Your eyes and hands in India · Est. 2019 · Replies within one working day

Indian spices export: how the trade works for a new importer

How the Indian spices export chain works: from farmers and mandis to processors and exporters, and where a new importer can lose control of quality.

· 3 min read · Creston & Co

Indian spices export works through a chain of farmers, market yards called mandis, traders, processors and exporters, and the importer usually sees only the last link. Knowing the chain tells you where quality is made, where it is lost and which supplier can actually fix a problem.

India has grown spices for centuries and offers many types from many regions, which is part of why India is a major source of spices and agri commodities.

Farm to mandi

Most spices are grown by small farmers and sold, soon after harvest, at a regulated market yard run under the state's agricultural marketing law. Traders and agents there buy the crop in bulk, often unclean and unsorted.

Yards specialise: Unjha is known for cumin, fennel and other seed spices, while Gondal and Rajkot are important for chilli, garlic and other crops. How the Unjha, Rajkot and Gondal markets work for buyers explains the differences.

Processors: where quality is made

Between mandi and processor there are usually brokers, who arrange sales for a fee, and small traders who hold stock. They add cost and sometimes add mixing, since a trader with several lots may blend them to hit a grade. This is one reason lot-level testing matters more than reputation.

Processors clean, grade, sterilise, grind and pack the spice. Cleaning equipment ranges from sieves and gravity tables to optical sorters. Whole spices need cleaning and sorting. Ground spices need grinding, sieving and in many cases steam sterilisation. These steps make the difference between a commodity lot and an export lot.

A processor with its own line controls the product. A trader who sources cleaned goods from several processors does not, and cannot always tell you which line made your lot.

Exporters and who they are

An exporter holds an Importer Exporter Code, ships the goods and handles the paperwork. Many spice exporters are processors themselves; many are traders who buy and resell. Spices Board registration is the usual marker for spice exporters, and APEDA registration applies to some other agri products. Verify any number you are given on the issuing body's own website.

Exporters also differ in how they share information. A good one tells you where the lot was cleaned, which crop year it comes from and what tests were run on it. A weak one talks about its years in business and nothing else. Ask three plain questions: where was my lot cleaned, when was the crop harvested, and who tested it?

Neither registration tells you about quality. They show the supplier is a legal exporter, nothing more.

What a new importer should do with this

  • Ask each supplier whether it cleans and grinds in its own plant, and request the address and a video of the line.
  • Specify cleaning method, purity, moisture and the tests you require, so that two suppliers quote for the same product.
  • Ask for a sample from the actual lot and test it with an independent laboratory.
  • Do not pay a large advance to a supplier you have not verified. Read our guidance on payment terms and the document pack before you commit.

Next step

We know the chain from the mandi up, because we find and audit manufacturers, check samples and documents, and supervise loading for importers. If you want to see where your product sits in this chain, book a free sourcing review. We work only for the buyer.

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