
Written By: Jagriti Shahi India is renowned worldwide as the “Spice Bowl of the World,” exporting a rich variety of spices and herbs to global markets. This sector plays a critical role in the country's agricultural economy, contributing significantly to its export revenues. In recent years, the increasing demand for natural ingredients in global food and health industries has propelled India’s spices and herbs export market into a rapid growth trajectory. In this article, we explore key opportunities and leading players in India’s booming spices and herbs export market.

Figure: Global Market Share of Indian Spices by Category

Figure: Market Share of Top Spices in Global Exports

figure: Top Exporting Countries for Indian Spices
Unique Indian Species and Herbs with High Export Potential

Figure: Regional Distribution of Spice Cultivation in India (2023)

1. Black Turmeric (Curcuma caesia)
Description: Black Turmeric is a rare species of turmeric with bluish-black rhizomes. It is traditionally used in Ayurvedic medicine for its powerful anti-inflammatory and anti-fungal properties.
Uses: It is used to treat pain, respiratory issues, and skin conditions.
Nickname: Often referred to as "Blue Gold" due to its rarity and high value in certain markets.

2. Black Pepper (Piper nigrum)
Nickname: "Black Gold"
Description: Black Pepper is the world’s most traded spice, grown primarily in Kerala, Karnataka, and Tamil Nadu. It is known for its strong flavor and medicinal benefits, including aiding digestion and acting as an anti-inflammatory.
Uses: Extensively used in culinary applications and traditional medicine.

3. Sandalwood (Santalum album)
Nickname: "Green Gold"
Description: Indian Sandalwood is prized for its aromatic wood and oil, which is used in perfumery, incense, and traditional medicines.
Uses: Used in cosmetics, religious rituals, and aromatherapy.
Export Market: Sandalwood products, especially oil, are highly sought after globally.

4. Moringa (Moringa oleifera)
Description: Known as the "Miracle Tree", Moringa is valued for its nutrient-rich leaves and seeds, used in health supplements, food products, and cosmetics.
Uses: Moringa is used for its high nutritional value, containing essential vitamins and antioxidants.
Export Market: Moringa powder, oil, and capsules are in high demand, especially in the global health and wellness markets.

5. Saffron (Crocus sativus)
Nickname: "Red Gold"
Description: Saffron is one of the most expensive spices in the world, primarily grown in Kashmir. It is used in a variety of cuisines and traditional medicines.
Uses: Used in cooking, as a natural dye, and in skincare for its antioxidant and anti-inflammatory properties.

6. Turmeric (Curcuma longa)
Description: Known for its vibrant yellow color and potent anti-inflammatory properties, Turmeric is a key ingredient in both culinary dishes and traditional medicine.
Uses: Used in food, cosmetics, and as a natural remedy for inflammation, digestive issues, and skin conditions.
Nickname: Sometimes referred to as "Golden Spice".

7. Ashwagandha (Withania somnifera)
Description: Known as "Indian Ginseng," Ashwagandha is one of the most important herbs in Ayurveda. It is revered for its adaptogenic properties, which help the body manage stress.
Uses: Commonly used to reduce anxiety, improve energy levels, and enhance cognitive function.

8. Cardamom (Elettaria cardamomum)
Nickname: "Queen of Spices"
Description: India is one of the largest producers of Cardamom, which is known for its strong aroma and flavor.
Uses: Used in food and beverages, as well as in traditional medicine for digestive and respiratory disorders.

9. Holy Basil (Ocimum sanctum)
Nickname: "Tulsi"
Description: Tulsi is considered sacred in Hinduism and is used extensively in Ayurveda for its medicinal properties. It has strong antioxidant, anti-inflammatory, and immune-boosting qualities.
Uses: Often consumed in teas or supplements to support the immune system and reduce stress.

10. Amla (Phyllanthus emblica)
Description: Amla, or Indian Gooseberry, is rich in Vitamin C and is used for its antioxidant properties.
Uses: Amla is used in food, skincare, and haircare for its nourishing properties.

11. Ginger (Zingiber officinale)
Description: Ginger is a popular spice and medicinal herb known for its ability to aid digestion, reduce nausea, and fight inflammation.
Uses: Widely used in cooking, traditional medicine, and herbal remedies.
Export Market: Indian ginger is highly valued in global markets for its superior quality.

12. Licorice (Glycyrrhiza glabra)
Description: Licorice root is a sweet-tasting herb used for its medicinal properties in treating digestive disorders and respiratory ailments.
Uses: Widely used in traditional medicines and as a natural sweetener in foods.

