Strengthening India's Spice Industry | 10 Mar 2025

Source: TH 

Why in News?

The World Spice Organisation (WSO) highlights that despite being the largest spice producer, India holds just 0.7% of the global seasoning market, and calls for higher production, value addition, to achieve the USD 10 billion export target by 2030.

What is the Status of Spice in India?

• Production: In 2022-23, India produced 11.14 million tonnes of spices, a slight increase from 11.12 million tonnes in 2021-22. 
  • India produces 75 of 109 International Organization for Standardization (ISO)-listed spice varieties, with chilli, cumin, turmeric, ginger, and coriander accounting for 76% of total production.  
  • In terms of production, garlic, ginger and chilli were the top three spices produced in FY23. 
• Largest Spices-Producing States: Madhya Pradesh, Rajasthan, Gujarat, Andhra Pradesh, Telangana, Karnataka, Maharashtra, Assam, etc. 
• Exports: Major exports include pepper, cardamom, celery, fennel, fenugreek, garlic, nutmeg, curry powder, and spice oils. 
  • In 2023-2024, India exported spices worth USD 4.4 billion (nearly 14 lakh tonnes). Chilli is India's top exported spice, accounting for 31% of total spice exports. 
  • India exports spices to 200 destinations worldwide, with China, Bangladesh, West Asian countries, and the US being key markets. 

• Concerns: Despite being a leader in raw spice exports, India holds only 0.7% of the global seasoning market, far behind China (12%) and the US (11%). 
  • This is due to low value addition, with only 48% of exports being processed products.  
  • Instances of Adulteration and pesticide residues have led to export rejections, tarnishing India's reputation in international markets. 
  • Growing competition from Vietnam, Indonesia, Brazil, China, and countries like Thailand, Sri Lanka, and Madagascar further challenges India’s dominance.  
  • Heavy reliance on traditional crop varieties, poor processing, and inadequate post-harvest handling reduce quality and shelf life. Additionally, limited mechanization increases production costs and lowers efficiency. 
• Measures to Expand Market: Country’s share in value-added spices should rise up to 70%. 
  • India's 15 agro-climatic zones support diverse spice cultivation. Developing high-yielding and climate-resistant varieties can boost production and enhance exports.