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Review of literature full

  1. 1. 2. LITERATURE REVIEW.In the context of India’s tea export, there exists vast literatures .But for this study we have includedsome of the important empirical works which are matched with our objectives. Chand and Tiwari,(1991),analyzead growth and instability of India’s export and import of agriculturalcommodities. Jaganathan , (1992) , in his paper examined the instabilities of export earnings of selected groups andselected commodities and all the commodities from the period 1974-75 to 1989-1990. Pal , (1992) , analyzed themagnitude , causes and effects of instability of agricultural export earnings of India for the period 1979 to1989.Subramaniam , (1995) , analyzed the impact of fluctuations in tea production and exports on international teatrade .He articulated that India plays a significant role in world tea trade , being the world’s largest producer ,consumer , and exporter . Therefore , fluctuations in India’s tea production , consumption and exports are enough todisturb international tea trade . Aiello , (1999) , analyzed that the effects of export earnings instability on economicgrowth of developing countries has long interested economists for several reasons . Reddy , (2001) , examinedglobal demand for and supply of tea by estimating semi – log trends separately using data of the recent past , 1974to 1988 , on the area under cultivation of tea , production , export and retention of tea for domestic consumption .Debraj , (2003) , in a column in India together news letter said that globalization has hit the Indian tea industry . Headded that its traditional market in the countries that made up the former Soviet Union have been steadily drained upand hence results in falling demand for tea in abroad .Sathe and Deshpande , (2006) , in their paper made an attemptto review the changes in their trends and composition of agri-trade from 1990 till 2004 . South Asian watch onTrade (2006) analyzed that in Nepal, tea had potential to benefit large segments of rural population and lift them outof poverty and stagnation. Shinoj and Mathur , (2008) , in their paper identified that the recent developments in theinternational trade scenario and corresponding alterations in India’s foreign trade policies has depicted for reachingimplications for India’s agricultural sector and agricultural exports in particular . The study also revealed that Indiahad been able to maintain its comparative advantage , but several others such as tea , coffee , spices , etc., had beennegatively affected by trade openness policy . Wong ,(2006) ,proclaimed that the existence of a positive andsignificant effect of trade openness on the productivity of manufacturing industries in export - oriented industriesin the years after trade reforms curve implemented, but decreasing productivity after 2000 .Yucel, (2009),examined the causal relationship between trade openness and economic growth (GDP) for the Turkish economy .The findings of his study showed that while trade openness has a positive effect , financial development has anegative effect on growth. Vander and Wall (2008) examined the sustainability issue in the tea sector for sixleading tea producing countries in the world,viz ,India ,Srilanka , Vietnam , Indonesia , Kenya and Malawi .Thisstudy is based on an extensive field study of civil society organization in these countries . A considerable number ofstudies have attempted to explain empirically the relationship between trade openness and government expenditure.Rodrik , (1998), Adsera and Boix , (2000), and Albertos , (2002), proclaimed that existence of positive linkage
  2. 2. between trade openness and government spending is due to high compensation hypothesis where as Alesina andSpolaore ,(1997), Alesina et al (1997) , Frankel and Romer (1999) , and Bretschger and Hettich , (2002) , indicatedthat government size and trade openness are interrelated with country size . Smaller countries tend to have highertrade shares than the larger countries as the same amount of trade flows represents a different shares of GDP .Alkan , et al .,(2009) in their paper investigated the importance of tea sector all over the world among majorproducer. Nagoor (2009) examined the performance of India’s tea exports and identified the underlyingfactors . The study also looked at tea exports and production response in major tea exporting countriesunder WTO regime . Nagoor and kumar , (2010) in their paper investigated that with the signing of the FreeTrade Agreement with the Association of South East Asian nations , there are apprehensions that theconsequent reduction in import tariffs will adversely affect the Indian tea industry . Adhikary and Maity,(2010) computed instability indices of various sections of export for 1966 - 1967 to 1986 - 1987 . Keeping all these studies in mind we now return back to our main study i.e, the study of analyzingthe trend of India’s tea export in the scenario of trade openness . The next section will not only analyze theresults but also we will try to explain the reasons behind these results . Finally , on the basis of our study wewill suggest several policy prescriptions to take the advantage of trade openness for exporting tea from India. REVIEW OF LITERATURE2.1. Review of literature is an integral part of any research study. It palys a significantrole in shaping the purspective of researching to set the tone of the study. A hugevollume of literature is avilable with regard to export of rice from india, particularlyrice.Here, a brief attempts is being made to explore of a little of the vast aray ofliterature resources relating to export of rice from india to other countries.
