Pak Spices Flood Global Kitchens As Indian Masalas Get Way Too Hot To Handle

The latest advantage has been all but gifted to Pakistan, with a few top Indian masala vendors being blacklisted by some countries for adulteration and chemical-treatment.

With Singapore, Hong Kong, and the Maldives imposing bans and Australia all but joining in, this is a loss of face for India.

It is a fall in revenues as well, denting a Rs 30,000-crore market growing at 5.9 per cent CAGR and slated to touch revenues of Rs 50,000 crore by 2030, according to reports published by Coherent Market Insights and Spices Board of India. Spices have been popular around the world since ancient times due to food flavour and preservation qualities, with the Indian sub-continent as the darlings of this supply chain. 

India has also witnessed a spurt in exports of exotic seasonings, including those of Italian and Mexican descent, with sales skyrocketing. Until now… 

World's Largest Exporter of Spices Hit By Quality Questions

Just last month, egg and hot spices were smeared on India’s culinary face when Singapore and Hong Kong banned spice imports from two of India’s top spice companies—Everest and MDH. This was because spices exported by these two firms exhibited traces of prohibited pesticide ethylene oxide and salmonella contamination, testing bodies in these countries claimed, citing the same hiccups that saw the United States ban Indian masala imports some months back. Australia may well be the next in line as it is believed studying the situation.

India is the world’s largest exporter of spice and related accoutrements, with export revenues touching US $3.67 billion in 2023-24 (till February 2024), according to the India Brand Equity Foundation. In Financial Year 2023, the country exported spices worth US $3.73 billion. From 2016-17 to 2022-23, exports grew at a CAGR of 5.85 per cent, with chilli (0.51 million tonnes), cumin (0.18 MT), turmeric (0.17 MT) and ginger (0.05 MT) being the hot sellers. In 2022-23, turmeric, coriander, garlic, curry powder, asafoetida and tamarind, among others, expanded in both value and volume, compared to previous years.

Any consumer perception change about the quality of Indian spices could hit not just two or three firms but almost all spice exporters from this country and benefit competitors.

Coming on the back of the August 2023 ban on the exports of basmati rice valued at under US $1,200 per metric tonne, this question mark on Indian spices is something of a God-sent answer for Pakistani competitors. 

India also imposed an export duty of 20 per cent on white rice (non-basmati) in September 2022, which was reduced in 2023. For August-November 2023, Indian rice exports totalled 3.7 million metric tonnes, a decline of 46 per cent from the previous year. Only basmati rice exports increased, up 12 per cent during August-November 2023, compared to 2022.

Advantage Pakistan. Vietnam 

“For Pakistan industry, spices in particular present a growth opportunity, but this is hampered by weak distribution channels, limited presence on e-commerce platforms, grey channeling and logistics costs,” the Pakistan Business Council said. Spice and rice exporters also said a dedicated association could help formulate a long-term export growth strategy. Leading Pakistani exporters eyeing the opportunity include National Foods, Shan Foods, Chef’s Pride, Mehran Foods, Ahmed Foods, Habib Foods, Zaiqa Foods, and Kitchen Secrets.

Others like Vietnam and Indonesia are also keenly watching out for even a temporary blip in the Indian spices and rice exports juggernaut. For instance, Vietnam saw exports of spices reach US $1 billion  in just the first eight months of 2023, rising 7 per cent over the previous year. The country is emerging as a key player in the exports of pepper, cinnamon and star anise, with annual growth touching 25-32 per cent between 2016 and 2022.

Supply Chain Woes 

If that weren’t enough, Indian exporters of rice and spice have other reasons to worry about too, especially after Iran’s attack on Israel, which could impact shipping lanes and the supply chain. Iran accounted for $598 million of the total of US $4.59 billion worth of basmati rice exported till February 2004, Government data shows. Countries such as Iran and Israel are major consumers of Indian rice, in particular the long-grained and aromatic basmati. If the region turns into a conflict zone, exports could get impacted, industry players worry.

There’s worry too on the ‘healthcare spice market front’, which has been seeking to expand into the lifestyle-related wellness space for a while. Most of this family of spices and herbs are grown in the Eastern Himalayan belt, including India’s Sikkim and Darjeeling, Bhutan, Nepal, Pakistan, Iran and Afghanistan, with all targeting this business space as it offers strong returns and profitability.

As many as 24 tropical spices and herbs have seen demand jump, including cardamom, black jeera, fennel, poppy, coriander, fenugreek, bay leaves, clove, cassia bark, black pepper, nutmeg and black mustard. Historically, they have been used for pharmacological benefits, given their anti-inflammatory, antimicrobial, anti-diabetic, anti-obesity, cardiovascular, gastrointestinal and antioxidant properties. In the midst of this, question marks on Indian spices are causing quite a flutter.

Jury Still Not Out

To park that runaway train once and for all, MDH, considered India’s ‘spice king’, has denied allegations of pesticide contamination, refuting claims from regulators in Hong Kong and Singapore. The controversy erupted when Hong Kong’s Centre for Food Safety claimed to have detected pesticide ethylene oxide in some pre-packaged spice products from MDH and Everest. “We do not use ethylene oxide at any stage of our spice production. We adhere to stringent health and safety standards in India and internationally,” MDH and Everest said.

For now, the jury is not yet out on this matter. 

(The writer is a veteran journalist and communications  specialist.  Views expressed are personal)