SPECIES BOARD

India’s Spices Board, collaborating with FSSAI and global bodies, is enhancing spice industry regulations with mandatory ETO testing and increased MRLs. Leveraging IoT, blockchain, and sustainable practices, it boosts exports, supports 1,700 farmers, and drives innovation through SPICED, sustaining a 25% global market share while targeting expanded growth opportunities significantly.

Last Updated on 28th February, 2025
4 minutes, 42 seconds

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Picture Courtesy: Economic Times

Context:

The Indian Spices Board is collaborating with the Food Safety and Standards Authority of India (FSSAI) and other regulatory bodies to enhance regulations in the spice industry.

Regulatory and Quality Initiatives

The Spices Board has implemented mandatory ethylene oxide (ETO) testing for spice exports to the European Union, Hong Kong, and Singapore to ensure food safety compliance.

India actively participates in the Codex Committee on Spices and Culinary Herbs to align global spice standards, reducing technical trade barriers.

The FSSAI is finalizing a draft framework to increase maximum residue levels (MRLs) for spices from 11 to 98, backed by extensive data monitoring, to improve market access for Indian exporters and reduce shipment rejections.

Industry Growth and Market Leadership

India holds a 25% share of the global spice trade, exporting 225 spice products to over 180 countries. 

The sector is valued at $24 billion (2024) and projected to reach $61 billion by 2033 (CAGR of 10.56%).

Current spice exports are worth $4.4 billion, with targets of $10 billion by 2030 and $25 billion by 2047.

Sustainability and Innovation

The industry is adopting climate-resilient crop varieties and sustainable cultivation methods through farmer producer organizations (FPOs) and capacity-building programs.

The sector is leveraging IoT, blockchain, and robotics to enhance transparency, traceability, and operational efficiency.

Investments in post-harvest facilities, processing plants, and R&D centers aim to boost production of spice oils, oleoresins, and extracts. Post-pandemic demand for health-focused spices (e.g., turmeric, ginger) is driving research into nutraceuticals and pharmaceuticals.

Farmer and Value Chain Benefits

Recent initiatives have benefited 1,700 farmers and 200 value chain actors, establishing eight FPOs across four states. Programs like buyer-seller meets have improved farmer incomes by 58%.

Formal agreements with exporters ensure stable demand, reducing price volatility.

About Spices Board

It is a statutory body established in 1987, under the Spices Board Act 1986.

It was formed by merging the Cardamom Board (1968) and the Spices Export Promotion Council (1960).

The Board operates under the Ministry of Commerce & Industry and is one of the five Commodity Boards in India.  

Functions of the Spices Board

It provides guidance to farmers on scientific agricultural practices to achieve higher and better quality yields.

It provides financial and material support to growers, encourages organic production and export of spices, and facilitates infrastructure for processing and value addition.

It ensures the quality of spices for export by providing quality evaluation services and certifications.

It works with the Food Safety and Standards Authority of India (FSSAI) and other regulatory agencies to regulate the industry and set quality standards.   

It collaborates with various international bodies such as the Codex Alimentarius Commission (CAC) to develop global standards for spices and culinary herbs.  

SPICED  Scheme

In September 2024, the Spices Board launched the 'Sustainability in Spice Sector through Progressive, Innovative and Collaborative Interventions for Export Development (SPICED)' scheme.

The scheme aims to drive innovation and sustainability in the spice sector, improve value addition for spices and spice products, enhance the productivity of cardamom, and upgrade post-harvest quality standards.

The scheme prioritizes assistance to farmers' groups, SC/ST communities, SMEs (particularly from the North-Eastern regions), and exporters.  

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Source: 

THE HINDU

PRACTICE QUESTION

 Q.Examine the role of agricultural cooperatives in promoting the export of agricultural products. Discuss the challenges faced by cooperatives and suggest ways to overcome them. 250 words

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