Industry
Mint Primer | Indian spices: the bitter taste of global scrutiny
Summary
- Regulators in the US, EU and many other countries have called out Indian spices over quality, presence of pathogens and toxins.
Regulatory action in Singapore and Hong Kong on two of India’s biggest spice brands—MDH and Everest—for alleged chemical contamination has turned the heat on spice exports. Mint looks at the issue and analyses what it could mean for the $4-billion export sector.
What just hit Indian spice exports?
On 5 April, Hong Kong’s food regulator suspended the sale of MDH spice mixes saying they contain high levels of ethylene oxide, a carcinogenic. Singapore followed suit with Everest, another top Indian spice brand. The Maldives has since banned both the brands while the US, Bangladesh and Australian food regulators have commenced investigations. Both Everest and MDH have denied any wrongdoing. Ethylene dioxide, a sterilizing agent, reduces microbial contamination and extends the shelf-life of food products. But excessive use of it may leave a residue.
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?
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.
What are the implications of this?
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 Delhi-based 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.
What action has India taken so far?
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 ethylene- oxide contamination. In the meantime, pressure is building on FSSAI to look into the quality of spices that are sold within India