13. Neem (Azadirachta indica)
Description: Known for its powerful antibacterial and antifungal properties, Neem is used in natural skincare and medicine.
Uses: Used in skincare products, hair care, and herbal medicines for treating various skin conditions and infections.

14. Guggul (Commiphora wightii)
Description: Guggul is a resin used in Ayurvedic medicine to treat cholesterol-related disorders and reduce inflammation.
Uses: Commonly used in supplements for cardiovascular health and inflammation.

15. Shatavari (Asparagus racemosus)
Description: Shatavari is an important herb in Ayurveda, known for its role in supporting reproductive health and balancing hormones.
Uses: It is primarily used in herbal supplements for women's health, fertility, and hormonal balance.

16. Giloy (Tinospora cordifolia)
Description: Giloy is an immune-boosting herb used extensively in Ayurvedic medicine. It is often referred to as "Amrita" or the "root of immortality" due to its medicinal benefits.
Uses: Used in formulations to enhance immunity, treat fever, and improve digestion.

17. Brahmi (Bacopa monnieri)
Description: Brahmi is a brain tonic used in Ayurveda to improve memory, reduce anxiety, and support cognitive function.
Uses: Primarily used in herbal supplements and Ayurvedic remedies to promote mental clarity and reduce stress.

18. Bael (Aegle marmelos)
Description: Bael, or stone apple, is used for its digestive benefits, particularly in treating diarrhea and constipation.
Uses: The fruit and leaves are used in Ayurvedic medicine to support digestive health and treat gastrointestinal disorders.
Export and Demand in the Global Market
India's spices and herbs export sector is a thriving industry, with the country being the largest exporter of spices globally. Indian spices are exported to over 180 countries, meeting the ever-growing demand for these products in international markets. The global demand for Indian spices and herbs is fueled by the expanding food industry, increasing consumer interest in health and wellness, and the global rise in demand for organic and natural products.

