Quality concerns may threaten over half of India’s spice exports: GTRI

New Delhi: Economic think-tank Global Trade Research Initiative (GTRI) Wednesday said that nearly $700 million worth of India’s spice exports to critical markets are at stake due to cascading regulatory actions in many countries, as concerns are being raised about the quality of Indian spices. It cautioned that if the EU follows suit with a rejection across the bloc, it could impact an additional $2.5 billion of India’s spice exports.

The US, Hong Kong, Singapore, Australia, and Malé have raised questions on the quality of spices supplied by leading Indian firms MDH and Everest. India exported spices worth $692.5 million to these countries in FY24.

“This issue demands urgent attention and action to uphold the storied reputation of India’s fabled spice garden,” it said, adding that so far the response from Indian authorities has been tepid and formulaic.


Hong Kong and Singapore banned the sale of popular brands MDH and Everest after detecting carcinogenic chemical ethylene oxide in their products. This led to a mandatory recall from shelves.

“Swift investigations and the publication of findings are essential to re-establish global trust in Indian spices. Erring firms should face immediate repercussions,” it said.

As per the report, the primary violations in these incidents include the presence of ethylene oxide, a carcinogen used as a fumigating agent, and salmonella contamination, a common bacterial cause of foodborne illness.

“This situation could worsen if the European Union, which regularly rejects Indian spice consignments over quality issues, follows suit. An EU-wide rejection could impact an additional $2.5 billion, bringing the total potential loss to 58.8% of India’s worldwide spice exports,” said GTRI Co-Founder Ajay Srivastava.

If China, influenced by actions in Hong Kong and ASEAN based on the precedents set by Singapore, decides to implement similar measures, Indian spice exports could see a dramatic downturn, GTRI said.

“The potential repercussions could affect exports valued at $2.17 billion, representing 51.1% of India’s global spice exports,” Srivastava said, emphasising the need to address the quality issues with urgency and transparency.

Following international criticism, both the Spices Board and the Food Safety and Standards Authority of India (FSSAI) began routine sampling, yet no definitive statements about spice quality have been issued by these or any other government agencies, he said.

“This lack of clear communication is disappointing, especially given the comprehensive laws and processes in place for quality assurance,” he said.

As per Srivastava, despite denials of any wrongdoing by major companies like MDH and Everest, their continued rejections by international bodies should have raised alarms with both the Spices Board and FSSAI much earlier.

He cautioned that if the quality of products from top Indian firms is questionable, it casts doubt on the integrity of spices available in the Indian market as well.

The GTRI report suggested that the overall situation calls for a fundamental shift in how India handles food safety—transparency, stringent enforcement, and clear communication are crucial to restoring and maintaining the integrity of its exports and domestic products alike.

Fundamental changes are needed in the functioning of agencies regulating quality, it added.