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Oman with Special Reference to Study of Spices Industry

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Oman with Special Reference to Study of Spices Industry A Global Country Study Report On Oman with Special Reference to Study of Spices Industry College Code: 770 College Name: Shri Jaysukhlala Vadhar Institute of Management Studies (JVIMS) Master of Business Administration Year: 2013 Guided by: Ashok Bantwa Guide’s email address: [email protected] Designation of guide: Assistant Professor 1 2 Executive Summary The Sultanate of Oman is the other name of Oman country. Oman is a monarchy in which the Sultan of Oman exercises ultimate authority but its parliament has some legislative and oversight powers. The United Nations Development Programme (UNDP) listed Oman in November 2010, from among 135 countries of the world, as the most-improved & developed country during the preceding 40 years. As per international indices, Oman is one of the most developed and prosperous countries of the Arab world. Since ancient times India has been the largest producer of spices in the world. Spice became one of the first and most enduring links between Asia and Europe. It was this spice trade that led to intense competition among various European nations. The demand for Indian spices was very high in Europe and elsewhere. India export various spices to different countries of world including Oman. The cuisine of Oman is a mixture of several staples of Asian foods. Most Omani dishes tend to contain a rich mixture of spices, herbs, and marinades. Most Omani dishes tend to contain a rich mixture of spices, herbs, and marinades. While Omani food varies within different regions of Oman, most dishes across the country have a staple of curry, cooked meat, rice, and vegetables. In Oman as the land is not fertile and not appropriate for producing spice crops as well as products they mostly import the spices related items from the other countries. India export Chili, Turmeric, Coriander, Curry Powder Mixture, and many other spices to Oman. First part of this report is aimed at studying economic and business environment prevailing in Oman and identification of business opportunities prevailing for India and Gujarat based entrepreneurs. The report includes a detailed overview of political, economical, social, technological, ecological and technical environment of Oman. It also throws light on some ancillary topics like Present trade relations with of Oman with India and Gujarat, Major trading partners of Oman, overview of financial markets of Oman and identification of business opportunities in Oman for India and Gujarat based entrepreneurs. Second part of the report contain an introduction to spices industry of Oman, Structure, Functions and Business Activities of spices industry, comparative position of Omani spices industry with spices industry of India, present position and trend of spices business with India 3 and Gujarat. Policies and norms of Oman for spices industry including norms for import, export, licensing, permissions, taxations, Policies and Norms of India for Import or export to the Oman including licensing / permission, taxation etc, The report also include present trade barriers for import export of spices to Oman, Potential for importing and exporting spices to and from Oman, business opportunities in future and conclusion and suggestions. The demographic profile of the people of Oman is quite interesting to know as it gives us the knowledge of the birth and death rates, total fertility, gender parity etc about the people of Oman. Even the social environment of the people of Oman is also very secured , they earn their income through fishing and earn their livelihood. Politics of Oman takes place in a framework of an absolute monarchy whereby the Sultan of Oman is not only head of state, but also the head of government. Current Sultan of Oman, His Majesty Sultan Qaboos bin Sa’id Al ‘Bu Sa’id holds an extraordinary amount of power. Though Oman is developing into a constitutional monarchy, political parties are not yet allowed in Oman. Sultanate of Oman is a middle-income economy with notable oil and gas resources and substantial trade and budget surpluses. The current Growth Domestic Product of Oman is $76 billion, and it ranks as 80th on a world comparison scale. Oman has a middle income economy - dependent on oil trade as the country is rich in natural resources. Petroleum accounts for 64% of total export earnings, 45% of government revenues and 50% of GDP. In 1996, a Royal Decree broadcasted the Basic Law of the State. The law has 11 chapters and 81 articles dealing with every aspect of the State Apparatus and fundamental human rights. The basic law guarantees the equality of all citizens before the law, freedom of religion, freedom of speech, a free press and the right to a fair trial. It lays down a legal framework for all future legislations. Sharia is the basis for Omani legislation. Most Omani dishes tend to contain a rich mixture of spices, herbs, and