What is the current status with respect to spice exports?

Sub: Economy

Sec: External sector

Context:

The Indian authorities have initiated several measures to ensure that Indian spices comply with food safety standards of the importing countries.

Background of the news:

Last month, Hong Kong and Singapore recalled certain spice mix products of the MDH and Everest Group allegedly over the presence of a higher than prescribed level of the sterilizing agent Ethylene Oxide (ETO).
Countries have different standards for ETO and maximum (pesticide) residue levels (MRL).
The European Union has stringent norms for both ETO and MRLs while Japan largely sources only organic products.

Where does contamination occur?

India does not use ETO as a pesticide but only as a sterilizing agent to reduce microbial load in finished (spice) goods.
Many of the large factories receive material from the farm/mandies, which is then fed on automated lines.
It leaves them with high microbial levels and forces companies to opt for ETO sterilization.
The contamination levels can be reduced early through the processes adopted for value addition.

Indian spice exports:

A quick export estimate data available with the Spices Board India shows that India enjoys a significant share in the global market for spices and spice products.
In 2023-2024, India exported spices worth $4.4 billion (nearly 14 lakh tonnes), which is 12.3% higher than the financial year 2022-2023.
Chili, spice oils and oleoresins, curry powder and paste, cumin, mint products, cardamom and pepper are some of the largest exported spices and spice products in the financial year 2022-2023.
In terms of production, garlic, ginger and chili were the top three spices produced in FY23.
China, Bangladesh, west Asian countries and the U.S. are important markets for Indian spices.
India’s share in total spice production globally is about 70%.

Spice Board of India:

Spices Board was constituted on 26th February 1987 under the Spices Board Act 1986 with the merger of the erstwhile Cardamom Board (1968) and Spices Export Promotion Council (1960).
The Spices Board is one of the five Commodity Boards functioning under the Ministry of Commerce & Industry.
Headquartered in Kochi, the board operates state-of-the-art testing laboratories in several cities including Mumbai, Chennai, Delhi, Tuticorin, Kandla, and Guntur, ensuring mandatory quality checks for exported spices.
Following the recall by Hong Kong and Singapore, the Spices Board issued a detailed protocol to all manufacturing exporters to prevent ETO contamination.
The board is starting mandatory testing of spice consignments to Singapore and Hong Kong for ETO.