The US Department of Commerce’s decision to impose anti-dumping and countervailing duties on oleoresin paprika (red chilli extract) imports from India has left the spice export industry facing significant uncertainty, according to industry sources.
Duty Details
According to industry sources, the countervailing duty ranges from 18.56 per cent to 25.41 per cent and has been made applicable from February 2026. Anti-dumping duties ranging from 3.33 per cent to 4.66 per cent have been imposed retrospectively from June 2026.
| Duty Type | Rate Range | Effective Date |
|---|---|---|
| Countervailing Duty | 18.56% – 25.41% | February 2026 |
| Anti-dumping Duty | 3.33% – 4.66% | June 2026 (retrospective) |
Petition and Investigation
The action follows a petition filed by a US manufacturer with the US International Trade Commission (USITC), alleging that Indian exporters were selling oleoresin paprika at unfairly low prices, causing material injury to domestic producers, according to the source.
Market Context
India remains a leading supplier of oleoresin paprika to the US market. Trade data show that annual exports have ranged between $54.6 million and $68 million, with shipment volumes of 2.1-2.5 million kg. Oleoresin paprika, a natural extract derived from red chillies, is widely used by US buyers in food colourings, cosmetics and spice formulations.
Industry Reaction
Emmannuel Nambusseril, president of the All India Spices Exporters Forum, said the duties come on top of the additional tariffs that the US is considering on Indian imports under Section 301 provisions related to forced labour concerns, estimated at 10-12.5 per cent.
“The US is one of the largest markets for oleoresin manufacturers in India. The cumulative impact of these measures will severely affect exporters,” Nambusseril said.
Implications
Industry stakeholders fear that the combined impact of anti-dumping duties, countervailing duties and any additional tariffs could erode India’s competitiveness in the US market, forcing exporters to either absorb higher costs or look for alternative destinations.
Sources:
