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    trade performance in cash crops trade performance in cash crops Presentation Transcript

    • By: JAGADEESH.N.P Trade performance of selected cash crops in Indian economy during pre and post WTO period
    • Introduction
      • Agriculture is the major driving force of Indian economy.
      • It accounts for the largest chunk of employment and gross domestic product, a source of raw material for industry and a major source of foreign exchange earner.
      • Domestic agriculture can substantially contribute to the balances of overseas payments either by augmenting country’s export earnings or by expanding the production of agricultural import substitutes. This is termed as foreign exchange contribution of agriculture.
      • But once domestic agriculture is able to meet the basic requirements of the domestic market, it may be a sound policy to exchange agricultural exports either of food or other agricultural products to increase the rate of development through sectoral diversification.
      • Trade in agricultural goods can play an important role in promoting economic development especially in the less developed countries.
      • The export of agricultural goods can pay for imports of capital goods, technology and other essential commodities for a sustained growth of developing countries.
      • Comparative advantage in the production of agricultural goods facilitates in increasing the export potential of the country.
      • The importance of agriculture is felt not only to feed additional mouths but also to earn foreign exchange through exports.
      • Diversified agriculture is an added strength for India. Diverse climatic conditions and soil conditions are contributing for diversified production.
      • The country’s production potential includes food crops, commercial crops , plantation crops, horticulture, floriculture, viticulture, aquaculture, sericulture, animal husbandry and dairying, forestry and processed products.
    • Significance of International trade
      • Specialization in the production of few goods helps in breaking the vicious circle of poverty.
      • David Richardo in his theory states that a country should specialize in the production of goods and services for which it has cost advantage over another country. This, he pointed out will bring about the production of goods at cheaper cost.
      • Over the years the share of India’s agro-exports has declined from 43.30 percent in 1960-61 to 30.0 percent by 1980-81 and further to 10.22 percent by 2008-09.
    • Total Agricultural imports of India from 1991-92 to 2008-09 Source : - Director General of Commercial Intelligence & Statistics, Ministry of commerce, Kolkata Year Agriculture Imports (in Rs.Crores) Total National imports (in Rs. Crores) Percentage of Agriculture Imports to Total National Imports 1991-92 1478.27 47850.84 3.09 1992-93 2876.25 63374.52 4.54 1993-94 2327.33 73101.01 3.18 1994-95 5937.21 89970.70 6.60 1995-96 5890.10 122678.14 4.80 1996-97 6612.60 138919.88 4.76 1997-98 8784.19 154176.29 5.70 1998-99 14566.48 178331.69 8.17 1999-00 16066.73 215528.53 7.45 2000-01 12086.23 228306.64 5.29 2001-02 16256.61 245199.72 6.63 2002-03 17608.83 297205.87 5.92 2003-04 21972.68 359107.66 6.12 2004-05 22811.84 501064.54 4.55 2005-06 21499.22 660408.90 3.26 2006-07 29637.86 840506.31 3.53 2007-08 29906.24 1012311.70 2.95 2008-09 37183.03 1374435.55 2.71
    • Years Rs. crores Total agricultural imports and total national imports of India from 1990-91 to 2008-09.
    • Source:- Director General of Commercial Intelligence & Statistics, Ministry of Commerce, Kolkata Year   Agriculture exports (in Rs. Crores)  Total National exports (in Rs. Crores)  %age Agriculture exports to National Exports 1990-91 6012.76 32527.28 18.49 1991-92 7838.04 44041.81 17.8 1992-93 9040.3 53688.26 16.84 1993-94 12586.55 69748.85 18.05 1994-95 13222.76 82673.4 15.99 1995-96 20397.74 106353.35 19.18 1996-97 24161.29 118817.32 20.33 1997-98 24832.45 130100.64 19.09 1998-99 25510.64 139751.77 18.25 1999-00 25313.66 159095.2 15.91 2000-01 28657.37 201356.45 14.23 2001-02 29728.61 209017.97 14.22 2002-03 34653.94 255137.28 13.58 2003-04 37266.52 293366.75 12.7 2004-05 41602.65 375339.53 11.08 2005-06 49216.96 456417.86 10.78 2006-07 62411.42 571779.28 10.92 2007-08 79039.72 655863.52 12.05 2008-09 85951.67 840755.06 10.22 Total Agricultural exports of the country from 1990-91 to 2008-09
    • Total agricultural exports and total national exports of India
    • CGRs of the agricultural imports and agricultural exports from 1990-91 to 2008-09 ** Significant at 1 per cent * Significant at 5 per cent
      • In agriculture, a cash crop is a crop which is grown for profit.
