In an unexpected change of events, India’s spice exports decreased considerably in May 2024, after showing positive increases earlier this year. Official trade data reveal that spice exports plummeted 20.28% to $361.17 million. This fall comes after Hong Kong and Singapore raised concerns about the safety of MDH and Everest spice products due to the presence of the insecticide ethylene oxide (EtO).
Promising Start to 2024
.India’s spice exports started off on a positive note in 2024. March saw an impressive 51% year-on-year gain, followed by a 12% increase in April. However, this upward trend did not continue into May, as exports fell significantly. Spice exports plummeted 20.28% in May to $361.17 million, down from $405.62 million the previous month. This sequential fall of 10% from April to May suggests mounting issues for the industry.
Hong Kong and Singapore Alerts
The drop in spice shipments is mostly due to safety concerns. In April, both Hong Kong and Singapore identified higher-than-allowable amounts of EtO in shipments from MDH and Everest, two well-known Indian spice brands. Hong Kong’s food safety regulators recommended against consuming four of these firms’ goods, while Singapore’s Food Agency ordered the recall of Everest’s fish curry masala due to hazardous EtO levels.
Domestic Implications
In response to international concerns, the Rajasthan Food Department conducted its own testing, which revealed herbicides and insecticides in specific batches of MDH and Everest products. This prompted recalls and increased scrutiny of these brands in India as well. In fiscal year 2023-24, India’s spice exports totaled $4.25 billion, up from $3.7 billion in 2022-23. Despite this development, the recent decline in May is concerning, particularly given India’s sizable 12% share of the world spice market.
Major Exported Spices
Chili powder, cumin, turmeric, and cardamom are among India’s top spice exports. Safety concerns and subsequent export drops could have an influence on these key segments. Industry associations and think tanks, such as the Global Trade Research Initiative (GTRI), have cautioned that continued safety and quality concerns may jeopardize spice exports. Other key markets, including the European Union and China, are expected to reject Indian spice consignments if similar difficulties materialize.
Spices Board of India Initiatives
In response, the Spices Board of India is implementing corrective measures to address these safety issues. Measures include implementing steam sterilization technology and improving food supply chain tracking. These actions are intended to prevent future rejections and assure compliance with international safety requirements.
Government Perspective
Officials have highlighted the complexity of global safety standards, noting that residue levels acceptable in one country may differ in another due to varying dietary choices. However, the lack of a standardized global benchmark for EtO, particularly in CODEX, complicates the situation. Some countries have not defined maximum residue levels (MRL) for 2-Chloroethanol, adding to the challenge.
Importance of Food Safety
This situation underscores the critical importance of stringent food safety regulations and regular testing to protect consumers from harmful substances. Ensuring the safety of food products is paramount not only for consumer health but also for maintaining market confidence and export credibility.
Brand Trust and Market Recovery
The accidents involving MDH and Everest underscore the importance of rigorous quality control measures. Rebuilding trust in these brands is critical for the resurgence of spice exports. Consumer awareness and assurance about safety standards will be critical in restoring market stability.
The 20% drop in spice shipments in May 2024 is a sharp reminder of the impact of food safety concerns on global trade. The Uttar Pradesh government’s proactive attempts to improve finance flow to startups and rural firms, together with the Spices Board of India’s corrective actions, are intended to offset these difficulties. By addressing safety concerns and cultivating a resilient export market, India can reclaim its place as a leading global spice exporter.
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