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China’s entry into cumin & chilli exports poses new challenge to India’s spice trade
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Saturday, 17 January, 2026, 12 : 00 PM [IST]
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Our Bureau, Mumbai
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India’s spice industry long a dominant force in global trade is now facing a fresh competitive challenge from China, particularly in the export markets for cumin and chillies, two of the country’s most valuable spice commodities. Traders and industry experts warn that China’s growing presence in these segments could reshape global sourcing dynamics and put pressure on Indian exporters’ market share and pricing power.
According to reports, China has expanded large-scale cultivation and export of cumin and chilli, offering these spices at more competitive price points in international markets, including regions such as Africa, West Asia and Southeast Asia. Even when spices are first imported from India and processed locally in China, Chinese exports can still be cheaper, industry executives said, adding that the impact of this shift may become more visible over coming seasons.
Chillies form a significant share of India’s spice export volumes and value, with exports of chilli powder growing substantially in recent years. Similarly, cumin exports have recorded strong growth, driven by demand from major importers. However, farmers in key growing states such as Andhra Pradesh, Telangana and Karnataka are reportedly planting less chilli and cumin this season due to crop losses and low export prices, which could further tighten supply and strengthen China’s foothold.
Analysts note that China’s cost advantages stemming from lower production costs and greater mechanisation are enabling its spices to penetrate markets that were traditionally dominated by Indian suppliers. This could pose a strategic risk to India’s standing as the world’s largest spice exporter, unless Indian producers pivot towards enhanced quality segments, branding initiatives and deeper integration into global value chains rather than purely competing on price.
While India continues to hold a leadership role in global spice production and exports, China’s entry into cumin and chilli markets signals a potential structural shift that could influence future trade patterns and export revenues in the $4+ billion spice sector.
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