fruits and veg 109-234

109

Fruits and vegetables is one of the most important and fast growing sub-sectors of the food processing

sector, as fruits and vegetables form an indispensable part of healthy diet. China, India, Brazil, USA,

Italy, Spain, Mexico, Iran the Philippines and France are the top ten aggregate fruit producers in the

world.

Asia dominates the world vegetables scene accounting for nearly 60% of global production, with

China and India ranking as 1st and 2nd. European Union and U.S.A follow next. Over the last quarter

of a century (1980-2004), the fruit and vegetable market has been one of the fastest growing of all

agricultural markets.

Global fruit and vegetables consumption increased by an average of 4.5% per annum between 1999

and 2009. This was higher than the world population growth rate, meaning that the global per capita

consumption of fruit and vegetables has also increased.

IntroductionIntroductionIntroductionIntroduction

110

The list of large exporters of fresh fruits and vegetables starts with the USA. Mexico is 2nd, having

overtaken EU in the past decade. Other big exporters are China, Chile, Ecuador and South Africa. In

total, the top 10 exporters account for 66% of the world's fresh fruits and vegetables exports. On the

import side, the EU is the world's largest importer. The US follows closely behind, while other

countries, like Canada, Japan and China have significantly smaller imports. The top 2 importers (EU

and USA) take in 50%.

Fruit and vegetable products (both fresh and processed) accounted for 22% of total agricultural

exports from developing countries. Fruit trade is heavily concentrated in Bananas, Citrus, Grapes and

Apples. Fresh produce comprising citrus, pears, peaches, nectarines, plums and kiwi fruit, and

processed produce comprising tomato based products, fruit juices and concentrates, packed

vegetables as well as tinned and frozen fruits are mostly certified under Protected Geographical

Indication status.

India is the second largest producer of fruits and vegetables in the world, accounting for about 16% of

global vegetable production and 10% of world fruit production. India’s production of fruits and

vegetables, currently, stands at 64 million tonnes and 126 million tonnes, respectively, making up for

around 12% and 14% of world production, in the respective sector. India is a front runner in many

fruits and vegetables with share in world production as follows:

» 41% of mango

» 23% of banana

» 24 % of cashew nut

» 10% of onion

» 30% of cauliflower

» 36% of green peas

Although India’s share in world exports of fruits and vegetables are less than 1.5%, India’s exports of

fruits and vegetables have grown at a CAGR of 20.61% and 7.21% respectively by value between 2004

and 2007. Over 90% of India’s exports in fresh fruits and vegetables mainly go to west Asia and East

European markets. With respect to export value, mango is the main fruit crop, and among vegetables,

onion occupies the first position. In the recent years, potatoes and green vegetables like okra, bitter

gourd, and green chillies are also showing good export potential. Commodity-wise analysis reveals

majority of India’s fruits and vegetables are exported to neighbouring countries followed by Middle

East region.

111

Bangladesh is one of the major trading partners for India for exports of fresh fruits, and onions and

potatoes. However, in the recent years, fruits from India such as grapes, mangoes, and vegetables,

such as eggplant are increasingly gaining market share in the UK, the Netherlands, France and

Germany. India is the fruit and vegetable basket of the world. India produces 54% of world’s mango,

23% banana, 24% cashew nuts, 36% green peas and 10% onion production.

Andhra Pradesh is a major fruit and vegetable producing States of India. A variety of tropical and sub-

tropical fruits and vegetables are grown in the state. The state occupies a distinct place in the national

scenario in respect of some fruits and vegetables as indicated in table.

Production of Major Fruits and Vegetables in Andhra Pradesh [Area: Ha Production: MT]

112

There are 157 fruit and vegetable processing units in the state mainly in the small and medium sector.

Fruit processing activity is largely concentrated in Chittoor district. There are 67 processing units with

an aggregate installed capacity to produce about 2 lakh tonnes of mango and other fruit pulps.

Contract manufacturing for leading exporters and food retail majors is most common. Own account

production is low. 90% of the production by these units is exported in the form of canned pulp or

aseptic concentrate. The remainder finds way to domestic markets in the form of RTS fruit juices and

nectars, jams and jellies and de-hydrated fruit bits.

This report identifies the trade potential and markets for few prominent fruits and vegetables

produced in the state including tomatoes, onion, cabbage, green chilly, mangoes and processed

mangoes (mango sliced dried, mango squash), fresh grapes and raisins and banana.

