Case study on recent trends in export rejections of spices from India: reasons, responses and regulatory challenges

Abstract

Spices, integral to culinary traditions worldwide, significantly contribute to global trade and India's agricultural economy. India, the leading producer and exporter of spices, accounts for 7.7% of country’s agricultural export earnings and exports to over 185 countries. Despite impressive growth in production and exports, export rejections remain a critical challenge, with over 200 consignments rejected annually due to factors such as pesticide residues, microbial contamination and poor labelling. These rejections, which vary by export destinations, compromise India’s reputation and economic interests, particularly affecting smallholder farmers who dominate spice production. As a global supplier of spices, India's food safety and spice quality have global ramifications.

This study uses data from the United Nations Industrial Development Organization (UNIDO) Knowledge Hub (2010-2022) to analyses export rejections of Indian spices under HS code 09. It focuses on trends, underlying causes and mitigation strategies. Although aggregate rejection rates have declined by 53 % over the past decade, the number of export rejections is still significant. Mitigation strategies, including adoption of Good Agricultural Practices (GAP), Hazard Analysis and Critical Control Points (HACCP) protocols, traceability systems and capacity building, are crucial. Addressing export rejections requires an integrated approach involving all stakeholders in the spice value chain. Strategic investments in technology, training and research, along with proactive engagement with trade partners, are essential for sustaining India’s dominance in the global spice trade. Further research is necessary to evaluate compliance costs and their implications for both producers and consumers, paving the way for more sustainable trade practices.