Today I purchased some papads (extremely thin Indian flat bread one toasts on a hot griddle until they blister and becomes brittle before serving (1)).

The label says, "Product of India, FOR EXPORT ONLY".

When I see something marked that way I always wonder just what it is that makes it unsuitable for consumption in its land of origin.

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(1) Ingredients: Urad Dal(similar to mung beans but black on the outside and white on the inside), Flour, Salt, Papadkhar (sodium bicarbonate), Pepper, Cumin, Asafoetida, Edible Oil & Other Spices.

. . . that sort of explanation is not suited to a proper conspiracy theory.

. . it's more probable they're reserving the portion that can pass inspection for generation of foreign trade revenue. For instance, in the domestic market a lot of legumes are deliberately cut with grass pea, a legume that causes permanent paralysis upon overconsumption.
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The attraction of grass pea is that it grows well in areas that have too little rainfall for other crops. Paralysis from grass pea is still a major problem in parts of India. Since the people won't stop eating it, the Indian government is trying to develope and propegate non-toxic varieties.