New Delhi, May 2 (KNN) Intensifying regulatory scrutiny over quality issues has put nearly USD 700 million worth of Indian spice exports to critical markets at risk, according to a report by the Global Trade Research Initiative (GTRI) released on Wednesday.

The United States, Hong Kong, Singapore, Australia, and the Maldives have raised red flags about the quality of spices supplied by leading Indian firms MDH and Everest Group.

These concerns put India's spice exports worth approximately USD 692.5 million in the fiscal year 2023-24 to these nations under the scanner.

The GTRI report warns that if China and other ASEAN countries follow suit, influenced by the actions of Hong Kong and Singapore, it could impact a staggering 51.1 per cent of India's global spice exports valued at USD 2.17 billion.

Alarmingly, the situation could further exacerbate if the European Union (EU), which routinely rejects Indian spice consignments over quality issues, imposes a region-wide ban.

Such a move could imperil an additional USD 2.5 billion in exports, potentially impacting a whopping 58.8 per cent of India's worldwide spice exports.

This scrutiny follows a ban by Hong Kong authorities on the sale of certain products from these popular brands due to the alleged presence of pesticides beyond permissible limits.

"Every day, new countries are raising concerns about the quality of Indian spices. This issue demands urgent attention and action to uphold the storied reputation of India's fabled spice garden," the GTRI report cautioned.

Reports suggest that these Indian spice brands are now also under scrutiny in Australia, adding to the mounting global concerns.

The report highlights the grave implications for India's spice export industry, which has long been a source of pride and a significant contributor to the country's economy, if these quality concerns are not swiftly and effectively addressed.

(KNN Bureau)