REPORT ON PARTICIPATION OF SPICES BOARD IN. Alimentaria Mexico Trade Fair 2014, Mexico City. (3rd June 2014 to 5th June 2014)

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1 REPORT ON PARTICIPATION OF SPICES BOARD IN Alimentaria Mexico Trade Fair 2014, Mexico City (3rd June 2014 to 5th June 2014) Prepared by: Dr. A Jayathilak, IAS, Chairman, Spices Board Mr.Gaurav Dwivedi, Dy. Director (Admn), Spices Board

2 Introduction Spices Board participated in Alimentaria Mexico Trade fair 2014 during to in Centro Banamex exhibition center, Mexico City, Mexico. Spices Board s participation in the show was organised by Dr.A Jayathilak, IAS, Chairman, Spices Board & Mr.Gaurav Dwivedi, Deputy Director [Admn.], Spices Board. Participation of spice exporters from India Two leading exporters from spice sector namely M/S Om Exim Corporation, Unjha, Gujarat & M/s Jothi Agro Products Pvt. Ltd., Virudhunagar, Nadu participated in the show through Board s stall. The show gave them opportunities to meet the potential buyers and to entertain trade enquiries for their products. Mr. Jignesh Kumar Patel, Proprietor & Mr.R Balamurugan, Managing Director represented M/S Om Exim Corporation & M/s Jothi Agro Products Pvt. Ltd. respectively. Also, Spices Board had hired an interpreter for ease in discussion with Spanish speaking visitors. Spices Board s stall in the show Spices Board had occupied a stall measuring 18 sq. mtr. in a prominent area in hall. Mr. Sujan R Chinoy, IFS, Hon. Indian Ambassador to Mexico & Belize inaugurated the stall of Spices Board on He was also accompanied by Mr.Sushil Prasad, IFS, Second Secretary, Embassy of India in Mexico. Dr.A Jayathilak made a brief presentation about the Spices Board to Mr.Chinoy. Mr.Chinoy appreciated the growth in export performance of Indian Spices. Later, Mr.Chinoy interacted with the exporters and also provided his inputs about the trade possibilities in Mexico. The stall of the Board festooned with beautiful panels carrying impressions of Indian spices, spice products and with display of major spices like Pepper, Cardamom, Ginger, Nutmeg, Chilly, Turmeric alongwith a range of samples of spices/spice products collected from about 10 Indian companies. The stall attracted the attention of visitors a lot especially due to the ethnic appearance and aroma of spices. The visitors to the stall included government employees, businessmen from flavouring, food and beverage industries, importers, brokers, professors from Universities, school teachers, lawyers, freight forwarders and other entrepreneurs. Students and housewives were eager to know about the different uses of Indian spices in daily life. Many such visitors requested for literatures

3 on the medicinal properties of spices and also for the recipe booklet. Literatures and brochures prepared by the Board in English and Spanish languages, on spices/spice products and on the Spices Board s activities/initiatives for promoting India as a hub of quality spices were distributed to the visitors. Alimentaria Mexico is the most important international food, drink and restaurant equipment event in Mexico as it attracts most of the major food wholesalers, importers, exporters, distributors, hoteliers, restaurateurs and many other decision-makers at a common platform. The main product categories that were promoted in Alimentaria Mexico 2014 are listed below: Acidulants, Additives, Antioxidants, Colours, Confectionery Products, Dairy Products, Emulsifiers, Encapsulated Ingredients, Enzymes, Essential Oils and Oleoresins, Flavours & Aromas and Functional Foods. USA had the largest number of companies participating in the fair, their product portfolios covering the entire gamut of food industry, extracts, colours, oils, flavours and end products. Companies from Argentina, China, Taiwan, Brazil and Latin America had major presence in the fair. Spices Board s stall attracted a lot of foot fall & considerable number of prospective importers & brokers. The products sought were mainly Chilli, black pepper, turmeric, coriander & Cumin seeds. Chinese & American stalls made use of Spanish Audio-visual media to disseminate information. It was an effective way to attract attention of people towards the stall. Spices Board may also incorporate use of electronic media in tours to add value to the stall presentation. Frequently asked questions (FAQs) The frequently asked questions (FAQs) by the visitors were regarding:- 1. The availability of Indian spices, especially Chili, Cumin, Coriander, oleoresins, pepper, turmeric in whole as well as in value added form in local retail/whole sale markets, and 2. The possibilities to import spices from India to Mexico 3. Trade Contact and Documentation procedures for import from India

