What action has India taken so far?
4 What are the implications of this?
No. Indian spices have faced this issue many times. Regulators in the US, EU and many other countries have called out Indian spices over quality, presence of pathogens and toxins. But this may be the first time it’s facing a cascading regulatory action across many countries. This has put a question mark over the quality of the food India exports and consumes.
While Hong Kong and Singapore may not be huge consumers of Indian spices, probes launched by the US, Bangladesh and Australia could hurt. These three account for a quarter of Indian spice exports. India is the second largest supplier of spices to the EU, which is very sensitive about health and safety, and may take action. Global Trade Research Initiative, a Delhibased economic think-tank, has warned that exports worth $2.17 billion, 51% of total spice exports, are at risk if corrective measures are not taken immediately.
5 How big are Indian spice exports?
They are quite substantial. In FY24, the country’s spice exports are estimated to be $4.25 billion, which is 12% of the global spice trade pegged at $35 billion. It was just $400 million in 2001-02 but has been rising steadily over the years. It crossed $4 billion in 2020-21 but declined to $3.74 billion in 2022-23 (see chart). Major spices that are exported from India are chilli, cumin, turmeric, cardamom, spice oil & oleoresins, pepper, mint, ginger, garlic and saffron. China is the largest importer, followed by the US, Bangladesh, UAE, Thailand, Malaysia, Indonesia, UK, Australia and Singapore.
Is this the first time such action is being taken?
The government’s Spices Board and Food Safety and Standards Authority of India (FSSAI) are looking into the matter. The Spices Board has ordered mandatory testing of shipments to Hong Kong and Singapore even as it sought test details from their regulators. It has begun inspection of exporters’ manufacturing facilities and has released an advisory with guidelines to prevent ethyleneoxide contamination. In the meantime, pressure is building on FSSAI to look into the quality of spices that are sold within India.
MD & CEO, MARUTI SUZUKI INDIA