Professional Documents
Culture Documents
Spices India To Uk
Spices India To Uk
Spices India To Uk
ECONOMIC OVERVIEW
ECONOMIC OVERVIEW
Political overview
Location: Southern Asia, bordering the Arabian Sea and the Bay of Bengal,
between Berma and Pakistan.
Economy overview:
India has been one of the best performers in the world economy in recent years, but rapidly rising inflation and the complexities of running the worlds biggest democracy are proving challenging. Indias economy has been one of the stars of global economics in recent years, growing 9.2% in 2007 and 9.6% in 2006. Growth had been supported by markets reforms, huge inflows of FDI, rising foreign exchange reserves, both an IT and real estate boom, and a flourishing capital market. Indias Economy has grown by more than 9% for three years running, and has seen a decade of 7%+ growth. This has reduced poverty by 10%, but with 60% of Indias 1.1 billion population living off agriculture and with droughts and floods increasing, poverty alleviation is still a major challenge
GDP:
Purchasing power parity-- $3.267 trillion (2008 est.) $3.065 trillion (2007) Real growth rate -- 6.6% (2008 est.) Per capita: purchasing power parity--- $2,800 (2008 est.)
Composition by sector:
Agriculture: 17.2% Industry: 29.1% Services: 53.7% (2008 est.)
Agriculture product: Rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes;
onions, dairy products, sheep, goats, poultry; fish
Exports: $175.7 billion f.o.b. (2008 est.) Exports commodities: petroleum products, textile goods, gems and jewelry,
engineering goods, chemicals, leather manufactures
Export partner: US 15%, China 8.7%, UAE 8.7%, UK 4.4% Imports: $287.5 billion f.o.b. (2008 est.) Import commodities: Crude oil and petroleum products, machinery, gems,
fertilizer, chemicals.
Imports-partner: China 10.6%, US 7.8%, UK 6%, Germany 4.4%, Singapore 4.4% Exchange rate: 1US$ = RS. 43.319 Fiscal year: 1st april-31st march
1.2 UK
HISTORY
On 1 May 1707, the Kingdom of Great Britain was created by the political union of the Kingdom of England and the Kingdom of Scotland. This event was the result of the Treaty of Union that was agreed on 22 July 1706, and then ratified by both the Parliament of England and Parliament of Scotland each passing an Act of Union in 1707. Almost a century later, the Kingdom of Ireland, already under English control by 1691, merged with the Kingdom of Great Britain to form the United Kingdom with the passing of the Act of Union 1800. The immediate post-war years saw the establishment of the Welfare State, including among the world's first and most comprehensive public health services, while the demands of a recovering economy brought people from all over the Commonwealth to create a multiethnic Britain. Although the new postwar limits of Britain's political role were confirmed by the Suez Crisis of 1956, the international spread of the English language
Export potential of spices from India to UK meant the continuing influence of its literature and culture, while from the 1960s its popular culture also found influence abroad. The United Kingdom was one of the 12 founding members of the European Union at its launch in 1992 with the signing of the Maastricht Treaty. Prior to that, it had been a member of the EU's forerunner, the European Economic Community (EEC), from 1973. The attitude of the present Labour government towards further integration with this organisation is mixed, with the Official Opposition, the Conservative Party, favoring less powers and competencies being transferred to the EU.
POLITICAL OVERVIEW Official name: United Kingdom of Great Britain and Northern Ireland
Geography
Area: Total: 244,820 sq km,land: 241,590 sq km,water: 3,230 sq km. Capital: London Population: 61,113,205
.
Climate: temperate; moderated by prevailing southwest winds over the North Atlantic
Current; more than one-half of the days are overcast.
Languages: English, Welsh (about 26% of the population of Wales), Scottish form of
Gaelic (about 60,000 in Scotland)
Government Type: Parliamentary Democracy and constitutional monarchy Administrative subdivisions: England: 34 two-tier counties, 32 London boroughs
and 1 City of London or Greater London, 36 metropolitan counties, 46 unitary authorities.
Economy Overview
GDP: 2008: $2.231 trillion (est.) Main export: manufactured goods, fuels, chemicals; food, beverages, tobacco
.
Inflation rate: 3.80% p.a Trade: Exports $468.7 billion f.o.b. (2008 est.) Major markets: US,Germany,France,Ireland, Netherlands, Belgium, Spain, Italy. Imports: $645.7 billion f.o.b. (2008 est.) Main import: manufactured goods, machinery, fuels; foodstuffs.
