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What Impacts Will Have New Regulations on Indian Spice Exports?

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India Is Adapting to European Regulations On Spice Exports

New regulations have been introduced for Indian spice exports to European countries, necessitating an official certification process. The European Federation of Indian Spices Board, in 2021, issued a circular mandating the submission of an official certificate that verifies the absence of ethylene oxide (ETO) in exported Indian spices. Indian exporters are now required to present analysis reports approved by the Spices Board of India, accompanying the spice products intended for export.

Impact of Ethylene Oxide Regulation

Ethylene oxide, a chemical used in post-harvest processing to extend the shelf life of spice products by preventing contamination or the growth of microorganisms, has been found in quantities exceeding the Maximum Residue Limits (MRL) set by the European Union. This discrepancy has resulted in a significant reduction in spice exports, approximately five lakh tonnes less than the previous year, highlighting the challenges faced by the Indian spice industry in meeting international standards.

Diversity and Export Increase

India cultivates 75 different types of spice crops, catering to a diverse global market that includes the United States, Indonesia, Saudi Arabia, Bangladesh, Sri Lanka, Malaysia, Japan, and Europe. Reports from the Spices Board indicate a steady increase in the export of various spices, such as black pepper, cardamom, chilli, turmeric, and ginger, since the fiscal year 2017-18. With over 8,000 exporters participating in the global market, the Indian spice industry has shown remarkable adaptability and growth.

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Compliance with International Standards

The European Union’s stringent MRL for ethylene oxide, set at 0.1 mg per kg for most spices and at 0.02 mg per kg for chilli, its derivatives, ginger, and its derivatives, necessitates careful compliance from Indian exporters. Similar requirements have been imposed for the export of small cardamom to Saudi Arabian countries, where a Certificate of Conformity (COC) from SFDA-approved Indian organizations is mandatory. Despite a decrease in overall spice export volumes in 2022-23, the industry saw an increase in turnover, amounting to USD 3805.92 million, underscoring the value addition and resilience of the Indian spice export sector amidst regulatory challenges.

This overview sheds light on the evolving landscape of Indian spice exports, focusing on the new certification requirements for European markets and the broader implications for India’s position in the global spice trade. The emphasis on safety standards and the health implications of ethylene oxide usage underscore the industry’s commitment to quality and consumer safety, driving necessary adjustments to maintain and enhance India’s export performance.

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