Price Dynamics and Export Competitiveness of Rose Onion in Karnataka
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Date
2011
Authors
Chithra H.A.
Journal Title
Journal ISSN
Volume Title
Publisher
UAS, Dharwad
Abstract
India ranks second in production of onion next only to china, but rose onions are
mainly grown in Karnataka. Prices plays predominantly vital role in agriculture. Analysis of
prices and forecasting the prices over time is important for formulating sound agricultural
policy. Since rose onion is export oriented produce, it is necessary to know the export
competitiveness and direction of trade of rose onion from India. In view of this the present
study was undertaken by collecting monthly model prices of rose onion in selected markets
of Karnataka (i..e. Chikkaballapura, Kolar and Yashwantpura) for a period of twenty four
(1986-2011) years, export prices and quantity exported to various countries for the period
2001-2010. Increasing trend in prices was observed in all the markets, but the quantum of
increase was difference from one market to another market. ARIMA model was employed to
forecast the prices, the forecasted prices in all the markets under study showed increasing
values. Analysis co-integration showed that there existed a strong integration between the
selected markets, where in Yashwantpura has emerged as price leader. It is also observed that
rose onion export had a high degree of comparative advantage in the world market and
Bangladesh was one of the most stable countries among major importers of Indian rose
onion. Hence it is necessary to improve the production and planning the marketing of rose
onion in off season which would help the producer in getting higher returns. Since the
expected exports to different destinations under study is much higher than the existing one,
there is lot of scope for farmers to produce good quality rose onion in the study region and
export them to demanding destinations.