Discoveries of harmful residues have put a spanner on India’s booming spice export industry, valued at $4.25 billion.

The presence of ethylene oxide (ETO) has sparked concerns about quality control and could lead to strict regulatory actions in importing countries.

The issue came to light after Singapore and Hong Kong recalled packaged spices from India because of excessive ETO residue. The US and Australia are also investigating the matter.

Ethylene oxide, a known carcinogen, is used as a fumigating agent to control microbial contamination in spices. Its presence above permissible limits poses health risks.

The Spices Board of India has issued fresh guidelines to exporters. It has advised against using ETO for sterilisation and suggested alternatives such as steam sterilisation and irradiation (excluding organic products).

The board has also outlined Maximum Residue Limits (MRLs) for ETO in key markets such as the EU, UK, US and Singapore.

Analysts at the Global Trade Research Initiative (GTRI) said with nearly $700 million worth of exports to critical markets at stake, potential losses could exceed half of India’s total spice exports if major countries implement cascading regulations.

“Swift investigations and transparent publication of findings are crucial to regaining global confidence in Indian spices,” GTRI co-founder Ajay Srivastava said. “Strict action against companies violating regulations is necessary.”