India Pushes Forward on Sustainable Spice Exports, Calls for Policy Reforms, and Introduces a New Turmeric Variety
India is making bold moves to reshape its spice export strategy—focusing not just on quantity, but on quality, traceability, and sustainability. With a ₹422.3 crore investment, increasing pressure to revise outdated pepper trade terms, and a new turmeric variety developed for global standards, the country is clearly signaling a shift in how it wants to play in the international spice market.
A New ₹422.3 Cr Push for Cleaner, Value-Added Spices
Launched in May 2025, the central government’s SPICED scheme—short for Sustainability in Spice Sector through Progressive, Innovative and Collaborative Interventions for Export Development—is a three-year initiative that aims to transform the backbone of India’s spice exports.
With funding spread across FY 2023–24 to FY 2025–26, the ₹422.3 crore program includes:
- Support for value-added products, including cleaning, grading, and packaging lines for spices like turmeric, cumin, and chili.
- Funding for farmer collectives and MSMEs, particularly those owned by SC/ST groups, to set up boilers, dryers, grinders, and distillation units.
- A focus on GI-tagged products and “Mission Clean and Safe Spices” to promote traceable, contaminant-free exports.
- Micro-irrigation and post-harvest upgrades for cardamom producers in Kerala, Tamil Nadu, and Karnataka.
Applications opened on May 26, 2025, and are scheduled to close in phases by June 30 and September 30, depending on the category.
This isn’t just a policy on paper. India exported $4.25 billion worth of spices in 2023–24, and yet a large portion of that volume was in raw or minimally processed form. SPICED aims to change that, putting India on the map for high-margin, processed exports—and not just commodity bulk.
Growing Friction Over Pepper Imports
While India’s policies are encouraging clean, local value addition, some areas remain stuck in the past—particularly when it comes to black pepper.
Importers have raised red flags over duty concessions that currently make importing cheaper than processing domestically. This has led to a surge in low-cost pepper imports, primarily from Vietnam and Sri Lanka, under FTA agreements (Free Trade Agreements).
According to the All India Spices Exporters Forum, processed pepper shipments fell by over 12% in FY 2023–24, while raw imports increased by 18% during the same period. Traders are now urging the government to renegotiate duty terms, especially for value-added pepper products.
The concern is simple: with India investing millions in processing infrastructure, letting low-cost raw imports flood the market undercuts local processors and exporters.
IISR “Surya” – A New Turmeric Variety for Powder and Profit
To further strengthen India’s spice portfolio, the Indian Institute of Spices Research (IISR) in Kozhikode has released a new turmeric variety: IISR Surya.
Unlike traditional varieties used for raw consumption or dye, IISR Surya is tailored for the powdering and masala industry:
- Color profile: Lighter shade, ideal for standardized spice blends
- Processing efficiency: Easier to dry, grind, and pack
- End-use quality: Stable curcumin content and aroma
This variety is being positioned to meet export preferences in markets like Europe, Japan, and the US, where uniformity, light color, and low contamination levels are critical to retail acceptance.
According to IISR, turmeric exports stood at 153,145 MT worth $207 million in 2023–24. The institute expects Surya to improve consistency and pricing for turmeric processors, especially in the powder segment that makes up more than 65% of global turmeric demand.
What This Means for Buyers and Exporters
This multi-pronged approach shows that India is:
- Investing in long-term export competitiveness, not just crop yields.
- Demanding policy corrections to protect domestic processors and clean-label suppliers.
- Breeding for global standards, with scientific R&D pushing the next generation of high-performing spice varieties.
The message is clear: India wants to be seen as a premium spice origin—capable of quality, sustainability, and traceability from seed to shipment.