India’s spice exports grew by 6.2% in the April–June quarter of the current financial year, reaching over $1,156 million, according to data from the Commerce Ministry. This growth was driven by increased shipments of oleoresins, seed spices, spice oils, and spice mixes. During the same period last year, spice exports were valued at $1,088 million.
While exports saw steady growth in April and May, June witnessed a slight decline. Exports in June dropped 2.26% to $312.85 million, compared to $320.07 million in June 2024. However, in April-May, exports had surged by 9.7% to $843.6 million, up from $768.82 million in the previous year.
Emmanuel Nambusseril, Chairman of the All India Spices Exporters Forum, attributed the growth to strong demand for value-added products such as oleoresins, spice oils, spice mixes, chillies, and seed spices. He also noted that the fear of increased tariffs by the US from July may have prompted buyers to advance their purchases.
Positive Outlook Amid Tariff Concerns
Looking ahead, the outlook for the rest of the financial year remains positive. However, there are concerns that market distortions could arise due to uncertainty around potential tariff hikes by the US.
“We expect an overall annual growth of around 5%, provided the market remains strong and weather conditions support a good harvest,” Nambusseril said. “At the same time, we’re cautious due to the possibility of higher US tariffs starting in August.”
The US is India’s second-largest market for spices after China. Exports to the US in FY25 rose 15% to $711.16 million, up from $619.29 million the previous year. Also Read | Plantation Crops: tea, coffee, tobacco, and spices exports rise $9.16 billion in FY25
Record High Exports in FY25
India, the world’s largest producer, consumer, and exporter of spices, hit a new record in spice exports during FY 2024–25. The country exported 17.99 lakh tonnes of spices and spice products, a 17% increase from 15.40 lakh tonnes the previous year.
In dollar terms, total exports rose by 6% to $4,722.65 million, up from $4,464.17 million. In rupee terms, the value of exports climbed 8% to ₹39,994.48 crore, compared to ₹36,958.80 crore in the previous fiscal.
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