India’s dominance in the global spice market is facing fresh pressure as China has begun cultivating and exporting cumin and chillies—two of India’s most important spice exports—at highly competitive prices, according to industry executives.
China has, over the past two years, started growing both cumin and chillies domestically and is increasingly replacing Indian supplies in some overseas markets. Traders say Chinese spices are often cheaper, even after being imported from India for processing and then re-exported.
“China, for the last two years, has started growing cumin and chilli and has been taking the place of India in some markets,” said Sandeep Vodeppalli, vice president at agri-inputs and agri-trade platform Big Haat.
China is focusing primarily on two chilli varieties—paprika, which is used for colour and mild flavour in food processing, and Teja, a high-pungency variety widely used in pharmaceuticals, including pain-relief ointments. In addition, China has been importing large volumes of Indian chillies, processing them locally and exporting finished products to third-country markets.
Chillies are the backbone of India’s spice exports, accounting for more than a quarter of total volume and value. Exports of chilli powder rose 35% year-on-year in 2024-25 to 80.6 million kg, while total chilli exports increased 19% to over 700,000 tonnes. However, export earnings fell 11% during the year, reflecting strong price pressure in global markets.
Cumin exports also recorded sharp growth in volumes, rising 39% to 229,881 tonnes in 2024-25 from 165,269 tonnes in the previous year. Cumin is widely used across global cuisines as well as in food processing.
“The impact of China’s growing presence may become more visible over the next two seasons,” said Prakash Agarwal, a bulk spice exporter.
Meanwhile, Indian farmers are scaling back cultivation due to weather-related crop losses and weak export prices. Chilli acreage in key producing states—Andhra Pradesh, Telangana and Karnataka—has fallen by around 35% compared to last year, while cumin acreage is down 7–8%.
With China emerging as a low-cost rival, Indian spice exporters now face intensifying competition in key international markets, even as domestic supply risks threaten to tighten in the coming seasons.