4 These were answered by the officials of the Board and the representatives from two exporting companies available in Board s stall with the assistance of an interpreter engaged by the Board for this purpose. Considerable business enquiries were also received in the stall. Board's participation in the show could generate awareness among Mexicans about Indian spices/spice products and the Spices Board. Mexico City Spices Market San Juan and Coyocan are the two major traditional markets in Mexico City. The entire market place in these two markets is divided into separate segments for different items like curios, garments, groceries and other food stuffs, confectioneries, vegetables, flowers, spices and dry fruits, fish and meat etc. Street vendors were also found in the outskirts of these markets selling curios, typical Mexican dolls and other fancy items. Different varieties of chilli viz, Calarina, Carcabel, Chipotle, Japones, Mora, Guajillo, Piquine, Pulla, Serrano, Poblano, Habaanaro, Ejote etc., Garlic, Tamarind and coriander(leaf) are traded in the market and the cost ranges from 1.5 to 40 Mexican peso per 250 gms depending upon item and variety. (1USD=12.4 Mexican peso). It was found that almost all the major spice items coming under the purview of Spices Board are available in these markets in whole and fresh, in paste and powder form. Chilles in different commercial names can be found in fresh and dry forms in all the wholesale shops. Apart from the Mexican chilly, wholesale shops also display Spanish and Indian Chilly. The dried chilly variety Chipotle, is the most sought after variety of Chilli The major spices available in the traditional markets in Coyocan and San Juan are: S no. Spices available in traditional Mexican markets Available form 1. Chilli/Capsicum Whole and fresh, in paste powder 2 Coriander Leaf ( whole and fresh) 3 Basil Leaf (whole, fresh and dried) 4 Oregano(leaf) Whole, fresh and dried 5 Tamarind whole and fresh

5 6 Mustard (seed) whole and fresh 7 Garlic whole and fresh (bulb) 8 Ginger whole and fresh 9 Turmeric whole and fresh and powder 10 Parsley whole 11. Star Anise whole 12 Cinnamon whole 13 Cassia(Canella) whole 14 Mint Whole, Fresh There is considerable variation in prices found in these two markets. Compared to Coyochan which is also a tourist spot, price is little less in San Juan. Most of the abovementioned Spices are grown in Mexico and are used in the daily cooking. Super Markets and Retail Markets in Mexico City Super markets like WallMart, Superama, SamS and Commercial Mexicana and the retail chain shops of OXXO were also visited as part of the study. Spices like chilli, coriander (cilantro), cumin (cumino), cinnamon, garlic, tamarind, saffron (asafron) and herbal spices like oregano, thyme, basil and curry leaf and mustard in whole, fresh as well as in value added form are available in these markets. Various kinds of seasonings, sauce and tea bags are available in consumer packs, sachets and bottles under different brand names in these markets. Most of these brands were Americans, mainly from McCormick. Local Mexican brands and own brands (packed for supermarkets) are also displayed on the racks.

6 Major local spice brands available are: S no. Spice/Spice products available in Super markets/retail markets Local Brands 1 Chilli La Vio, San Lazaro, Verde Valle 2 Mexican Chilli La Dona 3 Dehydrated herbs like basil, Thyme, Oregano Carbobo, Caxtle 4 Cinnamon Aurrera, San Lazaro 5 Cardamom, Star anise Layyz 6 Capsicum San Miguel, San Marcose 7 Tamarind Don Zabor 8 Chilli, curry leaf in vinegar Barajas 9 Saffron Azafron 10 Curry powder Mauri Garlic powder 11 Chilli powder La Fina,Cocula 12 Crushed chilli Terrana 13 Mixed pepper Carmentica 14 Chipotle in brine La Costana 15 Garlic Salt Mc Grande, Escosa

7 16 Salsa Powder El Zazon 17 Herb seasonings Carbobo 18 Chilli sauce/paste (green, with avocado) Zaaschilla 19 Pimento, Curry Powder, Black pepper, cinnamon Powde Escosa All these items are available in attractive consumer packs and in glass/plastic bottles /sachets/containers. Spice flavoured beverages/refreshments available in Supermarkets and Retail markets Sl no. Items Brand Name 1. Cinnamon tea La Pastora 2. Mint/Peppermint tea Twinnings, Mccormick, Begelow 3. Cardamom/vanilla tea Dilmah 4. Star Anise tea Begelow, Laggs 5. Coffee vanilla Frapuccino 6. Green tea with pomegranate Stash 7. Tamarind Drink BOING 8. Flavoured yogurt