Figure: Global demand and export growth of Indian spices and herbs
1. Export Growth and Economic Contribution:
India’s spice exports have witnessed remarkable growth over the years. According to the Spices Board of India, the value of Indian spice exports reached $4.2 billion in recent years, with spices like chili, pepper, turmeric, and cumin leading the pack. This growth can be attributed to the country’s well-established spice industry, high-quality production standards, and diverse range of products catering to various global markets.
India is particularly known for its dominant role in the export of black pepper, chili, cardamom, turmeric, and coriander. These spices, which are essential in a wide range of culinary traditions, have earned Indian farmers and exporters a significant share in the global spice trade.
2. Expanding Markets and Emerging Trends:
As the global food industry continues to expand, the demand for spices and herbs is increasing, especially in developed markets like North America, Europe, and the Middle East. Additionally, emerging markets in Africa and Asia-Pacific are also contributing to the rise in demand for Indian spices.
Health-conscious consumers worldwide are increasingly opting for spices known for their health benefits, such as turmeric, which is renowned for its anti-inflammatory properties, and ginger, which is widely used for its digestive benefits. This growing awareness of natural, plant-based remedies has led to a surge in demand for spices in both food and non-food sectors (pharmaceuticals, cosmetics, and nutraceuticals).
Moreover, organic and fair-trade spices are gaining popularity, particularly in markets like Europe, where consumers are increasingly concerned about sustainability and ethical sourcing. This trend is creating new opportunities for Indian farmers and exporters to cater to niche markets demanding organic, pesticide-free spices.
3. Key Drivers of Global Demand:
Culinary Diversity: As globalization promotes the mixing of cuisines, the demand for a wider variety of spices has grown, especially in countries with high multicultural populations, such as the United States and the United Kingdom.
Health and Wellness: There is a rising trend in the consumption of herbs and spices for their medicinal benefits. Spices like garlic, turmeric, ginger, and cinnamon are in high demand due to their functional properties, including antioxidant, anti-inflammatory, and antimicrobial effects.
Flavors and Aromatics: In the food processing industry, there is a constant demand for spices and herbs to enhance flavor profiles in ready-to-eat meals, sauces, and snacks. India’s spices are used widely in seasoning and flavoring across global markets.
5. Future Outlook:
The outlook for India’s spice export market remains positive, with expectations for continued growth. According to industry reports, the global spices market is projected to expand at a CAGR of 4.9% from 2020 to 2025, presenting India with ample opportunities to capture a larger share. The country’s ability to produce a wide array of spices, coupled with its efforts in meeting international quality standards, positions India as a dominant player in the global spice and herb export market.
India’s role in fulfilling the global demand for spices and herbs continues to solidify, making it an indispensable source for culinary and medicinal needs around the world. As global consumer preferences shift toward natural and health-conscious ingredients, India's position in the global spice market is set to grow, ensuring continued demand for its high-quality, diverse spice offerings.
Key Opportunities in India’s Spices and Herbs Export Market
1. Rising Global Demand for Organic and Health-Oriented Products
Consumers worldwide are shifting towards healthier and more sustainable food options, increasing demand for organic and natural products. Indian spices like turmeric, ginger, and cumin, known for their health benefits, have seen a surge in demand. Herbs like tulsi, mint, and moringa are also gaining traction in the global health and wellness market.
Opportunity: Indian farmers and exporters can benefit from this trend by investing in organic farming practices and obtaining certifications that meet international standards.
2. Spices as Functional Ingredients in Processed Food and Beverages
Spices and herbs are increasingly being used as functional ingredients in the processed food and beverage sector due to their flavor, preservation properties, and health benefits. Products like turmeric lattes, ginger teas, and spice-infused snacks are becoming popular globally.
Opportunity: Indian companies can cater to the food processing industry’s growing need for premium-quality spices and herbs by ensuring high-grade processing and packaging that preserves the natural qualities of the products.
3. Essential Oils and Extracts Market Expansion
Essential oils derived from Indian spices and herbs are witnessing high demand in the cosmetic, pharmaceutical, and food industries. Oils like cardamom oil, clove oil, and mint oil are used in flavoring, aromatherapy, and therapeutic applications.
Opportunity: Exporters can capitalize on the increasing demand for natural extracts and essential oils by expanding their product offerings and investing in advanced extraction technologies.
4. Government Support and Export Incentives
The Indian government has been actively supporting the spices and herbs export market through various initiatives and policies aimed at boosting production, improving quality, and enhancing global competitiveness. Specific programs are tailored to different species of spices to meet the growing global demand. The Spice Board of India, a key regulatory and promotional body under the Ministry of Commerce and Industry, plays a crucial role in implementing these programs. Below are some of the species-specific support initiatives offered by the government.
1. Turmeric
Turmeric, known for its health benefits and anti-inflammatory properties, is a high-demand spice in global markets, particularly for use in health supplements, cosmetics, and functional foods.
Government Support for Turmeric Exporters:
Market Development Assistance (MDA): The Indian government provides financial assistance to exporters to participate in international trade fairs, buyer-seller meets, and export promotion activities, specifically for turmeric.
Organic Certification Support: Financial support is available to farmers and exporters to obtain organic certification for turmeric, which is in high demand in global markets. The National Programme for Organic Production (NPOP) helps in meeting international organic standards.