113

Tomato is one of the largest producing vegetables in the state of Andhra Pradesh amounting to 26.89

% of total vegetable production in 2003-04 to 36.58% in 2006-07. Districts with highest tomato

producing capacity are Prakasam & Vishakhapatnam in coastal region, Karnool & Chittoor region in

Rayalaseema Region; Adilabad & Ranga Reddy in Telangana Region. (Details in the Annexure)

Region-wise Area and Production of Tomato in Andhra Pradesh

(2002-2003 to 2006-2007)

(Area in Hect. & Production in M.Ts.)

2002-03 2003-04 2004-05 2005-06 2006-07 Areas in AP

A P A P A P A P A P

Coastal Area 9833 98330 10335 124020 8686 156348 7583 144077 23306 442814

Rayalaseema Region 44106 441060 39835 478020 38652 695736 33922 644518 26475 503025

Andhra Region 53939 539390 50170 602040 47338 852084 41505 788595 49781 945839

Telangana Region 25500 255000 26904 322848 22164 398952 42782 812858 31288 594472

Andhra Pradesh 79439 794390 77074 924888 69502 1251036 84287 1601453 81069 1540311

However, this high production potential is not reflected in the exports of tomato from the region and

therefore this section will help the tomato exporters from the state to identify the right market for the

exports of tomato.

Trend Analysis for Tomatoes, fresh or chilled (070200)

Table 1 Trend in exports for 070200

2003 2004 2005 2006 2007 2008 CAGR

1473.29 1298.66 2462.526 7522.806 20322.6 35885.69 89.37

The CAGR from the year 2003 to 2008 is 89.37. The overall trend shows a high positive growth rate

during that period. Another trend which can be noticed from the above table is that exports are

growing positively where they have slightly decreased. The CAGR shows that the exports are steadily

increasing.

Tomatoes, fresh or chilled [070200]Tomatoes, fresh or chilled [070200]Tomatoes, fresh or chilled [070200]Tomatoes, fresh or chilled [070200]

114

Figure 1 India’s export to the world

It can be seen from the above graph that India’s export of Tomatoes has been continuously increasing

apart from the year 2004. The growth has been tremendous from 1473.29 US $ mn to 35885 in 2008.

Revealed Comparative Advantage of Tomato

Source: Author’s calculations

India’s export World Export

Year Tomatoes Total Agriculture Tomatoes Total Agriculture RCA

2003 1473.291 324572.077 4293237.753 26636644.7 0.028

2004 1298.66 360681.075 4491324.398 30187384.07 0.024

2005 2462.526 570050.192 5035453.114 32293223.39 0.027

2006 7522.806 622347.956 5637266.856 37184264.96 0.079

2007 20322.595 632880.057 6635987.795 42953816.81 0.202

2008 35885.689 683739.685 5647001.264 40211871.08 0.373

115

Figure 2: RCA for 070200

The RCA values have been quite low starting from .028 in the year 2003 and increasing to .373 in the

year 2008. This shows that India’s strength vis-a-vis world is quite weak.

Major Export Destinations for Tomatoes from the region as per the past trends are Pakistan, United

Arab Emirates, Bangladesh & Maldives.

Importing

Country 2003 2004 2005 2006 2007 2008 Growth

Bangladesh 2.37 0.91 1.18 0.64 0.9 2.41 0.42

Maldives 0.02 0.07 0.02 0.02 0.07 0.09 45.65

Pakistan 0.02 1.55 3.74 31

UAE 0.01 0.01 0.01 0.12 2.47 4.22 353.24

The market fluctuations for these markets are as follows:

2003 2004 2005 2006 2007 2008

Bangladesh Bangladesh Pakistan Pakistan Pakistan Pakistan

Nepal Nepal Bangladesh

United Arab

Emirates

United Arab

Emirates

United Arab

Emirates

Maldives Pakistan

United Arab

Emirates Bangladesh Bangladesh Bangladesh

United

States Maldives Nepal Nepal Nepal Nepal

Italy Japan Maldives Singapore Maldives Maldives

116

From the above we see that Bangladesh which was the best market in 2003 & 2004 had suddenly

declined in subsequent years and had been overpowered by Pakistan and UAE by 2008. Pakistan has

been the topmost market throughout last five years. USA and Japan which are the most desirable

market by the exporters have been unreachable after 2003 and 2004 respectively due to high pesticide

content present in the tomato produced in the region. The details of these SPS issues has been handled

in report II of the project.

