Spice Production in India, India's Share in Global Market

Spice Production in India: India’s Position in the Global Spice Market

India, the world's largest producer of spices, cultivates diverse varieties like turmeric, cardamom, and black pepper, driving global spice trade with rich flavors and aromas.

Table of Contents

Context: India is the largest producer and exporter of diverse varieties of spices in the world; its share in the global seasoning market is very low.

Spice Production in India

India is the largest producer and exporter of spices, contributing to 75% of global spice production.
Produces a variety of spices like black pepper, cardamom, ginger, turmeric, chili, cumin, coriander, and saffron.
85% of spices produced in India are consumed domestically.
Top spice-producing states in India:
- (1) Madhya Pradesh, (2) Rajasthan, (3) Gujarat, (4) Karnataka, (5) Telangana.

World Spice Organisation (WSO)

WSO is a Non-profit organization bringing together farmers, processors, traders, and consumers.
It was founded in 2011. (HQ- Kochi, Kerala)
WSO hosts the National Spice Conference (NSC) along with the All India Spices Exporters Forum.
Focus areas:
- Sustainability – Promotes eco-friendly spice farming.
- Food safety & quality control – Ensures adherence to global standards.
- Training & research – Works with Farmer Producer Organizations (FPOs) to improve farming techniques and pesticide management.

India’s Share in the Global Seasoning Market

Despite being the largest producer and exporter of spices, India’s share in the global seasoning market ($14 billion in 2024) is only 7%.
- Spice refers to a single, dried plant part like a seed, bark, or fruit used to add flavor to food.
- Seasoning is a blend of various ingredients, including spices, herbs, salt and other flavor enhancers.
In contrast, China holds 12% of the market, while the U.S. accounts for 11%.

Reason for Low Share in Seasoning Market

India primarily exports raw spices, whereas countries like China and the U.S. dominate processed and value-added spices (seasonings).
There is a huge growth opportunity in the seasoning segment.

Need for Value Addition in Spice Exports

Currently, only 48% of India’s spice exports are value-added products
The remaining 52% is sold as whole spices.
Target:
- Increase value-added spice exports to 70%.
- Achieve $10 billion export revenue by 2030 (Spices Board of India’s target).
Emerging competitors: Vietnam, Indonesia, Brazil, China, and African countries are expanding their spice production.

Spices Board of India

Established: 1987 under the Ministry of Commerce & Industry. (HQ – Kochi, Kerala).
It is a statutory body under the Spices Board Act 1986.
It was formed by merging the Cardamom Board (1968) and the Spices Export Promotion Council (1960).
Key functions:
- Export promotion – Enhancing India’s global spice trade.
- Quality control – Operating testing labs in cities like Kochi, Mumbai, Chennai, Delhi, Tuticorin, Kandla, and Guntur.
- Farmer support – Training on pesticide management, hygiene, and sustainable farming.
It manages “Flavourit” – An outlet selling premium spices directly to consumers.