India’s spice export earnings declined 6% year-on-year to $4.43 billion in FY2025-26, reflecting weaker global demand for key commodities such as chilli and cumin despite continued strong shipments of several other spices.
According to industry data, lower international demand and softer prices for chilli and cumin, two of India’s largest spice export categories, weighed on overall export performance during the fiscal year. The decline comes after a period of strong growth driven by elevated global demand and higher prices for Indian spices.
Exporters said reduced purchases from major importing countries, coupled with increased competition from other producing nations and a correction in commodity prices, affected export realizations. Chilli exports, which account for a significant share of India’s spice trade, witnessed slower demand from traditional markets, while cumin shipments were impacted by changing inventory levels and price-sensitive buying patterns.
Despite the decline in export earnings, India maintained its position as the world’s largest producer, consumer and exporter of spices. Several product segments, including turmeric, spice oils and oleoresins, value-added spice products and blended seasonings, continued to attract demand in international markets, helping cushion the overall impact of weaker sales in key categories.
Industry stakeholders noted that growing consumer interest in natural ingredients, ethnic foods and health-oriented products continues to support long-term demand for Indian spices. Exporters are increasingly focusing on value-added products, quality certifications, traceability systems and market diversification to improve competitiveness and reduce dependence on a limited number of export destinations.
The sector is also exploring opportunities in emerging markets across Asia, Africa and Latin America while strengthening its presence in established markets such as the United States, the European Union, the Middle East and Southeast Asia.
Trade bodies remain optimistic about a recovery in the coming months, citing expectations of improved demand, stable production levels and expanding opportunities for processed and premium spice products. They believe continued investments in quality enhancement, food safety compliance and branding will be critical to sustaining India’s leadership in the global spice trade.
Spices remain an important component of India’s agricultural exports, contributing significantly to farm incomes, rural employment and foreign exchange earnings. Industry participants expect demand to gradually improve as global inventories normalize and consumer spending strengthens in key import markets.