      • The term is used to differentiate from subsistence crops, which are those fed to the producer's own livestock or grown as food for the producer's family.
      • In earlier times cash crops were usually only a small (but vital) part of a farm's total yield, while today, especially in the developed countries, almost all crops are mainly grown for cash.
      • In non-developed nations, cash crops are usually crops which attract demand in more developed nations, and hence have some export value.
      Cash crops
    • Source : - Director General of Commercial Intelligence & Statistics, Ministry of Commerce, Kolkata 0.62 980.82 271.25 10.41 23.16 277 2008-09 - 991.18 277.75 11.29 23.94 289.60 2009-10 Production of Commercial Crops in India ( in million tonnes) Year Coffee Cotton (Lint) Raw Jute & Mesta Sugar- cane Tea   Tobacco 1985-86 122.45 8.73 12.65 170.65 656.2 0.44 1990-91 169.73 9.84 9.23 241.05 720.34 0.56 1991-92 180 9.71 10.29 254 754.19 0.58 1992-93 169.4 11.4 8.59 228.03 703.93 0.6 1993-94 212.09 10.74 8.43 229.66 760.83 0.56 1994-95 180.1 11.89 9.08 275.54 752.9 0.57 1995-96 223 12.86 8.81 281.1 756.02 0.54 1996-97 205 14.23 11.13 277.56 780.14 0.62 1997-98 228.3 10.85 11.02 279.54 810.03 0.64 1998-99 265 12.29 9.81 288.72 874.11 0.74 1999-00 292 11.53 10.55 299.32 825.94 0.52 2000-01 301.2 9.52 10.56 295.96 846.9 0.34 2001-02 300.6 10 11.68 297.21 853.9 0.55 2002-03 275.3 8.62 11.28 287.38 838.5 0.49 2003-04 270.5 13.73 11.17 233.86 878.1 0.55 2004-05 275.5 16.43 10.27 237.09 893 0.55 2005-06 274 18.5 10.84 281.17 946 0.55 2006-07 280 22.63 11.27 355.52 981.8 0.52 2007-08 262 25.88 11.21 348.19 944.68 0.49
    • Compound Growth Rates of production of major commercial crops of India. (in per cent) ** Significant at 1 per cent * Significant at 5 per cent Agricultural Categories Pre-WTO (1985-86 to 1994-95) Post-WTO (1995-96 to 2009-10) Total Production (1985-86 to 2009-10) Coffee 3.46 1.53* 3.5** Cotton 5.57** 5.98** 4.12** Raw jute and Mesta -0.63 0.69 1.24** Sugarcane 4.5** 0.46 2.06** Tea 1.9** 1.83** 1.81** Tobacco 4.11** -0.69 0.51
      • 1. Nominal Protection Coefficient (NPC)
      • 2. Effective Protection Coefficient (EPC)
      • 3. Domestic Resource Cost (DRC)
      Competitiveness of Economy of Commercial crops
    • 1. Nominal Protection Coefficient (NPC)
      • It is the ratio of domestic price to the world reference price (border price) adjusted for transfer cost.
      • NPC i = P i d /P i w
      • Where,
      • NPC i: Nominal Protection coefficient of commodity i
      • P i d : Domestic (India) price of commodity i.
