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Why are Indian spice firms struggling globally?

May 11, 2024 - 11:00pm
It was just a routine food surveillance exercise in Tsim Sha Tsui, a shopping hub known for its hotels and restaurants overlooking the Victoria Harbour in Hong Kong. The Centre for Food Safety, a government entity, collected samples of spices from some retail outlets.Unexpectedly, the test revealed the presence of a pesticide, ethylene oxide, in four products of two popular Indian spice brands— MDH’s Madras Curry Powder, Sambhar Masala and Curry Powder, and Everest’s Fish Curry Masala. It had a domino effect across the region even as countries across the globe sat up and wondered if there was a pesticide in their curry. The authorities in Hong Kong swiftly directed vendors to remove the items from shelves and stop their sale. Within a fortnight, the Singapore Food Agency ordered a local importer, SP Muthiah & Sons Pte Ltd, to recall Everest’s Fish Curry Masala from the city state and went as far as advising people who had consumed it and had health concerns to “seek medical advice”.Indian spice companies are feeling the heat in the global market. Australia is contemplating a course of action and has not ruled out a recall. The Maldives, amid diplomatic tensions with India, has gone a step further and banned the sale of Everest and MDH products. The US, a key importer, has ramped up inspection and rejected a number of Indian spice shipments due to salmonella contamination. 110041037Experts believe that timely action by Indian regulators and the cleaning up of t h e domestic spice market are essential to regain trust across the border, a prerequisite for the country’s spice industry to achieve the goal of $10 billion export by 2030.India is both the biggest consumer and exporter of spices. Called the spice bowl of the world, it cultivates more than 75 spices. The country’s spice exports in FY23-24 were valued at $4.25 billion. The major spices exported from India include chilli powder, cumin, turmeric, “curry powder and paste”, cardamom, pepper, coriander and nutmeg.“In order to reestablish credibility in the global market, India needs to clean up its domestic production system through regular inspection, tests, etc,” says Jayant Dasgupta, former Indian ambassador to the World Trade Organization (WTO). “If we improve the quality of our domestic spice market, our export quality will also see an improvement,” he says, adding that major spice exporters probably source ingredients from smaller producers that cater to domestic markets.Estimating that the recent dispute could affect spice exports worth $700 million, a report published by Delhi-based think tank, Global Trade Research Initiative (GTRI), said last week that the overall situation called for “a fundamental shift in how India handles food safety”, adding that transparency, stringent enforcement and clear communication are critical “to maintain the integrity of its exports and domestic products alike”.According to Dasgupta, the European Union, known for its strict standards, must have taken note of the dispute by now. “We may hear from the bloc soon,” he says, adding that if the EU detects an anomaly in an agricultural product, it will immediately destroy the affected consignment rather than return it, a measure for which it invokes select WTO provisions.WHAT NEXT?The trajectory of the present controversy may largely depend on the response of other prominent importers. China, India’s primary spice destination, with imports totalling $928 million in FY24, has so far remained silent.Australia has not dismissed the possibility of recalling certain spice products from India. In an email response to ET’s query, a spokeswoman of Food Standards Australia New Zealand (FSANZ) says they are aware of “the potential contamination of spice products from India” as well as the action taken in Hong Kong and Singapore. “We are working with federal, state and territory food enforcement agencies to determine if further action is required in Australia (e.g. a food recall),” she adds, adding that “ethylene oxide is not permitted to be used as a treatment for foods sold in Australia”. 110041042Everest, which produces more than 10 million spice packets a day and exports to over 60 countries, says that some nations do demand a treatment by ethylene oxide, which is basically “a gas and not an ingredient that can be added to any product”, adding that the pesticide is primarily used to control microorganism and pathogens in food products to achieve a longer shelf life.In a written reply to ET’s queries, a company spokesperson says, “Everest Fish Curry Masala, which became a matter of controversy, was one of 33 products that were sent for trial and testing in the Hong Kong market. The food safety authorities asked to recall only one product.” The spokesperson says the company had to accept the recall as their local importer “did not wish to confront the authorities”.Reiterating that the spices which the company sells in India and abroad are safe, the spokesperson says the ethylene oxide treatment is not used for domestic items. “In an international market, the products go through ships, ports and long travel days in the sea, and our consignment has to go through adverse weather conditions.Accordingly, to avoid any adverse effects on the products, a few countries like the US and Canada prefer ethylene oxide sterilisation over other methods for food safety.”The acceptance of ethylene oxide differs in different geographies. In the US, it is allowed to a level whereas it is banned in spices for domestic consumption in India. In Singapore, as stated in a Singapore Food Agency statement issued on April 18, “it is not authorised for use in food” but “can be used to fumigate agricultural products to prevent microbial contamination”.ET did not get any response from MDH, the other exporter at the centre of the controversy. Earlier, the company’s statement, as reported by news agency PTI, said the allegations were “baseless, untrue” and “lack any substantiating evidence”.