Digital Disruption in Spice Industry of India

Abhrasnata Das

India has long been referred to as the world's spice bowl. About 63 different types of spices are commonly farmed in our nation, according to the Bureau of Indian Standards. India is known around the world for being the only nation to produce practically all types of spices. These segments of the spice industry are crucial to the growth of the Indian economy. Since 1961, India has dominated the world in both the production and processing of spices. Approximately 1063000 MT of spices are produced worldwide, with a market value of $ 1377339 billion.

India now exports 180 different spice products to more than 150 different countries, producing more than 4 million tonnes of spices annually. In terms of monetary value, the spice market in India has increased by 26%. The entire area planted with spices in India is 2.3 million hectares, and our nation produces over 27 lakh tonnes of spices annually, with a market worth of about Rs. 13000 crore.

That being said, the current state of Indian agriculture including the spice industry is unsustainable. With the soil health declining, water resources deteriorating and becoming more contaminated due to the indiscriminate use of agrochemicals, and farmer livelihoods are being severely and negatively impacted by climate change and diminishing returns. In this article, let's look into the key challenges that are halting the growth of the spice industry of India.

Quality and Need for Testing

Contrary to other foods, spices are susceptible to contamination at various phases of manufacture. Due to the many procedures involved, spices may include heavy metals, pesticide residues, or agro-inputs. Additionally, microbial contamination might result from poor packaging techniques. For spices to have the correct flavour and quality, as well as to satisfy and benefit the end user, these pollutants must be avoided.

There is an increasing awareness of contaminants, dangerous compounds, and other disease-causing organisms in common everyday materials nowadays. Consumers want the highest quality from every product they use, especially those they eat, in addition to becoming more conscious of it. Due to these modifications, exporting nations are required to uphold their quality standards and follow the guidelines they have established for the evaluation of spices.

These criteria for spice testing guarantee, among other things, that the spices are free of mycotoxins, mould, insect infestation, and bacterial contamination. Exporters from all around the world voluntarily follow these guidelines for testing spices because they guarantee there will be no cases of foodborne illness or food poisoning.

The competence of TÜV SÜD is a result of its exclusive focus on spice quality requirements. TÜV SÜD evaluates spices using a variety of tests while adhering to the criteria of the most important quality assessment authorities for food safety. TÜV SÜD stands out from the other plethora of quality evaluation services it offers thanks to VIDAS's quick examination of salmonella, which produces findings in less than 24 hours.

Supply Chain and Traceability

The emphasis on quality and cleanliness has become a need from both regulators and consumers due to the understanding of microbiological and chemical risks and the rising concern of consumers. Spices are especially vulnerable to pest infestations in tropical regions. As a result, harvesting spices that have been grown using chemical fertilisers may have left over pesticides. Technology interventions are required in this case to identify operational hazards, quantify repercussions, and create systems to reduce risks and manage them.

The key to increasing consumer satisfaction and promoting the sustainable expansion of the spice industry is traceability throughout the spice value chain. Digital platforms that document the value chains of these spices from farm to bottle will increase visibility and transparency. The issues of identifying contamination due to pesticides and poisons may be addressed with the tracking of the product path from the source to final consumption, which also makes it simpler to recall products when there are safety lapses.

Building ethical and sustainable food supply chains is made possible by the use of blockchain technology by TraceX's FOODSIGN platform for digital traceability. The pre-harvest module aids farmers in managing their crops and keeping track of their fields. A sustainable set of procedures is set up for the crops to achieve efficient yields and high-quality output. To assist the farmer in achieving profitable yields, efficient management of pesticide, water, and other input utilisation is employed.

Digital Intervention a Necessary Move

The usage of Indian spices increased dramatically worldwide once the coronavirus epidemic broke out. According to ASSOCHAM's dipstick, spice exports increased by 23% in terms of dollars and 34% in terms of rupees in June 2020. According to the survey, "India's exports of spices increased (by 23 percent) to USD 359 million in June 2020 from USD 292 million in the same month previous year, in contrast to a fall of 12.41 percent in the country's entire goods export basket over this time.

The problems in this sector are increasing at the same time that possibilities exist. The manufacturers and merchants in this sector were faced with a wide range of difficulties, including labour and raw material shortages, interruptions in the infrastructure and support systems, marketing difficulties, etc. Small-scale producers and processors have been most negatively impacted.

“We are banking heavily on social media platforms like Facebook, Instagram, Twitter and LinkedIn to communicate with our consumer base. In addition, we are also tying up with various food influencers and are educating consumers through recipe videos in our YouTube channel,” says Raman Khanna, CEO, UVR Natural Foods Pvt Ltd.

The Way Forward

Digital technologies provide all farmers, merchants, exporters, and even processors a shared platform to promote commerce, which in turn fosters more transparency & confidence among buyers & sellers.Additionally, these technologies are more economical and long-term sustainable.

By utilising technical solutions and incorporating industry best practises, it is possible to standardise quality evaluation and make it accessible to all participants in the spice value chain. The solution to bolster India's export leadership in spices, push fair pricing for farmers and agribusinesses, and assure high quality flow of spices across food value chains is to digitise the spice trade by combining cutting-edge technology on one platform.