India needs to urgently and transparently address quality issues with respect to spice exports as persistent quality issues could threaten more than half of the country’s spice supplies, a report on Wednesday said.
The economic advisor to the Global Trade Research Initiative (GTRI) said that every day recent countries are raising concerns about the quality of Indian spices.
It said the issue requires urgent attention and action to uphold the reputation of India’s legendary spice garden.
“With exports to key markets worth almost $700 million at stake and potential losses soaring to more than half of India’s total spice exports as a result of cascading regulatory actions in multiple countries, the integrity and future of the Indian spice trade hangs in the balance,” he added . the report stated.
It said India needs to address quality issues urgently and transparently.
“Speedy investigation and publication of results are necessary to restore global confidence in Indian spices. Errant companies should face immediate consequences,” he added.
Hong Kong and Singapore have banned the sale of popular brands MDH and Everest after the carcinogenic chemical ethylene oxide was found in their products. This led to mandatory product withdrawals from shelves.
The report said the main violations associated with these incidents included the presence of ethylene oxide, a carcinogen used as a sanitizer, and contamination with salmonella, a common bacterial cause of foodborne illness.
“The situation could worsen if the European Union, which regularly rejects shipments of Indian spices due to quality issues, follows suit. An EU-wide rejection could impact an additional $2.5 billion, taking the total potential loss to 58.8% of global spice exports from India.” Said GTRI co-founder Ajay Srivastava.
Citing some reports, GTRI said the United States, Hong Kong, Singapore, Australia and now Malé have raised concerns about the quality of spices supplied by leading Indian companies MDH and Everest spices.
With India exporting spices worth about $692.5 million to these countries in fiscal year 2024, the stakes are high, Srivastava said.
“If China, under the influence of actions in Hong Kong and ASEAN based on the precedent set by Singapore, decides to implement similar measures, India’s spice exports could see a dramatic deterioration. “The potential repercussions could impact exports worth $2.17 billion, representing 51.1% of global spice exports from India,” he added.
Mr. Srivastava said the response from Indian authorities so far has been lukewarm and formal.
In response to international criticism, both the Spices Board and the Food Safety and Standards Authority of India (FSSAI) have begun routine sampling, but neither these nor any other government agencies have issued any definitive statements on the quality of spices, he added.
“This lack of clear communication is disappointing, especially given the comprehensive quality assurance regulations and processes in place. Despite denials from substantial companies like MDH and Everest, their continued rejections by international bodies should have raised concerns in both the Spices Board and wi FSSAI much earlier,” he said.
He cautioned that if the quality of products of leading Indian companies is questionable, it raises doubts about the reliability of spices available in the Indian market.
The GTRI report suggests that the overall situation requires a fundamental change in the way India deals with food safety – transparency, tough enforcement and clear communication are crucial to restoring and maintaining the integrity of both exports and domestic products.
He added that fundamental changes are needed in the functioning of quality regulatory agencies.
Spices are dried parts of plants, including seeds, roots, bark and fruit, valued for their taste, aroma or preservative properties. Common examples are cloves, cinnamon, ginger, black pepper, cumin and coriander. Spices enhance flavor, add color, and sometimes mask undesirable odors, playing an crucial role in cuisines around the world.
In 2023-24, India’s spice exports stood at USD 4.25 billion, accounting for 12% share of global spice exports.
The major spices exported from India include chili powder which tops the list with exports worth $1.3 billion, followed by cumin at $550 million, turmeric at $220 million, cardamom at $130 million, spice blends at $110 million and spice oils and oleoresins for $1. billion.
Other notable exports include asafoetida, saffron, anise, nutmeg, mace, cloves and cinnamon.
In terms of imports, India purchased spices worth $1.5 billion, with the largest imports being spice oils and oleoresins worth $354 million, cinnamon and casia worth $270 million, coriander and cumin worth $210 million, nutmeg worth $118 million dollars and asafoetida for $110 million.
The main markets for Indian spices were China, which imported spices worth $928 million, the United States for $574 million and Bangladesh for $339 million.
Other significant buyers include the United Arab Emirates ($256 million), Thailand ($193 million), Malaysia ($147 million), Indonesia ($137 million), United Kingdom ($122 million), Australia ($63 million), Singapore ($50 million), Hong Kong ($5.5 million) million).
The global spice trade will be worth $35 billion in 2023. China is the largest exporter with exports worth $8 billion in 2023.
According to GTRI, the top exports are chili powder ($2.4 billion), ginger, turmeric ($2.2 billion), fresh and dried garlic ($1.6 billion), coriander and cumin seeds ($800 million).