CHAPTER 2 SPICES
2.1
Introduction to spices
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India is known as the 'The home of spices'. There is no other country in the world that produces as many kinds of spices as India. The climate of the country is suitable for almost all spices. In India, spices are the important commercial crop from the point of view of domestic consumption and export. Spices constitute an important group of agricultural commodities which are virtually indispensable in the culinary art. In India, spices are important commercial crops from the point of view of both domestic consumption and export. Besides, huge quantities of spices are also being consumed within the country for flavouring foods and are also used in medicine, pharmaceutical, perfumery, cosmetics and several other industries. According to the International Organization For Standardization (ISO); The term
'spices and condiments' applies to such natural plant or vegetable products or mixtures thereof, in whole or ground form, as are used for imparting flavour, aroma and piquancy to and for seasoning of foods". There are over 80 spices grown in different parts of the world and around 50 spices are grown in India. The spices that India can offer in abundant quantities are pepper,
ginger, turmeric, chilli, cardamom, celery, fenugreek, fennel, cumin, dill, coriander, cinnamon, ajowan (bishop's weed), cassia, clove, nutmeg and mace. Major spices of export are pepper, cumin, cardamom, ginger, turmeric and chillies. Other minor spices include ajowan, aniseed, celery seed, caraway, fennel, fenugreek, coriander, garlic, onion, saffron, vanilla etc. Among the spices exported, pepper has the leading position in terms of both quantity and value realised. The 'Alleppey Green' Cardamom is considered the best grade available in the world. Among the spices exported pepper has the leading position in term of both quantity and value realized. The alleppey green cardamom is considered the best grade available in the world.
2.2
History of spices
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The history of Indian spices dates back to 7000 year in the past. The fame of Indian spices is older than the recorded history. It is believed that the Parthian wars were being fought by Rome largely to keep open the trade route to India. It is also said that Indian spices and her famed products were the main lure for crusades and expeditions to the east. The people of those times used spices, as we do today, to enhance or vary the flavor of their foods. Spices have played a dramatic role in the development of western civilization. Spices today are plentiful and are used mostly as flavorings. However, in ancient and medieval times, they were rare and precious products, used for medicine, perfume, incense, and flavoring. Spices have been the catalysts of some of the greatest adventures in the human history, like Christopher Columbus, voyage. Still today, spices empower us as explorers, even if we never journey beyond the kitchen counter. They energize our daily adventure in food and remind us of journey to toxic places and favorite meals with loved ones. Thanks to the vogue of international travel, we can engage in our own spice conquest now. We can stroll through market stalls around the world spices, perfumes, and exotic plants and flowers enchant the sense. And when we take these scents and tastes of farreaching places back to our home, we are again compelled to discover the allure of the unknown.
Asafoeti A popular spice in foods and medicines Cardamom The Queen of all spices Chilli Grown throughout the country and is used in almost all dishes. Cinnamon It is the dried bark of an evergreen busy tree. Cumin It has a particular value in the blending of Indian curry powder. Fennel The dried ripe fruit of a perennial aromatic herbaceous plant. Ginger A major crop cultivated in India marketed as fresh and dried spice. Mustard It is used for its appetising flavour and preservative value Parsley One of the best known and used in culinary spices Pomegranate It is endowed with excellent medicinal properties. Turmeric The spice is quite popular in foreign countries. Bishops Weed A native Indian plant is an aromatic spice. Cassia The dried husk of a small, bushy evergreen tree Clove One of the oldest spices in the world. Coriander The fragrant spice has its own medicinal properties. Fenugreek The ripe, dried fruit of an annual leguminous herb. Garlic It has an attractive flavour and acknowledged medicinal value. Mint Mint is the erec plant with dark green leaves with pleasant flavour Onion One of the oldest spices known to human race. Pepper The king of all spices and best known in the world Rosemary The spice is quite popular in foreign countries. Vanilla
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Export potential of spices from India to UK Vanilla is a seed pod of a tropical climbing orchid.
