India Faces Spice Export Challenge as China Enters the Market

India, the world’s largest exporter of spices, is now facing stiff competition from China, which has started cultivating and exporting spices such as cumin and chili—markets traditionally dominated by India. Industry insiders warn that this development could threaten India’s longstanding supremacy in the global spice trade.

China has reportedly begun buying cumin and chili from India, processing them locally, and selling them to third countries at lower prices. Despite sourcing from India, Chinese spices are undercutting Indian products in several international markets. According to Sandeep Vodepalli, Vice President of BigHaat, China has been cultivating cumin and chili over the past two years and is beginning to capture certain markets previously dominated by India.

Chili, often considered the backbone of India’s spice exports, accounts for over a quarter of the country’s total spice export volume and value. In 2024-25, India’s chili powder exports surged 35% to 80.6 million kilograms, while total chili exports increased 19% to over 700,000 tons. However, revenue from these exports fell by 11%, highlighting the pressure on prices. Similarly, cumin exports rose sharply by 39% in 2024-25, from 165,269 tons the previous year to 229,881 tons.

Experts note that China is focusing on two varieties of chili: paprika, used for color and mild flavoring, and Teja, a highly pungent variety with applications in medicinal ointments.

The impact of these developments is already being felt domestically. Bulk exporter Prakash Agrawal warned that the effect could become visible over the next two seasons. Adverse weather and declining export prices are discouraging farmers from cultivating chili and cumin during the kharif season. In major producing states such as Andhra Pradesh, Telangana, and Karnataka, chili cultivation area has fallen by nearly 35% compared to last year, while cumin cultivation area has declined by 7-8%.

As China challenges India’s dominance in the global spice trade, the coming seasons will test the resilience of India’s farmers and exporters alike.