential of pepper production is much more than the present contribution due to considerable expansion of area during the end of the last decade. The area under cultivation is very low but the farmers are united and they help each other at various stages of farming with an unwritten agreement for mutual cooperation.091 tonnes from 2. Combodia. Combodia is another South East Asian Country having sizeable pepper production. parts of South China. The average annual production of Thailand comes to 10. 2 3 .3. In addition to this. South pacific Islands Some of the South Pacific Islands have succeeded in pepper cultivation. Zambia. Madagaskar produces about 3000 tonnes. Micronesia. Saint Lucia.pepper is grown in many other African countries like Benin.9. Gabon and Sierra Leone etc. Congo. Costa Rica. Nigeria. 2. However there are counmes like Mexico. Kenya. producing pepper though not in large quantities. Fiji and Somoa are the prominent among them. Cote de Voir. Zibabwey. African Countries There are many African countries like Madagaskar. Guatemala Honduras. Cameroon. Ethiopia. Latin America Brazil is the major Latin American country producing pepper on a large-scale basis. Saint Lucia and Costa Rica produce about 400 and 160 tonnes respectively. and Puerto Rico etc. 8 . Fiji has an annual production of about 175 tonnes while the contribution of other countries in the region are less than that of Fiji. 23. etc producing pepper on commercial basis. Malawi . Mexico has an average annual production of 1200-1300 tomes while Guatemala produces about 375 tonnes annually.Small quantities of pepper are produced in China South Korea China produces about 15000 tonnes of pepper annually and further increase in area and production and productivity are anticipated in the coming years because they have enough growth potential. Malawi.10. Philippines also produces pepper but in small quantities only. on an average. pests.000 tonnes or 16percent of world production and supply about 13 percent of world export However the pepper production in Vietnam is showing an unbelievable growth and if the present growth continues. world pepper production and export shifted within the range of 1. they will push all other producing countries to the back in the immediate future. Reversing the situation of the above factors would normally lead to lower production.4. Production and export of Pepper Production of pepper depends very much on agro climatic factors. During the last ten years. 22 The non-IPC member countries like Vietnam. favourable weather situation and less incidence of pests and diseases often lead to higher production level. 2. The IPC member countries are major producers and exporters of pepper.67.000 tonnes of pepper or 84 percent and export 1.000 tomes for export.000 tonnes or 87 percent of world pepper export. China and Madagascar produce.71. diseases etc.33. They produce.000 tonnes for production and 1.27. Zimbabwey 750 tonnes. . on an average 1. about 60.000 tonnes to 2. Kenya and Benin 300 each while the other countries produce smaller quantities of pepper only.1 glves a much better picture of the global production and export share of various pepper producing countries. High price coupled with good cultivation practices. 23 Table 2.900 tonnes.000 tomes to 1.66.24. 376 jowce: . is a principal spice being traded in the international spice market.819 7 800 15.000 Madagascar 6 9 606 1.000 I 4 I 36. pepper oil and pepper oleoresin.785 I 3 5 I India 1 I 1 I 22. though in recent pears however.096 I 6 8 Thailand 8.500 9 7 3. Pepper products. Majority is traded in wholelunground state. .www. both black and white.1 Production and Export of pepper Country-wise (200041) Country Production ( Tomes) - Rank Export ( Tonnes) Rank Brazil 40. Pepper.IPC Website.593 Indonesia 59. there has been a significant increase in the trade of value added pepper products from producing countries.700 I 8 I 2.000 3 53.ipcnet. popularly traded internationally are pepper powder.org.Table 2.594 2 1 I I I Sri Lanka 1 5. green pepper. 's) Table 2. Production and export of pepper ( M.Figure 2 .1 and Figure 2. In other words. . Brazil and Malaysia and are exporting more pepper than India.T. Vietnam. It also implies that a considerable portion of Indian pepper is used for domestic requirements. show that Vietnam is far ahead of India in export of pepper though we have top rank in production. Indonesia. 1 .1.2 shows the productivity ranking of the major pepper producing countries of the world. Table 2. This situation should be viewed in terms of the productivity ranking of the producing countries. pp 5-7.Alagappan and M. It implies that the position of Indian . Vol. 24 It may be noticed also that area wise we have the top position but the entire advantage is lost due to low productivity. Production and Productivity of pepper .Table 2 2 r (Hectares) 182268 Indonesia Brazil Vietnam Malaysia 125132 28050 1 3856 Average Area. Spice India. 1. Note : . January 2001.Figures in brackets represent percentages to total The deplorable position of productivity of Indian pepper is evident from the table. The above figures shows that many of the pepper producing countries are able to supply pepper at a price far below the price of Indian pepper. It also indicates the possibilities of raising our productivity.Country -wise (2000) Production (tomes) 58729 (30) 48 109 (24) 26393 (13) 15594 (kgd hectare. Compared to other pepper producing countries. India has the lowest average.Manoharan. which points to the potentials of our country in the field. thanks to their high productivity This is something.) 