  3. 3. 2.2. Maizels ,(1968) tested the hypothesis relation between exports and saving. Hetook annual data from 11 member nation of the overseas sterling area for the period1950 to 1960 and found a significant degree of correlation between savings andexports.Kelker and sharma (1976) examined the trend and determinants of india’s exportperformance for the period 1961 to 1974. He concluded that reason for loss of india’sexport share in world maekt lies on supply as well as on demand side.Kannan, (1986) analysed the export performance of agricultural commoditis from1968-69 to 1881-82. In case of almost all the commodities, incresed unit value wasprimarily an important factor in the achievement of higher export earnings. In case ofrice, marine products, quantum increse was reinforcing factor.The export of rice sugarand raw cotton were subject to considerable instability.Pahariya and Ahuja, (1986) applied the Heckscher-Ohilin Sumuleson model to indianeconomy to explain the commodity pattern of her trade. They concluded that physicalcapital intensity was not good predictor of india;s tarde pattern as a single explanatoryvariable the human capital did better job than any other variable.Mukherjee, (1987) empirically investigated the relationship between exports andeconomic growth in India for the period 1950-51 to 1980-81.she observed thenegative regression coefficients between GNP growth and export growth showing that‘a 1 percent increase of bringing about any increase in income, was seen to beaccompanied by decrease in income’.Nayyar, (1987) studied india’s export performance for the period 1970-85 as well asfor two sub-periods 1970-78 and 1978-85.He argued that during 1970-78 ,variousinternal factors like decrease in agricultural production increased domestic demandfor manufactured goods contributed to slowing down of export growth but after 1978external factors were responsible for slow growth.Tyagi, D.S. (1990) in his article analyzed the problems and alternatives related toIndian food economy. In his article he suggested that although a very well developedStatistical system exist in India, neither the degree of reliability is very high nor thestatistic are available on time. so, immediate steps should have to be taken to improvethe reliability and timeliness of basic information required for managing the foodeconomy,Nandi and Biswas, (1991) tested two way causality between export growth andgrowth of income in India for the period 1960-1985.The econometric results showed
  4. 4. that in Indian context, causality ran one way only i.e. export growth-led growth ofnational income but growth of income had no impact on growth of export.Dutta, (1996), mentioned that a major problem of Indian rice milling industry is that,due to large varities in grades and grain sizes, machinary adjustment becomedifferent. De- husking paddy, seperation and polishing equipments requireimprovement in designs by incropting hydraulic and electronic controls. This isneeded if Indian rice is to cater to the needs of the premium markets both at home andabroad.Patnaik, U. (1997) observed falling total area under foodgrains and deceleratinggrowth of foodgrains outfood below the population growth rate during the period ofstructural adjustment.Durga, P.K. (1997) in his article also discussed the world rice market with properly ofIndia’s rice export.Childs, N. & Burdett, A. (2000) in there article analyzed the U.S rice export market.This article breaks up the us rice export market by type of rice exported and describesrecent trends within each market. In their article, they found that U.S share of globalrice exports have declined since 1989.The U.S exports raise in all three form: paddy,brown and rough. However since the mid 1990s only rough rice has shown anysustained growth.Dorosh, P.A , (2001) in his article analyzed the issue of trade liberalization and foodsecurity with giving emphasis or focus on the rice trade between Bangladesh andIndia .From his study he found that the trade liberalization offers potential benefitsfor national food security by enabling a rapid increase of food supplier followingdomestic production short falls.Khan, A.U, (2004) in his article discussed growth and farmer related issues related tothe Indian agriculture. In his analysis , he also included the impact of GREENREVOLUTION on agriculture.Gruere, G. et al. (2004) In there article analyzed the potential effects of introducingGM rice in India with or without China.They also focused on 4 types of GM riceresistance to biotic and a biotic stresses, such as drought resistant rice and use a multicountry , CGE model to stimulate their introduction in India.Wailes, E .T.,(2004) in his article discussed the various implication of the WTODOHA ROUND for the rice sector, In other words he analyzed the impact of WTODOHA ROUND on the rice sector.At the end of his study ,he found that the benefits
