India: US overtakes China as the largest buyer of Indian spices in FY26

• US emerges as the top export market by value despite tariff-related headwinds.
• China’s higher domestic production sharply reduces imports of Indian chilli and cumin.

The United States became the largest buyer of Indian spices by export value in FY2025-26, replacing China after several years of Chinese dominance. The shift came despite a decline in shipments to the US, highlighting the resilience of demand for premium Indian spices. India’s total spice exports declined 6.1% year on year to $4.43 billion (INR 39,140 crore), with export volumes easing 4% to 1.734 million tonnes, reflecting weaker demand from key markets and lower purchases of major commodities. Chilli remained India’s largest export contributor, accounting for 27% of export earnings, followed by cumin and spice oils & oleoresins at 12% each, small cardamom (9%), mint products (8%) and turmeric (7%).

China’s retreat reshapes export dynamics

Exports to the US stood at $624.4 million, while shipments to China fell sharply to $519.0 million, a 32% year-on-year decline. China continued to import the largest volumes of Indian spices, but the US overtook it in value terms due to stronger demand for higher-value products. Trade sources attributed China’s lower imports to a robust domestic chilli crop of around 85,000-90,000 tonnes last season and improved cumin production, reducing its reliance on Indian supplies. Consequently, India’s cumin exports to China declined 76% in volume and 80% in value, while chilli exports dropped 11% in volume and 21% in value.

Premium markets support export value

The US remained the leading destination for Indian pepper, turmeric, curry powders and spice oleoresins. Official data indicate turmeric exports to the US increased to 9,091 tonnes worth $36.4 million in FY26 from 8,536 tonnes worth $26.3 million a year earlier, underscoring continued demand for premium and value-added products. However, exports of spice oleoresins softened amid tariff concerns and changing procurement patterns.

Outlook

China’s growing self-sufficiency in chilli and cumin is likely to keep its import demand subdued through FY27, encouraging Indian exporters to diversify into high-value destinations such as the US, Europe and West Asia. Expanding exports of processed spices, oleoresins, curry powders and certified sustainable products could help offset volume losses in bulk commodities while improving export realisations. Maintaining quality compliance, traceability and competitiveness will remain crucial as buyers increasingly prioritise food safety and premium offerings.