India's Spice Sector Transformation: The Role of the Spices Board and the SPICED Scheme
India's Spice Sector Transformation: The Role of the Spices Board and the SPICED Scheme
India has long been celebrated for its diverse and aromatic spices, which have shaped the culinary and commercial history of the subcontinent. As one of the largest spice producers and exporters in the world, India has developed a sophisticated institutional framework to manage this sector, with the Spices Board of India at its core. In recent years, the Board has introduced the SPICED Scheme to bring innovation, sustainability, and growth to the spice economy, especially in the realm of exports. This article explores the functioning of the Spices Board and the objectives of the SPICED Scheme, with a particular focus on cardamom, one of India’s most prized spices.
Establishment and Mandate of the Spices Board of India
The Spices Board of India was set up as a statutory body through the enactment of the Spices Board Act in 1986 and became operational on February 26, 1987. It was formed by integrating two earlier entities, the Cardamom Board and the Spices Export Promotion Council, to streamline the development and export promotion of spices. The Board operates under the administrative control of the Ministry of Commerce and Industry and is headquartered in Kochi, Kerala—a region synonymous with spice production. Its mandate includes overseeing the development of 52 scheduled spices as outlined in its governing legislation, along with the facilitation of exports, quality control, and the advancement of cultivation techniques through training and infrastructure support.
Overview and Significance of the SPICED Scheme
To enhance the competitiveness of Indian spices in international markets, the Spices Board launched the SPICED Scheme. The scheme’s full title—Sustainability in Spice Sector Through Progressive Innovative and Collaborative Interventions for Export Development—highlights its commitment to long-term sectoral improvement. The government has allocated nearly ₹130 crore for implementing the scheme in the fiscal year 2025–26. The SPICED Scheme is designed to integrate innovation and sustainability into the spice production and export ecosystem. It aims to improve crop quality, strengthen infrastructure, support research and development, and create international market linkages for Indian spices, especially for high-value varieties such as cardamom.
The Central Role of Cardamom in India’s Spice Strategy
Among the various spices cultivated in India, cardamom holds special commercial and cultural value. It exists in two major types: green cardamom, also called small or true cardamom, and black cardamom, often referred to as large cardamom. Green cardamom is typically used in Indian sweets, tea, and desserts, while the black variety is more common in savory dishes and spice mixes. In terms of cultivation, green cardamom is primarily grown in Kerala, which accounts for around 70% of India's output, followed by Karnataka and Tamil Nadu. The black variety thrives in the North Eastern states such as Sikkim, Arunachal Pradesh, and Nagaland, where the unique climate and topography support its growth.
India’s Export Profile and Global Context
While India is not the largest producer of cardamom globally, it holds a significant share in the premium export segment due to the superior quality of its produce. Guatemala leads in terms of global production and export volumes, contributing more than half of the world’s cardamom supply. Other countries like Sri Lanka also play a role in international markets. Despite this, Indian cardamom is in high demand in countries such as the United Arab Emirates, Saudi Arabia, the European Union, the United States, and Japan. These regions prefer Indian cardamom for its distinctive aroma and strength. The annual revenue from cardamom exports ranges between ₹500 crore to ₹600 crore, making it a valuable contributor to India’s agricultural export earnings, even though the overall export volume is relatively modest.
Challenges Affecting Cardamom Production and Exports
The cultivation of cardamom, while lucrative, is fraught with challenges. One of the most pressing issues is the spread of crop diseases, particularly the Cardamom Mosaic Virus, which significantly reduces yield and quality. Additionally, changes in weather patterns, including irregular rainfall and rising temperatures, adversely affect productivity. The spice is highly sensitive to environmental fluctuations, and its growth requires specific conditions of shade, moisture, and altitude. Another major concern is the limited access of small-scale farmers to modern farming tools, irrigation, and post-harvest facilities such as drying chambers and packaging centers. These factors not only hamper domestic supply but also affect the consistency and competitiveness of exports. Quality certification and adherence to international residue standards are other hurdles that must be overcome to ensure access to high-value markets.
How the SPICED Scheme Seeks to Address Sectoral Issues
The SPICED Scheme has been crafted to overcome these production and export bottlenecks by introducing a multi-pronged strategy. It supports research into disease-resistant varieties of cardamom and other spices, thereby minimizing crop loss and ensuring consistent quality. It also focuses on upgrading post-harvest infrastructure through funding support for drying units, storage centers, and export-quality packaging. In addition, the scheme promotes digital tools to introduce traceability mechanisms that align with international food safety norms. It encourages training programs for farmers in organic cultivation, good agricultural practices, and pesticide-free farming. Sustainability is a key pillar of the scheme, with specific provisions for soil health improvement, biodiversity conservation, and eco-friendly pest control methods. By addressing both farm-level issues and global trade requirements, the SPICED Scheme seeks to create a resilient and future-ready spice ecosystem.
Looking Ahead: Reinforcing India’s Position in the Global Spice Market
India’s identity as a spice-exporting nation is deeply rooted in its cultural heritage and agricultural tradition. Through the strategic efforts of the Spices Board and the forward-looking SPICED Scheme, the country is well-positioned to elevate its global status in the spice trade. These initiatives aim to transform traditional practices through innovation, empower farmers through education and infrastructure, and meet the evolving demands of international consumers. As global awareness about food quality, traceability, and sustainability grows, India’s ability to align its spice sector with these expectations will be critical. With robust institutional support, scientific advancement, and proactive policies, the Indian spice industry can look forward to a future marked by resilience, growth, and global leadership.