Intensifying regulatory actions against Indian spice giants in many countries puts nearly $700 million worth of exports to critical markets at stake, the Global Trade Research Initiative (GTRI) said in a report on May 1.
The United States, Hong Kong, Singapore, Australia, and Malé have reportedly raised questions about the quality of spices supplied by leading Indian firms MDH and Everest Group. The stakes are high given that India exported spices worth approximately $692.5 million in FY24 to these nations, the GTRI report added.
The private trade research think tank warns that if China and other ASEAN nations follow suit influenced by the actions taken by Hong Kong and Singapore, it could impact 51.1 percent of India’s global spice exports, valued at $2.17 billion.
“This situation could worsen if the European Union, which regularly rejects Indian spice consignments over quality issues, follows suit. An EU-wide rejection could impact an additional $2.5 billion, bringing the total potential loss to 58.8 percent of India’s worldwide spice exports,” the report added.
MDH and Everest Group, known for their dominance in Indian cuisine both domestically and internationally, including markets in the US, Europe, the Middle East, and the UK, have come under public scrutiny following a ban by Hong Kong authorities on the sale of certain products from these popular spice brands.
The ban was implemented due to the alleged presence of pesticides beyond permissible limits.
Following Hong Kong’s directive, the Singapore Food Agency (SFA) also issued a recall of imported Everest Fish Curry Masala. Major exported spices include chilli, cumin, spice oil and oleoresins, turmeric, curry powder, and cardamom.
Reportedly now these Indian spice brands are also under scrutiny in Australia.
“Every day new countries are raising concerns about the quality of Indian spices. This issue demands urgent attention and action to uphold the storied reputation of India’s fabled spice garden,” the GTRI report added.
Need of the hour
GTRI called for swift investigations and the publication of findings to re-establish global trust in Indian spices and urged for immediate repercussions for erring firms.
India’s Food Safety and Standards Authority of India (FSSAI) reportedly plans to conduct comprehensive quality checks of Indian spices sold by major brands, aiming to evaluate whether the products sold by these companies adhere to the standards established by FSSAI. The inspections are said to specifically target the presence of ethylene oxide, a pesticide deemed unfit for human consumption and associated with long-term cancer risks.
“However, the response from Indian authorities has been tepid and formulaic. Following international criticism, both the Spices Board and FSSAI began routine sampling, yet no definitive statements about spice quality have been issued by these or any other government agencies,” GTRI said.
GTRI added that despite denials of any wrongdoing by major companies like MDH and Everest, their continued rejections by international bodies should have raised alarms with both the Spices Board and FSSAI relatively earlier.
Indian spice brand MDH on April 28 assured consumers that its products are entirely safe and refuted the accusations made by food regulators in Hong Kong and Singapore.
“If the quality of products from top Indian firms is questionable, it casts doubt on the integrity of spices available in the Indian market as well,” GTRI added.