      • P i w : World reference price (border price equivalent) of commodity i, adjusted for transportation, handling and marketing expenses.
      • NPC < 1 indicates effective incentive to producers compared to free trade scenario and indicates that the commodity is importable.
      • NPC > 1 indicate commodity is exportable
    • 2. Effective Protection Coefficient (EPC)
      • EPC is an improvement over NPC to the extent that it takes care of variation in domestic and international prices of tradable inputs.
      • EPC = V a d /V a b
      • where,
      • V a d = Value added in domestic prices
      • V a b = Value added in border prices
      • EPC > 1, They are receiving positive protection.
      • EPC < 1, They are receiving negative protection.
    • 3. Domestic Resource Cost (DRC)
      • It is the cost of foreign exchange saved by reducing the import of goods or the value of foreign exchange earned from export of goods.
      • DRC=
      • A j = Quantity of i th unit of non traded input used in the production of one unit of output
      • P s i = Shadow price (Social cost or opportunity cost of i th non traded input )
      • P r j = World reference price of j th output
      • A ij = Quantity of i th input(traded) used in the production of j th output
      • If, DRC < 1 , the input is used efficiently and is export competitive
      • If, DRC > 1, the input is used inefficiently and is not export competitive
    • Since in India, Textile industry is the largest agro-based industry followed by the sugar industry.
      • Sugarcane is an important commercial crop of India occupying about 4 million hectares with an annual production of around 270 million tonnes of cane.
      • In India the important sugarcane growing states are Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Gujarat, Bihar, Haryana and Punjab.
      • India is the largest single producer of sugar including cane sugar sweeteners, khandasari and gur equivalent to 26 mt raw value followed by Brazil in the second place at 18.5 mt .
      • Even in respect of white crystal sugar, India ranks the first position out of seven countries during the last 10 years.
      Sugarcane
    • Sugar industry in India
      • The sugar industry is the second largest agro-based industry next to textiles in the country.
      • There are 488 sugar factories, which utilize around 40-50 percent of the cane produced, manufacturing 16.54 mt of sugar.
      • The sugar industry contributes over Rs 1000 crores to the central exchequer as excise duty, Taxes, cess etc.
    • International sugar trade
      • The 5 largest sugar exporters of the world are Brazil, The EU, Thailand, Australia and Cuba.
      • These countries supplies approximately 71 per cent of the world’s export.
      • Brazil exported around 19.53 mt, where as India has exported around 2.1 mt during 2008-09.
    • Area and Production of Sugarcane in India Source: Directorate of Economics and Statistics, Department of Agriculture and Cooperation. Year Area (m ha) Production(mt) 1985-86 2.85 170.65 1990-91 3.69 241.05 1995-96 4.15 281.10 2000-01 4.32 295.96 2001-02 4.41 297.21 2002-03 4.52 287.38 2003-04 3.93 233.86 2004-05 3.66 237.08 2005-06 4.20 281.17 2006-07 5.15 355.52 2007-08 5.06 348.19 2008-09 4.42 285.03 2009-10 4.20 277.75
    • Area and production of sugarcane in India from 1985-86 to 2009-10.
    • Export and Import of Sugar by India (million tonnes) Source : - Director General of Commercial Intelligence & Statistics, Ministry of Commerce, Kolkata Years Exports Imports 1985-86 0.36 16.19 1986-87 0.2 9.53 1987-88 0.18 0.71 1988-89 0.18 - 1989-90 0.23 2.42 1990-91 2.23 - 1991-92 5.62 - 1992-93 4.11 - 1993-94 0.1 20 1994-95 0.63 2 1995-96 10.21 - 1996-97 4.19 - 1997-98 0.69 9.35 1998-99 0.22 10.03 1999-00 0.66 4.04 2000-01 9.87 - 2001-02 10.94 - 2002-03 15 0.41 2003-04 2.24 4 2004-05 0.04 21.38 2005-06 11.3 3.62 2006-07 17.28 - 2007-08 48 - 2008-09 2.1 10.8
    • Import and export of sugar of India from 1985-86 to 2008-09 Export/imports Years
    • Compound Growth Rates of imports and exports of sugar * Significant at 5 per cent Sugar Pre-WTO (1985-86 to 1994-95) Post-WTO (1995-96 to 2008-09 ) Total Production (1985-86 to 2008-09) Imports -7.47 3.42 0.19* Exports 18.8 10.32 15.19
    • Impact of Trade Liberalization on Sugarcane Economy of Karnataka- A study in Southern Dry Zone. Sowjanya Chitturi (2006)
      • The study was undertaken on a macro framework based on secondary data on various aspects of trade of sugarcane and sugar.