2.3
States Andhra Pradesh Arunachal Pradesh Assam Bihar Gujarat Haryana Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharastra Meghalaya Mizoram Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh West Bengal
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Export potential of spices from India to UK Name Botanical name Source of supply Form of use Application Capsicum Capsicum annum, Capsicum Frutescence Karnataka, Rajasthan Fresh vegetable, whole dried spice, ground powder, oleoresin, tincture. Used in cooking and the flavorings industry chilli oleoresin are used in burn creams.
Pepper
Pepper Piper nigrum, Piper longum Karnataka, J&K Whole dried corns, ground, essential oil, oleoresin. Black pepper is used in cooking and industrial flavorings, long pepper in traditional medicine.
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Saffron
Saffron Crocus Sativa J&K Dried stamens, extract. Saffron is a costly flavorings and food colorant and Is used ayurvedic medicine.
Turmeric
Name Botanical name Source of supply Form of use Turmeric Curcuma Longa West Bengal, Uttar Pradesh, and Meghalya. Dried whole rhizome, fingers, oleoresin, spray-dried extract. Application A spice used as a domestic and industrial floavourant and coloring. Cur cumin powder is also used in ayurvedic Medicine.
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Vanilla
Vanilla Vanilla Planifolia Tamil Nadu, kerala, J&K Cured whole bean, chopped bean, extract, tincture. Domestic and industrial flavorings, particularly in the dairy and confectionary industry.
2.6
MDH
MDH is the number one brand in Indian spices having won a huge number of international awards worlds over.
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The blend of various spices has been a traditional secret transferred from generation to generation. It all began way back in the year 1919, with a humble beginning, as a modest Spice manufacturer and trader. Through these glorious seven and a half decades, MDH has witnessed a growth which is both phenomenal and remarkable. MDH has not only pioneered the marketing of powdered spices in handy attractive consumer packs, but has also established as the leader by his own right and trustworthy processor of Pure & High quality mixed blended Spices and condiments. Keeping in pace with the modern times, MDH has been constantly been updating and modernizing its units, by evolving blended spices and condiments powders for preparation of popular and exclusive dishes for specific cuisines, which India is famous for. MDH stands a class apart, being India's leading manufacturer of blended spices, through fully automated plants located at New Delhi, Haryana and Rajasthan. MDH has always believed that quality comes first before anything else. Because of its commitment to quality, MDH has the distinction of being co-opted as a member of various committees of the bureau of Indian Standards, which is a nodal agency, responsible for Indian spices and condiments and their blends within and outside India. The demand for MDH spices is increasing rapidly in the Exports horizon. Apart form the millions of Indian families abroad, even foreigners, who are always quality & Health conscious have reposed their faith in MDH Spices. Thus, the Export performance has risen tremendously.
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EVEREST MASALA is the leading brand among blended spices in India with an exciting range of 17 perfect blends including the most popular Garam Masala, Pavbhaji and Chhole Masala.
As popular Indian cuisine is increasingly becoming the rage of overseas palates, EVEREST Masala is now available in countries as far flung as the UK, USA, Middle East, Australia, Canada and South East Asia. EVEREST is also one of the major Indian spices brand. Product detail
FLAVOURIT The FLAVOURIT brands of spices are quality assured by the spice board and marketed by the STCL will be distributed in the state of Karnataka, kerala, Tamil
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Export potential of spices from India to UK Nadu and Maharashtra by nest condiments, which already bagged the deal from spices board to market the brand in UK, Japan, Australia, and Middle East countries.
THE demand for `Flavourit' brand of spices launched by the Spices Board in March last is slowly picking up with the sales crossing Rs 3 lakh as on May 20. Total sales during the year are expected to cross Rs 10 lakh. Moisture content would not exceed 38 per cent and vanillin content not less than 1.75 per cent. The idea behind this venture is also aimed at establishing the identity of the once popular Indian spice grades such as TGEB pepper and Alleppy green extra bold (AGEB) cardamom.
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Export potential of spices from India to UK Indias's share in world trade of spices 2007-08
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Export potential of spices from India to UK With a relatively clean environment, ready availability of suitable land in a range of climatic zones, extensive agriculture and technical expertise, and a history of mechanized production, UK growers can produce spices crops of the highest quality, and conceivably increase their global market share. Additionally, crops can be produced here in the northern hemisphere off season, when overseas buyer are seeking product. The domestic market is still immature and many growers are currently experiencing difficulties in realizing anticipated returns. Large export markets exist but the volume of production in UK is relatively small. The individualistic nature of UK growers tending to compete with one another rather than co-operating to increase the pool of product available for these export markets, holds the industry back. The challenge for UK producers are to meet the larger contracts, providing high quality product at reasonable cost to the buyer, while continuing to maintain themselves in a sustainable production system.
