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India-EU: AISEF, European Spice Association ink deal to strengthen trade cooperation

February 25, 2026 5 min read Economics International Relations GS2 (International Relations India-EU) GS3 (Indian Economy — Trade)
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What Happened

  • The All India Spices Exporters Forum (AISEF) and the European Spice Association (ESA) signed a Memorandum of Understanding (MoU) at the International Spice Conference (ISC 2026) held in Kochi.
  • The MoU was signed by AISEF Chairman Emmanuel Nambusseril and ESA Chairman Benoit Winstel.
  • The two-year agreement establishes a framework for information sharing, technical cooperation, and coordinated engagement on EU regulatory requirements — covering food hygiene, contaminants, traceability, and sustainability standards.
  • A key provision of the agreement is a categorical condemnation of food adulteration and a ban on the use of sterilization methods prohibited in the EU — specifically ethylene oxide (ETO) — for Indian spice products destined for European markets.
  • ESA will share updates on European market regulations; AISEF will promote EU-compliant standards across its supply chain.

Static Topic Bridges

India's Spice Export Sector and Trade Significance

India is the world's largest producer, consumer, and exporter of spices. The spice sector is a key component of India's agricultural export basket, with exports totaling approximately USD 4.25 billion in 2023-24. India commands nearly 25% of the global spice trade by volume. The government has set an ambitious target of growing spice exports to USD 10 billion by 2030.

  • Nodal body for spice export regulation and promotion: Spices Board of India — established under the Spices Board Act, 1986; under the Ministry of Commerce and Industry
  • Spices Board has 5 testing laboratories nationwide for quality and safety testing
  • Top Indian spice exports: chilli, turmeric, cumin, cardamom, pepper, coriander, mint products
  • EU is one of India's top 3 destination markets for spices; other key markets are the US and Middle East
  • India's spice export value target: USD 10 billion by 2030
  • Between 2019 and 2024, the EU flagged over 400 Indian food and spice products for contaminants, with 276 products receiving border refusal notices — primarily for ethylene oxide (ETO) residues

Connection to this news: The AISEF-ESA MoU directly addresses the EU's growing list of rejections of Indian spice shipments due to food safety non-compliance — especially ETO contamination — which threatened India's market access.

Ethylene Oxide Controversy — Food Safety Implications

Ethylene oxide (ETO) is a chemical historically used for sterilizing spices to extend shelf life and kill pathogens. The European Union has completely banned ETO as a pesticide and fumigant since 1991 and sets maximum residue limits (MRLs) of 0.02-0.1 mg/kg for ETO and its metabolite (2-chloroethanol) in food products. ETO is classified as a probable human carcinogen (Group 2A) by the International Agency for Research on Cancer (IARC).

  • The ETO crisis for Indian spices gained global attention in 2023-24 when the EU, Singapore, Hong Kong, and the US flagged multiple Indian brands (including MDH and Everest) for ETO contamination
  • FSSAI (Food Safety and Standards Authority of India): apex food regulatory body under the Food Safety and Standards Act, 2006 — issues regulations on food contaminants and pesticide residues; launched investigations into ETO-laced spice products in 2024
  • Spices Board response: mandatory ETO testing for all EU-bound exports; technical guidance to exporters on ETO-free processing alternatives (e.g., steam sterilization, irradiation)
  • Safe alternatives to ETO: steam sterilization, high-temperature short-time (HTST) treatment, gamma irradiation (regulated under Atomic Energy Act 1962 and FSSAI regulations)

Connection to this news: The AISEF-ESA MoU directly responds to the ETO crisis — formalizing a commitment to EU-compliant sterilization practices and creating a bilateral regulatory dialogue channel to prevent future trade disruptions.

India-EU Trade Relations and the Ongoing FTA Negotiations

India and the European Union are engaged in ongoing negotiations for a comprehensive Free Trade Agreement (FTA) — formally known as the India-EU Trade and Investment Agreement (BTIA). Negotiations were originally launched in 2007 but stalled in 2013 over disagreements on tariff reductions, data protection, government procurement, and intellectual property. Talks resumed in 2022 under the Trade and Technology Council (TTC) framework.

  • India-EU BTIA negotiations: started 2007, suspended 2013, resumed 2022
  • EU is India's second-largest trading partner: bilateral trade in goods reached approximately €120 billion in 2023
  • India's exports to EU: pharmaceuticals, garments, engineering goods, chemicals, and agricultural products (including spices)
  • EU's key concerns: market access for automobiles, wine, dairy; intellectual property and data localisation
  • India's key concerns: movement of professionals (Mode 4 services), high EU tariffs on textiles and leather
  • Spice exports fall under the EU's Regulation (EC) No 178/2002 (General Food Law) and Regulation (EU) 2023/915 on maximum levels of contaminants in food

Connection to this news: The AISEF-ESA MoU is a sector-level confidence-building measure that operates independently of the broader FTA negotiations — demonstrating that industry-to-industry cooperation can advance trade facilitation even when government-to-government talks proceed slowly.

FSSAI and India's Food Safety Regulatory Architecture

The Food Safety and Standards Authority of India (FSSAI) is the central regulatory body governing food safety in India, established under the Food Safety and Standards Act, 2006 (FSS Act). It operates under the Ministry of Health and Family Welfare. FSSAI sets standards for food articles, regulates food businesses, and oversees imports of food products.

  • FSSAI established: 2008 (under FSS Act, 2006) — consolidated multiple earlier food laws including the Prevention of Food Adulteration Act, 1954
  • Powers: licensing and registration of food businesses; setting food standards; import clearance; enforcement and recall authority
  • For spice exports: Spices Board (under Ministry of Commerce) certifies exports; FSSAI governs domestic standards and import norms
  • India's MRL for ETO in spices: FSSAI had no specific MRL for ETO until 2024 reviews — this regulatory gap contributed to the ETO controversy
  • Import rejection consequence: repeated rejections by EU Rapid Alert System for Food and Feed (RASFF) can result in heightened scrutiny (mandatory testing of 50% or 100% of consignments) under EU import regulations

Connection to this news: Aligning India's domestic standards — through FSSAI and Spices Board coordination with the EU framework — is precisely what the AISEF-ESA MoU aims to facilitate at the industry level, pending broader regulatory convergence.

Key Facts & Data

  • MoU signed: AISEF (All India Spices Exporters Forum) and ESA (European Spice Association) at ISC 2026, Kochi
  • MoU duration: 2 years
  • India spice exports (2023-24): approximately USD 4.25 billion
  • India's global spice market share: ~25% by volume
  • Target: USD 10 billion in spice exports by 2030
  • EU rejections (2019-2024): 400+ Indian food products flagged; 276 border refusals
  • ETO classification: IARC Group 2A (probable human carcinogen); EU ban since 1991
  • EU MRL for ETO: 0.02-0.1 mg/kg in food products
  • Nodal export body: Spices Board of India (under Spices Board Act, 1986)
  • Nodal domestic food regulator: FSSAI (under Food Safety and Standards Act, 2006)
  • India-EU BTIA negotiations: started 2007, suspended 2013, resumed 2022
  • EU-India bilateral goods trade: ~€120 billion (2023)