CHANGES IN DIRECTION OF TRADE AND EXPORT PERFORMANCE OF COIR IN INDIA

T. SAMSAI¹*, K. MAHENDRAN², T. ALAGUMANI³, S. PRAVEENA^4
1Department of Agricultural and Rural Management Tamil Nadu Agricultural University, Coimbatore
²Department of Agricultural and Rural Management Tamil Nadu Agricultural University, Coimbatore
³Department of Agricultural Economics Tamil Nadu Agricultural University, Coimbatore
⁴Department of Agricultural and Rural Management Tamil Nadu Agricultural University, Coimbatore
* Corresponding Author : sspriyamba@gmail.com

Received : 08-07-2015     Accepted : 08-09-2015     Published : 07-11-2015
Volume : 7     Issue : 8       Pages : 643 - 646
Int J Agr Sci 7.8 (2015):643-646

Keywords : Coir products, Growth rate, Instability and direction of trade
Academic Editor : Shravanthi, Srimathi, Das Sanjay Kanti, Khatun Dilruba, Selvakumar M.
Conflict of Interest : None declared
Acknowledgements/Funding : None declared

India is a major supplier of coir products to the world. Export performance of coir products during pre liberalisation and post liberalisation period have been examined using secondary data for a period from 1970-71 to 2011-12. The exponential form of growth function has been used for the analysis. The results showed that the growth in export of coir products both in quantity and total value was higher in the post- liberalisation period than the pre-liberalisation period. The growth rate of export in terms of both quantity and values were positive in the case of all major importing countries expect Germany during 2006-12. This trend showed that India gained the share of international market during the period. Instability was observed to be higher in the export quantity of coir products during pre-liberalisation period (13.99) than the post-liberalisation period (10.07). For the assessment of change in direction of trade, Markov chain model was used. The data regarding country-wise export of coir products had shown that China was the most stable importer of Indian coir, which retained 94 per cent of its original share for the study period and lost only 6 per cent to South Korea followed by USA and The Netherland. New export promotion strategies have to be developed for the export of coir products to all the countries and to avoid over dependence on few countries. Modernisation of technology leads to higher production with least possible cost and further value addition leads to better competitiveness in the global market.