China may soon start importing chilli meals from India as the two neighbours have signed a protocol. This 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 after Mr. Donald Trump earlier this week threatened to increase tariffs on nearly 200 billion dollars 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 and 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 Maharashtra.
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.