9915 Not available (8) 21310 (1 1) 27790 (14) Source : .V. Production of pepper in India a global perspective. . Kumily. Kerala state. Kumily. presently Guatemala has domination in the international market due to their achievements in production. Munnar. Guatemala are the major cardamom producing countries of the world.2. Cardamom is produced in certain parts of Wayanad district also. However on a close observation of the export statistics of various countries reveals that there are more than fifty countries exporting spices without producing the same and some of them are contributing significantly.7. Certain pockets of the states of Karnataka and Tamilnadu also have cardamom cultivat~on but they are not in a position to raise much competition to the state of Kerala Vandenmedu. cardamom production is mainly concentrated in the high ranges of Idukki district.2s 2. In India. It indirectly implies that there are counuies commerciall~exploiting the spices producing countries with or . but only on small scale.6. Major Centres of cardamom production India and the South American country. Though quality-wise Indian cardamom is popular. There are cardamom auctlon centers at Vandenmedu. Nedumkandom. Import and Re-export of Pepper and Cardamom There are only less than ten countries producing pepper and cardamom on commercial basis. productivity and resultant cheaper prices. where the cardamom is marketed under auction system. Santhanpara etc are the major centers of cardamom producQon in Idukki ditrict. Bodinaykanoor. Puliyanmala. Cumbum etc. It is to be noticed that India and Guatemala are the only countries in the world is producing cardamom on a commercial basis. major share of pepper produced in Indonesia and Malaysia were imported to Singapore and were re exported to other countries.098 tomes of pepper and reexported 12. Recently it has been estimated that about 38. Ukraine etc.A. It is to be specially noticed that such re-exports are done after value additions and some times without any value addition at all. Thus it is evident that the spices are traded at different centres and countries before they reach the final consumer.27 Other major re-exporting countries are U. So it can be safely assumed that the difference is the result of re-exports. .38.S. Netherlands is reported as another major entrepot of pepper who re-exports to European countries.261 tonnes of pepper.29. during 1999 alone the Netherlands imported 18.000 tonnes of black pepper is imported by Singapore from Vietnam and the major buyers of the same are U. Germany.without their awareness. European countries are more quality conscious and Netherlands capitalizes the opportunity by supplying spices as per the European standards. For example.A. particularly pepper.K. U. Those countries re-exporting spices some times make value additions and some of them re. Netherlands. Germany. Belgium and Austria These countries import spices from producing as well as re-exporting countries like Singapore and Netherlands. Either of these situations offer vast scope for spices producing countries.S.078 tonnes.799 tonnes whereas the total import of pepper by countries all over the world was 2. During the past.export without any value addition at Singapore is one of the important countties acting as an enterpot of spices. For example the total export of pepper from producing countries during 1999 was 1. Further. traders and exporters of spices. As the number of intermediaries involved in the channel is more. which led to the emergence of an international pepper exchange. cause considerable losses and disappointment to the producers. International Pepper Exchange Unexpected fluctuations in production and the prices of the spices. sell to the local traders who in turn hand over the same to the traders at major towns. 2 . The producers of spices majority of whom do not know the international significance of their produces. the actual international price and the price earned by the producers will be entirely different. The credibility of export deals also is often doubtful due to regular default of contracts by foreign importers as well as domestic traders. The inception of the International Pepper Exchange was the result of the efforts to rejuvenate the depressed stage of global pepper trade. we do not have a scientific and systematic method of marketing them either in the domestic or international markets. IPSTA ICE The international pepper exchange h o w n as IPSTA ICE (International Pepper and Spices Trading Associat~onInternational Commodity Exchange) is functioning at Mattancherry. the Jews town of Kochi. Even though we produce best quality spices.8. all types of speculations are possible leading to unjustifiable price fluctuations.2. 1 . It is the latest contribution of our little Kerala to the world of spices trading . 8 . The products then move to the hands of wholesalers or to the exporters who make shipment as per foreign or domestic orders. These all are the reasons. The international pepper exchange.) undertaken with the purpose of promoting international pepper trading. which is the most favoured spice of the world. which started functioning on 17th November 1998. The basic aim of UNCTAD while undertaking the study was to set up a market based institution and a market driven price determination for black pepper. 