Potential Indian Cinnamon Market You Must Take Advantage Of

India is one of the largest cinnamon exporting countries in the world and Indian cinnamon makes such significant profits to the companies. If you are wondering is Indian cinnamon good for trading and is there any country to replace India in cinnamon exporting, as long as where to find Indian cinnamon suppliers. Read this article to find out.

1. Types of Indian cinnamon

Is Indian cinnamon Ceylon or Cassia? The answer is both. 

• Ceylon, which is considered as the “true cinnamon”, has originated in Sri Lanka. In India, Ceylon is mostly grown in southern parts. Ceylon is tan-brown in color with a smooth skin, tighter rolls and easily breakable. It tastes sweet and the fragrance is mild. This kind of Indian cinnamon usually has a sweeter taste and mild aroma compared to other countries’ Ceylon. Being that sweet, it is preferred to use for baking, drinks and desserts.
• Cassia is another type of Indian cinnamon which first appeared in China thousands of years ago. In India, it is largely grown across Himachal Pradesh and more widely grown than Ceylon due to its popularity. Cassia tends to be in dark brown-red color with rough skin and mostly in straight form instead of curls. It is also hard to break. In terms of taste, Indian Cassia has a pungent and woody flavor and the smell is a little bit stronger than other Cassia varieties. 
• Due to the higher oil content, the less thickness, the lighter and sweeter taste, Ceylon Indian Cinnamon is often preferred over Cassia:

	Ceylon	Cassia
Moisture	12%	12 – 14% max
Oil content	5%	2 – 4%
Average length	7 – 8cm	8 – 15cm
Skin thickness	0.08mm	2 – 3.5 mm

Besides, there are also other varieties of cinnamon such as Saigon and Korintje but these are not really well-known.

2. Reasons why Indian Cinnamon exporting a good choice for your business

In recent years, sales of Indian dalchini in international market have experienced an upward trend. Let’s take a closer look at the remarkable benefits of Indian dalchini trading.

2.1. Indian cinnamon importing thoroughly brings you great profits.

India is one of the top ten nations in the world for exporting cinnamon. Each year, India exports cinnamon for $7,140,000. Since 2015, this country has been among the nations with the fastest-growing exports of cinnamon worldwide. As a result, Indian cinnamon bark is a highly profitable product for business to import. 

• The demand for cinnamon, particularly Indian dalchini is increasing, many countries around the world are in need of using cinnamon. There’s no need to be concerned about the cinnamon backlog and minimize drifty business risks. Especially, the US, UK and Australia with high requirements for using Indian cinnamon bark will generate significant profits for those who import and retail India cinnamon’s in these countries
• Indian dalchini cost for export is not as expensive as in some other countries. Besides, the cinnamon Indian exporting low tax will make great incomes.
• The high output of Indian spices dalchini and the large number of suppliers will lead to competitive suppliers in price and volume. Consequently, you will easily purchase quality cinnamon with a suitable price and bring back huge earnings. 

2.2. Favorable conditions for the import and export of Indian cinnamon

The global market currently receives excellent opportunities for cinnamon trading from India.

• India can provide a good source of high-quality goods to cinnamon importers because Indian cinnamon exports are under intensive World Trade Organization inspection (WTO).
• The export tax price in India is relatively affordable for cinnamon importing companies. 
• The Indian government also closely supervises the import and export process of Indian cinnamon to prevent fraud or loss of cinnamon products.

3. Import and export market prices for India cinnamon

Here are some summary of prices in cinnamon trading from India and factors that influence this kind of Indian spice cost.

3.1.  India cinnamon’s import and export prices

Import and export Indian cinnamon prices are slightly higher than other countries such as China, Vietnam or Indonesia, and much lower than Sri Lanka. 