      • The data’s covered for a period of 17 years from 1985-86 to 2001-02.
      • The data were collected from various publications of Directorate of Commercial Intelligence and Statistics, Directorate of Economics and Statistics, Karnataka State Dept. of Agriculture, FAO etc..
      • To analyze the growth in exports and imports of Indian sugar, compound growth rates were computed for quantity exported, imported, value realized and value paid.
      • To analyze the export competitiveness of Indian sugar, nominal protection coefficients were calculated both under importable and exportable hypothesis.
      • 1. To analyse the growth in sugar exports and imports
    • Compound growth rates of Indian sugar exports from 1985-86 to 2001-02 Source : Sowjanya chitturi (2004) Parameter CGR(%) t-Value Overall period (1985-86 to 2001-02) Quantity 21.87 2.91* Value 20.47 2.87* Pre liberalization (1985-86 to 1994-95) Quantity 33.24 2.35* Value 35.36 2.69* Post liberalization (1995-96 to 2001-02) Quantity 22.0 0.63 Value 14.24 0.43
    • Compound growth rates of Indian sugar imports (1985-86 to 2001-02) Source : Sowjanya. chitturi (2004) Parameter CGR(%) t-Value Overall period (1985-86 to 2001-02) Quantity -0.42 -0.03 NS Value 0.17 0.01 NS Pre liberalization (1985-86 to 1994-95) Quantity -38.61 -1.30 NS Value -34.94 -1.11 NS Post liberalization (1995-96 to 2001-02) Quantity -3.897 0.012 NS Value -15.6 -0.11 NS
    • 2.Export competitiveness of Indian sugar
      • Measure of export competitiveness.
      • NPC = A/E
      • Where,
      • NPC=Nominal Protection Coefficient
      • A= Adjusted domestic price of the commodity
      • E= Adjusted World reference price of the commodity
      • NPC > 1 , commodities are protected.
      • NPC < 1, commodities are disprotected.
    • NPC of sugar (Importable hypothesis)(1985-86 to 1994-95); Pre-liberalization Source: Sowjanya.chitturi, (2004) Note: Average NPC in pre liberalization period: 0.71 Particulars Place Unit 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 FOB price   $/Qtl 8.75 12.01 17.16 17.32 13.41 12.39 12.79 15.66 17.99 16.64 Plus freight from Malaysia to India   $/Qtl 1.59 1.85 1.92 2.19 2.16 1.95 1.87 1.48 1.4 1.31 Plus insurance @ 1% of price   $/Qtl 0.55 0.69 0.68 0.93 1.19 1.04 0.73 0.5 0.44 0.5 Plus transportation cost Bangalore Rs/Qtl 200.2 222.5 247.2 274.7 305.2 339.1 376.5 418.5 465.0 516.6 Plus port clearing charges Kakinada Rs/Qtl 6.5 7.25 7.75 8.5 9 9.5 10.5 11.25 11.75 12.25 Plus cargo warfare charges   Rs/Qtl 4.8 5.33 5.92 6.57 7.29 8.1 9 10 11.11 12.34 Plus stevedoring charges   Rs/Qtl 0.5 0.45 0.6 0.68 0.76 0.85 0.94 1.4 1.16 1.29 