Record Details

EXPORT PERFORMANCE AND PROSPECTS OF INDIAN COFFEE UNDER LIBERALIZED REGIME: AN ECONOMIC ANALYSIS

KrishiKosh

View Archive Info
 
 
Field Value
 
Title EXPORT PERFORMANCE AND PROSPECTS OF INDIAN COFFEE UNDER LIBERALIZED REGIME: AN ECONOMIC ANALYSIS
 
Creator RAJU, R.
 
Contributor B. R. Atteri
 
Subject exports, coffee, economics, marketing, markets, biological development, productivity, imports, breeding, policies
 
Description t-8021
The importance of coffee as an export comm
odity may be judged from the fact that a
major volume of world production is diverted
towards world’s exports. India is the 5th
largest coffee exporter, which e
xports about 80 per cent of
its production and its share in
global export is 4.68 per cent. Indian coffee is
exported to over 40 countries of which, top six
markets are Russian Federation, Germany, It
aly, Belgium, Spain and USA, which account
for more than 70 per cent of Indian coffee expor
ts. Post-liberalization era has thrown several
challenges ahead on the production
as well as marketing of coffee. The crisis has been
aggravated by the entry of the new coffee produci
ng countries in to the
international market.
Keeping the general trend in exports as background and the degree of its importance, the
study was attempt to analyze the present perfor
mance and future prospects of Indian coffee
along with its competitiveness in the world mark
et. The specific objectives of the study were:
(1). to study the dynamics of coffee exports of
India and its major competitors in the world
market. (2). to examine the export competitiven
ess of Indian coffee and forecast the future
market. (3). to quantify the welfare gain and lo
sses due to liberalization of coffee trade and
(4). To suggest policy measures
for improving Indian coffee export.
The study was undertaken mainly on a macroeconomic framework using the data
pertaining to various aspects of coffee trade. Se
condary data were used for the study. Growth
rate and variability in area, production and productivity as well as in quantity, value and unit
value of exports from India was estimated us
ing exponential growth function and Instability
Index. Markov chain analysis was employed to
study the changing direction of Indian coffee
exports among the major importing countries. Competitiveness of Indian coffee was obtained
by using Nominal Protection coefficient (NPC),
Effective Protection Coefficient (EPC) and
Domestic Resources Cost (DRC) coefficients
. Welfare gain and losses were analyzed by
employing Partial Equilibrium Model.
The results revealed that the area,
production and yield of coffee increased
significantly during study period. Maximum grow
th rate in area and negative yield growth
rate occurred in post-liberalization period.
Production growth was constant in both the
periods. The volume of coffee export increased at the rate of 56.36 per cent per annum during
study period. Post-reform period showed lower growth rate in e
xport than pre-reform period.
Export value registered a fou
r-fold increase during
post-liberalization period compared to
pre-liberalization period. The maximum unit valu
e was realized from Russian Federation in
both the periods. Direction of trade shows, Ge
rmany was the most loyal importer of Indian
coffee followed by Russian Federation. The proj
ections revealed that the market share of
Indian coffee would increase only in USA and “other countries”. The remaining markets
showed a decreasing trend. The average NPC,
DRC and EPC were positive and less than one,
indicating the global competitiveness of Indian coffee. It has comparative advantage and this
would enable India to specialize in the pr
oduction and export of co
ffee to earn valuable
foreign exchange. Welfare effects revealed th
at the domestic produ
cers have gained by
selling a larger quantity at hi
gher international prices. As ag
ainst this, the consumers have
lost as a result of consuming a smalle
r quantity at higher domestic prices.
 
Date 2017-01-07T10:31:24Z
2017-01-07T10:31:24Z
2008
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/94942
 
Format application/pdf