Importing Asafoetida.........
HS Code : 13019013
Asafoetida, or hing as it is popularly known, has been a darling of almost every Indian kitchen since ages. What's more? Its recently found use as a product of medicinal value is driving its demand higher. And since India does not produce enough asafoetida to meet domestic demand, its imports makes for a lucrative business proposition.
The delicious fragrance of hing that originates from the kitchen is invariably intoxicating. Those who've experienced it can swear by this fact. But did you know that hing, or asafoetida as it is otherwise known, the key ingredient of many of our lip-smacking snacks, is a product that is almost entirely imported from Afghanistan? Hing, the spice in that tiny bottle in your kitchen, is a dried latex made from a plant called Ferula Assa-foetida that is native to Afghanistan, though its cultivation has now spread to many of Afghanistan's neighbours like Tajikistan and Uzbekistan. And while until recently Indian kitchens have been using asafoetida (which has a signature pungent smell) only as a spice to add flavour, the product is now also being used in various other food and healthcare products as people become more aware of its medicinal values.
India currently consumes 40% of the world’s total production of asafoetida, and its imports too have been on a steady climb. So, what is driving the demand for asafoetida in India? People in India have become very health conscious. The awareness about asafoetida and its medical benefits is spreading fast and that’s why the demand is also on the rise, moreover hing helps in curing respiratory problems, including bronchitis and asthma.
It is also used for treating digestive problems including intestinal gas and irritable bowel syndrome (IBS). Scientists have found evidence that chemicals in asafoetida might help treat IBS, apart from protecting against high levels of certain fats including cholesterol and triglycerides in blood – coumarins, the chemical present in asafoetida, can thin the blood. Naturally, many companies that used to sell only spices and ayurvedic products have now started selling asafoetida
While the product is finding increasing usage in India, asafoetida cannot be grown in most parts of India as the climate does not suit the plant. The government has tried to promote its cultivation and has found a small degree of success in cultivating the plant in some parts of Kashmir, but its commercial production so far has been negligible. Naturally, imports is the only option, “Asafoetida is like golden product to import!” Asafoetida is expensive. But in India, the demand for asafoetida, just like gold, is always on the rise. India is the largest importer of asafoetida in the world and that is because asafoetida is used both as a spice and a product with many medicinal values. And as, such its imports is bound to grow going forward & Data from the Food and Agriculture Organisation of the United Nations (FAO) too shows that India’s imports of asafoetida have been growing on an average of 500-700 metric tonne (MT) per year.
In fact, between FY2007 and FY2016, imports increased 84.26%, leaping from $16.52 million to $80.16 million. And as for FY2017, import stood at $89 million.
Who could be satiating India’s appetite? “Quality of asafoetida differs from region to region. Asafoetida from Afghanistan is the best suited to make compounded asafoetida or the spice hing because of the distinct colour, smell and taste and since India is the largest consumer of compounded asafoetida in the world, Afghanistan is the most desired sourcing destination.
The two most common varieties of asafoetida used in India are red and white. The white asafoetida, native to Afghanistan, is water soluble whereas the red asafoetida, found in other countries, is oil soluble. So, while India also sources from countries like Iran, Tajikistan and Uzbekistan, it is Afghanistan that is satiating India’s appetite. In fact, in FY2017, about 92% of India's imports of asafoetida was from Afghanistan.
"Between FY2007 and FY2016, India's imports of asafoetida jumped 384.26%"
Interestingly, most Indian importers prefer to source raw asafoetida. And the reason is simple. It's cheaper and more convenient to procure raw asafoetida and convert it into compounded asafoetida. Also, since most importers are also manufacturers themselves, they get the opportunity to export a small share of compounded asafoetida.
In FY2017, the exports value of compounded asafoetida from India was only $8.56 million. However, the year-on-year growth has been decent. And this is perhaps another revenue stream that importers of raw asafoetida can explore.
According to exporters of asafoetida, the growing Indian diaspora across the world is fuelling the demand. And it's quite true because wherever the Indians migrate, spices is one of the items that keeps them connected to the home country. Currently, UAE and US are the largest export destination, but markets such as Australia, Canada, Kuwait, Singapore and Myanmar are slowly catching up. And our exporters are very positive that exports demand will only continue to grow in the future.
So, how does the way-forward look like for Indian importers of asafoetida? Well, importers are certain that the imports of asafoetida will continue to grow in the foreseeable future, particularly from Afghanistan as asafoetida imports from the country enjoy zero customs duty (thanks to the preferential trade agreement between India and Afghanistan). And, that's not the only reason. Despite the growing competition, this is a market that always welcomes new players – though industry insiders caution that it is imperative to understand the quality of the product and its many uses to succeed in this business.
Moreover, today, connecting with exporters has become easier than ever. “WhatsApp and Skype have become a common medium to communicate. Exporters now also come to India looking for new buyers, which wasn’t the case earlier. At times, language can be a barrier, but they usually bring a Google translator along, so big worries, game is still very easy. And as far as transportation is concerned, many importers are now routing the consignments through Chabahar Port in Iran, which works out more economical and in turn improves their profit margins.
Asafoetida or hing typically works as a flavour enhancer and is an important ingredient of Indian cuisine.
With the use of asafoetida on the rise, both as a spice and as medicine, and imports being the only option to satiate India's growing demand for hing, its importers are bound to prosper. Asafoetida - some product that...one that's common but an idea so special!