India: Spice exports retreat in FY26 as chilli and cumin demand weakens

• Exports fall 6% YoY to $4.43 billion despite strong cardamom performance
• Chilli and cumin shipments drag overall trade amid softer global buying

India’s spice exports declined 6% year on year in FY2025-26 to $4.43 billion, marking the first major setback after the record-breaking performance seen in FY2024-25. Export volumes also slipped 4% to 1.73 million tonnes as weaker overseas demand for key commodities, particularly chilli and cumin, weighed on overall trade.

Chilli and cumin lose momentum

Chilli, India’s largest spice export by both value and volume, remained under pressure throughout the fiscal year. Export volumes fell more than 4% to 683,681 tonnes, while export earnings dropped 12% to $1.18 billion. Cumin exports witnessed a sharper correction, with volumes declining 14% to 196,800 tonnes and export value plunging 28% to $524 million. Market participants attributed the decline to lower buying interest from major destinations, increased competition from alternative origins, and softer international prices.

Cardamom, ginger provide support

The downturn in chilli and cumin was partly offset by robust demand for cardamom and ginger. Small cardamom exports surged 124% in both value and volume terms to $413 million and 15,050 tonnes respectively, reflecting strong global demand and improved price realisation. Ginger exports also recorded double-digit growth, with volumes rising 11% and export earnings increasing 15% year on year.

Outlook

The FY26 performance highlights India’s dependence on a few dominant spice categories. While demand for premium and speciality spices remains resilient, exporters are likely to focus on market diversification, value-added spice products, oleoresins, and stricter quality compliance to regain growth momentum. In the near term, export recovery will depend on demand revival in key consuming markets and the competitiveness of Indian chilli and cumin against rival origins.