2002-03 Export to UK Import from UK Total export of India Total import of India Exchange rate: (1US$ = Rs.) 504.18 1336.79 2,719.43 61,412.13 48.4935
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Source: DGCI&S
2007-08(Apr-Jan)
Production(tones) 31750 22750 5760 Value(crore) 466.38 94.32 490.71
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Product Vanilla Turmeric Pepper Saffron Capsicum Coriander Garlic Mint product Cumin Fennel
Value(crore) 29.09 45.96 32.67 12.34 12.97 98.83 6.99 111.91 187.10 37.44
Value(crore) 34.98 48.73 41.07 8.13 14.32 122.32 2.70 76.60 138.67 60.90
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CHAPTER 3
SPICE BOARD OF INDIA
3.1 The background of board 3.2 The activities of board 3.3 Association with international agencies 3.4 Major strategies for quality improvement 3.5 Board initiative for export development & promotion of Spices 3.6 Trend in Indias spice export
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The Indian export of spices has crossed the 850 million US dollar mark during 2007-08 and has reached 876 million US dollar. This remarkable achievement is born of a sea change in the industry scenario. From traditional commodity exports, Indian Spices have evolved into a state-of-the-art industry. Absorbing technology, broad basing its products range, developing value added products, identifying niche markets, forging strategic alliances clinching global collaborations and joint ventures.
The Spices Board India (Ministry of Commerce, Government of India) is the apex body for the export promotion of Indian Spices. Established in 1987, the Board is the catalyst of these dramatic transitions. The Board has been with the Indian Spice industry every step of the way. The Board plays a far reaching and influential role as a developmental, regulatory and promotional agency for Indian Spices.
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3.4 Spices Board has adopted two major strategies for quality improvement.
Introduction of the Indian Spices Logo The Spice House Certificate.
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Export potential of spices from India to UK low unit value realization. Still India commands a formidable position in the World Spice Trade with 44% share in Volume and 35% in Value.
Award of Spice House Certificate for good manufacturing practices, award of Logo for quality of the product and accreditation under ISO 9000 for international acceptance are the three certification systems adopted by the Board. Yet another area of activity centered upon by the Board is Value Addition. India can now boast as the monopoly supplier of spice oils and oleoresins the world over. In the case of curry powders, spice powders, spice mixtures and spices in consumer packs, India is in a formidable position. The consistent effort of the Board during the last one decade has improved the share of the value added products in the export basket to 59%.
With the support of the Spices Board, exporters have established adequate infrastructure for improving quality on a sustained basis. Quality improvement and technological up gradation are taken up by exporters as an on-going programme. These developments are in tune with the changing levels of market acceptance. Other areas focused upon by the Board are export promotion in identified markets, interaction with policy makers in the importing countries, development of new end uses, farm level training for farmers etc.
EXPORT DEVELOPMENT & PROMOTION OF SPICES Promotion of Indian Spice Brands Abroad Guidelines / working procedure
To assist exporters in penetrating the developed markets through launching/promoting own brands or buying out existing brands. The scheme aims to promote Indian Spice Brands in new, sophisticated and affluent segments in foreign markets, targeted beyond the ethnic Indian population in European countries. There are two activities assisted under the scheme viz., [1] Product and Packaging Development and Bar Coding [2] Brand Promotion.
Export potential of spices from India to UK Effective brand promotion programmes for identified products and its packing, which involves high cost of development, are supported. U nder this activity the assistance will be given for developing appropriate product, packaging and compliance with other statutory requirements in force in the target market including traceability details and Bar Coding. Similarly the Board provides assistance to exporters to develop products to promote different values/applications of spices. Board will also provide assistance to the exporters to buy out existing foreign brand to capture that market and expand the range of Indian products through this brand.
2. Brand Promotion:
Under this component, positioning of specified brands in the identified outlets in selected cities as well as necessary promotional measures for brand building such as Media promotion, Promotional trips abroad participation in international fairs etc., are considered for financial assistance. The Board will undertake the required market studies and marketing strategy development for promoting branded products and it will be disseminated to the exporters for market penetration.
