The ongoing controversy involving MDH and Everest spice companies has the potential to jeopardize over half of India’s spice shipments, as per a report. It underscores the urgent need for the country to address the quality issue.
As per the Global Trade Research Initiative (GTRI), an economic think tank, every day, new countries have been raising concerns about the quality of Indian spices.
The report also emphasized the necessity for immediate attention and action to uphold the reputation of India’s spice industry.
The report stated that with nearly USD 700 million worth of exports to crucial markets at risk, and potential losses escalating to over half of India’s total spice exports due to regulatory actions in numerous countries, the integrity and future of India’s spice trade are delicately balanced.
“Swift investigations and the prompt publication of findings are imperative to restore global confidence in Indian spices. Companies found to be in error must face immediate consequences,” it added.
Following the alleged detection of the carcinogenic chemical ethylene oxide in their products, popular Indian spice brands MDH and Everest faced bans on sales in Hong Kong and Singapore. This prompted a mandatory recall from store shelves.
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The report highlighted that the primary infractions in these incidents were the discovery of salmonella contamination, a common bacterial source of foodborne illnesses, and ethylene oxide, a carcinogenic substance employed as a fumigating agent.
“If the European Union, which regularly rejects Indian spice shipments over quality concerns, takes similar action, this situation could exacerbate. A rejection across the EU could affect an extra USD 2.5 billion, raising the total potential loss to 58.8 percent of India’s global spice exports,” stated GTRI Co-Founder Ajit Srivastava.
Referring to specific reports, the GTRI indicated that the US, Hong Kong, Singapore, Australia, and now Male have all raised concerns about the quality of spices provided by prominent Indian companies such as MDH and Everest.
“In the fiscal year 2024, India exported spices worth approximately USD 692.5 million to these countries,” Srivastava emphasized, highlighting the high stakes involved.
“If China, guided by steps in Hong Kong & ASEAN based on Singapore’s precedents, decides to enact similar regulations, Indian spice exports may plummet dramatically. The potential consequences might harm exports worth USD 2.17 billion, accounting for 51.1% of India’s global spice exports,” he stated.
Srivastava remarked that thus far, Indian authorities have provided a lukewarm and predictable response.
After facing international criticism, both the Spices Board and the Food Safety and Standards Authority of India (FSSAI) initiated routine sampling. However, according to him, neither these nor any other government agencies have made clear statements regarding the quality of spices.
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He expressed disappointment over the absence of transparent communication, particularly considering the extensive laws and protocols established for quality assurance. Despite the assertions of innocence by major companies such as MDH and Everest, their consistent rejections by international entities ought to have alerted both the Spices Board and FSSAI much earlier, he remarked.
He warned that if the quality of products from leading Indian firms is in doubt, it raises concerns about the integrity of spices in the Indian market as a whole.
According to the GTRI report, the current circumstances necessitate a fundamental change in India’s approach to food safety. Transparency, rigorous enforcement, and effective communication are deemed essential for reinstating and upholding the integrity of both its exports and domestic products.
It further emphasized the necessity for fundamental changes in the operations of agencies responsible for regulating quality.
Spices, which encompass dried portions of plants such as seeds, roots, bark, and fruits, are esteemed for their diverse flavors, fragrances, and preservative attributes. Popular examples comprise cloves, cinnamon, ginger, black pepper, cumin, and coriander. Not only do spices enrich taste and imbue dishes with vibrant hues, but they also occasionally mask unpleasant odors, thereby playing a pivotal role in culinary traditions worldwide.
During the fiscal year 2023-24, India’s spice exports reached a sum of USD 4.25 billion, representing a 12 percent slice of the worldwide spice export market.
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India’s primary spice exports comprised chili powder leading the roster with USD 1.3 billion in exports, trailed by cumin at USD 550 million, turmeric at USD 220 million, cardamom at USD 130 million, mixed spices at USD 110 million, and spice oils and oleoresins at USD 1 billion.
Aside from cloves and cinnamon, other noteworthy exports were asafoetida, nutmeg and saffron.
India spent USD 1.5 billion on spices imports. The most popular imports were asafoetida ($110 million), coriander and cumin ($210 million), cinnamon and cassia ($270 million), nutmeg ($118 million), and spice oils as well as oleoresins ($354).
India’s main buyers were Bangladesh ($339), the US ($574), and China ($928), which imported spices valued at USD 574 million.
Additional notable purchasers comprised the UAE (USD 256 million), Thailand (USD 193 million), Malaysia (USD 147 million), Indonesia (USD 137 million), UK (USD 122 million), Australia (USD 63 million), Singapore (USD 50 million), and Hong Kong (USD 5.5 million).
The global spice trade reached a value of USD 35 billion in 2023, with China emerging as the leading exporter, boasting exports totaling USD 8 billion in the same year.
According to the GTRI, the top exports include pepper powder (USD 2.4 billion), turmeric, ginger, and fresh and dried garlic (USD 1.6 billion), coriander, as well as cumin seeds (USD 800 million).
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