In May 2015 the phytosanitary authority of Saudi Arabia imposed a temporary ban on the import of green chillies from India, over sub-standard quality of goods from Indian exporters. The authority had set a quality specification of European standards for the imports and in a significant move, they have now lifted the seven-month ban.
The opening up of the Saudi Arabian market is important for Indian green chilli exporters as they lacked alternative markets. Owing to less demand for Indian chillies in developed countries, including the Unites States and the European Union, Indian exporters depend largely upon the Middle East countries for its demand. Though, very small in volume, green chilli forms an important segment in the entire basket of vegetable exports.
Data collated by the Agricultural and Processed Food Products Export Development Authority (Apeda showed a 31% decline in exports of green chilli from India in the financial year 2014-15 at 32,138.19 tonnes as compared to 46,540.15 tonnes in the previous year. Despite such a steep decline in volume terms, green chilli shipment exports in value term recorded a marginal decline at $22.23 million in 2014-15 as against $22.96 million in the previous year. In 2012-13, however, India’s green chilli exports were recorded at 35,991.97 tonnes worth $16.82 million.
With 1,266.69 tonnes worth $0.85 million, Saudi Arabia slipped to the fourth position in terms of green chilli exports from India in 2014-15 only after United Arab Emirates (19561.56 tonnes worth $13.73 million), United Kingdom (2244.02 tonnes valued $2.63 million) and Qatar (2344.89 tonnes worth $1.57 million).
In the previous year i.e. 2013-14, however, Saudi Arabia was the third-largest destination of Indian green chilli with 3,045.87 tonnes worth $2.33 million.
Apeda has advised interested Indian exporters to take utmost care with respect to quality and adhere to Saudi Arabian import norms.