Eligibility:
All registered exporters of spices who have registered their brands with the Board, SHC/Logo holders and holders of organic certification are eligible to avail the benefits under the scheme. An expert committee constituted by the Spices Board will evaluate the proposal and approve. The facility will cover spices in all forms exported in institutional packs upto 25 kgs and consumer packs of spices in all form including curry powders and mixed ground spices upto 5 kgs will be qualified for availing the assistance.
Scale of Assistance:
Interest free loan upto 100% for slotting/listing fee and promotional measures and 50% of the cost of product development, subject to a maximum of Rs.2.50 crores per brand and Rs.5.00 crores where brand buyout is involved for (a) Product and Packaging Development and Bar Coding and (b) Brand Promotion will be considered per exporter during the XI plan period. For undertaking the brand promotion and other related campaign the exporter has to meet the entire foreign exchange requirement. This assistance is restricted to the first three years of promoting the brand.
Mode of Operation:
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Export potential of spices from India to UK On the basis of the market study, an appropriate marketing strategy will be evolved and implemented by the exporter in consultation with the Board. Based on the market study conducted and indications about sufficient potential, prospective exporter/ exporters willing to take part in the scheme will be identified. When the loan is approved the Board will provide the funds to the exporters for meeting their estimated annual expenditure for brand promotion in accordance with the programmes approved by the Board and in the manner stipulated. The exporter who has availed the loan should submit half yearly progress report to the Board. This would be reviewed by a committee constituted by the Board for the purpose. The repayment of loan shall be in equal annual installments commencing from the 4TH year and end in the 8th year from the date of receipt of the fund by the applicant exporter. Spices Board will periodically review the progress of implementation of the scheme; expenditure, export growth etc and continuation of the assistance will depend largely based on: i) Qualitative analysis of the brand acceptance in the market ii) Stability and reach of the brand in the market iii) Growth and competence of the brand iv) Export growth in real terms. An exporter can avail the assistance under the scheme for promoting the given brand in a maximum of 5 countries in the XI plan period. At the end of the third year, a detailed review will be made by the Board to determine the impact and need for continuation of assistance, if required, from the fund for a further period Submission of proposals: The exporter who desires to avail of the assistance under this component has to submit an application in the prescribed format along with copies of detailed proposal covering details of the market promotion to be undertaken with cost break up in each segment separately. Conditions: a) Total approved amount for the programme will be released in three equal installments at the beginning of each year.
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Export potential of spices from India to UK b) Before the release of the loan, the applicant has to provide a bank guarantee in the prescribed format for an amount equivalent to the loan sanctioned on a stamp paper. This guarantee is to be renewed well before the date of expiry. The guarantee also needs to be enhanced as and when further installments of loan are sanctioned/released and an amended agreement on stamp paper should also be executed to the Board. c) By the end of every six months the loanee has to give a detailed report of the activities undertaken along with a progress report and an expenditure statement that the loan has been fully utilized for the sanctioned purpose should be submitted at the end of the each year. d) Supporting documentary evidence for the expenditure incurred/committed has to be produced. e) An export obligation of 5 times of the loans availed over a period of 8 years from the drawl of the 1st installment of loan. f) In the event of any misuse of funds from the loan amount the exporter has to refund the entire loan together with existing rate bank interest plus 2 % period interest thereon immediately to the Board. g) In the event of default in repayment, the Board reserves the right to invoke the bank guarantee executed by the loanee and recover the loan amount. h) The loan shall be paid in Indian currency only. i) In the case of any dispute, the decision of the committee shall be the final.
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4000 3500 3000 2500 2000 1500 1000 500 0 2003-04 2004-05 2005-06 2006-07 2007-08*
economictimes.com
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CHAPTER 4
4.1 TRADE 4.2 INDIAN IN THE UK 4.3 OPPORTUNITIES 4.4 BILATERAL AGREEMENTS BETWEEN INDIA AND UK 4.5 TRADE AND INVESTMENT WITH UK
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4.1 Trade
UK, which remained at second position in India's leading trade partner till 2002, has become India's fifth leading partner last year. Countries like china, UAE and Belgium have taken 2nd, 3rd and 4th position resp. India exports to UK are textiles and readymade garments, gems and jewellery, footwear, leather and leather goods, engineering goods, metal manufactures, power generating equipment, software services, pharmaceuticals, chemicals, marine products, rice, tea and other agricultural products like nuts and preserved fruits and vegetables. India's imports from the UK include: non-ferrous metals, gold, rough diamonds, power generating and telecom equipment, transport equipment, industrial machinery and chemicals. Looking from UK's perspective, India was UK's 15th largest export market, and the UK's largest exporting market in the developing world (ahead of China). Among the countries where bulk of UK's import come from, partners, India is the 25th largest exporter to the UK.
