Sustainability In Spice Sector Through Progressive, Innovative And Collaborative Interventions For Export Development (SPICED) Scheme, 2024

Policy Update
Gowri Kodali

Introduction

The spice sector is an important part of India’s agricultural trade and food processing as well as rural employment. While the domestic market for spices is large, growing exports requires improvement in quality and compliance with food safety and traceability standards of importing countries. Regulatory requirements of importing countries are constantly changing. Therefore, measures to strengthen the export competitiveness of spices need to be innovative and collaborative. The Spices Board of India, under the Ministry of Commerce and Industry, launched the Sustainability in Spice Sector through Progressive, Innovative and Collaborative Interventions for Export Development (SPICED) scheme in 2024. The scheme has received an approved outlay of ₹422.30 crore for implementation in the remainder of the 15th Finance Commission cycle, that is, up to 2025-26 (PIB, 2024).

Recommended value addition and quality improvement of spices at the post-harvest stage, increased cardamom productivity, improved entrepreneurship and other stakeholder support are some of the objectives of the scheme. SPICED is relevant in addressing gaps in the spice value chain, including cultivation, processing, certification and market access (Spices Board, 2024; PIB, 2024).

Background

The Indian spice industry encompasses farmers, traders, processors, exporters, cooperatives and small industries located in various regions. Though India has a significant position in global spice markets, some producers are unable to meet the stringent quality and food safety requirements. Various problems related to the supply chain and lack of adequate post-harvest processing and other related infrastructure affect the price realization of agricultural produce. The SPICED Scheme aims to enhance the institutional support and improve the export competitiveness of Indian spices (SPICES Board, 2024; PIB, 2024). The Scheme was approved by the Ministry of Commerce and Industry in February 2024. Its implementation guidelines were approved in July, and circulated by the Spices Board in August, 2024. It covers inter alia the Mission Value Addition and Mission Clean and Safe Spices, as well as support for Spice Incubation Centers and Geographical Indications (GIs) for Spices. This demonstrates the Board’s focus on product improvement and development of further opportunities in the field of innovation and entrepreneurship (Spices Board, 2024; PIB, 2024).

The importance of improvement of product quality is evident from the case of turmeric. India accounts for over 66% of the global turmeric exports, and is the largest exporter of turmeric. According to a parliamentary reply in August 2025, India’s turmeric exports in 2024-25 increased to 176,325 metric tons from 162,019 metric tons in 2023-24. These figures show the significance of turmeric in the export sector, and while they may not separately define the role of SPICED in increasing exports of turmeric, the Scheme definitely has the potential to increase turmeric exports (PIB, 2025b).

Functioning

SPICED consists of a range of programmes implemented by the Spices Board. These programmes cover the entire gamut of small and large cardamom cultivation including replanting, mechanization, and post-harvest interventions, export promotion. The scheme aims at achieving additional exportable surplus and at assuring supply of clean, safe and value added spices. Support is extended to farmers/FPOs/exporters/ other stakeholders, as per the requirements of individual components (Spices Board, 2024; PIB, 2026a). The Mission for Value Addition aims to support the processing and development of higher-valued spice products. The Mission for Value Addition provides financial assistance for setting up processing units and adopting advanced technologies. The Mission for Clean and Safe Spices supports quality evaluation, certification, and food safety compliance. Additionally, targeted assistance is extended for developing Geographical Indication (GI) spices and establishing Spice Incubation Centres to aid small enterprises and first-time applicants in product development.

The scheme guidelines state that activities shall be geo-tagged. Information on funds, applications and beneficiaries is to be available on the website of the Spices Board. Recovery of financial assistance is stipulated in case of violations and/or wrongful claims. These make verification and accountability crucial elements of administration of the scheme (Spices Board, 2024).

Performance

The online application process for the SPICED scheme started on 20 September 2024. In the meantime, the scheme was implemented through different assistance programs in the subsequent financial years. The Government reporting in August 2025 indicated that the Spices Board was undertaking interventions covering food safety certification, post-harvest quality improvement, processing and value addition, export consignment testing, and buyer-seller meeting, including interventions for promotion of turmeric exports (PIB, 2024; PIB, 2025a). A practical example was reported in Tamil Nadu where the Spices Board conducted a Market Linkage Training Programme at Bodinayakkanur on the 11th of August 2025. Sixty farmers, entrepreneurs, and traders attended and learned about various export procedures, government schemes, and about the financial assistance and market opportunities. Similar programmes demonstrated the efforts taken by the board to link local producers and small businesses to government schemes and other networks (PIB, 2025c).

The Spices Board invited fresh applications for 2026-27 under an administrative extension running up to 30th September 2026, bridging the transition prior to the proposed Sixteenth Finance Commission cycle programme (PIB, 2026a). While India’s spice exports reached approximately US$ 4.3 billion in FY 2025-26, this performance reflects broader trade dynamics rather than direct attribution to the scheme. As latest official reporting focuses primarily on activity rollouts and trade statistics rather than comprehensive beneficiary impact audits, a full evaluation of funds disbursed and net export growth remains constrained.(PIB, 2026b).

