04 May Spices Crises

THIS ARTICLE COVERS ‘DAILY CURRENT AFFAIRS’ AND THE TOPIC DETAILS OF “Spices Crises”. THIS TOPIC IS RELEVANT IN THE “Economics” SECTION OF THE UPSC CSE EXAM.

 

Why in the News?

 

Several nations, including Singapore, Hong Kong, and the United States, have initiated inquiries into potential contamination of Ethylene oxide distributed by leading Indian companies, MDH and Everest.

 

More About the News

 

• On April 5th, Hong Kong’s Centre for Food Safety halted the sale of three MDH spice blends (Madras curry powder, Sambhar masala, and curry powder masala) as well as Everest fish curry masala due to elevated levels of ethylene oxide, a pesticide unauthorized for food use. 
• Singapore followed suit, issuing a recall for the Everest spice mix for the same reason. 
• The U.S. Food and Drug Administration (FDA), known for its previous rejection of food and spice imports from India, is investigating the matter after being made aware of the reports. 
• Regulatory bodies in Maldives, Australia, and Bangladesh have also announced similar actions.

 

Health issues due to Ethylene Oxide

 

Ethylene Oxide, a clear, combustible gas initially devised for sterilizing medical equipment, serves various purposes in industries, agriculture, and food production. Its role in the spice industry is significant, as it effectively minimizes microbial presence, thereby prolonging product freshness and ensuring safe storage conditions.

 

• Carcinogenic in nature: Ethylene oxide is classified as a carcinogen by several health organizations, including the International Agency for Research on Cancer (IARC). Prolonged exposure to ethylene oxide has been associated with an increased risk of certain types of cancer, such as leukaemia and lymphoma.
• Respiratory Problems: Inhalation of ethylene oxide vapor can irritate the respiratory tract, leading to symptoms such as coughing, shortness of breath, and chest tightness. Individuals with pre-existing respiratory conditions may experience exacerbation of their symptoms.
• Nausea and Vomiting: Ingestion of food contaminated with ethylene oxide may cause gastrointestinal symptoms such as nausea, vomiting, and abdominal pain. These symptoms can vary in severity depending on the level of exposure and individual sensitivity.
• Headaches and Dizziness: Ethylene oxide exposure can also cause neurological symptoms, including headaches, dizziness, and confusion.

 

Spices sector of India 

 

• India holds the title of being the largest exporter, producer, and consumer of spices globally, with its domestic spice market reaching a value of $10.44 billion in 2022. Among the 109 varieties recognized by the International Organization for Standardization (ISO), India cultivates 75 types. 
• In terms of exports, during the fiscal year 2022-23, the United States, United Arab Emirates, and the United Kingdom emerged as the top importers of Indian curry powders and mixtures, with values amounting to ₹196.2 crore, ₹170.6 crore, and ₹124.9 crore respectively. Following closely are Saudi Arabia, Australia, Bangladesh, Oman, Canada, Qatar, and Nigeria. China, the United States, the United Arab Emirates, Bangladesh, and Thailand stand out as the primary importers of all spices and spice mixes originating from India. 
• Besides MDH and Everest, other prominent manufacturers include Madhusudan Masala, NHC Foods, Tata Consumer Products, and ITC. Major spices exported from India encompass pepper, cardamom, chilli, ginger, turmeric, coriander, cumin, celery, fennel, fenugreek, garlic, nutmeg & mace, curry powder, spice oils, and oleoresins.
• In terms of recent statistics, India’s spice exports amounted to approximately US$ 3.73 billion in 2023 and around US$ 3.67 billion in the period from 2023 to February 2024. 
• The states contributing significantly to spice production in India include Madhya Pradesh, Rajasthan, Gujarat, Andhra Pradesh, Telangana, Karnataka, Maharashtra, Assam, Orissa, Uttar Pradesh, West Bengal, Tamil Nadu, and Kerala.