2. Genesis of International Pepper Exchange The IPSTA ICE was the outcome of a feasibility study by UNCTAD (United Nations Conference on Trade and Development. The integration of the global trade in pepper through the inception of the international pepper exchange will definitely help the concentration of world spices trade again in Kerala. The Government of India and the International pepper and spices traders association were given the authority to suggest an appropriate market place for the international pepper exchange and C o c k the most deserving city was selected for the functioning of the exchange. The UNCTAD report was accepted by the International pepper community (IPC) at its 22"* session in Changmai (Thailand).8. which may be aptly remarked as a historical regression. The idea of pepper futures contract was designed by a working group set up by P C .28 . comprising the representatives of the producing countries with the purpose of extending price discovery and risk transfer functions for the benefit of all the participants of the global trade in black pepper. was the result over 40 years of highly reputed domestic trading.2. 2003. if the prices go down. X Ltd will be again in trouble because they could have purchased the required quantity from the market had there been no contract with Y Ltd. if the interestrates also are taken into consideration. Further. Which is a producer or supplier of pepper. If the company immediately purchases the commodity at the prevailing market rate and ship the same in May. the deal may turn futile to the company. defaults the forward contract. The second alternative before the company is to wait till May 2003 and hope to buy pepper @ $2000 per tonne. to be delivered in May 2003. it will have to pay huge amount for storage which may engulf a major part of its profits.83. X Ltd can take . this option may become more risky if the price of pepper goes up in May and the company may not be able to purchase the required quantity at the desired price. Functioning and Importance of the Exchange The method of functioning and the significance of the IPSTA ICE can be better explained like this . X Ltd.A for 500 tomes of black pepper @ $ 2500 per tonne.On 01. for supplying the required quantity in May. Ltd is to buy pepper through the pepper exchange with future contract expiring in May 2003 at a future price of $2000 per M. The third option before the company is to enter into a forward contract with another company Y Ltd.2.01. below $2000 per tonne. 'This option also may turn to he risky if the price of pepper goes up and Y Ltd. from the domestic market.S. a pepper exporting company in India obtains an order form U. Here is the significance of the Lnternational Pepper Exchange.T. However. X Ltd estimates that they should get pepper @$ 2000 per tonne to earn a reasonable profit from the deal. The safest method of handhg the issue for X. 1 . Tradiig Members (T. In order to become a member of ICE. pay $2000 per M.M) who can trade for their own account but have no clearing rights. . 2. contracts of other members and clear their own accounts.delivery of pepper in May at the designated warehouse. one should obtain registration from the Forward Market Commission and the Reserve Bank of India The registration may be done through an application submitted to the International Pepper and Spices Traders Association of India IPSTA. Members only are allowed to transact through the exchange and there are six types of members in the international pepper exchange as follows.M) having the right to trade and clear only fbr their account but they cannot execute contracts. and get relieved of all the troubles and saving a lot of money and risk by not adopting the other alternatives. 2 . Trading cum Clearing Members (T.C. customer contracts or contracts executed by others.C. Membership of IPSTA ICE. Composite Tradiig Members (C. execute their own contracts. 3.M) having full trading and clearing rights. 1 Composite Clearing Members (C. 4. However to obtain registration for composite clearing membership or trading membership. They can enjoy 1 1 1 trading right on the trading floor. 8 3 . T. M) having full trading right on the floor but having no clearing rights.T. the approval of the Foreign Investment Promotion Board (FIPB) must be obtained. The delivery of the commodity must be in units of 15 tonnes or the multiples thereof which is intended for the convenience of shipment . This quality specification permits moisture contents up to l2percent of the total weight.5 tonnes 3) Contract Months . 1) Quality . - 6.M) . Terms and conditions for transactions The ICE insists for certain mandatory restrictions on all transactions to ensure the credibility and standard of the dealings to the international specifications. mould visible to the naked eye up to lpercent.having customers and they can have trade executed by Composite Clearing Members.N.M) The membership is open only to Commercial banks and financial institutions.The minimum contmct size is determined as 2.2. They have full clearing rights but have no trading rights.C. Institutional Clearing Members (1. light berries up to 2percent. Registered non-members (R. The following procedure is the important among them.Regarding quality. it has been restricted that the pepper traded should be of MVLSB specifications.83.5. 