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    Export of Chilli From India

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    Sebin Sara Solomon
    1) India is the world's largest producer and exporter of chilli, contributing 35% of global production and 38% of international trade. 2) Analysis found that while India's chilli area declined slightly after trade liberalization, production and productivity grew significantly over the study period. 3) Exports of Indian chilli grew in both quantity and value before and after trade reforms, with greater stability achieved after WTO agreements. Imports also increased post-WTO with reduced instability.

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    Export of Chilli From India

    Uploaded by

    Sebin Sara Solomon
    113 views3 pages
    1) India is the world's largest producer and exporter of chilli, contributing 35% of global production and 38% of international trade. 2) Analysis found that while India's chilli area declined slightly after trade liberalization, production and productivity grew significantly over the study period. 3) Exports of Indian chilli grew in both quantity and value before and after trade reforms, with greater stability achieved after WTO agreements. Imports also increased post-WTO with reduced instability.

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    MSc thesis work

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    1) India is the world's largest producer and exporter of chilli, contributing 35% of global production and 38% of international trade. 2) Analysis found that while India's chilli area declined slightly after trade liberalization, production and productivity grew significantly over the study period. 3) Exports of Indian chilli grew in both quantity and value before and after trade reforms, with greater stability achieved after WTO agreements. Imports also increased post-WTO with reduced instability.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    113 views3 pages

    Export of Chilli From India

    Uploaded by

    Sebin Sara Solomon
    1) India is the world's largest producer and exporter of chilli, contributing 35% of global production and 38% of international trade. 2) Analysis found that while India's chilli area declined slightly after trade liberalization, production and productivity grew significantly over the study period. 3) Exports of Indian chilli grew in both quantity and value before and after trade reforms, with greater stability achieved after WTO agreements. Imports also increased post-WTO with reduced instability.

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    of 3

    EXPORT OF CHILLI FROM INDIA: STATUS AND PROSPECTS

    Sebin Sara Solomon* and Dr S.C. Nagpure**

    Chilli (Capsicum annuum L.) is one of the important commercial crops of


    India and it’s widely used as a universal spice. India is the largest producer and
    contributes 35 per cent of total world production. It is also the largest consumer and
    exporter of chilli. Chilli is the major spice contributing 40-42 per cent by volume and
    20-22 per cent by value of total spices exported from India. India has immense
    potential to grow and export different type of chilli required by various markets
    around the world.
    . In view of importance of export trade of chillies, such a study was made to
    know the status and prospects of Chilli with the following specific objectives.
    1) To estimate the growth in area, production, productivity of Chilli in India.
    2) To study the performance of Export and Import of Chilli in India.
    3) To study the competitiveness of Chilli in India.
    The data collected from Secondary sources was subjected to appropriate
    analytical techniques in order to arrive at a meaningful conclusion. The different
    analytical techniques used in the study were Growth rate analysis, Instability analysis
    and Nominal Protection Coefficient
    Summary of findings
    Area under Chilli in world has increased considerably during the study period
    with a percentage increase of 21.99. Country-wise analysis of chilli cultivation
    showed that India is the largest cultivator with 35 per cent of the world area under
    chilli cultivation. There is also increase in the world production and productivity. The
    percentage increase in production and productivity accounts to be 93.33 (%) and
    57.66 (%) respectively. India is the major country which accounts for world’s dry
    chilli production (40%) followed by China (8%). There was considerable increase in
    the world’s productivity of chilli from 1010 kg/ha in 1980 to 1593 kg/ha in 2010.
    India’s productivity (1831 kg/ha) is comparable with world’s productivity, but not
    with other countries like Morocco (16,367 kg/ha), China (6115 kg/ha). World’s
    increase in production of chilli is due to increase in productivity rather than increase
    in area.
    The growth analysis of area, production and productivity of chilli in India for
    the pre-WTO, post-WTO and the overall period showed a positive but non-significant
    trend (0.66%) in area during the pre-WTO period and negative and significant trend
    (-1.61%) during the post-WTO period. For the overall period the growth rate was
    found to be negative and non-significant (0.25%). There is significant and positive
    growth in production and productivity for the entire study period.
    Analysis on the share of agricultural exports to the total value of India’s export
    showed that even though there is increase of agricultural exports in monetary terms,
    the percentage share is decreasing. There is increase in share of chilli export to the
    total spice export which was 8.3 per cent during 1980-81 and now stood at 40.5 per
    cent in 2009.
    There is increase in export of chilli both in quantity and value in the world.
    India (38%) forms the bulk of the world’s trade volume followed by China (23 %)
    and Spain (10%). Analysis of country-wise export of chilli from India showed that
    there is positive change in the trade volume and value. Malaysia is the major
    destination of Indian chilli with 25 per cent of the total export. The percentage change
    in trade over the base period was more observed in Malaysia (250 times) followed by
    Sri Lanka (65 times) and USA (20 times).
    The growth rate of chilli export from India in quantity, value and unit value is
    found to be positive and significant for the pre-WTO, post-WTO and overall period.
    The instability analysis of chilli export in India showed more stability during the post-
    WTO period than the pre-WTO period. The analysis of chilli import in India showed
    negative and non-significant growth trend with wide instability during the pre-WTO
    period. However, the growth rate is positive and significant during the post-WTO
    period and is more stable compared to pre-WTO period.

    The NPC values of Chilli crop showed that the crop was more protected
    during the pre-WTO period with average NPC value as 0.97 and NPC value for the
    post-WTO period was 0.82 which indicates moderate export competitiveness.
    Conclusion

     World area, production and productivity has increased during the period of study
    and increase in world production is mainly due to increase in productivity rather
    than increase in area.
     The growth rate of chilli area in India was found to be insignificant during the pre-
    WTO period and negative and insignificant during the post-WTO period. The
    growth rate in production and productivity was positive and significant throughout
    the study period. Chilli being a seasonal crop the reduction in area was observed
    in subsequent years after there was fall in prices indicating farmers would have
    shifted the area for more profitable crop.
     The growth rate of Chilli Export in India in quality and Value was found to be
    positive and significant for the pre- and post- WTO and also for the overall period.
    The instability analysis of Chilli export in India showed more stability during the
    post-WTO period than the pre-WTO period.
     The analysis of Chilli import in India showed negative and non- significant
    growth trend during the pre-WTO period with wide instability. During the post-
    WTO period growth rate was positive and significant both in quantity and value.
    The instability analysis shows that greater instability was observed during the pre-
    WTO period than the post-WTO period. For the overall period growth trend was
    found to be positive and significant at both in quantity and in value. Wider
    instability might be observed due to greater instability during the pre-WTO
    period.

     The NPC values of Chilli crop showed that the crop was more protected during
    the pre-WTO period with average NPC value as 0.97 and NPC value for the post-
    WTO period was 0.82 which indicates moderate export competitiveness.

    * Teaching assistant, Dept. of Agricultural Economics, College Of Horticulture, Thrissur

    **Assistant Professor, Dept. of Agricultural Economics and Statistics, PGI, Dr PDKV, Akola

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