Increased Demand from China and Bangladesh Boosts Red Chilli Exports

Despite bans from Hong Kong and Singapore on spices from some Indian companies, India’s spice exports reached a record level in the financial year 2023/2024. During this period, India exported spices worth $4.46 billion, marking a 17 percent increase from the previous year. The volume of exports also rose by nine percent to 1.539 million tonnes. A significant portion of this growth was driven by high prices of black pepper, cardamom, and turmeric.

The export of red chillies increased by 15 percent to $1.509 billion due to high demand from China and Bangladesh. China emerged as the top importer of Indian spices, particularly red chillies.

Growth in Various Spice Exports

In the last financial year, exports of chilli, coriander, ginger, celery, fennel, and garlic saw significant growth. However, exports of black pepper, fenugreek, tamarind, and mint products experienced a decline. China remained the leading importer of Indian spices, followed by the USA, Bangladesh, UAE, and Thailand.

India is the world's largest producer and exporter of spices. Last year, China imported 179,000 tonnes of chillies from India, worth over $494 million. Following China, Thailand and Bangladesh were also major importers. Chilli exports to Bangladesh increased by 67 percent, while exports to the USA grew by about 25 percent.

Potential Decline in Spice Exports Expected

Experts predict that the current financial year may see a decline in spice exports from India. This is attributed to a reduction in the production of certain spices and the bans imposed by Hong Kong and Singapore on products from some companies.

In the first two months of the current year, spice exports saw a slight decline of 5.84 percent. Experts attribute this not to the bans but to decreased production, particularly of turmeric. Despite this, if the trend of the first two months continues, the export of spices from India is expected to remain at par with last year’s levels.

India’s spice exports, led by a significant increase in red chilli exports to China and Bangladesh, reached a record $4.46 billion in FY 2023/2024. However, potential challenges in the form of reduced production and import bans could impact future exports. The spice industry will need to navigate these obstacles to maintain its strong export performance.