4) Delivery units . 2) Contract size . 2.All calendar months are allowed for contracts with the restriction of a maxlmum of six contracts at a time and with duration of six months each.g per ib and insects up to 2 per ib. extraneous matters up to lpercent mammalian excreta up to 1 m. 5) Quotation . .m.First Commodities Corporation of India) collects a clearing fee of .833. t 01.the trading time is 9.5 per contract and the FCCCI (the cleanng agency. 9) Margin money.6000 per M. maximum of Rs.30 a.30 p.m. h m Monday to Friday and h m 9. 7) Position Limit -- Every trader can have a maximum position limit of 200 M.15000 per contract.the quotations must be in Indian rupee alone and the price should be per quintal. 6 ) Trading time .e.30 a. The timely delivery of the commodity and timely payment of the consideration are ensured by IPSTA ICE with the help of the clearing agency FCCCI. 2. 5 per quintal i. 8) Daily Price L~mit-The daily price fluctuation has been decided as Rs.03 percent of the contract value as their remuneration. Trading procedure The trading floor of the pepper exchange is in the buildings of IPSTA at Mattancheny. Trading will be stopped whenever the price fluctuates above or below this permitted range. Through bid system they enter into contracts after amving at consensus on terms and conditions. 10) Transaction fee.Ts across all contract months. Further. This means that at any time there should not be pending contracts of 200 M.T. 125 per contract. Each member has a cabin on the trading floor where they receive buying and selling orders from the different parts of the world. or above for a member. Emakulam.30 on Saturdays.m order to ensure the safety of the transactions the IPSTA ICE restricts that every trader should deposit a margin of Rs.The IPSTA ICE collects a transaction fee of Rs.T fiom the previous settlement price. to 12.m. the minimum price fluctuation is decided as Rs. FCCCI collects margin money also to ensure timely fulfillment of the contracts by the 'trading members. 45 percent of the equity capital of FCCCI is resewed exclusively for institutional clearing members.4. Spices do not grow in extremely hot and cold regions.8. It is worthwhile to note that within a short span of time the exchange could achieve remarkable role in the intemational pepper transactions but the exchange has much to progress to achleve the aims fully. This peculiarity gives a special privilege for the spices producing countries like India in the spices production and trade . 25 percent of the clearing fee paid by the clearing members to FCCCI is accumulated into a guarantee fund with the purpose of assuring maximum safety for the transactions. First Commodities Clearing Corporation of India (FCCCI) The financial performance of the futures contract is guaranteed by FCCCI Ltd.9. All the members of the intemational pepper exchange must have a clearing agreement with a clearing member. which is owned. Banks and financial institutions alone are eligible to become institutional clearing members. Indian Spices trade Tropical climate is considered as ideal for spices cultivation and the best quality spices are available in the latitude belt between 25 O North and 10 O South of Equator. All the clearing members are members of IPSTA also. 2. capitalized and managed by the clearing members of the ICE.2.. it was this factor.because those countries which cannot produce spices have to fully depend on spices producing countries to meet their inevitable medicinal and culinary needs. It indirectly implies that the increase in production is not likely to affect the market considerably.7 percent of total production is exported. which turned the history of the world itself.9 shows the domination of South India in the spices production of our country. An interesting and at the same time important point is that the lion's share of spices produced in our country is used for domestic consumption and only 6 . Table 2. As mentioned elsewhere. offers a very good domestic market for all types of spices produced in India. '' More than 100 crores of people with rapidly changing food habits. In the future also this advantage will help the spices producing countries like India to have a sizeable share of the world trade in a globalised economy. . .Table 2 3 Pepper statistics D o m e s t i c - Source : . Cochin. Spices Board.Compiled from various issues of Spice India. * Half yearly average. 5 Cardamom statisties Domestic - * Half yearly average .Table 2. 41 1 17.050 2. Spices Board of Indiq2000-01. oleoresins etc. Table 2.000 17.52.P.000 6. oils.580 34.23 22.06 27.500 (Rs. (cuny powder.43 1 1.95 91.) 