India’s Spice Export Landscape: Challenges and Strategic Path Forward

India, celebrated as the ‘Spice Bowl of the World,’ has seen a dramatic rise in spice exports over the past decade, highlighting the country’s pivotal role in the global spice market with turmeric as a flagship commodity. In the fiscal year 2022-23 alone, India exported over 154,000 tonnes of turmeric, reinforcing its status as a dominant exporter. However, despite this impressive performance, the Indian spice industry faces several pressing challenges that threaten its continued leadership in the sector.
Recent statistics reveal a concerning trend: India’s share of global turmeric production decreased from 11% to 8.3% between 2021-22 and 2022-23, and the area dedicated to turmeric cultivation fell from 7.6% to 6.3%. This decline is alarming as turmeric is a key export item and a significant driver of India’s spice economy. The global spice demand landscape is evolving, with traditional markets in developed countries like the Netherlands and Germany increasingly sourcing spices domestically, leading to a reduced market share for India.
At the same time, competition from emerging spice producers, including small nations like Fiji and established players like Myanmar, Vietnam, and Indonesia, is intensifying. Additionally, the Indian spice industry grapples with quality control issues, as rejections in key international markets often result from phytosanitary concerns, such as the presence of toxins and higher-than-permissible maximum residue limits (MRLs). Despite efforts by quality control bodies like the Spices Board of India and the Agricultural and Processed Food Products Export Development Authority, these issues persist and hamper India’s export potential.
To maintain and strengthen its position as the world’s leading spice exporter, India must conduct a thorough evaluation of its spice supply chain, focusing on identifying and addressing quality gaps to reduce rejection rates. Key steps include consolidating regulatory oversight by creating a single body to streamline quality control, investing in advanced laboratory testing and robust product traceability mechanisms to meet international standards, adhering to stringent Good Agricultural Practices (GAP) to address phytosanitary concerns, and fostering effective coordination with all relevant stakeholders—farmers, exporters, and quality control agencies—to drive improvements and overcome these challenges.

Source:Livemint