China has rejected at least three cargoes of dried chilli consignments and has suspended three Indian exporters over the alleged presence of methamidophos residues in the spices commodity. According to reports from The Hindu BusinessLine, this comes close on the heels of Beijing rejecting Indian rice cargoes, raising concerns among exporters who are already facing reduced offtake from the neighbour. China consistently absorbs over a third of India's red chilli exports annually driven by rising demand from the oleoresin, food and culinary sector.
During 2024-25, chilli exports to China registered a growth of 31 per cent to touch a high of 2.36 lakh tonnes in volumes. As reported by The Hindu BusinessLine, India's chilli exports touched 7.15 lakh tonnes during 2024-25, registering a 19 per cent increase over the previous year's 6.01 lakh tonnes. China buys mainly the Teja variety for oleoresin extraction, with annual shipments to China fluctuating between 1.5 and 1.9 lakh tonnes. Sources indicate that around 3,000 containers of chilli have been exported to China this year, of which 10-15 per cent reportedly faced quality issues.
The spurt in chilli prices has prompted Chinese importers to seek lower prices from suppliers, bringing product quality concerns to the fore. According to trade sources cited by The Hindu BusinessLine, high moisture content has emerged as a key issue with sources attributing it to inadequate post-harvest handling and quality control measures driven by cost considerations. Despite the quality concerns, none of the affected consignments have been returned - instead, importers are reportedly negotiating price discounts with suppliers to compensate for deficiencies. Sources added that major exporters are not involved in these transactions, which largely comprise traded consignments of whole chilli.
Bhagirath Choudhary, Founder Director of South Asia Biotechnology Centre (SABC), explained that the detection of methamidophos in exported chilli consignments is a matter of concern because methamidophos is not separately registered for agricultural use in India. As reported by The Hindu BusinessLine, Choudhary noted that methamidophos may occur as a metabolite of acephate, an insecticide that remains registered for use on certain crops in India and is reportedly used by some chilli growers. He emphasized that the rejection should not be viewed merely as an isolated compliance issue but as a reminder of increasingly stringent food safety standards being applied in international trade.
Choudhary stressed that India already faces a significant trade imbalance with China and safeguarding market access for agricultural exports should be a strategic priority. According to The Hindu BusinessLine, he called for stronger farmer-awareness programmes, improved stewardship of crop-protection products, residue surveillance, and faster adoption of safer and more sustainable integrated pest-management practices. Sources at the Spices Board maintained that they have no information on the matter, highlighting the need for improved coordination between regulatory bodies and exporters in addressing these quality and compliance challenges.
