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Competitiveness and Potential International Markets for Natural Rubber and Tea from Tripura


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1 Research Scholar, Department of Economics, Tripura University, Tripura, India
     

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The favourable agro-climatic condition and lucrative fiscal and monetary incentives boosted the investment in rubber plantation in Tripura but the growing competition in the international markets due to fluctuating selling price has been a major concern among the farmers. Therefore, it is of paramount importance, to know the competitiveness and potential markets for rubber. Tea is one of the major plantation crops in Tripura and there has been huge investment in this area and eventually it is important to research the present competitive status as well as potential international markets. To measure the competitiveness of rubber and tea, Revealed Comparative Advantage Index (RCA) for these two products from Tripura has been calculated. The products having average higher comparative advantage Index (RCA<1) have been considered as competitive products. Thereafter, to identify the potential international markets, Shift Share analysis has been applied on these two competitive products and consequently the markets where these two products show positive net shift are considered to be potential markets. Apart from that while identifying potential markets Most Favoured Nation (MFN) statuses as well as strategic location of the markets also has been prioritized. After secondary data analysis, it is observed that both the products rubber and tea have competitiveness (RCA<1) and have potential international markets like, Bangladesh, Nepal, Malaysia, Iran, USA, Canada, Germany etc. but the growing concern is that over the period of time different erstwhile potential markets for these two products have been shrinking.

Keywords

Revealed Comparative Advantage, Shift Share, Most Favoured Nation.
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  • Competitiveness and Potential International Markets for Natural Rubber and Tea from Tripura

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Authors

Prabir Ghosh
Research Scholar, Department of Economics, Tripura University, Tripura, India

Abstract


The favourable agro-climatic condition and lucrative fiscal and monetary incentives boosted the investment in rubber plantation in Tripura but the growing competition in the international markets due to fluctuating selling price has been a major concern among the farmers. Therefore, it is of paramount importance, to know the competitiveness and potential markets for rubber. Tea is one of the major plantation crops in Tripura and there has been huge investment in this area and eventually it is important to research the present competitive status as well as potential international markets. To measure the competitiveness of rubber and tea, Revealed Comparative Advantage Index (RCA) for these two products from Tripura has been calculated. The products having average higher comparative advantage Index (RCA<1) have been considered as competitive products. Thereafter, to identify the potential international markets, Shift Share analysis has been applied on these two competitive products and consequently the markets where these two products show positive net shift are considered to be potential markets. Apart from that while identifying potential markets Most Favoured Nation (MFN) statuses as well as strategic location of the markets also has been prioritized. After secondary data analysis, it is observed that both the products rubber and tea have competitiveness (RCA<1) and have potential international markets like, Bangladesh, Nepal, Malaysia, Iran, USA, Canada, Germany etc. but the growing concern is that over the period of time different erstwhile potential markets for these two products have been shrinking.

Keywords


Revealed Comparative Advantage, Shift Share, Most Favoured Nation.