International Market Signals for Indian Horticultural Export Markets : Policies and Prospects

Abstract

Marketing signals are necessary when entering a foreign market. Information requirement is essential related to on international marketing decision, market selection, product, price, promotion, distribution and competition.India is the fruit and vegetable basket of the world. The vast production base offers India tremendous opportunities for exports. During 2011-12, India exported vegetable and fruits worth Rs. 4801.29 crores. The main objective of the study is analyses market signals of exports and prices of major Indian horticultural commodities and identification of their destinations.The study period is 199091 to 2012-13. The sample size is the time series data of 23 years. The methodology adopted is compound annual growth rates, regression and Coefficient variation of instability index. The study found that fruits, vegetables, flowers quantity export growth rates positive and high except walnut and mushrooms. Whereas all commodities price growth rates were positive and high. The study found that all elasticity’s of fruits, vegetables and flowers are elastic except walnut and mushrooms (inelastic). Over 6590% fruits and 50 to 65% vegetables of India’s exports in fresh products go to West Asia and East European markets. Exports of Gherkins (53%), Mushrooms (94%) going to the USA, United Kingdom, France, Spain, Israel and Russia. The demand is more than supply indicating fruits and vegetables requirement in the exports markets are promising. The tariffs for fruits banana, grapes and mango are 4.85%, 3.75%, and 3.75% respectively. And for vegetables, onion and green chillies are 11.25%, 11.25%. Important point noted to be is for fruits and vegetable duties are free. The export policies have provided an export friendly environment by simplifying the procedures for trade facilitation. Pesticide residue is the most important food safety factor. Different countries have different standards for fruits and vegetables.The regression signals shows that balance of agriculture trade and quantity exports are positively affecting on onion export prices and percent of exports positively affecting on gherkins export prices. Export prices and balance of agricultural trade are positively affecting on potato quantity of exports. Export prices and production are positive affect on onion quantity of exports. Percentage exports and balance of agriculture trade positively affecting on Mango export prices.