Indian spices in global pickle: Is the matter falling between stools?

There are many regulators in the sector, but none regulates the entire supply chain from farm to market

Indian spices are now on global food regulators’ radar after Hong Kong and Singapore first sounded the bugle over the presence of ethylene oxide (EtO) in some variants of Indian masala exported to those countries.

Other regulators, such as those in New Zealand and the United Kingdom, were quick to act and also started investigating the issue, as reported by Reuters, while the Indian food authorities — Food Safety and Standards Authority of India (FSSAI) — found no traces of EtO in the samples of the two major brands that came under scrutiny: MDH and Everest.

Its findings were on the samples of spices sold in India. The export packages are being sampled by the nodal agency under the government — Spices Board of India — to check for presence of EtO in spices exported to Hong Kong and Singapore.

The Spices Board has already started testing every spice sample of both MDH and Everest and has launched inspections at their production facilities to ensure that spices are produced and exported as per prescribed standards.

During the course of reporting on these developments, Business Standard reached out to both the brands for comments, but
neither responded. The question is, who is to blame?

Many regulators, not enough

Arpita Mukherjee, professor and Economic Policy Researcher at the Indian Council for Research on International Economic Relations (ICRIER), says that though there are many regulators in the sector, none of them regulates the entire supply chain from the farm to the market.

So there is a lack of supply chain traceability and accountability.

She says the regulator depends on which stage of production the spices are, and whether the product is for the domestic market or for exports.

“For example, in turmeric, APEDA (Agricultural & Processed Food Products Export Development Authority) is the nodal agency for exports of fresh turmeric. The Spices Board is the nodal body for dried and powdered turmeric,” Mukherjee points out.

APEDA is also the nodal agency for the entire supply chain for organic products for exports: Fresh to dry. The FSSAI is the nodal agency for food safety, but its jurisdiction covers only the domestic market and imports and does not cover farmers and exports.

Then there is the Export Inspection Council (EIC) which also does quality control of certain spices for exports.

Of the many regulators, there is no one looking into the supply chain.

“There are many of them (regulators), but the most important thing is that none of them regulates the entire supply chain from farm to market. So there is a lack of supply chain traceability and accountability,” says Mukherjee.

The FSSAI, she says, should ideally monitor the entire supply chain from farm to fork.

But, should the farmers be held responsible as well?

A senior industry expert says the peculiar thing about spices is that they, being a commercial crop, tend to use high doses of plant chemicals.

“But, in this particular case, EtO is not even a pesticide, and there is no involvement of the farmers,” he said.
 

Mukherjee says that more often than not farmers are not even aware of the requirements and use cheap inputs, instead of the good ones to cut costs. “Banned inputs are easily available at low prices, so there is a monitoring issue as well,” she says.
 

According to her, if the number of regulatory bodies is reduced, and testing is harmonised, it will help in placing a robust system of traceability and even reduce the costs for producers.

Why EtO?

The All India Spices Exporters Forum (AISEF) said in a recent statement that last financial year (2023-24) India exported spices to the tune of 142.6 million tonnes, valued at approximately $4.2 billion.
 

“As an industry body, we are urging for a scientific study to be done by the government on the maximum residue limit (MRL) on EtO presence in spices. But there is evidence that EtO is also naturally occurring in spices,” said Nishesh Shah, managing committee member at AISEF.
 

He added that the industry will follow the norms set by the government, both for the domestic market as well as for exports, to allow as per the importing countries norms.

A senior official says if Indian exporters are not permitted to supply EtO-treated spices, it will have a detrimental effect on the country's position in the global spice market. Disallowing EtO treatment could lead to increased risks of microbiological pathogens, non-compliance with regulations, and product recalls in importing countries, potentially jeopardising India’s market share, the spices association said in its statement.

EtO around the world
 

EtO, as a chemical, is not just used in India. In fact, the United States spice industry relies on EtO sterilisation as one of the primary methods to comply with FDA regulations, a release issued a few days back said.
 

The residue limit for EtO in the European Union is 0.02-0.1 mg per kg. In the United States and Canada, EtO up to 7mg per kg is allowed. Hong Kong does not allow the use of EtO.
 

“Indian spices are known for their quality, and exports have reached a volume of 1.4 million tonnes and  rejection is less than 0.2 per cent. EtO is used in Spices as a sterilising agent and not as a pesticide. Many countries have allowed EtO, like the US and Canada, as it is considered an effective sterilisation agent for killing microbial parameters. This is essential, since the manner in which spices are used in these countries is very different from India, where spices are added during the cooking process which essentially kills all harmful pathogens," Sanjeev Bisht, chairman of AISEF, said.

SCOOPING TROUBLE

- In April 2024, Hong Kong and Singapore banned four products of MDH and Everest species, citing the presence of ethylene oxide (EtO), a cancer-causing agent

- The US Food and Drug Administration (FDA) opened a probe into discovering the actual composition of two Indian spice makers’ blends
 

- Nepal also banned the sale of some variants of Indian spices and New Zealand launched a probe to check for contamination
 

- Everest said its products are only exported after receiving necessary clearances and approval from the Spice Board of India
 

- MDH called the allegations "baseless, untrue"
 

- FSSAI directed state regulators to collect samples of major spice brands, to test for the presence of EtO

- On May 22, FSSAI said it found no traces of EtO in domestic samples of  the two spice brands