  5. 5. of such policy reform on a global basic will benefits Japan, China the Europe unionand Australia by large measure and the policy reform one rarely zero sum as issuggested by the estimate given in his study .Barah,B.C,(2005) article analyzed the dynamics of rice economy in India a and healso discussed the emerging scenario &policy option related to the Indian riceeconomy .He also used spatio temporal rice related data from secondary sourcespertaining to rice growing the areas to study the trends and growth pattern over thedecades (1950-51 to 2001-02) He also discussed the poor performance of agriculturesector in eastern India & thus it requires the enhancement of rice productivity andrice based system by focusing & prioritizing the rise research in eastern India.Warr, P.G & Wollmer, F.T,(2005) in his article examined the long demandrelationship of Thailand exports of rice drowning upon recent developments in thestatistical analysis of economy time series and the inside of airsing from a recentdebate on the elasticity of demand for manufactured exports from LDC’s. Arelatively robust long run price elasticity of demand for rice is obtain to between -1.2ands 1.9.The “small country “hypothesis is rejected using the specification of theprice normalized demand equation .They also found that the result of there analysisare relevant for current agriculture policy debate in Thailand.Boriss, H.(2006) in his article analyzed the various aspects of US, Rice market. In hisarticle, he also analyzed the various industry characteristics & production related torice in US.US rice policy & govt. programmes are also a part of his analysis Hediscussed various issues such as export import etc. related to US rice sector.Banik, N.(2007) in his article identified a set of factors that appear to be responsiblefor an increase in India’s export growth during recent years .He also examined thepossible impediments to high export growth in a sustained manner .He found thatincrease in India export‘s during the year following 2000 is predominantly servicesdriven and is attributed to increase in factor productivity , growth in world trade, anincrease intra –industry trade and external sector reform .He suggested that Indiashould be willing to take a more constructive approach ,along with other developingcountries, at multilateral forms such as WTO.Slaton, T.& Timmer ,P(2008) in his article analyses the crisis. in the world ricemarket .in this article ,they analyses that under the leadership of U.S, the countrieslike Japan ,China & Thailand can solve the problem of world rice crisisPandian, B.J.,(2009) in his article discussed about the System of Rice Intensification(SRI) in Tamil Nadu. In his article, he has mentioned that the System of Rice
  6. 6. Intensification is a holistic agro-ecological crop management technique seekingalternatives to the conventional high input oriented agriculture through effectiveintegration of crop, soil, water and nutrient management. He further stated that SRIgrown rice is introduced to the US food trade & consumers also. He also discussedthe Chinese experience related to the SRI.Mitra, S & Jasling T (2009) In their article analyzed export restrictions from twodifferent but related angles. In their analysis, they dicussed the welfare implications ofexport restrictions both for the country imposing such measures as well as for the restof the world. They further tried to explore an overview of how export restrictionshave been addressed in trade negotiations and agreements and other such efforts toachieve greater market stability. They also stated the global and domestic impact ofexport restrictions and tried to estimate the change in world welfare due to exportrestrictions.Kulkarni, K. G (2009) in their article analyzed the effects of India’s trade policy onrice production and exports. They analyzed the economic effects of such trade policyin the framework of Comparative Static Model that explains the costs and benefits oftariffs and subsidies. They found that the protectionists trade policy actionsundertaken in 2008 resulted in an estimated $ 260 million increase to national welfareconsumers benefited from lower prices and the loss to producers was offsets the govt.aid, including debt reduction. While it’s policies appeared to limit the transmission ofhigher world prices to Indian consumers, India’s monopoly power in the productionof rice could have limited the full effect of price decrease.Iqbal,B.A,&Merwe,T.V.D(2010)in their article discussed the issues of Indian foodcrisis. They also analyzed the issue of Indian food crisis by examining the reasons forfood crisis, existing trends in production of food crops, state wise procurement ofwheat, and rice, per-capita availability of food grains, trends in price rice, genesis ofcrises and fear that Indian planners are having in mind. They also discussed thecurrents trends and economic impacts of food grains and at the end, they found thatslow agricultural growth has been a cause of food crisis.Sharma , A , (2011) in his article analysis about the Rosola basmati rice .com , anagro-product export comp. that intoduces high quality of Basmati rice and the variousissues related to its export from India. In his article he also talked about royal basmatirice which is also another variety of Indian rice that the rosola BASMATI RICE also supplies to many foreign markets.2.3. Hence, this attempt to review a few of the studies that had been conducted inthis field not only brought certain trends and charecteristics of rice trade in india but
  7. 7. also can serve the purpose of forming hypothesis of this study. So, kepping all thesestudies in mind, we came back to our main study, i.e. ‘Export of rice from India toabroad.’ Radha Charan Rabidas Roll No.: 15 (4th Sem) Email ID: radhacharanr.aus@gmail.comREVIEW OF LITERATURE:2.1. There are vast literature to review regarding the pattern andtrend of rice production in India. Regarding this concept manyresearchers and scholars contributed by their empirical works. In
