Spice Board Registration

Review of Spices Board Act – What’s New in Spices (Promotion and Development) Bill, 2022?

The spice board in India provides numerous schemes in order to promote Indian spices across the world. If you want to know how to do it, this guide contains important knowledge about the revision of the Spices Board Act. Learn all about the ‘Review of Spices Board Act - what’s new in Spices (Promotion and Development) bill, 2022?’

India is also known by the name ‘Land of Spices.’ It’s the biggest producer and exporter of spices. A total of 5.8 million tons of spices were exported out of India in the years 2012-13, including garlic and chilli. These are among the most exported spices. China and the United States of America were the most important destinations for exporting Indian spices in terms of value. Spices valued at nearly the sum of 2115 crores and 2019 crores sold in China and the USA in the years 2012-13. Still, there are lots of opportunities in the spices industry within India. The Spices Board of India has numerous schemes to promote Indian spices. This article will take a look at the schemes and subsidies offered by the Spice Board for promoting Indian spices.

Revision of Spices Board Act: What are Promotion and Development in 2022?

The Spices Board was constituted on 26th February 1987 by the Spices Board Act 1986. It is one of the five commodity boards that operate in the Ministry of Commerce & Industry. It is an independent body that is responsible for the promotion of exports and development of spice products in India.

It is an independent organisation with the responsibility of promoting scheduled exports of the 52 spices and for the development of Cardamom (Small and Large).

What should be changed in the Spices Board Act of 1986, and what’s different from the Spices (Promotion and Development) legislation of 2022?

The board’s main function is the development of small and large cardamoms and promotion development, regulation of exports of spices, and control over the quality of export spices.

It also controls the quality of spices for export. Masala board also undertakes research actions on cardamom under the Indian Cardamom Research Institute.

Also, the commerce ministry has suggested repealing laws that have been in place for decades relating to tea, coffee, rubber and spices – and introducing new laws to encourage the growth of these industries and create a business environment. The ministry has sought the views of stakeholders on versions of:

  • Spices (Promotion and Development) Bill 2022
  • Rubber (Promotion and Development) Bill 2022 
  • Coffee (Promotion and Development) Bill 2022
  • Tea (Promotion and Development) Bill 2022

In order to promote the safety of food and capacity building, the Spices Board organised a National Conclave on Food Safety in New Delhi. Furthermore, some of the Act’s non-used or redundant sections should be removed to simplify business transactions in spice.

The Importance of Spice Board Registration

The possession of a registration certificate at The Spice board is mandatory for any person dealing with the export of spices. Additionally, The Spices Board Act, 1986 stipulates that “No person shall, after the commencement of this Act, commence or carry on the business of export of any spice under and in accordance with a spice board certificate.” Suppose a person is carrying on the business of export of spices immediately before the commencement. In that case, he needs to apply for such a certificate within the said period of three months till the disposal of such application.

Goals of the Bill

  • Help and promote research and studies to improve the quality, processing and methods of packaging and grading of spices
  • The issuance of a certificate for the export of spices and register brokers for it
  • Develop the export policy, encourage and regulate the sale of spices
  • Develop programs and projects to promote exports of spices
  • Provide licences, subject to the terms and conditions as could be prescribed, to manufacturers of spices to export
  • Attempt to stabilise prices for spices used in export
  • Provide warehouse facilities in other countries for spices
  • To import any spice that is available for sale needs prior approval from the Central Government
  • Ensure the quality of spices to be exported
  • Advise the Central Government on matters relating to the export/import of spices
  • Commercialising any flavour is necessary to increase the visibility of exports
  • Develop suitable quality standards and introduce a certification of quality using ‘Quality Marking’ for spices that are for export
  • Collect data regarding spices to compile and publish

A Quick Review of Spice Statistics

  • Spice exports make up 41% of total income from exports of all horticulture plants in the country. It is fourth in the list of agricultural commodities, trailing only marine products such as non-basmati rice and basmati rice
  • The production of spices in the country increased by 67.64 lakhs tons in the year 2014-15 to 106.79 lakhs tonnes by 2020-21. The growth rate was an annual rate of 7.9% due to an increase in the area from 32.24 lakh hectares to 45.28 lakhs hectares
  • Spices exports grew from 8.94 lakhs tons worth 14900 crores to 16 lakhs tonnes worth 29535 crores (US$3.98 billion) in the preceding time with an annual rate of 9.8 per cent in terms of volume and 10.5 per cent in terms of value
  • The main spices, Cumin (14.8 per cent), Garlic (14.7%), Ginger (7.5%), Fennel (6.8%), Coriander (6.2%), Fenugreek (5.8 per cent), Red chilli (4.2 per cent) along with Turmeric (1.3 %)) are all showing a significant growth rate of production

The demand for spices has increased dramatically because of the growing recognition of these spices as a healthy supplement, especially during the period of the pandemic that can be observed in the rising export of various spices such as Turmeric, Cumin, chilli, ginger, etc.

Documents Required to Be Submitted for Spice Board Registration

These documents are necessary in order to get the certificate of registration as an exporter of Spices in India;

  • Self-certified copy of Partnership Deed or Memorandum of Association MOA or Article of Association, in accordance with the requirements of the specific case
  • Self-attested copy attesting to the Import-Export Code Certificate for IE
  • If applicants are exporters of manufactured spices, they must provide a self-attested document from the Directorate of Industries
  • Form-I, the prescribed form, i.e. Form-I in Section 12 of the Spices Board Registration of Exporters’ Regulations 1989
  • Registration fees are in an uncrossed demand draft to the name of ‘Spice Board and Request’
  • Self-certified replica of the GST Registration Certificate
  • Self-certified photocopy of PAN Card of the applicant
  • A passport-sized photograph that shows the CEO of your company or designated Officer of your company

Conclusion 

It is essential to avoid duplication during the standard-development procedure to avoid issues from international organisations. As an exporter, you must follow international standards for culinary herbs and spices in their whole crushed, ground, or crushed form. The draft Spices (Promotion and Development) Bill, 2022, has been posted to the Spices Board and Ministry of Commerce and Industry. 

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