19.40 144.47 35.32 56.800 5.90 530.78 17.250 1.88 8.96 10.6 Export of total spices from Indii ( 2000-2001) Qwtity Value (Tonnes) Pepper Cardamom (small) Cardamom ( large) Chillies Ginger Turmeric Coriander Cumin Celery Fennel Fenugreek Other seeds Garlic Other spices Value added spices.54 27.100 1.700 13. Crores) 326.68 195.250 4. Source :-Annual .000 13.000 9.425 1 1.645 61.00 17.The following table shows the trend in the quantity and the value of export of total spices fiom India.700 Report. This is about 60 percent of the total cardamom cultivation in India.10. Idukki district has almost monopoly while in the case of pepper there are Wayanad and Kannur districts . which are the most important spices aptly. It is equally important that a large number of families in Kerala resort to the spices sector for their livelihood. Kerala contributes the lion's share of total spices production of India.10. about 40. 2.60.2. turmeric. Along with pepper and cardamom Kerala has remarkable contributions of ginger.000 tonnes of black pepper. From the above statistics it is clear that the name 'spices land of India' is suitable to the state of Kerala. 2.1 gives a better picture of the position. More than 70 percent of the cardamom produced in India is the contribution of Kerala.1. Major centres of pepper and cardamom production in Kernla Another notable factor is that the lion's share of the spices production in Kerala is fiom Idukki and Wayanad districts. Pepper alone is cultivated in 1. called the 'Royal Couples' of spices.000 tonnes of cardamom annually.000 hectares. It has been estimated that more than 90 percent of Indian pepper is produced in Kerala '' Similarly. Figure 1. nutmeg etc. Spices in Kerala There are many countries producing these spices but the 'little Kerala' is considered as the only source of top quality pepper and cardamom.000 hectares of land in Kerala is under cardamom cultivation. producing more than 5.178 hectares of land in Kerala is used for spices cultivation producing more than 1. clove.69. As regards cardamom.000 tonnes of spices annually. producing on an average more than 50.85. 695 Emakulam Thiruvanthapuram Thrissur Palakkad Alappuzha I 1.7.88.779 8. IDishict Kozhikkodu Kollam Kottayam Malappurarn Kasargod Pathanamthitta 1 Area and production of Pepper in Kerala .813 I 223 52.528 18. 1997.010 1.715 13. p .contributing a sizeable share .304 2.912 8.547 41.8 show the district-wise contribution of pepper and cardamom.Diitrict-wise Area Production 1 (Hems) (Tomes) 39.687 Source." Table 2.770 1.47 .181 3.Area and production of spices in India and the world. Cochin.7 and 2.484 4. Spices Board. Table 2.837 12.635 34. 1997.33 .Table 2. Kozhikkodu district also has a notable contribution of more than 3000 Tonnes. Spices Board. Cochin.47 The table 2. 32 It is evident from the above table that Idukki District has clear domination over the cardamom production of Kerala with largest share in the area of cultivation and production.685 I 210 I Others 2.8 shows the share of each district in the total pepper production of the state of Kerala. Idukki district has domination both in the area of pepper cultivation and the quantity of production.459 4.8 District wise production of Cardamom (small) 1 District Area (Hectares) Production (Tonnes) 1 I I 1 Palakkad I 3. Since the major share of Indian cardamom comes from the state of Keralq it follows that Idukki district alone contributes the sizeable share of Indian cardamom.Area and production of spices in India and the world.613 23 Total 43.430 Source :. followed by Waynad and Kannur districts. p . 88 per cent of area of cultivation.42) 32.720 (67. pepper All India Kerala Idukki & Waynad Table 2.. Kerala has only 97.2) 83.1) 32.Figures in brackets represent percentages to total.93.42 per cent of Indian cardamom from 52.012 (58.182 (42.Area and production of spices in India and the world.62 per cent of the total area of cultivation of pepper but contributes 94. It is really appreciable that the Idukki district alone contributes 60 per cent of Indian cardamom from just 39per cent of the cultivated area .010 (94.270 (100) 1.651 (100) 7.88) 4.9 Area and Production of Pepper and Cardamom (Overall) Cardamom Kerala Idukki All India Production (Tonnes) : : : :5 i . 1997.56) 81. Further. Cochin.237 (52. Spices Board.000 (100) 44.536 (39) 4.88.2 per cent of Indian pepper from about 42.1 and 47. pp. The table clearly shows the domination of the state of Kerala as well as the significance of the districts of Idukki and Waynad in Indian spices production.lper cent of cultivated area Similarly Kerala contributes 67.62) 52.200 (60) ! Source : . Idukki and Waynad districts together contribute about 58.56 per cent of Indian pepper. Note : .687 (97. 1. in the year 1966 instead of the Directorate for Cardamom Development. b) Three members of the Parliament of whom two shall be elected by the House of the People and one by the Council of states. The Board consists of: a) A chairman. The Board was constituted as per the Spices Board Act. 1986. Understanding the significance of the coordination of the activities in the export of spices. the Government of India constituted a Cardamom Board. which is responsible for the development and growth of all the major ltems of Indian spices. c) Three members to represent the Ministries of the central Government dealing with i) Commerce ii) Agriculture " - iii) Finance j) Seven members to represent the growers of spices k) Ten members to represent the exporters of spices 1) Three members to represent major spice producing states m) Four members one each to represent .11.2. the Spices Export Promotion Council and the Cardamom Board were clubbed together and the Spices Board was constituted in1986. Subsequently. the Spices Export Promotion Council was responsible for looking after the export affairs of Indian spices excluding Cardamom. having commercial significance. for which there was 'Directorate for Cardamom Development' constituted in the same year. Up to the year 1960. Spices Board of India Spices board is a statutory body. 6) Evolve suitable quality standards and introduce certification of quality through 'quality marketing' of spices for export. promote and regulate export of spices. 