  8. 8. the following sections an attempt has been made to review some ofthe available literature on the pattern and trend of rice productionin India.2.2. SOME MAJOR EMPERICAL WORKS: Blyn, (1966), in his article he found that as every foodgrainsplays an important role in Indian food economy. There is noseparate government policies for boosting rice production. He alsomentioned that performance of Indian agriculture afterindependence was much better than before independence. Sen,A.K. (1967), in his article analysis that the production relatedissues of rice. In his article he also discussed that the high rates ofincrease in production, the instability or year to year fluctuations inrice output increased during the post-green revolution periodparticularly in the second decade. Many explanations are offeredfor this phenomenon. Bhuian,(1992), mentioned that there is aneed to study the input use pattern and the practices followed bythe farmers in paddy growing regions. Since water is also veryimportant input in rice production, so nearly half of irrigationwater is used for rice production. Tiwari, K.N. (2002), according tohim to achieve rice production target by 2012, balanced andadequate phosphorous and potassium fertilizer as well as nitrogen,sulphur and zinc is essential. To improved rice production andproductivity in rainfed areas may not only help the resources. Forfarmers, but also substantially increased food production. He alsomentioned that there is urgent need to educate farmers about theimportance of balanced used of fertilizers in increasing yields andprofits in rainfed rice ecology. Uphoff and Randriamiharisoa,(2002), in their study they found that more rice can be produced byusing less water, provided that concurrent changes are made in the
  9. 9. way that plants, soil nutrients are managed. Ramasamy, (2003),mentioned the production elasticity estimated by the studiesconducted in different states over the period indicates that eitherthere is no production response to various factors inputs or theresponse is declining. The total factor productivity which grew atan average rate of 1.37 percent per annum in the 1970s and 1.33 %in 1980s.Kapur, B.N.(2003), showed that the status of riceproduction in the state of Haryana has also been remarkable withthe production of 2.68 million tones in the year 2000-2001 over anarea of 10.5 million hectare contributing to 3.16% of totalproduction in the country. Vittal, K.P.R. et al. (2004), in theirarticle, they discussed the two main seasons related to riceproduction in India. They also analysed the method of riceproduction in India. They also calculated the area and yield growthrate of each district in India. Although the rate are treated asstagnant and others were decided based on the sign positive ornegative. Ravichandran, S and Singh, (2005), in their article theyfound that during the year 2002-2003, the production of rice wasdeclined due to the draught. The stock of rice reduced from25.62million tones in 2001-2002 to 19.37million tones in2002-2003. From their article we can say that the intensity ofdraught experienced in year2002-2003 and the decline in ricereserve. Barah, B.C. (2005), state that the rice sector has witnessedrapid dynamism in production processes. After climbing a heightof fourfold increase in production during past four decades, theproduction curves have started showing downward trend andproductivity decelerating since the later half of the 1990s. Leip, A.and Bocchi, S. (2OO7), in their article they state that ricecultivation and production is both an important sequester of carbondioxide from the atmosphere an important source of green house
  10. 10. gasses. In this context they given example as, in 2004 the globalpaddy rice output was 607.3million tones at 14% moisture content.At the gain/straw ratio of 0.9 for most currently planted ricevarieties, the global rice straw output in 2004 was about 676million tones at 14% moisture content. This means that in 2004,rice sequestered about 1.74 billion tones of carbondioxide from theatmosphere to produce about 1.16million tones of biomass at 0%moisture content. Sanjay. K. Srivastava, et al. (2009), in this paperthey concern the impact of climate change on agriculturalproduction as well as rice production. Increase in temperature,higher carbon-di-oxide concentrations and abnormal patterns ofprecipitations coupled with higher frequency and intensity ofdrought and floods are likely to enhance considerably the climaterisk to the major agricultural ecosystems. Towards this, the studyon climate risk assessment to rice based agro ecosystems, whichsupport the livelihood security for very large number of poor andmarginalize in India has been reported this paper.2.3. In the next section ie.section 3 we will study the pattern andtrend of rice production in India. We will also analyse the researchresult explaining the reason behind these result. Finally, like anyother research work we will also indicate the line of our futureresearch. Rupak Kumar Doley Roll No.: 44 (4th Sem)
  11. 11. Email ID:rupakdoley@gmail.comReview Of Literature:
