Chennai: Over half of India’s spices and spice products exports valued at $2.5 billion are facing potential risk of losses due to quality issues, finds GTRI.Nearly $700 million worth of exports to critical markets are at stake as the United States, Hong Kong, Singapore, Australia, and now Malé have raised questions about the quality of spices supplied by leading Indian firms MDH and Everest spices. India exported spices valued at approximately $692.5 million to these countries in the fiscal year 2024.
Hong Kong and Singapore banned the sale of popular brands MDH and Everest after detecting carcinogenic ethylene oxide in their products. This led to a mandatory recall from shelves. Similarly, the United States has increased scrutiny and rejection rates for these brands, especially after detecting salmonella in some MDH spice shipments. The Maldives also banned MDH and Everest spices after similar findings.
If China, influenced by actions in Hong Kong and ASEAN based on the precedents set by Singapore, decides to implement similar measures, Indian spice exports could see a dramatic downturn. The potential repercussions could affect exports valued at $2.17 billion, representing 51.1 per cent of India’s global spice exports. This situation could worsen if the European Union, which regularly rejects Indian spice consignments over quality issues, follows suit. An EU-wide rejection could impact exports of $2.5 billion, bringing the total potential loss to 58.8 per cent of India’s worldwide spice exports.
In fiscal year 2024, India's spice exports totaled $4.25 billion, accounting for a 12% share of the global spice exports.
According to GTRI, India needs to address the quality issues with urgency and transparency. Swift investigations and the publication of findings are essential to re-establish global trust in Indian spices.
