Syllabus: GS 3/Economy
Context
- The World Spice Organisation (WSO) is working with FPOs (Farmer Producer Organizations) to enhance safety, quality, and sustainability in spice cultivation by training farmers in quality control.
World Spice Organisation (WSO) – It is a not-for-profit organisation registered under the Travancore Cochin Literary, Scientific And Charitable Societies Act, 1956 with the primary objective of facilitating the Spice Industry in dealing with issues of “Food Safety & Sustainability”. – It involves all its stakeholders—the general public, the industry, the academia and the end-users. |
Spices Market In India
- India is known as the ‘Spice Bowl’ of the world. It produces a number of quality, rare and medicinal spices.
- India is the world’s largest spice producer. It is also the largest consumer and exporter of spices.
- India holds only 0.7% of the $14 billion global seasoning market in 2024, compared to China’s 12% and the USA’s 11%.
- India exports 1.5 million tonnes of spices worth $4.5 billion, capturing a quarter of the $20 billion global spice market.
- Only 48% of India’s spice exports are value-added products and to meet the Spices Board of India’s $10 billion export target by 2030, the share of value-added spices should rise to 70%.
- The largest spice-producing states in India are Madhya Pradesh, Rajasthan, Gujarat, Andhra Pradesh, Telangana, Karnataka, Maharashtra, Assam, Orissa, Uttar Pradesh, West Bengal, Tamil Nadu and Kerala.
Challenges in the Spices Sector
- Impact of Climate Change on production: Erratic rainfall, droughts, and rising temperatures affect spice production. India’s current spice production is insufficient for meeting export demands.
- Example: Cardamom cultivation in Kerala has suffered due to irregular monsoons and extreme heat.
- Pests & Diseases: Spices are highly vulnerable to fungal infections, pests, and viral diseases.
- Example: Black pepper vines in Karnataka have been affected by quick wilt disease, reducing yield.
- Quality Control & Adulteration: Adulteration in spices reduces export credibility and poses health risks.
- Example: Turmeric adulteration with metanil yellow (a toxic dye) has raised food safety concerns.
- Export Restrictions & Global Standards: Stricter pesticide residue limits (MRLs) by countries like the EU & US hinder exports.
- Example: Chili exports to the EU faced rejection due to high pesticide residue levels.
- Low Farmer Income & Market Fluctuations: Price volatility and middlemen dominance reduce farmers’ profits.
- Example: Cumin farmers in Gujarat struggle with price crashes due to oversupply.
Suggestions
- India should explore the nutraceutical and pharmaceutical value of spices, which are already used in Ayurveda and other forms of medicine.
- To boost exports, production needs to increase, and focus should be on reducing production costs, improving quality, and increasing value-added spice exports.
- There is a need to develop high-yielding and climate-resistant spice varieties, with organizations like ICAR and National Research Centre on Seed Spices already working on this.
Source: TH
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