India is known as the “Land of Spices.” It produces 75 of the 109 varieties of spices listed in the International Organisation for Standardisation, which accounts for about half of the global spice trade. In FY 2023-24, India’s spice exports reached an all-time high. They amounted to around 4.46 billion USD, and 15,39,692 tons of spices were exported.
The Government of India established the Spice Board of India under the Ministry of Commerce and Industry in 1987 to regulate and promote this vital industry. The Spice Board plays an important role in developing, promoting, and regulating the spice industry in India. This article delves into the main functions of the Spice Board, focusing on its key roles, achievements, and the registration process for RCMC for exporters.
A Brief Outlook on Spice Board in India
The Spice Board of India came into effect on 26th February 1987. It is a statutory body formed under the Spice Board Act of 1986. This board was formed by merging the Cardamom Board and Spices Export Promotion Council, which was under the administrative control of the Department of Commerce.
It is majorly involved in developing the cardamom industry and promoting exports of 52 spices listed in the Schedule of the Spices Board Act of 1986. Some of them are cardamom, ginger, pepper, chilli, turmeric, coriander, tamarind, etc.
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What are the Main Functions of the Spice Board of India?
Let’s discuss the main function of the spice board in India:
Promotion of Spice Export
The Spice Board promotes the spice export by the following things:
- Branding initiatives to promote Indian spices globally.
- I participate in global trade fairs and exhibitions to showcase Indian spices.
- Expanding the outreach of Indian exporters through market research, buyer-seller meetings, and trade delegations.
- Support Indian exporters through market intelligence, export subsidies, and guidance on export procedures.
- Promote the use of spices in the food processing industry and create awareness of their health benefits to help develop the domestic spice market.
Regulation and Standardization of Spice Export
The Spice Board regulates and standardizes the spice export in the following way:
- Setting stringent quality standards for the production, processing, and packaging of spices, ensuring they are in accordance with international standards and competitive in the global market.
- Provides certifications, ensuring that the spices meet the required quality and safety standards, especially for organic spices certifications.
- Regularly inspect the auditing spice processing unit to ensure compliance with quality standards.
Research and Development
The Board undertakes several activities to improve spice crops’ quality, yield, and sustainability. Some of them are as follows;
- Working on developing the yield of the crops and disease-resistant varieties through extensive research and collaboration with agricultural universities and research institutions.
- Promoting sustainable farming practices that include organic farming, integrated pest management, water conservation techniques, etc.
- Using post-harvest management techniques to reduce loss and improve the quality of spices, including research on drying storage and packaging methods.
Facilitation of Spice Export
The Spice Board guides and helps exporters, ensuring a seamless pathway for exporters. Following is how the Board facilitates it:
- Providing CRES, a certification that meets the requirements. It also enables exporters to enjoy benefits like access to international markets, export subsidies, etc.
- Helped with documentation by guiding customs procedures, export permits, and certificates of origin.
- Working with government agencies and international bodies to ensure seamless trade across borders involves addressing issues like trade barriers, negotiating trade agreements, and resolving disputes.
Some other functions of the Board include attempts to stabilize the spice export process, providing spice warehousing facilities abroad, and advising the central government on issues concerning the export of spices.
Know About Registration Cum Membership Certificate (RCMC)
Earlier, exporters had to obtain RCMC from the concerned Export Promotion Council or the Commodity Board of the concerned product. This indicated that the exporter was registered under a government-approved agency or authority. However, after June 2016, the one with an Export Registration Certificate, like that of CRES, no longer had to obtain RCMC separately.
Again, the circular issued on April 30, 2022, phased out the CRES, and currently, the spice exporters have to obtain RCMC alone. The list of spice exporters who export the spices given hereunder is mentioned in the Schedule of the Spice Board Act, 1986.
| 1. Cardamom 2. Pepper 3. Chilly 4. Ginger 5. Turmeric 6. Coriander 7. Cumin 8. Fennel 9. Fenugreek 10. Celery | 11. Aniseed 12. Bishop’s Weed 13. Caraway 14. Dill 15. Cinnamon 16. Cassia 17. Garlic 18. Curry leaf 19. Kokam 20. Mint | 21. Mustard 22. Parsley 23.Pomegranate seed 24. Saffron 25. Vanilla 26. Tejpat 27. Pepper long 28. Star Anise 29. Sweet flag 30. Greater Galanga | 31. Horse-radish 32. Caper 33. Clove 34. Asafoetida 35. Cambodge 36. Hyssop 37. Juniper berry 38. Bay leaf 39. Lovage 40. Marjoram | 41. Nutmeg 42. Mace 43. Basil 44. Poppy Seed 45. All-Spice 46. Rosemary 47. Sage 48. Savory 49. Thyme 50. Oregano 51. Tarragon 52. Tamarind |
Documentation Needs for RCMC
There are different requirements for documents for different exporters. They are as follows:
For Merchant Exporter:
- Copy of GST
- Bank Report in Annex II
- Copy of Central FSSAI
For Manufacturer & Exporter
- Copy of GST
- Bank Report in Annex II
- Copy of Central FSSAI
- Copy of MSME
- Valid Copy of Consent to Operate issued by the Pollution Control Board (PCB)
- Proof of Ownership of the Building of the Processing Unit (Copy of Valid Lease / Rent Agreement /Recent Property Tax Receipt)
Take a Look at the Fee Structure
The fee structure for RCMC can be understood from the table given below:
| EXPORTER CATEGORY | NEW | RENEWAL | AMENDMENT |
| Manufacturer | Rs. 17,700.00 /- (Rs. 15,000.00+ 18% GST) | Rs. 11,800.00 /- (Rs. 10,000.00 + 18% GST) | Rs.5900.00 (Rs.5000.00 + 18 % GST) |
| Merchant | Rs. 11,800.00 /- (Rs. 10,000.00 + 18% GST) | Rs. 8,850.00 /- (Rs. 7,500.00 + 18% GST) |
Accomplishment of the Spice Board
So far, the Spice Board has had many achievements under different heads, empowering the spice exporters. They are as follows:
Unprecedented Growth in Spice Exports
The Spice Board of India has driven the country’s exports to remarkable new levels. In the fiscal year 2020-21, India set a new benchmark by exporting spices worth over 3.5 billion USD, with a volume of 15,65,000 tons, valued at ₹27,193.20 crores (3.62 billion USD). This is a substantial leap from the ₹298 crore worth of 0.7 lakh MT exported back in 1987-88, showing a significant rise in volume and value over the years. Despite the challenges of the COVID-19 pandemic, the spice sector remained resilient, achieving a 30% growth in volume, a 23% increase in value (INR terms), and a 17% rise in USD terms during 2020-21 compared to the previous year.
