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INTRODUCTION Contents of the Chapter CHAPTER I INTRODUCTION Contents of the chapter Page No. General introduction 1 Abstmcts of the literature reviewed 3 Significance of the study 13 Statement of the problem 16 Scope of the study 18 Objectives of the study 19 Hypothesis formulated 19 Period of the study 20 Research design and methodology 20 Concepts and definitions 26 Limitations of the study 27 Layout of the research report 28 INTRODUCTION The richness of the culture and the fragrance of the spices were the major sources of glory of the ancient India. It is really amazing to see that India could maintain her supremacy in the production and trade of spices even hmthe Vedic ages dating back to 6000 B.C, to the modem era of the third millennium. The vicissitudes of history made unbelievable changes everywhere but the Indian domination over the world spices market still remains unquestionable. The geographical and climatic peculiarities of South India in general and Kerala in particular are the major gifts of nature still providing us an upper hand in the world of spices. Geographical advantages of the state coupled with the sterling efforts of the people, particularly of the high ranges of the Western Ghats, help us to produce the best quality spices favored all over the world. ' The history and destiny of our country, perhaps the whole world were influenced unbelievably by the spices. It was the taste of the 'Black gold' pepper and the flavour of the 'Queen of spices' Cardamom, which attracted the Arabs and Europeans to this country and ultimately led to the foreign domain. It was the search for spices, which tempted the mariners like Vasco de Gama of Portugal, Christopher Columbus of Spain and many others to undertake hazardous voyages to the East. ?'he significance of the spices in the history of the world is evident from the fact that even the discovery of the American continent by Columbus was accidental during the search for spices. The history of the world would have been different had India not been the land of spices. It was a new tum in the history when General Diaz, first arrived at the Cape of Good Hope, in search of spices of Malabar coast, through the sea route. It was this discovery, which eventually led to the arrival of Vasco de Gama at Calicut The basic purpose of the exwtion of Gama was to obtain a direct link with the South India for spices trade, eliminating the Arab and 1tal;an spices traders who had monopoly at that time. 2 India had monopoly in spices production and export for a very long period But the situation is fast changing and we are facing extreme competition from many spices producing countries. Vietnam, Brazil, Indonesia, Malaysia and Thailand are the major opponents of India in the world pepper market. There are countries like Sri Lanka, China, and Madagascar etc, producing pepper though they do not raise much competition in the mternational market On the other hand, Guatemala is the major opponent of India in the international cardamom market. They are able to supply cardamom at a price, which is far below the price of Indian cardamom. Tanzania, Sri Lanka, Costa Rica, Honduras and Papa New Guinea are cardamom producing countries, though in small quantities. China and Pakistan are the major countries competing with India in the lntemational ginger and chilly market. We have severe competition from Morocco, Egypt and Iran in the field of coriander, cumin seed, and aniseed. However India still has a dominant role in the export of turmeric. 3 Whatever may be the competition, India is still the leader in spices production and export On an average, we produce about 28,00,000 tomes of spices every year. In fact more than 90 percent of our spices production is consumed in India itself. It is amazing to see that the remaming 10 percent spices exported from India gives us 40 percent share of world spices market. The state of Kerala has made considerable achievements in the export of spices during the last many years. Pepper, Cardamom, Ginger, Turmeric, Nutmeg, Garlic, Chilly, Tamarind, Vanilla and Cinnamon etc are the major items of spices produced and exported from Kerala Pepper, Chilli, Cardamom and Turmeric constitute the lion's share of Indian spices export out of which more than 60 percent is the contribution from eral la' The State of Kerala-has a remarkable share in the pepper production with about 1,80,000 hectares of land under pepper cultivation accounting for the production of more than 50,000 tonnes annually. This means that more than 90 percent of India's pepper production is fiom the state of Kerala It is interesting to see that the lion's share of Indian pepper comes from the Idukki and Wayanad districts. Similarly, there are about 70,000 hectares of land under cardamom cultivation producing on an average 6,500 tonnes of cardamom annually. Of this, 45,000 hectares belong to the state of Kerala from which we produce on an average 5,000 tonnes annually. Here also the contribution of Idukki district is remarkable with more than 80 percent. 