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SPICED Scheme

26th September, 2024

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Context: 

The Union Ministry of Commerce and Industry has approved the SPICED scheme. 

SPICED Scheme

About 

SPICED stands for "Sustainability in Spice Sector through Progressive, Innovative, and Collaborative Interventions for Export Development." This plan will be valid up to 2025-26. 

Aims

It aims at improving the area of cultivation of both small and large cardamom and raising productivity, thereby increasing surplus for export through improvements in post-harvest processes.

It would also aim to increase the percentage of value-added spices in the export basket, protect quality and safety standards for consignments designated for exports, and develop capacity and skills for stakeholders in the spice sector. 

Components

The major components include Mission Value Addition, Mission Clean and Safe Spices, promotion of GI (Geographical Indication) spices, and support for entrepreneurship through Spice Incubation Centres.

Target groups

The scheme emphasises farmers' groups, FPOs (Farmer Producer Organizations), farmer clusters identified under ODOP (One District One Product) and DEH (District Export Hub), as well as SC/ST communities, exporters from the NE region, and SMEs (Small and Medium Enterprises).

Application process

Receipt and processing of applications under the SPICED scheme will be conducted online. 

Scheme activities will be geo-tagged, and information on fund availability, application status, and beneficiary lists will be published on the Board’s website for better transparency.

Benefits

Enhancing Exportable Surplus

Targeted assistance is provided to enhance the creation of an exportable surplus of spices while ensuring compliance with food safety and quality standards.

Cardamom Productivity Initiatives

Initiatives for cardamom focus on increasing productivity through replanting efforts, production of quality planting material, developing water sources, and implementing micro-irrigation systems.

Weather-Based Insurance

Weather-based insurance programs are promoted to protect farmers' interests in cardamom production.

Post-Harvest Quality Improvements

Post-harvest quality improvements for spices are addressed through the Mission Clean and Safe Spices initiative, which emphasises sustainable production and certification systems.

Strengthening Value Addition

The Board is introducing components to enhance market expansion, trade promotion, and technological interventions to strengthen value addition in the spice sector.

Technological and Infrastructural Support

Support is provided for technological and infrastructural improvements in spice processing, including setting up or upgrading in-house laboratories and developing new products.

Branding and Quality Assurance

The programs encourage branding and implementation of food safety and quality assurance mechanisms to improve India's global competitiveness in the spice sector.

Trade Promotion Efforts

Trade promotion efforts include supporting participation in international fairs and buyer-seller meets, along with promoting GI-tagged spices in both domestic and global markets.

Supporting Innovation and Entrepreneurship

Financial assistance is available for Spice Incubation Centres to foster innovation and entrepreneurship, providing a platform for startups, SMEs, and entrepreneurs in the spice sector.

Assistance for Exporters

Exporters with a valid Certificate of Registration as Exporter of Spices (CRES) are eligible for assistance under these programs, with a preference for first-time applicants and SMEs.

Important articles for reference:

Spices in india 

Spice Board of India 

Investigation into Indian Spices

Sources:

https://www.thehindu.com/news/cities/Kochi/spiced-to-boost-small-large-cardamom-farming/article68667397.ece

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2056737

PRACTICE QUESTION

Q.Consider the following statements about the “SPICED Scheme”: 

  1. This scheme is related to the Spice Sector and it is co-terminus with the sixteenth finance commission.
  2. It aims at improving the area of cultivation of both small and large cardamom.
  3. The programs encourage branding and implementation of food safety and quality assurance mechanisms to improve India's global competitiveness in the spice sector.

How many of the above statements is/are correct?

A.Only one

B.Only two

C. All Three

D.None

Answer: B

Explanation:

Statement 1 is incorrect: 

SPICED stands for "Sustainability in Spice Sector through Progressive, Innovative, and Collaborative Interventions for Export Development." This plan will be valid up to 2025-26. 

The 16th Finance Commission (FC) of India is a commission established by the Government of India under Article 280 of the Constitution. The commission's main task is to determine the sharing of revenue between the Central Government and the State Government for a period of five years starting April 1, 2026. So statement 1 is incorrect.

Statement 2 is correct: 

It aims at improving the area of cultivation of both small and large cardamom and raising productivity, thereby increasing surplus for export through improvements in post-harvest processes.

It would also aim to increase the percentage of value-added spices in the export basket, protect quality and safety standards for consignments designated for exports, and develop capacity and skills for stakeholders in the spice sector.

Statement 3 is correct:

Benefits

Strengthening Value Addition

The Spice Board is introducing components to enhance market expansion, trade promotion, and technological interventions to strengthen value addition in the spice sector.

Technological and Infrastructural Support

Support is provided for technological and infrastructural improvements in spice processing, including setting up or upgrading in-house laboratories and developing new products.

Branding and Quality Assurance

The programs encourage branding and implementation of food safety and quality assurance mechanisms to improve India's global competitiveness in the spice sector.

Trade Promotion Efforts

Trade promotion efforts include supporting participation in international fairs and buyer-seller meets, along with promoting GI-tagged spices in both domestic and global markets.

Supporting Innovation and Entrepreneurship

Financial assistance is available for Spice Incubation Centres to foster innovation and entrepreneurship, providing a platform for startups, SMEs, and entrepreneurs in the spice sector.