• Domestic Indian cassia prices typically range from $2,400 to $5,900 per ton, depending on the variety. Ceylon is more aromatic, sweeter, and contains less coumarin, so it is more expensive than Cassia.
• Indian cinnamon prices change over time but are not significant. Before 2019, one ton of cinnamon was going for $4,240 in 2017 and $4,020 in 2018. In 2019, the export price changed to $4,210 per ton. In 2022, the approximate price ranges from $4,210 to $4,020/ton. And in 2019, the import price for cinnamon was up to 51100 USD per ton. 
• The import price of Indian cinnamon bark will be determined by tax rates or policies in each country.

3.2. Factors affecting the cost of purchasing Indian cinnamon

Indian dalchini price changes based on several factors:

• Varieties and specifications of Indian spices dalchini: Cassia cinnamon has a much affordable cost than Ceylon cinnamon because Cassia is more popular with many countries growing and directly competing with Indian Cassia. Each variety of Indian spices dalchini has a difference in price due to different specifications such as roll, oil content, size, breakage, color, etc.
• Logistic costs of Indian cinnamon: India’s logistics is growing. However, transportation technology is not yet at a high level of efficiency. During the Covid epidemic, there were many difficulties in import and export resulting in increasing transportation costs. 
• USD/Rupee currency exchange rate: the higher the dollar rate, the cheaper Indian cinnamon bark costs become, which means that one dollar can buy more Indian dalchini. 
• India’s policies: After trading agreements signed by India, the cinnamon import and exporting trade are reduced in taxes and several transport procedures, which leads to the lower costs of transportation for the businesses.
• Outdated machinery technology, unprofessional and undertrained human resources: These domestic factors also have an effect on the change of Indian cinnamon merchandise price.

4. Other cinnamon exporting countries in replace of Indian cinnamon 

In this section, I will introduce you to a few other options for you to compare and make a good choice for your business. With Cassia grown in India, you can refer to some countries that are rivals of India including 4 other countries which are Indonesia, China, Vietnam. With Ceylon Indian cinnamon, there is a big competitor named Sri Lanka, which are also the top exporters of cinnamon. You can consider those countries as a good source of cinnamon exporting.

4.1. Chinese cinnamon – one of the largest cinnamon exporting countries

Contributing to 34% of the world’s total cinnamon production, China is one of the largest cinnamon exporting countries, besides Indian cinnamon bark. This country mainly possesses the Cassia cinnamon that has a stronger, darker and hotter flavor than any Cassia variety.

• Cinnamon exporting prices in China are much more easily affordable than Indian cinnamon. In 2022, the approximate price range for China Cinnamon is between 2,790 USD to 2,250 USD/ton. The import price for cinnamon in 2019 was 990 USD per ton. The foundations that lead to the low commercial values are modern machinery, abundant human resources, and large quantities of cinnamon purchased.
• Nonetheless, the Global Covid 19 pandemic in China has a significant negative impact on its cinnamon export trade, causing numerous issues with cinnamon transfers abroad.
• On the other hand, China exporting tax prices are on a downward trend, China has issued regulations to cut down import and export taxes on cinnamon to promote a higher chance of importing and consumption of Chinese cinnamon in other countries. The Chinese government is also more open and willing to assist global enterprises in collaborating with and purchasing Chinese cinnamon.

4.2. Vietnamese cinnamon – the equally cinnamon source compared with Indian cinnamon

Saigon is the principal cinnamon variety of Vietnam, besides cassia and ceylon. Vietnam accounts for 17% of the world’s total cinnamon production. Cinnamon trees are grown on a large scale with more than 100,000 hectares of total lands across the country. 

• Cinnamon abroad transfer prices in Vietnam are not as expensive as Indian cinnamon. In 2021, the average export price of cinnamon reached 3,251 USD/ton, which was down -2.2% over the previous year. However, the import rate was much higher with 5,710 USD/ton in the same year. Vietnam has soft, porous, and nutrient-rich soil conditions that allow cinnamon trees to grow with high quality, and farmers do not have to exert much effort in caring for them. Cinnamon production is astonishingly large in order to meet large orders for export.
• The Vietnamese cinnamon industry is now required with strict regulations on country standards, strict requirements on pesticide residues, food safety standards, and traceability in order to ensure the safety and quality of cinnamon products sent to your business.