 

Government Efforts to Foster the Expansion of Spice Cultivation in India:

 

Establishing Spices Parks: The board initiated the establishment of eight specialized Spices Parks tailored to specific crops in strategic production zones and market centres.

Goals:

• Facilitating farmers to obtain competitive prices and broader market reach for their produce.
• Developing an integrated system encompassing spice cultivation, post-harvesting processes, processing, value addition, and spice storage.

Sikkim Spice Complex: A program aimed at aiding farmers and other stakeholders in Sikkim by offering financial support to enable common processing and value addition activities in spices.

Formation of Codex Committee on Spices and Culinary Herbs (CCSCH): As a subsidiary of the Codex Alimentarius Commission, jointly led by the Food and Agriculture Organization (FAO) and the World Health Organization (WHO), CCSCH focuses on standardizing international food regulations.

• Since 1964, India has actively participated as a member in the Codex Alimentarius Commission to uphold food trade’s safety, quality, and equity.

 

Challenges faced by the Spices sector 

 

• Quality Control & Standards Adherence: A significant obstacle in the spices industry involves maintaining elevated quality standards and adhering to the rigorous pesticide residue regulations set by importing nations.
• Concerns Regarding Food Safety: Ensuring food safety stands as a paramount issue globally, particularly in developed countries where strict regulations safeguard product integrity. Indian spice exporters face challenges in reassuring consumers about the safety and cleanliness of their offerings.
• Tariffs & Trade Restrictions: The imposition of tariffs and trade barriers by developed nations presents notable challenges for Indian spice exporters. Despite India’s prominent position as a spice producer and exporter, it contends with substantial competition from other exporting countries.
• Price Fluctuations & Competitive Environment: The international spice market is fiercely competitive, and Indian exporters frequently encounter difficulties associated with price instability, which can be influenced by variables like crop yield, weather patterns, and currency exchange rates.

 

Way forward 

 

• Stringent Regulations & Safety Measures: Addressing the growing skepticism surrounding the FSSAI necessitates the implementation of more rigorous regulatory protocols and enhanced transparency in the food production and safety industry standards.
• Exploring Alternatives to Ethylene Oxide: It is imperative to investigate safer chemical substitutes with similar antimicrobial properties but without the carcinogenic risks associated with ethylene oxide. Substances like ozone, hydrogen peroxide, or heat treatments could potentially serve as replacements for ethylene oxide in certain applications.
• More Investment: Prioritizing investments in quality infrastructure, implementing stringent food safety measures, enhancing traceability and transparency, and aligning with market trends are crucial steps for Indian spice exporters to overcome these challenges and tap into the vast potential of developed markets for India’s diverse range of spices.
• Diversifying Market Opportunities: There is a need to explore fresh markets and generate interest in less familiar spices, which could lessen reliance on conventional markets.

 

Organizations to look for

 

Spices Board of India: 

• The Spices Board of India is a crucial regulatory and export promotion agency for Indian spices, established in 1987 under the Spices Board Act 1986.  Its headquarter is located in Kochi, Kerala.
• The board holds a crucial role in guaranteeing the quality and safety of Indian spices by operating modern testing facilities across different regions such as Mumbai, Chennai, Delhi, Tuticorin, Kandla, and Guntur.

 

International Organization for Standardization (ISO):

• It is a global organization dedicated to developing standards, consisting of delegates from the national standards bodies of its member nations.
• ISO was formally established in 1947.

 

Download plutus ias current affairs eng med 4th May 2024

 

Prelims based Question

 

Q1. Consider the following statements:

1. India is the largest producer, exporter and consumer of Spices globally.
2. USA is the largest importer of Indian spices.

Choose the correct answer using the codes given below:

(a). 1 Only

(b). 2 Only

(c). Both 1 and 2

(d). Neither 1 nor 2

 

ANSWER: C

 

Mains based Question

 

Q1. What are the major challenges faced by the Indian spice sector, and what strategies are suggested for overcoming these challenges?