Total
2001
Exports 1772 of goods Imports 1816 of goods Total Trade in 3588 Goods
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8. Tatas $ 9 bn acquisition of Corus in 2006-07 has made Tata Steel one of the world's top five steel makers. 9. The main factors for increasing Indian FDI into the UK are tax and skills base. [The UK has the lowest main Corporation Tax rate (28%) in the G 7.] 10. Indian companies have also been going offshore to fund their expansions, particularly with capital which has until recently been cheap. The UK is the destination of choice as both the leading global financial services centre and the single most internationally focused financial marketplace in the world. *Source: UKTI Inward Investment report 2007-08
More examples /success stories of Indian Cos. in the UK: Engineering: Bangalore-based Dynamatic Technologies is the largest producer of hydraulic gear pumps in Asia and one of the top five worldwide. In June 2007, it acquired the assets of the SauerDanfoss operation based in Swindon, where the main focus is the manufacture of gear pumps, valves and integrated hydraulic packages. With a strong emphasis on R&D, this was seen as an excellent opportunity for the business to grow in the UK/European market. Amtek took over the Triplex-Ketlon Group in 2007-08. Bharat Forge acquired a forging plant in Doncaster in 2007-08. Biotech and pharma: Almost all the major India Biotech and Pharma companies such as Orchid, Shasun Chemicals, Dabur, DRL, Ranbaxy, Nicolas Piramal, Biocon, Aurobindo pharma have set up base in the UK for activities ranging from manufacturing to marketing. Financial services: Religare Capital Markets' acquired broking firm Hichens Harrison & Co. Plc. for 50 million.
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Major Indian banks, including State Bank of India, ICICI Bank, Bank of Baroda and Punjab National Bank have a presence in London. Among Indian insurance cos., New India Assurance and the countrys official reinsurer, GIC are present in the UK. ICT: All major Indian IT players - TCS, Infosys, HCL and Wipro have their presence in the UK. Legal services: Indias largest law firm FoxMandal Little has opened its office in London recently. The office will practise Indian law only, focusing on attracting EU-based clients seeking to invest in India.
4.3 Opportunities
Potential for Indo-UK cooperation exists in information technology, biotechnology both plant and human, drugs and pharmaceuticals, infrastructure development including roads, ports, airports and railways, power sector, mining, oil and natural including LNG, water management, soil conservation and waste disposal, food processing and agribusiness, film and television, processing of gems and jewellery, tourism, and education.
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Export potential of spices from India to UK India has one of the fastest growing economies in the world. The Indian market provides opportunities for UK companies goods and services. India is the UK's 15th largest export market. In 2003, UK/India bilateral trade was worth around 5.8 billion. The volume of bilateral trade in goods between India and the UK in 2004 was 4.5 billion. UK Trade & Investment 2005/6 business plan for India has identified 16 proactive sectors where we believe there are real opportunities for UK companies to increase their profitability and international competitiveness. Global partners and the Prime Ministers Initiatives Britain and India share a global vision and democratic values. UK and India both play a proactive role in international affairs. Both have a strong interest in success of multilateralism. Both play vital roles in the UN, WTO, Commonwealth and range of other bodies. Prime Ministers Initiative As the PMs agreed in September 2005, the bilateral relationship has never been better. Our cooperation is underpinned by then Prime Ministers Initiative signed on 20 September 2004, setting out a new strategic partnership between the UK and India. The Initiative identifies key areas for co-operation: 1. Foreign and Defence Policy including the fight against the proliferation of weapons of mass destruction. 2. Home Affairs issues, such as combating illegal immigration and building on our excellent cooperation on counter-terrorism. 3. Economic and trade issues, both developing bilateral trade and working together on international issues. 4. Science and technology, by tapping the rich vein of innovative talent we both share. 5. Sustainable Development, as we help to solve the world's environmental problems. 6. Expanding on our flourishing educational and cultural links.