Post-Harvest Management: The government has introduced schemes to improve post-harvest practices, including better drying, polishing, and packaging technologies, ensuring higher-quality turmeric for export.
2. Black Pepper
India is a leading producer of black pepper, with the Western Ghats being the key growing region. The government has taken several steps to improve the export potential of Indian black pepper, known for its flavor and aroma.
Government Support for Black Pepper Exporters:
Integrated Pepper Development Scheme: This scheme focuses on enhancing pepper productivity through replantation programs, distribution of high-quality planting material, and providing support for better irrigation and fertilization practices.
Quality Improvement Measures: The Spice Board of India provides financial support to exporters to adopt global food safety standards and quality certifications, such as HACCP and ISO, for black pepper.
Export Infrastructure Support: Grants are provided for setting up spice processing units, cold storage, and export facilities to ensure better quality and storage of pepper for export.
3. Cardamom
Cardamom, often called the "Queen of Spices," is one of the most valued spices in the world. India is a significant producer of both small and large cardamom, and the government has been supporting its export through focused initiatives.
Government Support for Cardamom Exporters:
Subsidies for Cardamom Growers: The government offers subsidies to small cardamom growers for adopting better irrigation techniques, disease-resistant planting material, and organic farming practices.
Price Stabilization Fund (PSF): This fund helps cardamom farmers manage price fluctuations in the domestic and international markets, ensuring stable incomes and encouraging exports.
Marketing and Export Promotion: The Spice Board provides assistance for cardamom-specific export marketing initiatives, including participation in international trade fairs, buyer-seller meetings, and exclusive promotion programs in the Middle East and European markets.
4. Chilies
India is the largest producer and exporter of chilies, supplying both whole dried chilies and chili powder to international markets. Recognizing the importance of chilies, the government has taken steps to ensure consistent quality and boost exports.
Government Support for Chili Exporters:
Chili Development Program: The program focuses on providing high-yielding, disease-resistant chili varieties to farmers, ensuring higher productivity and better quality for exports.
Financial Assistance for Spice Processing Units: The government provides grants to chili exporters to set up state-of-the-art processing units equipped with advanced drying, grinding, and packaging facilities to meet global standards.
Residue Testing Facilities: To address the concerns of pesticide residues in chili exports, the government has set up advanced testing laboratories to ensure compliance with international residue limits, ensuring smooth export to regulated markets like the EU and the USA.
5. Ginger
Indian ginger is highly regarded for its flavor and medicinal properties. Exporters benefit from the government's focused support for increasing production and improving the quality of ginger.
Government Support for Ginger Exporters:
Cluster Development Program: Under this program, ginger growers are organized into clusters, receiving support for improved cultivation practices, marketing, and processing. This program helps in achieving economies of scale and improving the global competitiveness of Indian ginger.
Organic Ginger Certification: Similar to turmeric, the government encourages and financially supports organic certification for ginger through schemes like the NPOP, catering to the growing demand for organic ginger in international markets.
Ginger Processing and Value Addition: To encourage value-added exports like ginger oil and ginger powder, the government offers grants for setting up processing units and R&D support for product innovation.
6. Coriander, Cumin, and Fenugreek (Seed Spices)
India is a leading exporter of seed spices, including coriander, cumin, and fenugreek. These spices are widely used in food products, essential oils, and traditional medicine.
Government Support for Seed Spices Exporters:
National Mission on Seed Spices (NMSS): The NMSS promotes the cultivation of seed spices by providing high-quality seeds, promoting good agricultural practices (GAP), and supporting the establishment of processing and export units.
Financial Incentives for Exporters: Exporters of seed spices can avail of financial assistance for product development, market promotion, and establishing export quality standards.
Sustainable Farming Practices: Government initiatives encourage sustainable farming practices for seed spices, including the use of bio-pesticides and organic fertilizers, ensuring that Indian cumin, coriander, and fenugreek meet global safety standards.
Here are some key government schemes and programs that provide support to India’s spices and herbs export market, focusing on species-specific initiatives and general assistance for exporters:
1. Market Development Assistance (MDA)
Purpose: Supports exporters by providing financial assistance for participating in international trade fairs, exhibitions, and buyer-seller meets.
Applicable Spices: Turmeric, Black Pepper, Chilies, Cardamom, Ginger, and other major export spices.
Benefits: This program helps exporters showcase their products in international markets and connect with potential buyers to boost export volumes.
2. Integrated Pepper Development Scheme
Purpose: Aimed at increasing the productivity and quality of black pepper through replantation, improved irrigation, and the distribution of disease-resistant planting materials.
Applicable Spice: Black Pepper.
Benefits: Provides support for the rejuvenation of old plantations, adoption of modern cultivation practices, and financial incentives for infrastructure development.
3. National Horticulture Mission (NHM)
Purpose: Supports the production and post-harvest management of horticultural crops, including spices like turmeric, ginger, cardamom, and seed spices (coriander, cumin, fenugreek).
Applicable Spices: Turmeric, Ginger, Cardamom, Cumin, Coriander, and others.
Benefits: Offers subsidies for establishing processing units, improved drying techniques, cold storage, and value-added product development.