8 Food in Mexico Mexican cuisine is a style of food that originates in Mexico. It is known for its varied flavors, colourful decoration, and variety of spices and ingredients, many of which are native to the country. The cuisine of Mexico has evolved through the centuries through a blending of indigenous and European elements since the 16th century. On November 2010 Mexican cuisine was added by UNESCO to its lists of the world's "intangible cultural heritage". The staples of the Mexican diet are: Chillies: as many as 92 varieties are available, each varying both in hotness and flavor; Chorizo: a fresh sausage made from pork and seasonings; Frijoles: beans of many varieties but most commonly the small black beans which are usually well cooked then mashed with lard and reheated before eating; Tomatoes and Onions; Tortillas: flat, pancake-like bread made from specially ground cornmeal called masa harina. High in calcium content since it is made with lime water. These staples are popular with every class level and are present in every day's meal. In fact, there is seldom a meal that does not have tortillas and frijoles on the table. Canned milk is favored over fresh, and mild cheeses are used mostly as a grated garnish to other dishes. Fish and seafood are plentiful especially in coastal areas. Fresh fruits and many seeds and nuts are used for snacking. Dried or candied fruits (and sometimes candied vegetables such as pumpkin or squash) are enjoyed but many prefer the taste of salted foods or spicy ones rather than sweet. There is a knowing hand with many types of seasoning and these are usually according to local tastes. Soft drinks and local beers are popular as well as tea, coffee, and hot chocolate. Restaurants featuring foods of many lands, as well as local traditional specialties, can be found in cosmopolitan Mexico City. Mexican Seasonings There is a wide and general use of many seasonings, especially in particular areas. These include skillful blends of varieties of Chillies, as well as cinnamon, cloves, cumin, anise, allspice, coriander seeds, vanilla, chocolate, nuts, coconut, limes, oranges, garlic and onions, capers, and many fresh Mexican herbs such as cilantro (like Chinese parsley),

9 epazote, mint, marjoram, and sage. The use of unsweetened chocolate or cocoa powder in sauces (mole) originated in Mexico. Red tomatoes and small green ones are used so frequently that they must be considered a seasoning as well. Limes are used freely everywhere as juice, seasoning, and garnish. The importance of Chillies in Mexican cookery deserves a closer look. Because Chillies frequently self-fertilize, identifying varieties is often difficult. Generally; green Chillies are used fresh and red ones are used dried, but both may be available canned or pickled. Some are available in powdered form similar to cayenne. Removing seeds, stem, and veins usually reduces the fire and yields a milder sweeter taste. Common red and green Chillies are listed below Red Chillies: Ancho: comparatively mild and flavorful, about 2 to 3 inches long. Chipotle: smaller than the Ancho, more of a brick red and very hot. Morita: similar in size, color, and taste to the Chipotle and commonly in pickled form. Mulata: similar in size to the Ancho but a brownish color and stronger in flavor. Green Chillies: Guero: pale yellowish green and sweet milk taste. Jalapeno: very hot when veins and seeds are used: flavorful, mild when not. Largo: light yellowish green, usually canned, very fiery but retains a delicate taste. Poblano: varied sizes from small to as large as a bell pepper and can be mild or hot. Serrano: slender and less than 2 inches long and very hot whether canned or fresh. Valenciano: the most commonly found sweet green pepper in supermarkets everywhere. Two Chilli-based sauces are classic in Mexican cookery: Mole means a sauce prepared with Chillies, but only the mole poblana from Puebla has bitter chocolate as an ingredient. Moles are prepared like Indian curry or Hungarian lesco. Tingas represent the Spanish influence on Mexican cookery and may even have similar ingredients to the mole (Chillies, garlic, onions, tomatoes, seasonings) but these are chopped, never pureed.

10 In both moles and tingas, seasonings including Chillies are cooked in hot oil or fat (Mexico uses lard). The pre-cooking of the sauce eliminates the raw taste. This sauce is then added to pre-cooked meat, vegetables, or fish, simmered to marry the flavors then served. Analysis of Export Performance of Spices with Mexico Mexico is a producer and exporter of spices. Mexico exports spices like Pepper, Chilli, Garlic in good quantities and also other spices like Vanilla, Clove and Curry Mixtures mainly to USA, Japan, and East Europe and Latin American countries. Major items of import into the country are Chilli, Ginger, Clove, Cinnamon, Vanilla, seed spices like cumin, coriander etc. There is a wide and general use of many seasonings. These include skilful blends of varieties of chillies, with salt, lemon as well as blends of cinnamon, cloves, cumin, anise, allspice, coriander seeds, vanilla, chocolate, nuts, coconut, limes, oranges, garlic and onions, capers, and many fresh Mexican herbs such as cilantro (like Chinese parsley), epazote, mint, marjoram, and sage. The main trade partners of Mexico are USA, China, Spain, Srilanka, Indonesia and other Latin American Countries like Brazil, Argentina, Peru, Chile etc. India exported a total of MT spices/spice products worth Rs Lakhs to Mexico in Major Indian spices exports to Mexico include Chili, oleoresins, and Cumin & mint products. Export of spices from India showed a fluctuating trend during the last five years which shows that the country import spices like chilli when there is a production shortfall. Indian spices exports to Mexico doubled in value from to mainly attributing to increase in exports of chilli to Mexico. It has been observed that the main distribution channels in Mexico City are supermarkets, wholesale trading and small stores. Consumer packed spices (weighing 9 gr to 160 gms) like garlic, black pepper, seasoned pepper, ground chilli, mustard, cinnamon & cumin, dehydrated spices and herbs are traded through supermarkets. Except Chilly in dried form in the wholesale markets, not many Indian spices and spice products are seen in the shelf. Mexico attracts foreign investments with good incentives like duty free importation of inputs, machinery and equipment, conveniences for the acquisition of land, access to risk capital through development banks and training programmes etc. There are a number of food processing and packing units in Mexico. Import duty in Mexico ranges between 8 to