4.3. Sri Lanka cinnamon – the perfect replacement for Indian cinnamon

Cinnamon industry in Sri Lanka takes on 10% of the world’s total with 25000 hectares of land for the purpose of growing cinnamon.The import and export price of cinnamon in Sri Lanka is 3 times higher than Indian spices dalchini. In 2021, the average export price of cinnamon reached $13,148/ton, up 19% over the previous year and the average import rate stands at $12,483/ton. The import and export price of cinnamon in Sri Lanka is pretty high compared to in India due to the best cinnamon quality in the world, overwhelming the Indian cinnamon bark or any cinnamon exporting countries.

The related article you may interested in

Is cinnamon from Vietnam good

Benefits of Sri Lankan cinnamon

4.4. Indonesia cinnamon – the major cinnamon exporting countries along with the cinnamon Indian

In Indonesia, the price for import and export cinnamon trade is slightly lower than Indian cinnamon. 37% of the total world cinnamon production belongs to this country. In 2019, the export price of cinnamon was 3,640 USD/ton but tends to decrease in 2020. In 2021, the average import price of cinnamon is up to 3,363 USD/ton. As most of the cinnamon produced in Indonesia comes from the highest volcanic slopes, where the cinnamon tree thrives is the reason why the producers don’t need too much effort of caring.

5. Indian cinnamon suppliers

If you consider of Indian cinnamon export. You should get to know about the cinnamon suppliers.

5.1. Features of the cinnamon suppliers from India

Here are some features of suppliers of the cinnamon Indian that you can refer to.

• The cinnamon suppliers mainly are in form of household or business corporations. 
• Indian cinnamon is widely grown in many areas of Kerala region, or in cities such as Kumily, Plantation town, Munnar, Thekkady, Idukki. If you want to seek for reliable and recognized cinnamon suppliers from India, search for information related to these places. 
• To export Indian dalchini, only a few large firms have the ability to make it well, so if you have the need to import cinnamon, you should find those companies to ensure their cinnamon and export quality.

5.2. Be careful of Indian cinnamon trading risk 

Even if you have discovered where to buy Cassia cinnamon, it is critical that you always verify their legitimacy. The scam of Indian cinnamon bark suppliers is now available and utterly in a parlous way. The COVID-19 epidemic has caused significant losses to the global economy and businesses trade in India to confront with many challenges which have planted a seed to promotion of scam trade, deceptive status of Indian dalchini sellers. To have a wholesale cinnamon transaction that brings you many benefits, you must be careful in your choice.

5.3. Several reliable cinnamon suppliers in India

Let’s discover some reliable Indian cinnamon suppliers.

• Pramoda Exim Corporation: Pramoda Exim Corporation is a leading manufacturer, supplier, and exporter of cinnamon Indian and agricultural items in Andhra Pradesh. They are an export company with ISO 9001:2008 accreditation that provides the best red chillies, spices, cereals, oil seeds, and cotton to consumers all over the world.
• S.R. International: One of India’s oldest manufacturers and exporters of Indian cinnamon bark and spices, SR International has long been associated with Herbs and Spices. They are a professionally operated firm supported by a staff of dedicated specialists who are aware of our respected customers’ unique preferences and requirements all over the world. Your knowledge of the cultivation of high productivity cinnamon types has been greatly enhanced by their experience in the Indian cinnamon industry as suppliers of spice in India.
• Marudhar Impex: Marudhar Impex was founded in 2016 with the goal of making the harvests of Indian lands available and accessible to people all over the world. The company sources and provides the highest-quality herbal powders, extracts, and oils of Indian cinnamon. Their main objective is to assist people in reestablishing their bond with nature and with themselves.