Supporting Exporters and Farmers
The Spice Board’s success is mainly due to its strong network of over 6,600 registered exporters, including around 600 manufacturers who are leaders in value addition and high-end spices processing. India currently leads the world in value-added spice exports, contributing over 51% of the global market.
The Board’s efforts, like setting up eight crop-specific Spices Parks across key production and market centres in India, have been vital in helping farmers get better prices and access to wider markets. In 2020-21, 14,131.49 MT of spices were processed through these Spices Parks, with 649 MT of spices valued at ₹743.42 lakhs being exported.
Innovations in E-Auction and GI Tags
The Spice Board introduced an e-auction system for small cardamom growers to enhance transparency and ensure better prices for growers. This system has transformed the cardamom trade, benefiting farmers by ensuring better price realization. E-auction centres were set up in Bodinayakanur, Tamil Nadu, and Puttady, Idukki, Kerala, in 2007.
Additionally, the Board has successfully secured Geographical Indication (GI) tags for several renowned Indian spices, including Malabar Pepper, Alleppey Green Cardamom, Coorg Green Cardamom, Guntur Sannam Chilli, and Byadagi Chilli.
Promoting Indian Spices Globally
The Spice Board has made substantial efforts to promote Indian spices internationally. It has organized 13 World Spice Congress (WSC) editions, a key platform for the global spice industry to discuss trade requirements, sustainability, quality, food safety, and future prospects. The WSC is essential for bringing together producers, traders, processors, exporters, and regulators to engage in meaningful discussions that shape the future of the spice sector.
Publications and Market Reports
To keep stakeholders informed, the Spice Board publishes the monthly “Spice India” magazine in multiple languages, including English, Hindi, Malayalam, Kannada, Tamil, and Telugu. This publication provides valuable information related to the spice industry, benefiting all stakeholders. Additionally, the Board publishes the “Spices Market” report, which offers daily market price updates for spices in major markets.
Active Participation in Trade Fairs and Buyer-Seller Meets
The Spice Board’s marketing and publicity efforts also extend to participating in major national and international trade fairs in key markets worldwide. The Board organizes global and national Buyer-Seller Meets (BSM), which help facilitate direct interactions between producers and buyers, boosting trade opportunities.
Focus on Food Safety and Quality
The Spice Board is committed to ensuring food safety and quality. It has established the Collaborative Training Cell (CTC) to provide training programs like PCQI-HF (Preventive Control Qualified Individual for Human Food) for Indian spice exporters targeting the U.S. market. The Board also supports entrepreneurship by organizing various Entrepreneurship Development Programs (EDP) for emerging startups in the spice trade.
Conclusion
The Spice Board is important in maintaining and enhancing India’s status as a global leader in the spice industry. Its responsibilities are diverse, encompassing everything from regulating quality standards and facilitating exports to driving research and development and providing comprehensive support to all stakeholders involved in the spice trade.
By issuing the Registration Cum Membership Certificate (RCMC), the board ensures that exporters adhere to the necessary legal and quality requirements, thereby protecting India’s reputation in international markets.
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Frequently Asked Question
What is the Spice Board of India?
The Spice Board of India is a government agency established by the Ministry of Commerce and Industry to promote, regulate, and develop the Indian spice industry. It oversees the production, quality, and export of Indian spices to ensure they meet international standards.
What are the main functions of the Spice Board?
The Spice Board's key functions include:
· Regulating and standardizing spice quality.
· Conducting research and development to improve spice cultivation and processing.
· Promoting Indian spices in domestic and international markets.
· Facilitating the export of spices through certification and support services.Why RCMC is important?
The Registration Cum Membership Certificate (RCMC) is a mandatory certification issued by the Spice Board to exporters of spices. It authorizes individuals or companies to export spices from India legally. Holding an RCMC provides exporters access to various government benefits, credibility, and the ability to participate in international trade fairs and other promotional activities.
How can I obtain an RCMC from the Spice Board?
To obtain an RCMC, you must apply to the Spice Board, providing documents like proof of identity, business registration, and details about your export activities. After verifying your application, the Spice Board will issue the RCMC, which is valid for 5 years and must be renewed periodically.
What services does the Spice Board offer to farmers and exporters?
The Spice Board offers various services, including technical assistance and training, quality testing and certification, market intelligence, and financial assistance. These services help farmers and exporters improve their production processes, maintain high-quality standards, and expand their market reach.
