WTO and Indian Chilli export: Issues of growth, instability and competitiveness

Balaji and K.R. Paltasingh

Indian Journal of Agricultural Marketing, 2014, vol. 28, issue 2

Abstract: The paper tries to analyze the growth performance of Indian chilli export and instability in production as well as its export performance. Analysis of growth rate and instability for two periods, i.e., pre WTO (1980–1994) and Post WTO (1995–2009) reveals that trade liberalisation augmented production and export of chilli and its products with lower instability. The results of export performance ratio (EPR) and reveald symmetric comparative advantage (RSCA) show that India is not competitive in export of both dry chilli and green chilli. However, the trend is slightly getting reversed in later periods. But, the export of Indian chilli is facing a steep competition from China. The factors like domestic price, exchange rate and world export price along with lagged domestic production significantly influence export preference of Indian chilli. Keeping these in view the paper finally concludes with some policy suggestions to enhance the export competitiveness and domestic production of chilli.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ags:injagm:399487

DOI: 10.22004/ag.econ.399487

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