Spice Industry Ramps Up Focus on Quality to Foster Consumer Trust in Domestic Market

The Indian spice industry is experiencing a significant transformation as it shifts its focus from export compliance to farm-level food safety. This change has been spurred by recent announcements made by the Spices Board regarding mandatory ethylene oxide (ETO) testing for every spice consignment exported to Singapore and Hong Kong, effective April 2024. These changes come in the wake of recalls of Indian spice products in these markets, underscoring an urgent need for enhanced quality control and traceability throughout the supply chain. In FY25, India produced approximately 11.99 million tonnes of spices valued at $4.52 billion in exports, but the average monthly spice exports for FY26 witnessed a decline of 20%, indicating underlying quality issues that need to be addressed.

This focus on enhancing quality and safety will have direct implications for the common citizen and market dynamics. For consumers, the increased emphasis on food safety can lead to greater trust in domestic products, as organized players establish stringent testing and quality standards. This trend could drive a higher willingness to pay for branded spices that assure quality and safety, consequently benefiting organized companies at the expense of unorganized players. As the domestic spice market, projected to grow from ₹2.22 lakh crore in 2025 to ₹5.29 lakh crore by 2034, remains predominantly unorganized, there exists a considerable opportunity for brands distinguishing themselves through quality assurance and transparent sourcing practices.

Moving forward, the government and the Spices Board will likely focus on implementing stronger domestic quality standards and fostering consumer awareness regarding food safety. This could include greater support for Integrated Pest Management (IPM) initiatives, farmer training, and direct procurement strategies that emphasize quality from cultivation through to the end consumer. Emerging spice companies now stand at a pivotal crossroads where their growth will depend on addressing quality challenges and leveraging modern distribution channels, including quick-commerce platforms, to reach urban markets efficiently. This strategic evolution in the supply chain not only aligns with consumer expectations but also positions the industry for sustained growth in the long term.

Source: The Hindu

(Expert Note: This report was independently prepared by the Wealthova Economy team.)