8) Give licenses. it considers necessary in the interest of promotion of export. 1986. b) The Indian Institute of Packaging Bombay. n) One member to represent spices labour interest As per the provisions in the Spices Board Act. 12) Imporf with the previous permission of the Government. c) The central Food Technological Research Institute. the following are the functions assigned to the spices board. 2) 3) Grant certificate for export of spices Undertake programmes and projects for promotion of export of spices 4) Assist and encourage studies and research.a) The planning Commission. 10) Provide warehousing facilities abroad for spices. any spice for sale and 13) Advice the Central Government on matters relating to import and export of spices. Mysore. d) Indian Institute of spices research. Calicut. 7) Control quality of spices for export. subject to such terms and conditions as may be prescribed to the manufacturers of splces for export 9) Market any spice. 1) Develop. for improvement of processing and maintenance of quality 5) Strive towards stabilization of prices of spices for export. . 11) Collect statistics with regard to spices for compilation and publication. assist or encourage scientific.In addition to the above the Board may also 1) Promote cooperative efforts among growers of cardamom 2) Ensure remunerative returns to growers of cardamom. dealers and such other persons as may be prescribed on any matter relating to the cardamom industry. . the Spices Board has control over the following spices. processing and marketing and it has to assist the production function of other spices also. for replanting cardamom and for the extension of cardamom growing areas. As regards cardamom. As per the Acr. 10) Secure better working conditions and the provision and improvement of amenities and incentives for workers and 1 1) Undertake. the Board has the responsibility of looking after the production. publish statistics so collected or portions thereof or extracts there from. 8) Improve the marketing of cardamom 9) Collect statistics from growers. 5) Provide training in cardamom testing and fixing grade standards of cardamom 6) Increasethe consumption of cardamom and carry on propaganda for the purpose. 3) Provide financial or other assistance for improved methods of cultivation and processing of cardamom. 4) Regulate the sale of cardamom and stabilization of prices of cardamom. 7) Register and license brokers (including auctioneers) of cardamom and persons engaged in the business of cardamom. technological and economic research At present there are fifty-two items of Indian spices under the control of the Board. No.Table 2.10 Spices under the Control of the spices board of India SL. Name in English Pepper Cardamom (small) Cardamom (large) Chilli Ginger Turmeric Coriander Cumin Celery Fennel Fenugreek Nutmeg Mace Clove Cinnamon Cassia Garlic S&on Botanical Name Piper Nigrum Eletaria Cardamomum Amomum Subultatum Roxburg Capsicum Annum Zingiber Officide Corandnon Sativum ApiumGravaeolens Foeniculum Vulgare Name in Malayalam Kuru~nulaku Elam Perelam Vattal mulaku 1 2 3 4 I 1 I Inchi Manjal Malli Jeerakam Celery Penungeerakam Uluva Jathikka Jathipathri Grampoo Elavarngam Karuvapatta Velluthully Kumkumapoow Vanilla Cuny vepila Sarvasugandhi Chompu Pudiia Kaduku Seemamalli 5 6 7 1 Curcuma Longa ! CumiOum Cyminum 8 1 9 10 11 12 13 14 15 16 17 : I j Trigonella Foenum Graecum 1 Myristica Fragrans 1 Myristica Fragrans Syzygium Aromaticum Cinnamomum Zeylanicum Blume Cimamomum Aromaticum Allium Sativum Crocus Sativus Vanilla Planifolia Murraya Koenigii Pimenta Dioica Pimpinella Anisum Mentha Longifolia BrassicNigra PetroselinumCrispum 18 19 20 21 22 23 24 Vanilla Curry Leaf Allspice (Pirnenta) Aniseed Mint Mustard Parsley . :. Spices Board of India.:..25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Name in English Pomegranate Kokam Tejpat Campodge I Botanical Name Punica Granatum Garciia Indica Cinnamomum Tamala Garcinia Campogia Thalisapathram Kudampulli Sathakuppa Seemageerakarn Bishops weed ! Trachyspermurn Ammi Dill seed Caraway Poppy seed Asafoetida Juniper Tamarind Basil Bay leaf Caper Horse-radish Hyssop Lovage Marjarom Oregano Pepper Long Rosemary Sage Savory Star.