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India Dominates the Dry Chilies Market in Production and Exports


Introduction to Indian chilli

Chilly is recorded to be native to South America and is widely spread in all tropical and subtropical countries, including India. It was first introduced in India by the Portuguese at the end of the 15th century. 
Chili is considered to be one of the popular spice crops. Named as the spice of wonder, it is the common spice which is most commonly used. A large percentage of chili production has moved to Asia, as this vegetable crop is suitable to the South Asian climate. Today the most popular chili varieties are only grown in Asia.

India is the world leader in the development of chilies followed by China and Pakistan. Indian chili is considered world- for two essential commercial qualities — color and pungency. Some varieties are popular for their red color due to their pigment. Other consistency parameters for chili include length, width and thickness of the skin. India is a major supplier, exporter and consumer of chili. The major Chili-growing states in the country are Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal.

Market summary

Global dry chili production in 2018 was 5.1 million metric tons, and a CAGR of 5.4 percent is predicted to be reported in the forecast. India was the largest dry chilies producer with dry chilies production of 2.1 million MT in 2017. India is that the world’s leading producer of dry chilies accounting for over thirty fifth in 2017 of the worldwide dry chilies market followed by Thailand, Ethiopia, China, and Asian countries
India is that the world’s largest producer in addition as businessperson of dry chilies. Its exports represent 72.93% you look after world exports in year 2017 and high importers from India square measure Vietnam, Thailand, Ceylon and Dutch East Indies. International dry chili production in 2016 was 3.9 million tons, while India production was 1.3 million tons.

Export highlights and key markets

Ø  In 2018-19, India production in chili was about 1689524 tons.
Ø  During 2018-19, a complete of 1.10 million tons of spices and spice merchandise valued Rs.19,505.81 large integer (US$ 2.80 billion) are exported from the country as against 10,28,060 tones valued Rs.17,980.16 large integer (US$ 2.78 billion) in 2017-18, registering a rise of 7 per cent in volume.
Ø  In FY20 (till September 2019), 579,790 tons of spices value US$ 1.50 billion are exported.
Ø  The top ten importers of Indian spices in 2018-19 were the United States, China, Vietnam, Hong Kong, Malaysia, Indonesia, the United Kingdom, the United Arab Emirates, Malaya and Ceylon.
Ø  During 2018-19, high ten exported spices and spice merchandise in terms valuable were chili, Mint merchandise, Spice Oils & Oleoresins, Cumin, Turmeric, Pepper, Curry powders/paste, Cardamom seeds, different spices (Tamarind, Asafoetida, and Cassia) and Garlic.
Ø  In 2018-19 India exported 468,500 tons of chili, 180,300 tons of cumin, 133,600 tons of turmeric.

ASEAN Countries Other Than India

China is a major pioneer in both the production and trade of chili pepper. China's chili pepper planting area is more than 1.3 million hectares, accounting for 35 per cent of the world's total planting area.

China has also been the top exporter of chili peppers for a lot of years. The big export destinations markets are South Korea, Brazil, Canada, the United States and the countries of South East Asia, and the key items sold are frozen fresh chili peppers, roasted chili peppers, chili powder, chili peppers, canned chili peppers and other related goods. With the execution of Beijing's 'One Belt, One Road' policy, international trade volumes for chili peppers are expected to continue to increase, especially trade between China and its regional neighbors. China's overall intake of chili is estimated to be 31.5 million tons in 2017, an increase of 5.3 per cent relative to 2016.

Vietnam and Indonesia countries are top importers of Indian Chili. Chili is today an important part of Southeast Asian cuisine. Leading to their prominence in Southeast Asian cuisine, chili peppers have transcended cuisine practices and have played a high role in shaping Southeast Asian culture today.

 References
https://www.ibef.org/exports/spice-industry-indias.aspx

https://www.mordorintelligence.com/industry-reports/dry-chillies-market

http://indianspices.com/marketing/download-forms.html?field_downlad_forms_category_tid=57


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