marinades. While Omani food varies within different regions of Oman, most dishes across the country have a staple of curry, cooked meat, rice, and vegetables. Although spices, herbs, onion, garlic and lime are liberally used in traditional Omani cuisine, unlike similar Asian food, it is not hot. For its spices requirements Oman heavily relies on imports as no spices are grown in Oman. Looking at the history of spices in Oman, the most important ancient fragrances were frankincense and myrrh. Myrrh is a resin that has a bitter taste; its name is derived from Hebrew murr or maror, meaning bitter. Frankincense came mainly from the Dhofari region of Oman, and the best of this fragrant 4 oleoresin source still characterizes this remote region. Myrrh traditionally came from Punt; this area was probably in Somalia, Ethiopia or Eritrea, but it may have been in Yemen, Oman or Southern Arabia. Zanzibar is a semi-autonomous part of Tanzania, in East Africa. The capital of Zanzibar, located on the island of Unguja, is Zanzibar City. Zanzibar's main industries are spices, raffia, and tourism.In particular, the islands produce cloves, nutmeg, cinnamon, and black pepper. For this reason, the islands, together with Tanzania's Mafia Island, are sometimes called the Spice Islands (a term also associated with the Maluku Islands in Indonesia). Spices are the currency of developing countries. India, Egypt, China, Indonesia, Malaysia, Mexico, Turkey and Brazil are the primary producers of spices. Since spices are always in demand in the industrialized world, the export of these basic agricultural commodities by developing countries can be relied upon to earn valuable foreign exchange. India is the land of spices. As the country is blessed with a wide range of agro climatic conditions from tropical to temperate zones, coastal plains to high altitudes and semi-arid to highly humid evergreen forests, it is in an advantageous position to produce a number of spices. Sandalwood, turmeric, saffron, coriander and a host of other Indian spices were exported from India to other parts of the world. The Spices Board, India is the apex body for the export promotion of Indian spices. Particularly in Oman, most spices and many herbs are used in the preparation of the fragrant components of scents, perfumes, cosmetics, body creams and lotions, hair preparations and air fresheners. Increasingly, these aromatic essences from plants are being utilized in aromatherapy, where their vociferous properties are fancifully related to specific physical and psychological effects. India and Oman are linked by geography, history and culture.Indo‐Omani relations are not the recent phenomenon. Their relations go back to thousands of years that are greatly facilitated by geographical nearness and cultural similarity. The treaty of friendship, commerce and navigation and other important agreements that were signed subsequently, has strengthened the relationship between the two countries. Oman is an important country in the Persian Gulf region to which India has fifty years of diplomatic ties. This relationship has grown further over the years with bilateral visits of high level delegations from the both sides. This is also true that Oman has been famous for exporting dates, copper and Arabian horses to India. Fabrics, spices and wood have been exported by India to Oman at that time. 5 Omani recipes are normally free of spices. Although spices, herbs, onion, garlic and lime are liberally used in traditional Omani cuisine, unlike similar Asian food, it is not hot. Omani cuisine is also distinct from the indigenous foods of other Gulf States and even varies within the Sultanate’s different governorates. Omani food tends to be less spicy than typical Arabic food but is cooked with lots of marinades, herbs and spices. It is served in large portions, so expect to be served with a whole fish. Chicken, fish and mutton are regularly used in dishes. There are also regional variations, with some of the dishes prepared in Salalah (in the south) being markedly different from those in Muscat (in the north). The main meal is usually eaten in the middle of the day, while dinner is lighter. Omani food is generally prepared with generous use of an assortment of marinades, spices and a range of herbs, that are imported from India and other several countries. However, dates remain a symbol of Omani hospitality throughout the country and are served with kahwa, or Omani coffee, as are nuts. India meets almost 65% of the global demand for derivatives like spice oils and oleoresins. India leads in exporting spices and condiments to foreign countries. India is the largest producer and exporter of spices in the world and so called the ‘spice bowl of the world’. Over all, spices are grown in some 2.9 million hectares in the country. Spices exports have registered significant growth during the last one decade. In the case of export of spices like Pepper, Cardamom (Small), celery and other miscellaneous spices have shown increase in value terms only.
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