Indian spices exports reached an all-time high in 2023-24, reaching a record $4.46 billion in value. The impressive growth was fueled by higher demand for spices like chilli, coriander, ginger, celery, fennel, and garlic. These spices saw significant increases in both volume and value, contributing to the overall export surge. However, not all commodities experienced growth; some, including pepper, fenugreek, tamarind, and mint products, saw declines in both volume and value.

India continues to hold its position as the largest producer and exporter of spice products, with China, the USA, Bangladesh, the United Arab Emirates, and Thailand being the top destinations for Indian spices. Despite this robust performance, the current financial year may face challenges due to availability issues of certain varieties, such as turmeric, which has been impacted by last year’s lower crop yields. Additionally, there are quality concerns related to the presence of ethylene oxide (ETO), a fumigation agent, in some popular brands, which have been raised by countries like Hong Kong and Singapore.

Early indicators for the current financial year show a slight decline in spice exports. According to the Commerce Ministry, the value of spice exports fell by 5.84 percent during April-May, amounting to $766.79 million compared to $814.37 million in the same period last year. This decline reflects the combined impact of crop shortages and quality concerns.

Emmanuel Nambusseril, Vice Chairman of the All India Spices Exporters Forum, highlighted that the ETO contamination issue has not significantly impacted the overall export of spices, though there has been a decline in the export of spice blends (masalas). The drop in turmeric exports is primarily due to crop shortages rather than quality issues. Despite these challenges, exports of value-added spice products have remained stable, and Nambusseril expects the overall spice exports for the current fiscal year to remain at the same level as the previous year. However, meeting new testing requirements from customers concerned about ETO contamination will add financial burdens to exporting companies.

Source: the hindu businessline