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Trade Competitiveness and Market Access Issues in India’s Coconut and Cashew Nut Trade

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  • Mouzam, Shaikh Mohd

Abstract

The study examines the changing patterns of international trade in coconut and cashew nut (HS 0801) in India at a macro level and analyses their trade competitiveness. It also examines the market access issues like tariff and non-tariff barriers (NTBs) faced by exports in major markets. The study has found that the share of cashew nut has decreased from 1995-2006 to 2007-2018 and it is a matter of concern. The empirical findings on India’s comparative advantage in the export of fresh coconut and cashew nut kernels revealed that among the five major competitors, India had a significant comparative advantage over all the four competitors except Thailand in the EU market for fresh coconuts and Vietnam in the EU market (for cashew nut kernels) during both the periods. However, Vietnam and Cote d'Ivoire had a significant comparative advantage over India in the Asia and US market. Tariffs are zero in major importing markets like the US and EU except in Asia where the tariffs are still imposed and found to be high. Among major importing countries, Japan has imposed the highest number of notifications (167 NTMs) on India’s total imports since 2003 while US has imposed a total of “123” NTMs and EU have imposed 69 notifications but it has imposed more of TBT measures (29). SPS measures in agricultural goods do not involve technological prowess but it only takes into account consumer health and safety issues which can be harmonized as it is good for trading partners. For TBT measures which are mostly driven by technology, India needs to be careful in following the same approach. Future research should concentrate on the impact of NTMs in depth by taking all the stakeholders into consideration and traceability should be brought under the whole process.

Suggested Citation

  • Mouzam, Shaikh Mohd, 2020. "Trade Competitiveness and Market Access Issues in India’s Coconut and Cashew Nut Trade," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 0(Number 4), December.
    • Handle: RePEc:ags:inijae:345151
    DOI: 10.22004/ag.econ.345151
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    References listed on IDEAS

    as
    1. Deepika, M.G., 2017. "Export Performance and Factors Affecting Competitiveness of Plantation Commodities in India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 72(4), December.
    2. Murali Kallummal, 2012. "SPS measures and possible market access implications for agricultural trade in the Doha Round: An analysis of systemic issues," Working Papers 11612, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
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