India readies to spice up Chinese food with chilli meal as US-China trade war intensifies

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Updated: May 10, 2019 12:45:01 PM

The Chinese markets may soon start importing chilli meals from India as the two Asian neighbours on Thursday signed a protocol.

Recently, India has identified and shared with China a list of 380 products (Representational image)It is the latest move to make the trade ‘more balanced’ between the two Asian neighbours, the Commerce Ministry said.

China may soon start importing chilli meals from India as the two Asian neighbours on Thursday signed a protocol. It is the latest move to make the trade ‘more balanced’ between the two Asian neighbours, the Commerce Ministry said. Interestingly, the decision comes at a time when the trade war between the US and China has intensified further after Donald Trump earlier this week threatened to increase tariffs on nearly $200 billion worth of Chinese imports. Since 2003, it is the eight agricultural product which would be traded between the two nations.

India is the largest producer, consumer and exporter of chillies globally. In the last few years, China has emerged as one of the largest buyers of the Indian chilli, the government data showed. The red chillies are predominantly grown in Andhra Pradesh, Karnataka, Madhya Pradesh and Maharash

Also read: US China trade war: Trump should let world join in fight against Beijingtra.

Chilli meal

Chilli meal is a residue that remains after the oil is extracted from the chillies. The ingredient is used in preparation of chilli sauce and other items. Chilli is the largest exported spice from India, and China has become one of the major buyers over the last few years.

Trade imbalance

Even as China is India’s largest trade partner, a significant trade deficit remains between the two Asian economies. Between April 2018 and February 2019, India imported $65.23 billion of goods from China, Commerce Ministry data showed. China has only imported $15.07 billion of goods from India in the period.

A list of 380 products was submitted by the Indian government to China in the beginning of the year. The items hold adequate potential to improve exports to China, the government had then said. The list reportedly comprised of agricultural, horticultural, pharmaceutical, textile, chemical and engineering products.

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