India’s spice exporters are facing growing uncertainty as buyers from the United States have temporarily halted new enquiries following the outbreak of the Iran war, raising concerns over disruptions in one of the country’s most important agricultural export corridors.
Industry executives told US importers have stopped making routine calls on Indian exporters, which typically mark the first step in finalizing annual supply contracts. The US is the largest destination for Indian spices, importing nearly $500 million worth every year, and any prolonged slowdown could lead to excess supply in the domestic market, putting pressure on prices and affecting both exporters and farmers.
Exporters noted that although preliminary discussions for the current trade cycle were held late last year, actual orders are usually placed months later. The absence of fresh enquiries this season has slowed business activity significantly.
Traders attributed the hesitation from US buyers to rising freight costs, uncertainty in shipping routes, and increased risk premiums after the conflict began. The war has affected key maritime routes, forcing logistics companies to impose additional charges such as war-risk surcharges, higher marine insurance, and container imbalance fees, raising the overall cost of shipments.
To manage the situation, exporters are exploring alternative markets and attempting to reroute cargo, but delays and higher transportation expenses continue to affect trade flows.
India exports a wide range of spices to the US, including pepper, cardamom, chillies, coriander, fennel, celery and curry powder. According to industry data, the area under spice cultivation reached about 5.09 million hectares in FY25, with production at nearly 12.99 million tonnes. Output is expected to decline slightly in FY26, adding to concerns in the export sector as global demand remains uncertain.