“The Spices Board is trying to address these problems in a transparent manner,” says board member S Thirumurugan, who is also a cardamom grower in Theni, Tamil Nadu.Finally it did. In a nine-page circular dated May 7, the Spices Board, a regulatory authority promoting the export of Indian spices, advised exporters to “identify EtO as a hazard” and take measures “to ensure the absence of EtO and its metabolites in spices and spice products throughout the supply chain”. The agency under the Union ministry of commerce and industry further said, “Exporters shall test raw materials, processing aids, packaging materials and finished goods for EtO contamination.”It advised the firms to “perform a root cause analysis” if they detected it, to avoid future recurrence.Another member of the Spices Board and director of Assam-based spice company Sigma Spice Industries, Gautam Ghosh, says there are meticulously crafted protocols both for exports and domestic markets. “At Sigma, we sign an agreement with a supplier only after it agrees to meet our parameters. Once a consignment arrives, we do some basic tests in our own labs,” says Ghosh, whose company, which caters only to the domestic market, has set up laboratories in Guwahati and Jorhat in Assam and Varanasi in UP.The Food Safety and Standards Authority of India (FSSAI), a regulator mandated to check the standards of food articles consumed in the country, has recently said that it has been collecting samples of branded spices and dismissed reports that it allowed high levels of pesticide residues in spices and herbs.However, widespread production of illicit and inferior spices is a concern in India. Last week, the Delhi Police seized 15 tonnes of spurious spice powder from factories in Karawal Nagar. While busting the masala racket, the police also recovered rotten rice, spoiled pearl millets and wood dust that were used to make adulterated spice powder.These have been disastrous signs for India’s spice trade whose exports have climbed steadily from $408 million in FY2002 to $4.2 billion now. During the 14th World Spice Congress held in Navi Mumbai last September, officials said India’s spice export is expected to reach $10 billion by 2030.The spice route to India is a couple of millennia old. Romans undertook voyages to India mainly for spices. Under the Romans, Alexandria became the greatest commercial centre of the world and “was also the leading emporium for the aromatic and pungent spices of India,” according to Britannica. If that legacy has to endure, regulators have to put their foot down and spice companies have to clean up their act.Everest responds‘Ethylene Oxide is used for sterilisation. Many countries demand it’A spokesperson of India’s leading spice exporter Everest responds to ET’s queries on the recall of its Fish Curry Masala by Hong Kong and Singapore. Edited excerptsOn the recall of its product by Hong Kong and Singapore:A recall is a very standard process followed in the food industry by all countries, and it does not mean the brand has been banned. Everest is not banned in Hong Kong, Singapore or any other country.On the presence of high levels of ethylene oxide in its products:Many major countries demand ethylene oxide (EtO) treatment. It is basically a gas and not an ingredient. EtO is largely used by food companies and pharma companies for sterilisation purposes. It is primarily used to control microorganisms and pathogens in food products, for a longer shelf life.On the details of the recall:Everest Fish Curry Masala, which became a matter of controversy, was one of 33 products that were sent for trial and testing in the Hong Kong market. In Hong Kong, the food safety authorities ordered the recall of only one product and passed the remaining 32 products. Our local importer did not wish to confront the authorities. Hence they accepted the recall process in Hong Kong. Singapore never tested the Fish Curry Masala. They only followed the Hong Kong recall order.On whether ethylene oxide in present in its domestic products:The spices we sell in India do not require or undergo EtO treatment. In an international market, the products go through ships, ports and long travel days in the sea, and our consignment has to go through adverse weather conditions. Accordingly, to avoid any adverse effects on the products, a few countries like the US and Canada prefer EtO sterilisation over other sterilisation methods for food safety, which is a common norm globally. Every country has its own parameters and we treat products based on the importer’s request to meet the norms of the respective importing country.
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Modi should clarify on BJP's age rule: AAP

May 11, 2024 - 8:52pm
Aam Aadmi Party MP Sanjay Singh on Saturday said that Prime Minister Narendra Modi should come forward to clarify the BJP's '75 years retirement formula' which they have imposed on their senior party leaders. The Aam Aadmi Party (AAP) leader was responding to Union Home Minister Amit Shah's statement that Prime Minister Narendra Modi will continue to lead the nation post the Lok Sabha elections. Singh said that Kejriwal raised the "genuine" issue of '75 years age rule', which was made by Prime Minister Modi. "They (BJP leaders, including Shah) said whatever rule PM Modi has made, it will be implemented on other leaders but not on Modi," Singh said at the AAP office here. Reiterating Kejriwal's earlier statement, Singh said the '75 years age rule' was implemented on the BJP leaders like LK Advani, Murli Manohar Joshi, Yashwant Sinha, Sumitra Mahajan and several MPs, and they were asked to not to contest the elections. "PM Modi should himself give the clarification on the age rule made by him. He should also clarify that whether he is greedy for the post of PM," Singh said. Shah earlier asserted that Prime Minister Modi will continue to lead the country post 2024 Lok Sabha polls and hit out at Kejriwal for claiming the PM was seeking votes for making him his successor.
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