4. Organic Value Chain Development for North Eastern Region (MOVCDNER)
Purpose: Focuses on the organic farming of spices in the northeastern states of India. The scheme provides financial assistance for organic certification, processing, and marketing of organic spices.
Applicable Spices: Ginger, Turmeric, Large Cardamom, and other spices native to the Northeast.
Benefits: Helps farmers obtain organic certification, improve market access, and export organically produced spices, capitalizing on the growing global demand for organic products.
5. Spices Board's Export Development and Promotion Scheme
Purpose: A comprehensive scheme that promotes the export of Indian spices by assisting with infrastructure development, quality improvement, and product diversification.
Applicable Spices: All major export spices, including black pepper, cardamom, cumin, coriander, and turmeric.
Benefits: Provides financial assistance for setting up quality testing labs, spice parks, common processing centers, and enhancing post-harvest management techniques. It also offers incentives for participation in international trade shows.
6. Spices Board’s Quality Evaluation Laboratories
Purpose: Supports exporters by ensuring that spices meet global food safety standards and quality requirements.
Applicable Spices: All spices, with special emphasis on chilies, black pepper, and seed spices due to stricter international pesticide residue regulations.
Benefits: Exporters can avail testing services for pesticide residues, microbial contamination, aflatoxins, and other quality parameters at subsidized rates through these labs.
7. Price Stabilization Fund (PSF)
Purpose: Helps protect farmers and exporters from price fluctuations in the domestic and international markets.
Applicable Spices: Primarily aimed at high-value crops like Cardamom and Black Pepper.
Benefits: The fund supports growers when there is significant volatility in the prices of these spices, ensuring stable incomes and sustained exports.
8. Paramparagat Krishi Vikas Yojana (PKVY)
Purpose: Encourages organic farming practices and supports the export of organic spices by helping farmers transition to organic methods.
Applicable Spices: Turmeric, Ginger, Cardamom, and other high-value spices.
Benefits: Provides financial assistance for organic farming, group certification, and market access to global organic markets, boosting the export potential of organically grown spices.
9. National Mission on Seed Spices (NMSS)
Purpose: Focuses on increasing productivity and improving the quality of seed spices like coriander, cumin, and fenugreek by promoting better cultivation techniques and sustainable farming practices.
Applicable Spices: Cumin, Coriander, Fenugreek, and other seed spices.
Benefits: Provides high-quality seeds, promotes integrated pest management, and supports the establishment of export-quality processing facilities.
10. Mission for Integrated Development of Horticulture (MIDH)
Purpose: Promotes holistic growth of the horticulture sector, including spices, with a focus on production, post-harvest management, and export promotion.
Applicable Spices: All horticultural spices, including cardamom, ginger, turmeric, and black pepper.
Benefits: Offers financial support for cold storage, spice processing units, packaging, and marketing infrastructure to enhance the export quality of spices.
11. National Programme for Organic Production (NPOP)
Purpose: Supports the certification of organic spices and ensures that organic farming practices meet international standards.
Applicable Spices: Turmeric, Ginger, Black Pepper, and other organically grown spices.
Benefits: Provides subsidies for organic certification and supports organic spice exporters in meeting the stringent quality requirements of global markets.
12. Trade Infrastructure for Export Scheme (TIES)
Purpose: Aims to boost export infrastructure by developing and upgrading facilities, including specialized storage, testing labs, and processing units for spices.
Applicable Spices: All export-oriented spices, including chilies, black pepper, cardamom, turmeric, and others.
Benefits: Provides grants for building export-oriented infrastructure such as common infrastructure facilities, cold storage, and specialized processing units.
Leading Players in India’s Spices and Herbs Export Market
1. Synthite Industries
Synthite Industries is one of India’s largest exporters of spice oleoresins and essential oils. The company focuses on high-quality spice extracts and offers a wide range of products for the food, beverage, and health industries. Its strong research and development capabilities help it innovate and meet the growing demand for natural ingredients.
2. AVT Natural Products Limited
AVT Natural Products is known for its premium-quality spice oils, oleoresins, and herb extracts. The company exports to over 55 countries, with a significant presence in the food and beverage, health care, and personal care sectors. AVT is committed to sustainable sourcing and ethical business practices.
3. Kancor Ingredients Limited
Kancor Ingredients is a pioneer in the extraction of spices and essential oils in India. With state-of-the-art manufacturing facilities, the company supplies spice extracts, natural colors, and essential oils to various international markets. It focuses on traceability, ensuring the authenticity and safety of its products.
4. ITC Limited (Agri Business Division)
ITC’s agri-business division is a leading exporter of spices, specializing in turmeric, chili, cumin, and coriander. The company ensures quality through integrated supply chains and sustainable farming practices, making it a trusted name in international markets.
5. McCormick & Co. – Kohinoor Specialty Foods India
McCormick, a global leader in spices, operates in India through its subsidiary Kohinoor Specialty Foods. The company has a strong presence in the Indian market and exports premium spices like black pepper, cardamom, and chili to global markets.
Conclusion
The process of exporting pepper from India involves various steps, from acquiring an IEC to navigating customs clearance and claiming export incentives. With the support of government schemes like MEIS, Duty Drawback, and IES, pepper exporters have opportunities to reduce costs and maximize profitability. By following proper compliance and documentation procedures, exporting pepper can become a highly lucrative venture, leveraging India’s position as a global spice exporter.
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