It may be beneficial for India to change the focus on derivatives of high value spices | Photo credit: Photo Cris
While India dealt with the agitation of the Trump rate, attention has been in sectors such as cars and auto parts, and agriculture is the next probable objective for the punitive rate.
In today’s world, global value chains (GVC) that drive international trade and the agricultural sector is no exception.
Here we study the case of spice trade where India was a historical pioneer. However, approximately the time that China has taken the lead mainly due to value chains.
Spices Center
For centuries, India was in the center of the old spice route. This sea route connected India with Africa, the Middle East and Europe. Muziris de Kerala and Bharuch de Gujarat were important to export black pepper, silk, gems, ivory and other spices.
India remains the largest spice producer in the world with more than 70 percent participation. But India’s participation in global trade has hesitated. This is because the commercial strategy has not incorporated value chains into the spices.
Despite the domain of production, in the export market for global condiments of $ 15.8 billion, that is, the way in which most of the spice trade occurs, India only has a small part of 0.6 percent. China, the United States, Italy and Germany, on the other hand, command 12 percent, 11 percent, 9 percent and 6 percent, respectively (ITC Trade MAP, 2023).
Although most of the spice trade takes the form of seasoning, the spice trade of India remains focused on upstream stages in terms of raw and whole spices of the value chain. The seasoning is downstream activity with presence or large exporters. This is similar to the destination of Africa in chocolate, where the addition of value through the brand and premium prices are carried out in other countries.
China and the United States thought that not among the largest spice producers, they capture the maximum value in the condiment export market.
Value chain
The essence of trade driven by the value chain is that the country must be an important importer to be an important exhibition. The United States and China imported $ 349 million in SUP India, mainly in a raw and complete way, then processed and exported to significantly higher margins.
For India to claim your spice glory, you need to have an important presence in the GVC.
The seasoning is a stage in the value chain. Other internships include processed, nutraceutical spices, with brand and packaging. To advance the value chain, it is necessary to improve processing capabilities, guarantee the consistency of quality and strategic brand and credible qualification and certification.
McCormick & Company, the world’s largest spice company, obtains its raw spices from India and combines, brands and formula condiments and exports to North America and Europe.
In these turbulent times, the integration of the value chain as a central commercial strategy is required. Under stress, settled in the value chain stage with the greatest efficiency would offer benefits.
High value approach
It may be beneficial for India to change the approach to derivatives of high value spices. These include products such as essential oils and extracts such as turmeric curcumin and black pepper piperine with potential for both culinary use and the growth of nutraceutical and pharmaceutical industries. Similarly, the personalization of precipitated condiments to international tastes can strengthen the global footprint of Indian brands.
In addition, India can invest in functional food ingredients, establish itself in the health and well -being sector as a key supplier and unlock a greater value of your spice trade.
An essential part of the GVC is innovation, design and marketing. These include not only food technology improvements, but also other sources of product differentiation, such as the GI brand and comply with global standards.
The writers are with the IFPRI office in southern Asia. The views are personal
Posted on April 16, 2025
