This paper analyses the dynamics of comparative advantage in India’s agricultural exports over the period 2001 to 2019. In order to analyze the pattern of export specialization, we use the revealed comparative advantage index, and its variant, the revealed symmetric comparative advantage index. We use the Markov transition matrix to examine the product mobility of comparative advantage. Our results show that the extent of agricultural trade openness has remained constant over time and that there has been little change in the composition of agricultural exports. Between 2017 and 2019, two products—semi- or wholly milled rice, and frozen shrimps and prawns—accounted for one-third of all exports. Analysis of the mobility of comparative advantage reveals little mobility of products from the lowest to the highest decile. There is a 65.8 percent probability that a product will stay in the first decile even after nearly two decades. A high degree of persistence of export specialization implies a much greater probability of starting and ending up in the highest decile. Policy should aim at diversification of the agricultural export basket through a product-specific focus that is based on export demand and the exploration of new markets.

Research Paper (postgraduate) from the year 2011 in the subject Business economics - Trade and Distribution, , language: English, abstract: When World Trade Organisation (WTO) brought agricultural trade in its domain there was great expectation that trade of agricultural items will improve and masses will gain from it through greater market access and better prices particularly to the developing nations. But at the same time there was fear among the developing nations that foul play of some developed nations may have negative impact on market access and better prices for their produce. The present paper analyses the Indian concerns in this respect. It is found that the negative impact of WTO on agricultural commodities exports as it was thought is not a valid case for India. India’s agricultural items have got a due respect in international market. Not only the quantity of export has increased but also there is improvement in the prices of agricultural items. Non traditional agricultural items have got greater market access and better prices followed by traditional items and items of future potential.

This paper analyses relative contribution of intensive and extensive margins to growth in India’s agricultural exports for the period 2001 to 2020. Two alternative approaches are employed to estimating export margins: the traditional approach of using export volume across product lines, and a robust method proposed by Hummels and Klenow (2005). The paper also examines the determinants of export margins through a standard gravity model. Traditional method of decomposing export growth shown that intensification of the export of existing products to existing destinations dominated export growth. The contribution of export diversification to export growth has remained subdued in the last two decades. Within the extensive margin, contribution of product diversification to export growth was more important than the contribution of geographic diversification. According to the Hummels and Klenow approach, during the 2001 to 2020 period, the extensive margin grew at 1.24 percent per annum, while the intensive margin increased at 0.23 percent. The contribution of growth at the extensive margin increased from 58.8 percent in 2001 to 70.2 percent in 2020. Gravity model results revealed that, among other variables, a positive and significant effect of free trade agreement on export margins. Broadly the study results point out that India’s exports along the extensive margin has not been fully exploited and that export diversification holds the key to higher export growth in agricultural products. There is wide scope for expansion of India’s agricultural exports through development of new product varieties and new markets.

This book examines the various issues and concerns faced by Indian agriculture under the obligations of WTO and the Free Trade Agreements. While the issues discussed pertain mainly to India, the lessons can also be derived for many other similarly placed developing countries. The book delves into various aspects of Indian agricultural trade and evaluates the domestic policies and regulations of government while also looking at external factors like WTO, free trade agreements and non-tariff barriers. Chapters of this book have been contributed by eminent agricultural economists, lawyers and social scientists providing the perspective from their sector. This book highlights the challenges and opportunities for agriculture sector under the rapidly growing regional trade agreements and results of negotiations under the WTO. It also provides critical insights into the ongoing fisheries subsidies negotiations at the WTO and issues relating to non-tariff measures. The findings have broad implications for developing countries in general and India in particular. This book will greatly benefit trade negotiators, policymakers, civil society, farmer groups, researchers, students, and academics interested in issues related to the WTO, FTAs, tariff and non-tariff barriers and other allied issues concerning Indian agriculture. The techniques used in analytical part will mostly benefit the researchers as they can not only use these techniques and methodologies for their future research, but to also carry the research forward. The book is useful for many educational institutes which teach international trade, agricultural economics, and WTO and FTAs studies.

In this paper, we address the question of the agricultural market integration of Cambodia, Lao, Myanmar, Vietnam, and Philippines (CLMVP) countries within the Association of Southeast Asian Nations (ASEAN), and its other top trading partners. Using “Trade Potential” and “Competition Indices” indicators in this paper we assess the nature and extent of the agricultural market integration. We identify the exports of CLMVP countries with high export potential and comparatively low competition in export markets. Higher trade potential with lower competition (value or volume) indicates an opportunity of higher returns for agricultural producers. CLMVP countries are characterized by low diversity in agricultural exports. Nearly half of the total agricultural exports from all of them except Laos is contributed by only one commodity. It is found that market integration is an effective way of linking CLMVP smallholders to ASEAN agricultural markets. In addition to that this paper also discusses on tariff and non-tariff policy of CLMVP countries and found that the average tariffs on agri-food imports in CLMVP is 11.8% while it is 9.5% in non-CLMVP among the ASEAN countries. In non-tariff policy, among the CLMVP countries, Philippines shares the maximum number of SPS measures implemented on agricultural goods while Cambodia and Lao PDR did not report any SPS measures implemented by them between 2006 to 2020. Finally, to demonstrate the upward movement in the value chain, possibly due to quality upgradation, we present the dynamics of the unit values of CLMVP’s agricultural exports.