India's Spices Exports Reach Record $4.46 Billion in FY24
Record-Breaking Export Figures
Indian spices exports achieved an unprecedented high in 2023-24, driven by a rebound in volumes and higher prices for key varieties such as pepper, cardamom, and turmeric. The total value of spices exports reached a record $4,46 billion, marking a 17% increase from the previous year’s $3,95 billion. In volume terms, exports grew by 9% to over 1.539 million tonnes compared to 1.404 in the previous year. In rupee terms, exports rose by 16% to $446 million from $385 million in the previous year.Chilli, Coriander, Ginger Lead the Pack
The growth in exports was fueled by higher demand for spices such as chilli, coriander, ginger, celery, fennel, and garlic, which saw increases in both volume and value. However, some commodities like pepper, fenugreek, tamarind, and mint products experienced a decline in both metrics.Top Destinations for Indian Spices
China emerged as the leading destination for Indian spices, followed by the USA, Bangladesh, the UAE, and Thailand. Despite being the largest producer and exporter of spices, India faces challenges in the current financial year, including availability issues for certain varieties like turmeric due to last year’s lower crop. Recent quality concerns raised by countries such as Hong Kong and Singapore over the presence of ethylene oxide (ETO) in some popular brands have also impacted exports.Quality Issues and Crop Shortages
Quick estimates from the Commerce Ministry for the first two months of the current financial year show a 5.84% decline in export value, down to $766,79 million from $814,37 million in the same period last year. Emmanuel Nambusseril, Vice Chairman of the All India Spices Exporters Forum, noted that the drop in exports is primarily due to crop shortages, particularly in turmeric, rather than the ETO contamination issue. He expects the overall export levels to remain consistent with the previous year.However, Nambusseril highlighted that some customers are now demanding new test results from external laboratories due to the ETO concerns, which could impose additional financial burdens on exporting companies.
India's spices export market has shown remarkable growth, hitting a record $4.46 billion in FY24. Despite some challenges, the sector remains robust, with strong demand continuing from key international markets. The industry must navigate quality concerns and crop shortages to sustain this growth trajectory.