-_-.. source: Website.. . .:. Satureia Hortenis ! I lllicium Verum 49 50 51 52 Sweet flag Tarragon Thyme Greater Galanga I! Acorns Calamus Dracunculus II Artemisia Thymus Vulgaris 1 Alpina Galanga I I . ' - :.Anise 1 Anethum Graveolens i 1 Carum Carvi I 1 Papaver Somniferum Linnaeus I Ferula Alliaceaboiss Juniperous Cornmunis Tamarindus Indica Ocirnurn Basilicum Laurus Nobilis Capparis Spinosa Armonica Rustocana Gaertn Hyssopus Officianalis Levisticum Officianle Majrorana Hortensis Oregano Vulgare Piper Longum i Kasakasa Kayam Junipazham Valanpulli Thulsi Bayila Kareeram Kattumullanki Soofa Levi Maruva Kattumaruva Thippali Rosemary Salvithulasi Savory Thakkolam Vayampu Tharagon Thottathulasi Chittaratha 45 46 47 48 Rosemarinus Officinalis Salvia Officinalis .I . :. fix in respect of cardamom of any description specified therein a) The maximum price or the minimum price. or the maximum and minimum prices. Registmtion of owners Spices Board grants registration to those cardamom producers who apply for registration. Certificate for export of spice As per section 11 of the Act.113.113. which may he charged by a grower of cardamom or cardamom dealer. whether for the Indian market or for export and b) The maximum quantity. The board. certification for export of spices is mandatory to all those who are engaged in the business of spices export. which is mandatory as per the provisions of section 8 of the Act. 2. in nonnal cases will grant certificate on receipt of application in prescribed form and as per the terms and conditions laid down in thls regard. However such registration may be cancelled on violation of the terms and conditions of the certificate or when the Central Government think it is necessary to cancel the registration for the general interest of the public. Such a registration shall continue to be in force until the registering authority cancels it. whch may be sold to any person in one transaction. Control by the Central Government As per section 16 (1) of the Act the Central Government may.2.1. 2. supply or dismbution or trade and commerce in cardamom to . The Act also provides powers to the Spices Board to insist any person engaged in the process of production. by order notified in the official Gazette.11. The a n n e r as may be registered owners shall furmsh returns to the Board in such form and m prescribed in this regard. 11.4. The Government constitutes a fund named 'Spices Board fund' and crecfits thereto a) Any grants and loans made to the Board by the Government b) AU fees levied and collected in respect of certificates granted C) AU sums received by the Board from such other sources as may be decided by the Central Government. allowances and other remuneration of the members. accounts and records relating to their business and furnish such information relating there to. vehicles. Financial Sources of the Board The major source of finance for the Board is the appropriation made by the Parliament by law on its behalf in the form of grants and loans of such sums of money as the Government considers necessary. officers and other employees of the Board. vessels and aircraft if required to prevent contravention of the orders. Further. The Board prepares a budget for each financial year with estimated receipts and expenditure and forward the same to the Government. The accounts of the Board shall be maintained . 2. expenses of the Board in the discharge of its fimctions and other incidental expenses as may be necessary for the proper discharge of the functions specified in the Act. The fund so constituted shall be applied for meeting salary.maintain and produce for inspection such books. the Act empowm the Board to enter and search the premises. restrict or otherwise control the import of cardamom on a case-by-case basis or generally. The Central Government has the power to prohibit. The Board shall also prepare a report of the activities and functioning for each financial year and a copy of the same shall be forwarded to the Government. 12 168.11 Income and Expenditure of the Spices Board 1 Head of Account 1999-2000 ( Rs-1 Budget Actual Grant. ! 2000-2001 ( Rs.07 191.41 464. Table 2.00 411.01 65.12 11. be prescribed and a copy of the audited accounts shall be forwarded to the Government.00 94.11.5.00 464. to provide for the imposition of cess on all spices.00 65.73 285.95 722.00 I I I I / I I I Source: . Spices Board of India 2. in consultation with the Comptroller and Auditor General of India.20 93. the Government of India has passed a Spices Cess Act in 1986.) Actual Budget Grant 280. The Act says "there shall be levied and collected by way of Cess for the purpose .1 lgives a general view of the financial sources and nature of expenditure of the ~ o a r d ? ~ Table 2.00 30. The Spices Cess Act 1986 Along with the Spices Board Act.06 410.00 12.00 Expenditure Expenditure Adrmnistration Export oriented production Export oriented Research Quality improvement Export development Works and Human Resources development I I I 285.Annual Reports of the respective years.00 723.00 12.00 191.68 1 1 679.06 279.93 676.and audited in such a manner as may.00 170. which are exported h m India with the purpose of carrying out measure for the development of export of spices. assistant directors at Calcutta and Unjha are funcitioning at present. Twelve regional offices of the board headed by joint directors at NewDelhi. 1986. a duty of customs on spices at such rate not exceeding five percent ad valorem as the C e n d Government may specify from time to time. These rules specify the constitution and composition of the Board and its committees. Mumbai. The Spices Board Rules The Government of ln&a has b e d certain rules for the exercise of the powers conferred by the Spices Board Act. Guntur.7. the minimum conditions which should be followed by an exporter for the grant of the 'Spice House Certificate' and also the provisions for appeal or complaint by any aggrieved party and the opportunities for the appellant. There are hrteen zonal offices headed by assistant directors located at Trivandrum. 