Indian spices in hot soup | Non-tariff barriers pose serious challenges

India has been known as the queen of spices trade for centuries. It remains the biggest exporter of these elements that liven up palates around the world. But spices from India have lately come into the news for all the wrong reasons. Pesticide residues have reportedly been found in blended spices packs supplied to Hong Kong and Singapore leading to the suspension of purchases while other countries like the United States have also begun reviewing contaminants in Indian spices.

The sudden outcry over pesticide residues has prompted the Union government to urge the World Trade Organization (WTO) to lay down clear guidelines on the issue. In a submission last week, it called for specific regulations on maximum residue limits (MRL) based on scientific assessments. In the absence of such clarity, it has noted that non-tariff barriers are being created for exports from developing countries.

To clarify, the Food and Agriculture Organization (FAO) defines MRL as the highest level of pesticide residue that is legally tolerated in or on food or feed when pesticides are applied correctly. The problem is that international guidelines for MRLs have yet to be laid down, a lacuna pointed out by India as well as other developing countries in the past as well. The fact that every country has its own set of MRLs has been worrying even developed countries, like the US which has been facing related issues while exporting commodities to the European Union.

It is in the absence of global norms that countries like Singapore and Hong Kong have been able to suspend imports of products made by two leading Indian spice manufacturers. The companies have denied using ethylene oxide, the pesticide mentioned as being present in the spice mixes. The issue has snowballed with the US Food and Development Administration (FDA) seeking to probe the issue. This follows a series of rejections by the USFDA of shipments made by one spice brand on grounds of salmonella contamination in 2023.

The controversy has arisen at a time when agricultural exports have risen to a record $53 billion in 2022-2023. It underlines the need for action to be taken on two fronts: one by the Food Safety and Standards Authority of India (FSSAI) under the aegis of the food ministry and second by the commerce ministry. The first is the need to ensure that agricultural trade is not hampered by the indiscriminate use of pesticides.

A sustained process of education needs to be carried out to ensure that only permitted chemicals are used in the cultivation of agricultural products such as fruits, rice, tea, and spices. Several studies have already been carried out on this issue and the FSSAI has even prepared standard operating procedures (SOPs) on the MRLs. The programme of creating awareness needs to be intensified as India is moving towards becoming a large agricultural exporter.

It is in this process of expanding food exports that non-tariff barriers will increasingly be imposed in the form of sanitary and phytosanitary (SPS) measures. Given this, it is essential to ensure that food exports meet the most stringent international standards. To do so, it may be necessary to set up facilities to suit the needs of export destinations such as the irradiation plants set up to facilitate exports of mangoes to the US. Similarly, hygiene standards in the manufacturing of food products need to be made much more stringent by the FSSAI. It must ensure that contamination of any kind is not present in food products meant either for export or the domestic market. 

The second issue that needs to be dealt with by the commerce ministry is in terms of ensuring that international guidelines are laid down by the WTO for the MRLs. In the absence of such standard criteria, frequent changes in norms by countries can create difficulties for developing economies.

Aggressive trade diplomacy is also crucial to ensure that there is a level playing field for exports of agricultural products. It is in this area especially that non-tariff barriers are increasingly being raised as the competition for markets becomes sharper. In this context, one must recall the remarks of Thailand’s Ambassador to the WTO at the Abu Dhabi ministerial conference. She alleged India was exporting the rice procured at minimum support prices for the public distribution system. The false accusation highlights the growing competitiveness in global agricultural trade.

Food safety authorities in India have rightly taken the issue seriously and launched a wide-ranging probe immediately. Pesticide residues and any type of contamination must be eliminated, but at the same time, rising non-tariff barriers need to be called out on multilateral platforms. All aspects must be rapidly investigated so that the cloud over Indian spices exports blows over quickly.

Sushma Ramachandran is a senior journalist.

Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.