Plus clearing and forwarding charges   Rs/Qtl 2.34 2.6 2.8 3.2 3.5 3.9 4.39 4.8 5.42 6.3 Import duty   Rs/Qtl 0 0 0 0 0 0 0 0 0 0 Equals landed cost Kakinada Rs/Qtl 225.22 252.71 284.02 314.09 342.5 376.83 416.72 463.59 514.31 567.22 Reference price of sugar Malaysia Rs/Qtl 679.2 847.4 874.67 1200.9 1715.5 1731.6 1340.8 1238.9 1279.4 1565.9 Wholesale price of sugar Bangalore Rs/Qtl 602.6 614.83 652.5 671 783 836.92 847.92 1091.7 1301.7 1169 NPCs of sugar     0.89 0.73 0.75 0.56 0.46 0.48 0.63 0.88 1.02 0.75
    • NPC of sugar (Importable hypothesis) from 1995-96 to 2001-02; Post-liberalization Source: Sowjanya. Chitturi, (2004) Note: Average NPC in post liberalization period: 1.16 Particulars Place Unit 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 FOB price Malaysia $/Qtl 14.33 11.59 9.10 9.97 11.29 10.35 9.74 Plus freight from Malaysia to India $/Qtl 1.19 1.25 1.21 1.23 1.38 1.48 1.56 Plus insurance @ 1% of price $/Qtl 0.50 0.47 0.34 0.27 0.20 0.22 0.24 Plus transportation cost Bangalore $/Qtl 574 637.7 708.9 787.32 874.8 972 1080 Plus port clearing charges Kakinada $/Qtl 12.65 13 13.25 13.65 14 14.5 15.6 Plus cargo warfare charges $/Qtl 13.71 15.23 16.92 18.79 20.79 23.09 25.65 Plus stevedoring charges $/Qtl 1.43 1.6 1.75 1.96 2.18 2.43 2.7 Plus clearing and forwarding charges $/Qtl 6.7 7.4 8.27 9.1 10.2 11.35 12.6 Import duty $/Qtl 102.32 82.756 151.63 173.46 205.3 287.33 278.14 Equals landed cost Kakinada $/Qtl 726.83 770.98 911.06 1015.7 1140.1 1322.7 1426.2 Reference price of sugar Malaysia $/Qtl 1799.1 1663.8 1432.5 1158.6 909.8 997.4 1129.2 Wholesale price of sugar Bangalore $/Qtl 1250.4 1435 1463.3 1453.7 1482.8 1427.9 1373 NPCs of sugar 0.69 0.86 1.04 1.25 1.63 1.43 1.22
    • NPC of sugar (Exportable hypothesis) (1995-96 to 2001-02); Pre-liberalization Particulars Place Unit 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 Whole sale of sugar   Rs/Qtl 602.6 614.8 652.5 671 783 836.92 847.92 1091.7 1302 1169 Plus transportation cost   Rs/Qtl 200.2 222.53 247.2 274.7 305.2 339.1 376.5 418.5 465 516.6 Plus port clearing charges   Rs/Qtl 6.5 7.25 7.75 8.5 9 9.5 10.5 11.25 11.75 12.25 cargo warfare charges Bangalore Rs/Qtl 4.8 5.33 5.92 6.57 7.29 8.1 9 10 11.11 12.34 stevedoring charges Kakinada Rs/Qtl 0.5 0.45 0.6 0.68 0.76 0.85 0.94 1.4 1.16 1.29 clearing and forwarding charges   Rs/Qtl 2.34 2.6 2.8 3.2 3.5 3.9 4.39 4.8 5.42 6.3 Freight charges   Rs/Qtl 19.75 22.75 24.75 28.45 31.25 32.55 34.56 36.5 40.5 41 Equals landed price   Rs/Qtl 836.69 875.74 941.52 993.1 1140 1230.9 1283.8 1574.1 1837 1758.7 Exchange rate   $/Qtl 12.42 12.29 12.92 12.97 14.47 16.67 18.48 24.65 28.96 31.37 Equals landed price Kakinada $/Qtl 67.37 71.26 72.87 76.57 78.78 73.84 69.47 63.86 63.42 56.06 Reference price of sugar Malaysia Rs/Qtl 679.2 847.4 874.67 1200.9 1715.5 1731.6 1340.8 1238.9 1279.4 1565.9 Wholesale price of sugar Bangalore Rs/Qtl 54.68 68.95 67.70 92.59 118.57 103.87 72.56 50.26 44.18 49.92 NPCs of sugar     1.23 1.03 1.08 0.83 0.66 0.71 0.96 1.27 1.44 1.12