1.1. Review of literature Though spices have much economic, historic, political and cultural significance, the academic cornmuni@ seems to be neglecting the sector. This may be the reason why the researches on the topic, particularly about the marketing aspects of spices, are very limited in number. Another important point is that majority of the published research works do not have much significance now due to the rapidly changing cultivation practices and trading environments. However the researcher went through the available published works as far as possible to obtain a clear theoretical background for the present study. The findings of the literature review are briefly reproduced below. Jose ' (1978) in his thesis 'Problems and prospects of India's major spices', has made an overall study about the problems and future possibilities of our major spices, pepper and cardamom. This study analyses the problems in the agricultural sector in general and about the problems in the spices sector in particular. He found that pepper and cardamom have considerable significance in the economy of the State of Kerala and the problems of the sector will affect the foreign exchange reserves of India Thomas (1984) in his report 'Standardization techniques for retention of green colour in pepper'. explored the possibilities of maintaining green color in processed pepper by standardizing the techniques. The study has covered the market requirements of pepper particularly in European countries and proves that Europeans always prefer to get spices in their natural form and color. The findings of the study are still significant because the methods suggested are highly helpful to increase the export volume of processed pepper. Suresh (1984) in his thesis 'Economics of cardamom plantation in Kerala', has made a detailed cost benefit analysis of cardamom cultivation, which throws much light into various cost components of cardamom production, processing and marketing. This study was primarily intended for analyzing the economics of cardamom plantation with special reference to high ranges in Idukki district Various statistical tools have been applied to have a microscopic view of the cost components and the impact of each such element in the net revenue of cardamom plantation. However this study is more or less silent about the marketing problems of cardamom. Joseph "(1985) in his thesis 'Analysis of the marketing and price formation of cardamom in Kerala' studied the economic aspects of cardamom production and marketing by making a detailed analysis of the marketing methods, channels and price formation. The prime objective of the study was to observe the scope of cardamom plantation and its significance in the economy of Kerala, particularly in Idukki district. He demibes the process of price formation of cardamom, using various economic parameters. In his opinion the price formation of the cardamom in the international and domestic markets is based on global supply. The peculiar nature of the auction system prevailing for cardamom has also been discussed in detail. Swaminathan I I (1985) in his thesis 'Trends in the area, production and export price of cardamom in Kerala, Tamilnadu and Kamataka', made a comparative study of the uends in area, production and productivity of cardamom in the three states of Keraia, Tamilnadu and Karnataka with the basic objective of projecting the probable future share of these states in the international cardamom market He estimated an annual growth rate of 2.34 percent for cardamom. He also studied the trends in the export price of cardamom. He gave much importance for the regional comparison of cardamom production and growth so that all other aspects of the field were left untouched. Baby Jacob l2 (1985) in his thesis 'Export development of Kerala', studied the export performance of Kerala, analysing the trends and problems and made a comprehensive analysis of the then prevailing export policies of the Govenunent The performance of pepper and cardamom, being major export items were evaluated well and remedial solutions were recommended to the problems of major export items including pepper and cardamom. Gopalakrishnan Nair l3 (1987) in his thesis, 'Problems and prospects of marketing cardamom in lndia and abroad', outlines the problems of marketing cardamom inside and out side our county. The study has highlighted the future market possibilities abroad and suggested measures for increasing the export volume and enhancing the prospects of cardamom in India and abroad. He has analyzed the production problems of cardamom and made some important suggestions to solve such problems to a great extent. Gopinatha Menon l4 (1988) in his thesis 'Processing, procurement and marketing of pepper with special reference to cooperative sector', has made a detailed study of the various aspects of production, processing and marketing of pepper.
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