Export potential of spices from India to UK of India since Aug 1991. For the period August 1991 to July 2006, the number of technical collaborations approved from UK stands at 851, which is 10.89% of the total technology transfer approvals. Total two-way trade (goods and services) grew by about 20% in 2005 (to 7.9 bn). UK exports to India grew by 21.3% in 2005 (goods up by 25.3%; services up by 12.3%). The UK is Indias fifth largest trading partner after the USA (10.63%), China (6.99%), United Arab Emirates (5.13%) and Germany (3.81%), and accounted for 3.56% of Indias total foreign trade in goods in FY2005/06. UK has the third largest share of new investment approved since 1991 till March 2006 (10.04 %), well ahead of Germany (3.78%), Japan (4.67%) and France (2.59%). UK has the fifth largest share of new investments implemented since 1991 till October 2006 (5.43% cumulative share), behind Mauritius (41.09%) USA (13.94%), Japan (5.6%) and Netherlands (6.24%). In addition, there is also significantly high reinvestment by UK companies already established in India, which is not included in the new investment figures. Indian investments into the UK increased by a staggering 110% in 2005-06 recording a total of 76 investment projects from India creating 1449 jobs. IT sector dominated with 26 projects followed by pharmaceuticals (12 projects). India now ranks third among foreign investors in the UK globally (with an investment of 1.02 bn) and the second largest from Asia Pacific region behind only the USA and Japan. The UK imported 3.05bn of goods and services from India. In 2005 the UK imported 3.9bn of goods and services from India. In the last few years, UK imports from India have increased substantially.
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CHAPTER 5
SWOT ANALYSIS
Strength
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Export potential of spices from India to UK 1. Favorable climatic condition. 2. Having large area for production. 3. Emerging markets like Europe and other developed countries. 4. Large numbers of exporters are involved in export of spices
Weakness
1. Quality is not as per the international standards 2. Use of more chemical Example: UK denied importing chilli powder from India few years ago. 3. Lack of skilled entrepreneurs.
Opportunities
1. India can be the largest exporter in the world as this time it captures the major international Market share. 2. As the increase of its consumption in developed country there can be export at a large quantity.
Threat
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1. Due to not having the standard quality of spices India may lose its grip in International Market. 2. The major competitors like Sri Lanka, Bangladesh, and Pakistan etc are also growing at good pace. 3. Other countries having good technical aspect for its production.
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CHAPTER 6
40
Export potential of spices from India to UK The year 2007 saw spices board turning out yet another peak performance when the spices exports attained all time high export revenue of US$ 940.47 million. The export value in dollar terms reached US$940 million against the target of 377000 tones the achievement was registered an increase of 28%. Similarly in value terms the achievement was nine percent more than the target.
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CHAPTER 7
FINDINGS
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Export potential of spices from India to UK Currently Indian spices are unlikely to do well in international market, medium and long term strategies for improving the trade in world. UK has potential to grow as a spices market. Indian spices are in great demand in UK as well as in world market. India is a major player in world spices markets. The export value of spices has increased continuously. New variety of spices & value added product of spices has been added to export of these particular commodities.
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LIMITATIONS 44
Study is based on secondary data. Spices are growing more and more, it might be necessary to review & reconsider the report in view of the existing whenever the entrepreneurs refer this report. Due to lack of time & resources for the collection of primary data, certain critical factors may go unnoticed leaving outcome to debate. It wouldnt be possible to discuss uncontrolled variables of the world market, however it shouldnt influence study as it is one of the most transparent markets & with which most of the Indian supplier are familiar to do business with.
SUGGESTIONS
Determine which spices are most appropriate for production in UK. Improve yield and the quality of active constituent Provide cost effective production system. Achieve high quality UK products with national and international acceptance. Support research across a wide range of spices for which commercial interest exists from UK growers or processors. Devise and establish improved post harvest handling and drying procedures. Develop cost effective quality testing and certification systems for active constituents in crops and processed products. Provide cost effective mechanized implements and physical practices for the control of weds and other farm-related problems in organic farming system.
CONCLUSION
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Spices, the fastest growing commodity in history. UK has never been a major player in spices cultivation and therefore is arguably behind in the serious cultivation of conventional spices. Due to government support production has shown about 48% increase in last three year. Value added product of spices has now great demand in UK as well as in world.
REFERENCE
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