Despite ongoing tariff pressures, the United States has overtaken China as the largest buyer of Indian spices by value during the 2025-26 financial year, after China sharply reduced its purchases of key spices such as chilli and cumin. According to trade data cited by The Hindu BusinessLine, overall Indian spice exports fell 6.1% in value to $4,430 million in FY26 from $4,722 million the previous year.
Export Performance by Key Markets
While China traditionally holds the largest volume share of Indian spice exports, the US emerged as the top buyer in value terms during FY26. The following table summarises the two largest markets:
| Market | FY26 Exports ($ million) | FY25 Exports ($ million) | Change |
|---|---|---|---|
| United States | 624.35 | 711.16 | -12.2% |
| China | 518.98 | 769.58 | -32.6% |
| Total India | 4,430.00 | 4,722.00 | -6.1% |
Although US-bound shipments also declined 12.2%, the drop was far milder than China's. The US remains the largest buyer of Indian pepper, turmeric, and spice oleoresins. Within those categories, pepper and turmeric exports to the US actually increased, while oleoresins saw a decline, according to the report.
China's Demand Collapse: Chilli and Cumin
The sharp reduction in Chinese purchases was concentrated in two spices: chilli and cumin. Trade sources cited by The Hindu BusinessLine revealed:
- Cumin exports to China saw a 76% volume decline and an 80% value decline in FY26, attributed to higher domestic production.
- Chilli exports to China dropped 21% in value and 11% in volumes.
From a record high of $928.28 million (309,000 tonnes) in FY24, Indian spice exports to China have slowed dramatically as the country increased its own cultivation of heat-chillies and cumin.
"Last year, China had a very good crop of around 85,000-90,000 tonnes, and hence they avoided buying from India," Yogesh Mehta of SpicExim told the publication. He added that China is likely to harvest an even bigger crop in 2026 due to favourable weather and improved farming techniques.
Market Commentary
Emmanuel Nambusseril, Chairman of the All India Spices Exporters Forum, explained that the US emerged as the largest buyer largely because China reduced its chilli demand. He noted that China has started growing its own heat-chillies, which had been a major Indian export item.
While the tariff environment between the US and India continues to weigh on overall trade, the relative stability of US demand for high-value spices like pepper and turmeric helped the American market pull ahead. For import/export professionals, the data signals a structural shift in global spice sourcing: China's self-sufficiency push is reshaping traditional supply chains, while the US remains a reliable premium buyer.
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