Description

Copyright infringement not intended

Context:

According to the World Spice Organisation (WSO), only 48% of India’s spice exports were value-added products while the remaining bulk hit the market as culinary whole spices.

Current Status

India is the world's largest producer and exporter of spices, with an annual production of approximately 1.5 million tonnes of spices. These exports are valued at around $4.5 billion, representing about 25% of the $20 billion global spice market.

Despite the significant production and export volume, India's share in the global seasoning market, which was valued at $14 billion in 2024, is only 0.7%. In contrast, China holds a 12% share, and the USA holds an 11% share in this market segment.

Challenges

Several challenges hinder India's ability to capture a larger share of the global seasoning market:

Only 48% of India's spice exports are value-added products, with the majority being whole spices for culinary use.
Inefficient agricultural practices, pesticide overuse, and outdated processing methods contribute to higher costs.
Strict global regulations on pesticide residues and contamination require stricter quality control measures.
Unpredictable monsoons and rising temperatures threaten yields and quality, which require the development of climate-resistant varieties.
Vietnam, Indonesia, Brazil, and China have expanded their presence in global spice markets, and African nations entered in spice cultivation.

Key Organizations

● World Spice Organisation (WSO): A not-for-profit organization established in 2011 in Kochi, Kerala, to focus on food safety and sustainability in the spice industry.

● Spices Board of India: A statutory body under the Ministry of Commerce and Industry, promoting research, processing, and export growth in the spice sector.

Way Forward

The Spices Board of India has set an export target of $10 billion by 2030, which requires increasing the share of value-added spices from 48% to 70%.

Analyzing the nutraceutical and pharmaceutical value of spices could significantly increase their market value. Many spices are already used in Ayurveda and other traditional medicine systems.

Strengthening trade agreements and diversifying export destinations could help India increase its market share.

Must Read Articles:

SPICED SCHEME

AN INNOVATIVE SUPPORT SCHEME FOR SPICES

SPICES BOARD

Source:

THE HINDU

PRACTICE QUESTION

Q. Analyze India’s stance on the Regional Comprehensive Economic Partnership (RCEP). What implications did opting out have? 150 words

https://t.me/+hJqMV1O0se03Njk9