January 23, 2014

India may regain top position in marigold extract export 

Based on the findings of a US-based health institution, India may regain its dominance in marigold extract export, which is used extensively worldwide in poultry feed to give colour to egg yolks and in nutraceutical sector for eye care.

After China started selling aggressively at low cost some years ago, India was the leading exporter of marigold extracts in the world. Now while China's dominance in feed grade marigold extract, which accounts for a majority of the global production, is well established, India still retains the edge in food grade stuff for the nutraceutical sector.

India's marigold exports are to the tune of around INR220 crore (US$35.5 million) with AVT Natural Products accounting for 70% of it. The recent survey recommendation by the US government institution National Eye Institute that carotenoids lutein and zeaxanthin, can reduce the risk of advanced macular degeneration affecting the eye, augurs well for India. Both these products are present in marigold extracts.

"The growth in marigold extract exports for nutraceutical sector has been flat in recent years. But now with these findings, we expect double-digit growth in exports," said MSA Kumar, managing director of AVT Natural Products.

The company has a tie-up with Kemin Industries in the US. Kemin has branded lutein and zeaxanthin products in the market. The nutraceutical sector involves strict quality standards and intellectual property rights and it is because of this that India has an advantage as there is no mass production involved. "We sell in the form of lutein extracted from marigold to our sister concern OmniActive Health Technologies which have patented products of lutein," said Geemon Korah, managing director of Kancor Ingredients.

Most of the production of marigold extracts in China go towards poultry feed. "The favourable climatic conditions and liberal subsidies by the government have worked to the advantage of the country which has been able to supply the product cheaply at around US$0.08 per gram against US$0.13-US$0.14 by us," said MSA Kumar.

The industry feels that government should support the industry as marigold extracts have good potential. "Our government provides 5% subsidy which may not be sufficient as our cost of production itself is around US$0.14. As a result we are left with large inventory of marigold extracts," said Viju Jacob, deputy managing director of Synthite.