China consistently absorbs over a third of India’s red chilli exports annually driven by rising demand from the oleoresin, food and the culinary sector. | Photo Credit: AMIT DAVE

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.

This comes close on the heels of Beijing rejecting Indian rice cargoes.

China, the largest buyer of Indian dry red chillies, has suspended imports from three Indian firms after detecting excessive levels of methamidopos, which is feared to affect the nervous system.

This has triggered concerns among the 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 the culinary sector.

China buys mainly the Teja variety for oleoresin extraction. The annual shipments to China fluctuate between 1.5 and 1.9 lakh tonnes (lt). During 2024-25, the chilli exports to China registered a growth of 31 per cent to touch a high of 2.36 lt in volumes. India’s chilli exports touched 7.15 lt during 2024-25, registering a 19 per cent increase over previous year’s 6.01 lt.

“The detection of methamidophos in an exported chilli consignments is a matter of concern because methamidophos is not separately registered for agricultural use in India. However, 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,” said Bhagirath Choudhary, Founder Director of South Asia Biotechnology Centre (SABC).

Heightened scrutiny

“The rejection of a chilli consignment by China should not be viewed merely as an isolated compliance issue but as a reminder of the increasingly stringent food safety and residue standards being applied in international trade. Recent trade-related concerns involving agricultural consignments of rice and chilli indicate that China is exercising heightened scrutiny over food safety parameters, including pesticide residues and GMO-related requirements. Such incidents can affect the reputation of an entire commodity sector, even when they involve only a few consignments,” Choudhary said.

Sources said China had made record purchases of Indian chillies in 2024-25, taking advantage of lower domestic prices and building inventories.

While details of imports during 2025-26 were not immediately available, offtake has reportedly slowed because of higher carryover stocks and rising chilli prices in India following a smaller crop.

According to trade sources, around 3,000 containers of chilli have been exported to China this year, of which 10-15 per cent reportedly faced quality issues, mainly due to excess moisture and pesticide residues.

Quality concerns

The spurt in chilli prices has prompted Chinese importers to seek lower prices from suppliers, bringing product quality concerns to the fore, sources said. 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. Sources at the Spices Board maintained that they have no information on the matter.

Choudhary further said, “India already faces a significant trade imbalance with China, and safeguarding market access for agricultural exports should be a strategic priority. This calls 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. Strengthening compliance across the value chain will be essential to protect India’s competitiveness in global spice markets.”

(With inputs from V Sajeev Kumar in Kochi)

Published on June 10, 2026