  12. 12. 2.1. Review of literature is an indespensible part of any researchworks that provides an important and usefull track to frame theirresearch works. There are sufficient literature regarding the currentexport situation of coffee from India, contributed by manydifferent researchers and scholars. Now we will try to review thoseliterature that match with the concept of coffee export from India.2.2. Dudeja, (1989), in his article, ‘India hopes to export surpluscoffee’ publish in Tea and Coffee Trade Journal, mentionedvarious demands of the coffee exporters and coffee growers inorder to increase the internal as well as external demand. Mehta,(1996), in his article, ‘Indian coffee exporters aims for US market’mentioned different steps, which are taken to increase the export ofcoffee in US market. Gahiro, L. (2000), assessed the fluctuations inBurundi’s coffee production in different years and also the resultsof the slight change in coffee marketing structure in 1991 due tothe partial liberalisation initiated by the World Bank. Lewin, B.and Giovannucci, D. (2002), in their article, Global Supply andDemand: New Paradigms in the Coffee Markets, assessed thelarger global situation in terms of both the dominant supplyingcountries and the evolution of demand. Achoth, L. (2005),mentioned the status of the Indian coffee industries as an exportindustries with 70% of the total production being exported. He alsomentioned the various research activities of the Coffee Board ofIndia to find out the comprehensive problem of the mouldcontamination in coffee after the country received its first report ofrejection of coffee from Africa during 1994, which left the coffeeproducing countries with no alternative but to fall in line withinternational standards. Bhat, R. V. (2005), described theorganisation and the activities of different research institutions andtraining centres by the Coffee Board of India in order to maintain
  13. 13. the coffee quality and safety management and control in India withpositive effect. Potts et al. (2007) assessed the need for economicstability of coffee producers, its stratigies for development and putforwarded some specific recommendations for actions. Mercereauand Vignault, (2008), identified the status of the quality of coffeeand coffee industries in India with Italy and ex-communist block asthe major export destination. They also mentioned that thesustainable standards have low penetration in the Indian coffeeintustries. Giovannucci,D. and Potts, J. (2008), mentioned thatamong the certified commodities, the certified coffee has beengrowing at a much faster pace than any other segment of the coffeeindustry after its first trade in 1967 through fair trade. Mohan, S. and Russel, B. (2008), in their paper modeledthe relationship between the producers and the world price ofcoffee in three different countries, viz., Brazil, Guatemala andIndia allowing for the effects of changes in market structures. Theyalso found that liberalization has benefited producers substantiallyin terms of higher real coffee prices and a higher share of the worldprice of coffee. Mutandwa et al. (2009), using the Bostonconsulting group (BCG) matrix for analyzing the market for coffeeexport in Rwanda, recommendate that, if the role of coffee exportto the country economic vistas is to be consolidated, there is a needof understanding the social, economic, cultural, institutional andtechnological factors affecting sub population in the importingcountries. They also discussed appropriate strategies for theirdestination. Smith, E.S. (2010), in his thesis, he found the FairTrade to be the key contributor to sustainable income- generatingstrategies and socio- economic stability among rural and smallscale coffee farmers. Mohapatra,(2010), mentioned that India’scoffee exports may be hit due to the higher prices that received by
  14. 14. the domestic producers in the domestic spot market. In the paper,he also mentioned that theb domestic player can expect muchbetter result from high international future price. Jonsson, L.(2010), in his paper focused the attention on describing politicalrent seeking on the Rwandan coffee sectors institutional structure.In the paper, it is also mentioned that , the institutional changedwith the liberalisation of the coffee sector and this change, in turn,provided an opportunity to analyse how and why political actionstaken that changed the institutional structures and thereby curbedcorruption. Govindan, A. (2010), identified the decline in theproduction and the increase in the consumption of coffee in India.He represented the imposition of production subsidy in order toincrease and improve the quality of coffe and also mentioned theimposition of export susidy in order to export Indian branded valueadded coffees and high value coffees to the far off markets, such asUnited States, Canada and Japan. Daumal, M. (2010), in the paperdetermined through time series regression whether the regionaldisperities are linked to countries’ (India and Brazil) tradeopenness with the result that Brazil’s trade openness hascontrbuted in reducing the regional inequalities, while, the oppositeresult has been found in case of India.2.3. After reviewing and keeping all those study in mind now weare back to our main study, ‘Current Export Situation Of CoffeeFrom India’, corresponding to the future analysis of the researchresults along with the explanation of the reason behind theseresults.
  15. 15. Danswrang Basumatary Roll No.: 01 (4th Sem) Email