11 13%. It offers significant savings on labour costs and the short period to complete the procedures to open a business. USA & Canada export their products at 0 tariffs to Mexico as they are also members of NAFTA. Similarly, Chile, EU & Guatemala also enjoy tariff benefits because of free trade agreement with Mexico. India is at disadvantage w.r.t these competitors. More so, India does not enjoy any privilege under Generalised System of Trade Preferences (GSTP) with Mexico. The non-tariff barriers for exporting spices to Mexico are the following: 1. Export documentation in import is very strict. Phyto sanitary certificate is required for imported spice including fumigation for Chilly and testing and certifying for led contamination. 2. Un awareness of these importing standards by Indian exporters make the clearance of cargo difficult which would result in demurrage of nearly 30% of the value of the order(if not supplied in time). 3. Many of the items of import are to be registered at the import point. However, it would be easier if the exporter has an FDA registration. 4. Import of pickles and sauces etc. has to be certified by the Mexican Health authority 5. Delay in shipping - connection. Normally it takes 30 days by ship. Main route is through Europe (Rotterdam/Hamburg) to Baracroos Port or via USA or Malta.. It is estimated that container charges would be around $1500 for 20'size. From the port truck charges are to be added which may be around $700 per container. Insurance and customs tariff are extra. 6. Payment terms are not transparent. Sometimes the payment duration may extend up to 180 days which is a major concern for Indian spice exporters. 7. Language is another impediment for business contact for Indian businessmen There is market potential for all major Indian spices in whole as well as in value added form especially flavours, essences and branded consumer packs. Since Mexico offers an attractive business environment due to the many changes in its Foreign Investment Law and signed free trade agreements with the world s leading economies and in view of the country s good accessibility to USA and other Latin American countries, sufficient

12 exposure of Indian cuisine/culinary specialties suitable to Mexican taste would be advantageous for India. Suggestions The Spices Board officials as well as participating exporters are of the opinion that Alimantaria Mexico trade fair is a promising event offering plenty of opportunities to interact with various stakeholders in Mexico. It is pertinent to follow up the leads generated by the event in order to realize the real potential of the market. Spices Board may also consider launch of Flavourit brand in Mexican market. The trade enquiries directly received were processed and disseminated to the concerned spice exporters. The list of major trade enquiries received is submitted to Publicity department. It is important to concentrate in the Mexican market for joint venture operations in the processing of spice mixtures/curry masalas. Possibilities of contract processing/packaging of value added spices may also be considered under the liberalized Government policy/procedures and proposed FTA between India and Mexico.

13 Annexure 1 Photo of the stall inauguration {Right to Left- Mr.Balamurugan (Exporter, M/s Jothi Agro Products Pvt. Ltd.), Mr.Jignesh Patel (Exporter, M/s Om Exim Corp), Mr. Sujan R Chinoy, IFS (Hon. Indian Ambassador to Mexico & Belize), Dr. A Jayathilak, IAS (Chairman-Spices Board), Mr.Gaurav Dwivedi (Dy Director Admin, Spices Board), Mr.Sushil Prasad, IFS (Second Secretary, Embassy of India in Mexico)

14 Dr.A Jayathilak, IAS Chairman, Spices Board presenting a gift pack of exquisite Indian spices to Mr. Sujan R Chinoy, IFS (Hon. Indian Ambassador to Mexico & Belize)

15 ANNEXURE 2 Item-Wise Export Of Spices To Mexico From India (Qty In M.T, Value In Rs.Lakhs) (P) ITEM QTY VALUE QTY VALUE QTY VALUE QTY VALUE QTY VALUE Chilli Spice oils & olernes Cumin Mint products Pepper Nutmeg & mace Turmeric Fenugreek Garlic Ginger Other misce. Spices Celery Cardamom(large) Curry powder/mixture Other seed spices Coriander Fennel Cardamom(small) Tamarind TOTAL(INCL.OTHERS) (P) Provisional. Source : Dgci&S Kolkata/Exporters' Returns/Dle From Custom

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