    • NPC of sugar (Exportable hypothesis) from 1995-96 to 2001-02 ; Post-liberalization Source: Sowjanya chitturi (2004) Note: Average NPC in post liberalization period: 1.97 Particulars Place Unit 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Whole sale of sugar   Bangalore Rs/Qtl 1847.4 1435 1483.3 1453.7 1482.8 1427.9 1373 Plus transportation cost   Kakinada Rs/Qtl 574 637.7 708.59 787.32 874.8 972 1080 Plus port clearing charges   Rs/Qtl 12.65 13 13.25 13.65 14 14.5 15.6 cargo warfare charges Rs/Qtl 13.71 15.23 16.92 18.79 20.79 23.09 25.65 stevedoring charges Rs/Qtl 1.43 1.6 1.75 1.96 2.18 2.43 2.7 clearing and forwarding charges   Rs/Qtl 6.7 7.4 8.27 9.1 10.2 11.35 12.6 Freight charges   Rs/Qtl 42.5 44.5 50.56 53.54 62.85 68.5 74.5 Equals landed price   Malaysia 2498.4 2154.4 2282.6 2338.1 2467.6 2519.8 2584.1 Exchange rate   $/Qtl 35.71 35.71 41.67 43.48 45.45 46.25 47.62 Equals landed price Malaysia 69.96 60.32 54.78 53.78 54.29 54.48 54.27 Reference price of sugar Malaysia Rs/Qtl 1799.1 1663.8 1432.5 1158.6 909.8 997.4 1129.2 Wholesale price of sugar Bangalore Rs/Qtl 50.37 46.59 34.38 26.65 20.01 21.57 23.71 NPCs of sugar(Row 10/Row 12)     1.39 1.29 1.59 2.02 2.71 2.53 2.29
    • NPC’s in pre-liberalization period both under importable and exportable hypothesis of sugar of India from 1985-86 to1994-95 . Pre liberalization
    • Post liberalization NPC ’ s in pre-liberalization period both under importable and exportable hypothesis of sugar of India from 1995-96 to 2001-02 .
    • Source: Sowjanya. Chitturi (2004) Average NPCs under exportable and importable hypothesis Average NPC Importable hypothesis Exportable hypothesis Pre-liberalization 0.71 1.17 Post- liberalization 1.20 1.97
      • The share of cotton in the world textile production is 50 per cent and its production, processing and marketing sustains more than 250 million people .
      • The cotton textile industry is the largest agro-based industry in India Further, the textile industry of India also contributes nearly 14% of the total industrial production of the country.
      • The major cotton importing countries are China, Germany,
      • Japan , Bangladesh etc.
      • India earns about 27 % of its total foreign exchange through textile exports.
