Record Details

VALUE ADDITION AND EXPORT TRADE ANALYSIS OF MAJOR SEED SPICES OF GUJARAT

KrishiKosh

View Archive Info
 
 
Field Value
 
Title VALUE ADDITION AND EXPORT TRADE ANALYSIS OF MAJOR SEED SPICES OF GUJARAT
 
Creator THUMAR VALLABH MADHA
 
Contributor Khunt K. A.
 
Subject MAJOR SEED SPICES
AGRICULTURAL ECONOMICS
 
Description Seed spices the single largest group of spices has a prominent place in Indian economy because of their high domestic consumption and growing demand for export mainly in the form of value added products. Quality constraints can be minimized through processing i.e. value addition. Gujarat being an important seed spices producing state of India, the economy of seed spices has great bearing on the livelihood of the farmers of this area. Thus, the present study was carried out with a view to estimate the cost of processing and value addition, growth and instability in export, to analyse the sources of growth and instability in exports, change in direction of export, export performance and identify the constraints perceived by the exporters of seed spices i.e. coriander, cumin, fennel and fenugreek. The study area confined to state of Gujarat. The primary data regarding the cost of processing and value addition were collected from the selected five processors of each seed spices comprising total 20 processing units during the year 2007-08. The secondary data were collected from the various published sources and website. The different analytical tools like Exponential Growth Function, Coppock‟s Instability Index, Hazell‟s Decomposition Model, Markov-Chain Model, Domestic Resources Cost (DRC) technique and Nominal Protection
Coefficient were employed to study the export trade analysis of major seed spices of India.
The total processing cost for one kilogram of coriander powder, coriander dal, cumin powder, sugar coated fennel, and fenugreek powder were Rs.6.04, Rs. 7.78, Rs.7.68, Rs.9.98 and Rs. 5.35, respectively. The fixed cost for processing of coriander powder, coriander dal, cumin powder, sugar coated fennel, and fenugreek powder were ranged from 1.28 to 4.94 per cent to total cost, while the variable cost ranged from 95.06 to 98.72 per cent to total cost. The major cost components were the raw materials, energy charges and interest on working capital. The highest returns on investment observed for cumin powder (216.65%) followed by sugar coated fennel (168.26%), Coriander powder (146.82%), fenugreek powder (136.02%) and coriander dal (25.89). Thus, processing of major seed spices was found remunerative to the entrepreneurs.
Both export quantity and value of coriander, cumin, fennel and fenugreek were increased during the study period. The growth rates of export quantity were found less than the export value for all the seed spices. Growth rates during the fourth and fifth decades were found greater than the other decades. Instability indices also found declined with the passage of time. This may be the effect of liberalization in licensing, quota systems and minimization of the state interventions in the trade. Instability in export quantity were found greater than the instability in export value for all the seed spices as well as total spices. This may be due to price adjustment with the quantity supplied. Among the spices, the highest growth rates in export quantity and value were observed for the coriander i.e. 8.49 and 17.52 per cent, respectively.
The sources that accounted for the changes in the variance of export earnings from coriander revealed that out of the increase in variability of total coriander export earnings, 100.44 per cent was attributed to change in EUV variance, while the change in mean EQ(11.58%) and change in mean EUV (1.02%) contributed to reduce the instability in export earnings. In case of cumin, the change in residual (456.47%) and change in EUV variance (41.20%) were the major sources of instability in total cumin export earnings, while the change in EQ-EUV covariance (345.25 %) and interaction between change in mean EQ and mean EUV and change in EQ-EUV covariance (53.51%) contributed to stability. In case of fennel, the total variability was mainly due to the change in EUV variance (88.70%). While, the interaction between change in mean EQ and mean EUV covariance (2.12 %) and change in mean EUV (0.67%) contributed stability. It is evident that among the sources of change in the variance of fenugreek export, change in EUV variance (289.09%) and change in EQ variance (29.37%) were the major sources of change. On the other hand, change in mean EQ, change in mean EUV, change in EQ-EUV covariance had contributed to the stability of export earnings.
The change in mean EQ had contributed largely by 90.02 per cent to increase in total coriander export earnings. Results of total cumin export earnings indicate that the change in covariance between quantity and value (EQ-EUV) had accounted a larger proportion of 95.37 per cent to increase in total cumin export earnings. In case of fennel, the change in covariance between quantity and value (EQ-EUV) contributed largely (107.34%) to increase in total fennel export earnings. The change in mean EQ had found the major factors to increase fenugreek export earnings (85.35%).
The Markov chain analysis revealed that the Singapore was the highly stable country among the major importers of Indian coriander. Malaysia, U.A.E. and other countries were also found highly loyal markets for Indian coriander. Nepal, Malaysia, U.S.A. and other countries were found to be highly loyal markets for Indian cumin. Countries like U.S.A., U.A.E., Malaysia and other countries were found to be highly loyal markets for Indian fennel. Japan, Y.A.R., Sri Lanka and other countries were found loyal markets for Indian fenugreek. The projected export shares to different countries showed that almost all the countries will continue to be stable importers of Indian seed spices.
DRC‟s value less than unity for all the crops indicated that to earn one rupee of foreign exchange, the coriander, cumin, fennel and fenugreek growing farmers in India have to spend less than one rupee worth of non tradable inputs in the production of all these spices. So it is profitable to use non tradable inputs in the production of spices.
Canada, Oman, Australia and Bahrain were found moderately export competitive for coriander export, while in case of cumin Japan only was moderately competitive. All the importing countries of Indian fennel were found non profitable. The export of fenugreek from India to Japan, UK and France were found less competitive. The NPC values for last five consecutive year for coriander and cumin were observed less than unity indicated less competitiveness, while the fennel and fenugreek was found non competitive in export.
Among the major constraints faced by seed spices processors and exporters, the scarcity of quality raw materials was the most important constraint followed by inadequate exportable surplus, presence of residue in produce, low productivity, price uncertainty and high production cost.
 
Date 2016-09-21T09:12:52Z
2016-09-21T09:12:52Z
2009-07
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/77865
 
Language en
 
Format application/pdf