Export competitiveness and direction of trade for Indian cashew: An econometric approach
Loading...
Date
2009
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
UAS, Dharwad
Abstract
Cashewnut occupies a prime place in the Indian economy, accounting for 16.95 per
cent of the total area under plantation crops, which stood second position after coconut, and
production of cashewnut accounts to 18.14 per cent of total production of selected plantation
crops in India during 2007-08. The secondary data was collected on spot prices and volume
of trade in exchanges from the official web site of Forward Market Commission (FMC),
Mumbai and respective web sites of the National Level Commodity Exchanges in India. The
growth of cashew kernel export between pre and post- liberalisation and overall periods in
terms of quantity, value and unit value shows the increasing trend, but highest growth was
observed in pre-liberalisation (12%) as well as overall periods (14.60%) in terms of value.
This was mainly due to increase in unit value realization. The export earnings will be
expected to increase to Rs. 3866.97 crores in 2008 and Rs. 7651.63 crores in 2015. The
export projections using the Markov chain model put the revenue from cashew kernel exports
at a modest level of Rs.1804.43 crores by 2008. The nominal protection coefficient was less
than unity (0.98) indicating that cashew kernels was competitive for its export to other
countries from India, while NPC of raw cashewnut imports by India from abroad (East and
West African countries) was also less than unity (0.88) reveals that raw cashewnut was a
efficient import substitute. USA, Australia and Netherlands were found to be highly loyal
markets for Indian cashew kernel as indicated by the retention of their previous shares of
cashew kernel exports from India by more than 70, 50 and 30 per cents, respectively. In case
of cashew nut shell liquid, USA, Japan and Korea Rep. were found to be most loyal markets.