Branding to help cardamom exports to Gulf

Publication: The Economic Times
Date: Tuesday, February 27 2007

Byline: P K Krishnakumar

KOCHI: Branding of Indian cardamom with stress on quality will lead to greater acceptability in the Gulf countries according to a survey conducted by TCS. The company was engaged as a consultant by Spices Board to recommend measures to increase penetration of Indian cardamom in the Gulf market particularly Saudi Arabia. The draft report prepared by TCS says that there is a liking for Indian cardamom in the Gulf.

Suitable branding of cardamom emerging from India with a logo could do wonders for bulk export to West Asian countries, according to Spices Board sources. The draft report has come at a time when Indian cardamom is becoming a hot commodity in Saudi Arabia and other Gulf countries with a decline in crop in Guatemala, the major global cardamom producer.

The survey emphasises on consistent quality of cardamom exported. The report will be evaluated by a five-member committee, including Spices Board chairman and two directors, a Central Government official and a professor of IIM-Ahmedabad before sending to the Commerce Ministry.

Spices Board already has brought out Flavourit brand of spices in the overseas market to enhance the presence of Indian spices outside. It is mainly meant for the retail market and the brand is not limited to cardamom alone. The TCS survey has called for branding of bulk cardamom exports, sources said.

Last year India had exported 875 tonnes of cardamom worth Rs 27 crore. Saudi Arabia remains the largest buyer with purchase of 527 tonnes valued at Rs 17.29 crore. The export was out of a total production of around 13,000 tonnes. Five years ago, India had exported over 1,000 tonnes, but over the years the export dropped with Guatemala tightening its grip in the international market.

This year, though the production is down by 20-30 %, the exports are expected to increase with shortfall in Guatemala. Unlike India, which has strong domestic market, Guatemala exports most of its crop. [snip]

krishnakumar.pk@timesgroup.com