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US overtakes China as top Indian spice buyer by value in FY26
US overtook China as top Indian spice buyer by value in FY26 as Chinese purchases of chilli and cumin fell 32%. Exports to US: $624M. China's domestic crop growth may keep demand soft.
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The United States became the largest buyer of Indian spices by value in the 2025-26 financial year, displacing China after Beijing sharply cut purchases of chilli and cumin. Indian spice exports to the US totaled $624.35 million, down from $711.16 million a year earlier, as tariffs and lower volumes weighed on shipments. Exports to China fell 32% to $518.98 million from $769.58 million, trade data show.
Overall Indian spice exports dropped 6.1% in value to $4.43 billion for the year, from $4.72 billion in 2024-25.
China has historically been the largest buyer of Indian spices. Its purchases have slowed sharply from a record $928.28 million in 2023-24, reflecting rising domestic production of key spices, trade sources said. China's cumin imports from India fell 76% in volume and 80% in value during the year. Chilli exports dropped 21% in value and 11% in volume.
The US emerged as the top buyer largely because of reduced Chinese demand for chillies, said Emmanuel Nambusseril, Chairman of the All India Spices Exporters Forum. The US is already the largest buyer of Indian pepper, turmeric and spice oleoresins. Pepper and turmeric exports to the US rose during the year, while oleoresin shipments declined.
The shift carries implications for India's spice export industry. China's self-sufficiency in heat-chillies and cumin may be structural. The country harvested around 85,000-90,000 tonnes of chillies last year, said Yogesh Mehta of SpicExim. Trade sources expect an even bigger crop in 2026, supported by favorable weather and better farming techniques. That trend could keep Chinese purchases of Indian spices at reduced levels.
Indian exporters now face a more fragmented demand base. The US remains a key market, particularly for pepper and turmeric, tariff risks persist. The Trump administration's trade policies have already nudged overall US-bound spice volumes lower. Diversification into other markets – Europe, Southeast Asia, the Middle East – will become more critical if Chinese demand stays weak, Mehta said.
"Last year, China had a very good crop of around 85,000-90,000 tonnes, and hence they avoided buying from India," Mehta said recently. "China is likely to harvest a bigger crop during 2026 due to favourable weather and better farming techniques."