2.11. Jorethang and Kalimpong. Gangtok Guavahati. 1 1 . Vandenmenu. OBlices of the Board The head ofice of the Board is located at Cochin in Kerala. Bodinayakanur. 6 . Shimoga. deputy directors at Cochin. The Spices Board Rules include provisions relating to the certificate of registration to the exporters. Madikeri. Such rules were originally passed in the year and amended many times subsequently. Chennai 37 and Bangalore. provision for the constitution of special committees etc. and Saklespur. Tadong. Chikmagalore. Muvattupuzha Calicut.of the Spices Board Act 1986." The duty of customs so levied shall be in addition to the duty of customs leviable on spices under the Customs Act 1962 or any other law for the time being in force. Ahmedab* Secunderabad. Mangan. Besides market . 36 2 . It also deals with the research and development of cardamom. market development committee for spices. Sakleshpur and at Thadiyankudisai are also functioning. banking institutions. local bodies. The development activities are carried out through six regional offices headed by joint director I deputy directors.8. agricultural universities. Cardamom replanting schemes for economically unprofitable plantations providing subsidies . agricultural departments of the states. and thn-ty field offices. The Board operated field units also as per requirements. the board implements the following programmes 1. Extension Advisory scheme 2. Production and supply of quality planting materials 3. The board maintains departmental nurseries also to meet the requirements of cardamom growers. It implements production programmes for other important spices also. Programmes and activities of the Board Spices Board is responsible for the formulation and implementation of development programmes for Improving productivity and quality of cardamom as well as post harvest improvements of spices having export potential. These offices maintain laison with growers. Bodinaikanur and Gangtok. thirteen assistant directors. The board has maintained five department nurseries in Karnataka and two in Kerala during the year.development offices headed by Assistant directors are funcitioning at Sakleshpur. 2.11. traders and exporters. Main research station headed by director (research) at Mylamdumpara and regional stations headed by seinor scientists at Sikkim.38 In order to assist the cardamom growers. 4. Scheme for promoting organic farming in spices 9. Irrigation and land development programmesa) Western Ghats Development Programmes in Kerala. Researches for crop improvement through Biotechnology. . Training programmes for quality improvement of spices 7. Crop management. Post harvest technology etc. Development of technology. 5. 8. Development of mfrastructure for post harvest improvement and storage of spices.There are large number of cardamom plantations in tribal areas and so the board undertakes tribal development programmes to improve the quality and productivity of cardamom in such areas. b) Tribal development programme . 10. 6. infrastructure and collaborative studies. Market development programmes Along with the above the Board is expected to participate in various national and international seminars and conferences related to spices. Karnataka and Tamilnadu with joint financial support from the respective Governments. Plantation labour welfare schemes like providing educational stipend to the children of cardamom estate workers. 11. pp 28-29. Bangalore... ..1. p. 3..l990. New York: Chemical publishing company Inc.1. p. Spices zn Indian lijie. Bal81~man Nair M.W. 17.. Spices in Indian Economy.62-71 Mahindw op.. 19. New York: Longman Inc. 5.1969. op.p~. 1982.24 6. 10.. 7. Cochin: Spices Board. Wynewood: Livingston publishing co.N. 1989. Rosengarten.cir.cit. Rosengarten. Purseglove J. Delhi: Academic foundation. p. Delhi: S. Khan M.cir . 9. Good News Bible. Book of spices.1969. pp.2527.3. hid. Rosengarten.and. 18.79. Madhusoodhanakurup P. Jr. op. op. Bid. 15.. p. 3 1 Mahindru S. Sugandhakeralam.71. Rosengarten. 4 1. op.W.1981.cit. pp. p. Spices Vol. p. 2. F.11-12.. 8.. Sultanchand and sons. Hand book of spices Vol.References 1. 1. Rosengarten. pp. Parry J. 26.59.cii. 16.T. Bible society of India. p.. p. Annual report. January. Alagappan.export of Pepper ". 2001.indiansuices. w~w. Spices Board of India. Institutions and Departments.N. 3 1. a global perspective". pp.com. V. 1. Website IPC. Annual Report. The Spices Board Act 1986. 29.. Spices Board of lndia Spices statistics. Government of I .ipc. pp. The Spices Board Rules 1987. n d i a 36. www.p. 2-5. M. 1998.net.18. n d i a 38. " Production of pepper in India. 1999.1999.p.Vol. 1997. Ravindran P. 2000-01.48. Spices Erport Review.lPC. Annual Reports.Spices Board of India.i~c. Ibid p.. Cochin: Spices Board. Government of India.net. Chan- K. pp. 33. Spices Board.p. S~ice India .. Website.p.47. Website IPC. Spices Board 1999-00 & 2000-00. X l I. Amsterdam: Hard wood Publications. 30.Import and Re. The Spices Cess Act 1986. 1989. 17. 15-17.org. and Manoharan.16. Sreekumar. pp. www. 35.org. p. Medicinal and Aromatic plants.48 34. 32. " World trade in spices.M. Cochin :2000. Cochin: 1998. Ibid. 2. Spices Board of I n d a Area and production of Spices in India. Spice Lndia Vol. Government of I 37. Ibid. Spices Development. B. 4-5.