DETERMINE THE EFFECT OF PRICE TRANSMISSION AND TRADE BARRIERS ON EXPORT OF MAJOR AGRICULTURAL COMMODITIES OF SAURASHTRA REGION 3758
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Date
2023-08
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JAU JUNAGADH
Abstract
The present study entitled “Determine the effect of price transmission and trade
barriers on export of major agricultural commodities of Saurashtra region” was
undertaken with the objectives of studying the growth and instability in export quantity
and value, price transmission, Revealed Comparative Advantage of groundnut, sesame,
cumin, fenugreek and coriander from India to its top ten export destinations based on
the secondary data for the period 2001-2020. The study was conducted from Saurashtra
region of Gujarat state. Varsha Industries Private Limited was selected and cost sheet
of the industry was analysed, trade barriers were analysed through well prepared
questionnaire.
The past two decades had witnessed significant development in the global trade
of oilseeds and spices. The study revealed that China was the major market for the
selected commodities, whereas Vietnam, Malaysia, UK, USA, Singapore stood in the
second order as major markets for both oilseeds and spices. Vietnam was the highly
unstable market compared to other markets. Growth and instability was positive for all
the key variables selected such as production, domestic price, export quantity, export
price in case of spices whereas, there was decline in growth of area in case of oilseeds
for the overall period. During the second period (2011-2020), there was decline in
export quantity and value in the export done to the top export destinations of selected
commodities. Among the selected markets, each and every market was integrated with
Indian market except UK and China in case of cumin. The price transmission was
highly integrated with the Indian market for the export destinations in case of oilseeds.
But, in case of spices, the effect of price transmission was very minimal. The cost
variation observed in the sheet was due to reasons such as quality of the procuring
material, distance of the shipping port, destination port, demurrage charges, variation
in packing material. According to the results from questionnaire, the exporters faced
IPR and copyrights, countervailing measures, company and product registration,
excessive use of labor regulations as major barriers during export buiness. Revealed
comparative advantage was high in case of UK for groundnut, Greece for sesame,
Brazil for cumin, Bangladesh for fenugreek, Singapore for coriander