Impact

Improving the quality of spice production and ensuring better post-harvest management as well as providing processing and value addition is expected to improve future competitiveness, whereas current outcomes are largely limited to initial training participation and registration rollouts. Quality testing, certification and processing may help exporters meet requirements of the international market. These may be especially useful for small enterprises, which are generally located far from access to technology, including regulatory requirements (PIB, 2024; PIB, 2025a). Improving competitiveness of spice farmers may be attributed to better post-harvest management and linkages with exporters and processors. Better post-harvest management may provide opportunities for farmers and farmer producer organizations (FPOs) to participate in higher value supply chains (PIB, 2025a). Market-linkage activities such as buyer-seller meets, providing training on export requirements, export potential assessment, demonstrations, and awareness on international markets, may be instrumental for farmers and FPOs to gain an understanding of export requirements and opportunities (PIB, 2025a, 2025c). Better entrepreneurship opportunities may also be attributed to SPICED. Value addition and processing activities may be helpful for the development of new business models such as products and packages. However, the impact on farmer’s income and competitiveness of enterprise exports remains to be seen (PIB, 2025a).

Key Challenges

Compliance with international standards: Spice exporters must meet the requirements of importing countries regarding food safety and quality and the limits of residues. Testing and certification support address some of the issues of compliance, but standards keep evolving and vary across markets and continue to be a challenge. Continuous technical support is necessary (PIB, 2025a).

Unequal access to processing infrastructure: Small growers and processors do not have access to grade, dry, store and package processing and value addition facilities. Absence of common processing infrastructure could result in benefits of the scheme being accessed by larger and better capitalized entities.

Price and market uncertainties: Enhanced product quality does not ensure higher prices to farmers and processors. Farmers and processors continue to be exposed to unreliable export demand and margins of intermediaries and For instance, turmeric farmers frequently face sudden domestic price crashes despite meeting high quality parameters.

Administrative Access: The scheme relies largely on online applications and document verification. Beneficiaries without digital access or awareness about the scheme may find it challenging to apply. The Spices Board’s provisions of assistance by its officials are relevant to inclusive implementation (Spices Board, 2024).

Continuity of implementation: The scheme has been extended to September 2026. This raised questions on the process to be followed for the next Finance Commission period. No communication has been issued about the scheme by the government to ensure transparency and reassure scheme beneficiaries. (PIB, 2026a).

Measuring impact: The number of applications or participation in training and awareness programs do not reflect improvement in productivity or exports. Assistance granted should be analyzed along with product quality and outcome in the market to assess the impact of the scheme.

Way Forward

1. Establish outcome-based monitoring: The Spices Board should publish information regarding applications, beneficiaries assisted, funds disbursed, testing services provided and measurable improvement in quality and market access.

2. Provide access to common processing facilities: Support should be provided to farmer producer organizations, grower clusters and smaller enterprises to access common grading, drying, testing, storage and packaging facilities.

3. Provide access to quality compliance: Support should be provided to producers and exporters to adapt to varying food safety and quality standards through regional training and laboratory services.

4. Provide access to market intelligence and linkages: Producers and farmers should be assisted to gain information regarding market requirements, demand and standards to enable them make informed decisions on processing and marketing of their produce.

5. Support regional specialization: Support should be provided for research and innovation in product and process development and sustainable packaging of spices.

6. Ensure independence and evaluation: Any new program should provide transitional support for beneficiaries of the former program and have an independent evaluation to assess the improvement in income, compliance, enterprise and export competitiveness.

Conclusion

The SPICED Scheme aims to enhance the competitiveness of India’s spice sector through an integrated approach to quality and standards, value addition, cardamom development, entrepreneurship, and export. Its approved budget of ₹422.30 crore, and the introduction of context-specific programme components, establish a framework to address the issues along the spice value chain (Spices Board, 2024; PIB, 2024).

The scheme is aimed at providing training, export promotions, and other assistance to spice producers. While this activity is expected to continue until 2026, the success of the scheme should be assessed in terms of real improvements in the quality of processing, farmer participation, and enterprise development and exports. More importantly, the challenge is to transform enhanced international competitiveness into more and larger opportunities for small and micro spice producers and processors (PIB, 2025a; PIB, 2026a).

References

Press Information Bureau. (2024, September 19). Spices Board unveils a comprehensive scheme to boost spices export and cardamom productivity. Ministry of Commerce and Industry, Government of India. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2056737
Press Information Bureau. (2025a, August 12). Government boosts turmeric exports through SPICED Scheme. Ministry of Commerce and Industry, Government of India. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2155505
Press Information Bureau. (2025b, August 12). India’s contribution to world exports of turmeric. Ministry of Commerce and Industry, Government of India. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2155794
Press Information Bureau. (2025c, August 12). Spices Board conducted the market linkage training programme on spices for the benefit of stakeholders. Government of India. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2155513
Press Information Bureau. (2026a, July 1). Spices Board invites applications for availing assistance under various programmes of the SPICED Scheme during 2026–27. Government of India. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2279972
Press Information Bureau. (2026b). India’s agricultural exports demonstrate resilience and growth in FY 2025–26. Government of India. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2271100
Spices Board. (2024, August 20). Modalities/guidelines for implementation of Sustainability in Spice Sector through Progressive, Innovative and Collaborative Interventions for Export Development (SPICED). Ministry of Commerce and Industry, Government of India. https://www.indianspices.com/sites/default/files/Modalities%20%20Guidelines%20for%20implementation%20of%20SPICED%20Scheme.pdf

About the Author

Gowri Kodali is a Research and Editorial Intern at the Impact and Policy Research Institute (IMPRI). She is pursuing a Master’s degree in Economics and is actively preparing for the UPSC Civil Services Examination. Her academic and research interests include public policy, governance, economic development, agricultural trade and socio-economic development.

Review by Anamika P K and pritha Chowdary

Acknowledgement

I sincerely thank the Impact and Policy Research Institute (IMPRI) for providing me with the opportunity to research and write this Policy Update. I am grateful to the IMPRI team for their valuable guidance, encouragement and support in strengthening my understanding of public policy research and analysis.

Disclaimer: The views expressed in this article are soles views of the author.