Chilli for China

Indian chilli is spicing up more dishes in China as in other countries as well, thanks to the high pungency level, colour value and unique taste that makes many a foodie ask for more of it

Many of the Chinese cuisines would go bland, if it was not for the chilli from Tadepalligudem, a city in West Godavari District where the largest chilli exporter to China is headquartered. Meet NK Agro Exports (India) Pvt Ltd, one of the biggest spices exporters of India. The company exports a wide range of agricultural products and chilli is one of the major commodities exported.

NK Agro Exports maintains cold storages in Andhra Pradesh and Madhya Pradesh where export quality spices are stored.The decade old spices major which depends on Krishnapatnam Port for its exports to various countries including China, a major consumer of Indian red chillies, is anticipating a huge demand for the spice from across the globe. Especially the company is betting on the organic varieties of the commodity would yield more margins going forward.

Chilli had good export demand in 2018 and the commodity has seen a gradual increase in demand during the past few years. Indian chilli has high pungency level, colour value and unique taste which attracts the demand.

Major export markets

The company’s biggest market for chilli is China, in addition to Singapore, Malaysia, Indonesia, Thailand, Myanmar etc. NK Agro Exports follows a formalised system to scrutinize all its products to complement the needs of the clients. The company is 100 per cent export oriented and most of its chillies are procured directly from the farmers. The company avoids freight forwarders and directly deals with shipping lines which provide direct service from processing facility to the port, saving some costs.

“We export from multiple seaports across the country, Krishnapatnam is our major port for all exports. Krishnapatnam port has been growing at good pace, by introducing new vessel services, supporting new ICD’s, CFS. The port has developed good infrastructure which avoids any congestion at the terminal unlike other major ports in south India. Krishnapatnam is also closest port to the chilli procuring areas which saves us lot of costs in transporting,” says Shiva Nandyala, Director, NK Agro Exports.

According to him, the Customs department had been providing very good service at krishnapatnam and other ports, introducing new technology and services like selfsealing, to make the process of Custom clearance easy to the exporters and importers. Regular workshops were being conducted by them to bring awareness of any new systems that are introduced. They are always available and helpful at the port to assist with any queries.

As China is its major market, the company suggests if the government could introduce new trade agreement which can help buyers in tax exemption for the spices that are imported directly from India. Other governments like, Vietnam, Thailand etc have a trade agreement (ASEAN) with China which exempts tax on imports from these countries. NK Agro Exports hopes India can also get included or form a new agreement to ease tax for its buyers which will help exporters to promote spices more in international market.