International Research Journal of Agricultural Economics and Statistics

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Economic Analysis of Export Performance of Major Indian Spices


Affiliations
1 Department of Economics and Sociology, College of Basic Sciences and Humanities, Punjab Agricultural University, Ludhiana (Punjab), India
     

   Subscribe/Renew Journal


India is often referred as the “spice hub of the world” because of its larger production and export potentiality of spices in the world. The present study examines the direction of trade of major spices export from India to different destinations during 1995-96 to 2016-17. The study utilizes Markov chain analysis and calculate the transitional probability matrices for all major spices to determine the direction of spices export from India. The total study period has been divided into two periods based on National Horticulture Mission viz., pre-NHM (1995-96 to 2005-06) and post-NHM (2006-07 to 2016-17). The study revealed that the retention capacity of export destinations for Indian chilli increased after National Horticulture Mission. However, many major importers have registered lesser retention probability in majority of spices during post-NHM period owing to the increased production in the competing countries like China, Bangladesh and Turkey. Besides this, volatility in international prices of spices has led to decrease in foreign exchange earnings from spice trade. Steps need to be taken to maintain the same level of foreign exchange earnings as before so that more new importers in the market can be reached and India should develop modern infrastructure to encash this competitive advantage.

Keywords

Direction of Trade, Transition Probability Matrix, Spices, National Horticulture Mission.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Anonymous (2011). Analysis of export of spices from India to Middle East. Gulf Co-operation council.

  • Babu, H.P. (2017). Export performance of spices in India: an empirical study. Parikalpana KIIT J. Manage.,13 (1): 66 -73.

  • Ibrahim Y.C. (2017). Impact of WTO and related policies on composition and direction of Indian spice export. Internat. J. Res. Econ. Social Sci.,7: 20-29.

  • Joshi, D. (2015). Future trading, export and import of major spices in India. Ph.D. Thesis, Banaras Hindu University, Varanasi, Uttar Pradesh (India).

  • Krishnadas, M. (2010). Production and export performance of major Indian spices- an economic analysis. M.Sc.Thesis, University of Agricultural Sciences, Dharwad, Karnataka (India).

  • Krishnadas, M. and Mundinamani, S.M. (2014). Changing direction of major spices exports from India. Indian J. Arecanut Spices & Medicinal Plants.,13: 20-24.

  • Lamba, S., Midha K. and Agrawal, S. (2015). Export of spices. Int. J. Recent Res. Com. Econ. Manage., 2: 256-266.

  • Mokashi, P. and Hosamani, S.B. (2014). Direction of trade analysis of Indian grapes. Internat. J. Com. Bus. Manage., 7: 105-109.

  • Rajesh, S. (2002). Export performance of major spices in India.

  • Rajur, B.C. and Patil, B.L. (2013). Export performance of chilli-An analysis. J. Agric. Sci., 26 : 233-237.

  • Raju, S.R. (2002). Export performance of major spices in India. Tamil Nadu Agricultural University, Coimbattore, Tamil Nadu, India.

  • Sakamma, S. (2009). Export trade of major spices of India- An economic analysis. M.Sc. Thesis, University of Agricultural Sciences, Bangalore (India).

  • Spice Board of India (2017). Monthly export statistics. Ministry of Commerce and Industry, New Delhi, India.


Abstract Views: 464

PDF Views: 0




  • Economic Analysis of Export Performance of Major Indian Spices

Abstract Views: 464  |  PDF Views: 0

Authors

Venkata Prasad Babu Anantha
Department of Economics and Sociology, College of Basic Sciences and Humanities, Punjab Agricultural University, Ludhiana (Punjab), India
Baljinder Kaur Sidana
Department of Economics and Sociology, College of Basic Sciences and Humanities, Punjab Agricultural University, Ludhiana (Punjab), India

Abstract


India is often referred as the “spice hub of the world” because of its larger production and export potentiality of spices in the world. The present study examines the direction of trade of major spices export from India to different destinations during 1995-96 to 2016-17. The study utilizes Markov chain analysis and calculate the transitional probability matrices for all major spices to determine the direction of spices export from India. The total study period has been divided into two periods based on National Horticulture Mission viz., pre-NHM (1995-96 to 2005-06) and post-NHM (2006-07 to 2016-17). The study revealed that the retention capacity of export destinations for Indian chilli increased after National Horticulture Mission. However, many major importers have registered lesser retention probability in majority of spices during post-NHM period owing to the increased production in the competing countries like China, Bangladesh and Turkey. Besides this, volatility in international prices of spices has led to decrease in foreign exchange earnings from spice trade. Steps need to be taken to maintain the same level of foreign exchange earnings as before so that more new importers in the market can be reached and India should develop modern infrastructure to encash this competitive advantage.

Keywords


Direction of Trade, Transition Probability Matrix, Spices, National Horticulture Mission.

References