      Cotton
    • Area, Production and Yield of cotton in India Source : Ministry of Textile, Govt. of India & All India Cottonseed Crusher's Association. 3.08 290 94.06 2008-09 Year(Sept-Aug.) Area (m ha) Production (mt) Productivity (Qtl/ha) 1985-86 75.32 107 1.42 1986-87 69.48 95 1.37 1987-88 64.59 90 1.39 1988-89 72.97 106 1.45 1989-90 76.88 135.75 1.77 1990-91 73.95 117 1.58 1991-92 76.01 119 1.57 1992-93 75.41 138 1.83 1993-94 74.4 121.5 1.63 1994-95 78.61 138.5 1.76 1995-96 90.63 170.2 1.88 1996-97 91.22 177.9 1.95 1997-98 89.04 158 1.77 1998-99 92.87 165 1.78 1999-00 87.31 156 1.79 2000-01 85.76 140 1.63 2001-02 87.3 158 1.81 2002-03 76.67 136 1.77 2003-04 76.3 179 2.35 2004-05 87.86 243 2.77 2005-06 86.77 241 2.78 2006-07 91.44 280 3.06 2007-08 94.14 307 3.26
    • Compound Growth Rates of area, production and productivity of cotton sector from 1985-86 to 2008-09. (Per cent) ** Significant at 1 per cent *Significant at 5 per cent Cotton Area Production Productivity Pre-WTO 1.05 3.94** 2.86** Post-WTO 0.03 5.31** 5.28** Overall 1.16** 4.51** 3.31**
    • Map showing major cotton growing states of India
    • Cotton import and export from India from 1985-86 to 2008-09 Source : Ministry of Textile, Govt. of India & All India Cottonseed Crusher's Association. Cotton Year (Sept./Aug.) Export (Quantity in lakh bales of 170 kg) Import (Quantity in lakh bales of 170 kg) 1985-86 4.5 Nil 1986-87 13.67 Nil 1987-88 0.44 3 1988-89 0.77 2.25 1989-90 13.71 Nil 1990-91 11.9 - 1991-92 0.77 3 1992-93 13.76 1.15 1993-94 3.9 3 1994-95 1.08 5.89 1995-96 8 0.5 1996-97 16.82 0.3 1997-98 3.5 4.13 1998-99 1.01 7.87 1999-00 0.65 22.01 2000-01 0.6 22.13 2001-02 0.5 25.26 2002-03 0.84 17.67 2003-04 12.11 7.21 2004-05 9.14 12.18 2005-06 47 5 2006-07 58 5.53 2007-08 88.5 6.38 2008-09 35 10
    • Imports/ exports Years Import and export of cotton of India from 1985-86 to 2008-09
    • Compound Growth Rates of imports and exports of cotton from 1985-86 to 2008-09 ** Significant at 1 per cent * Significant at 5 per cent Sugar Pre-WTO (1985-86 to 1994-95) Post-WTO (1995-96 to 2008-09) Total Production (1985-86 to 2008-09) Imports 12.69 15.44 11.92** Exports -2.72 28.01* 8.65
    • Export Trade Performance of Indian cotton : An Econometric Analysis , G.S. Mahadevaiah
      • The study was mainly undertaken on a macro framework and has made use of time series and secondary data.
      • Data were collected from various publications of Directorate of Commercial Intelligence and Statistics (GOI), FAO Trade and Production Year books etc…
      • The export competitiveness of cotton grown in Karnataka was studied by estimating the Domestic Resource Cost (DRC).
    • Domestic Resource Cost of Karnataka’s cotton Production Source : G.S., Mahadevaiah (2001)
    • Conclusion
      • India’s sugar exports in terms of quantity and value had declined considerably in the post WTO period.
      • Average NPC of sugar was more than unity in both the pre and post WTO periods indicating lack of its export competitiveness.
      • The crystal form of sugar of India is not preferred in the international market.
      • The Brazilian sugar mills have adopted the latest technology, which enables the sugar mills to shift their production from production of sugar to ethanol directly.
    • Cont..
      • The productivity of cotton (3.12 Qtl/ha.) is much lower than the world’s average productivity (7.15 Qtl/ha.).
      • The DRC values in cotton trade are less than unity under both the pre and WTO period .
      • DRC computes the true value of resources used to earn a dollar of foreign exchange.
      • NPC and export competitiveness of the commodity are inversely related.