Trade Intensity Index for Major export Markets of Tomato

We see that India’s TII with Pakistan has been pretty good at an average around 3 but has reduced to

2.94 in 2008 from a high of 4.62 in 2004. With UAE the TII has been pretty low but has increased

considerably to 0.34 in 2008. With Bangladesh TII has been good at an average of around 2. Maldives

also commands a good TII but has reduced from 4.93 to 2.34 in 2008.

117

Trade Intensity Index of Other Competing Suppliers to identified target Countries

Pakistan TII

India 2.94

UAE 0.02

UAE TII

Jordan 5.52

European Union 0.78

Netherlands 0.82

Ethiopia(excludes Eritrea) 0.59

India 0.35

Bangladesh TII

India 1.93

Thailand 0.45

United Arab Emirates 2.86

Maldives TII

India 3.21


Sri Lanka 0.16

Lower TII than India Higher TII than India hence the competitor.

⇒ Analyzing the TII of the competitors in the target markets; we see that in Pakistan; UAE is the only

other supplier but India with a TII value difference of 2.92 is in a much comfortable position.

⇒ UAE is the toughest market with tough competition from Jordan, European Union, Netherlands &

Ethiopia since TII values for these markets are higher with UAR as compared to India.

⇒ UAE is also a competitor for India in Bangladesh

⇒ Maldives is a good market to target for tomato exports from the state since India is much better off

that UAE and Srilanka.

118

RELATIVE COMPETITIVE ADVANTAGE

Pakistan Rel. CA

India 1.012

Competitors

UAE 0.005

UAE Rel. CA

India 0.19

Competitors

Jordan 3.03

European Union 0.43

Netherlands 0.44

Ethiopia(excludes Eritrea) 0.32

Bangladesh Rel. CA

India 1.01

Competitors

Thailand 0.23


Maldives Rel. CA

India 2.37

Competitors


Sri Lanka 0.12

Relative competitive position for India is better off Tough competition for India

⇒ In Pakistan India has the highest RCE

⇒ In UAE Jordan has the highest RCE

⇒ In Bangladesh UAE has the highest RCE

⇒ In Maldives India has the highest RCE

119

Tariff and Non Tariff barriers for Tomato in Identified Markets

Other Tariff where ever

applicable

Major Markets

Import

tariff

Tariff

description Tariff rate

NTM %

NTM

Customs Duty 35%

Product Characteristics

requirement to protect humans Pakistan

0%

Sales Tax 15%

100%

Labeling requirement to protect

human health

U AE 0% - - 0% none

Maldives 15% - - 0% none

Statutory Rate 100%

Infrastructural

Surcharge 2.5%

VAT 15%

0%

Bangladesh

37.5%

Income Tax on

Imports

0.%

0%

none

The analysis of the table above gives a mixed result. In market where MFN import duties are low like

in case of Pakistan, the non tariff barriers in terms of labeling requirements and human health

requirements are very high and in Markets like Maldives where there are no non tariff barriers, the

MFN duty is high. There is a high Tariff Rate of 35 % in Pakistan and Sales Tax of 15 %. UAE is free of

any Tariffs. Bangladesh involves a variety of tariffs like Infrastructural Surcharge, VAT, Income tax on

Exports, MFN etc. In this scenario, UAE seems to be the best combination where the import duty is 0%

and no non tariff barriers exist. Maldives in the next best option since there is no barrier and the

import duty is relatively lower than other markets.

Presence of Special Safeguard Duty

Country Volume Trigger Price Trigger

Pakistan NO NO

United Arab Amirates NO NO

Bangladesh NO NO

Maldives NO NO

NO NO

There is no special Safeguards duty present in Any Market

120

Tariff Rate Quota Structure of 070200 in major export destinations

Markets

TRQ Quantity (METRIC

TONS)

In quota -

Duty

Out Quota -

Duty

Pakistan No No No

United Arab

Amirates No No No

Bangladesh No No No

Maldives No No No

No No No

Subsidy provided to Tomatoes in Identified markets

Markets Product Specific Non Product Specific Green Box S & D * Currency

Pakistan 3.66 yes none none

UAE none none yes 90,00,000 US$ million

Bangladesh none 40.18 none none (billion Rp)

Maldives none none none 2335.02 RM million

*Special and Differential Treatment – "Development Programs"

Above are the various subsidies available in each market.

Comparative Analysis across Major Export Destinations for Tomatoes


applicable

NTM

%

NTM Markets Grow

th

Mkt

fluctuatio

n

TII

(Ind versus

competitors)

Import

tariff

Tariff

description Tariff rate

Customs Duty 35%

Product

Characteristics

requirement to

protect humans Pakistan

- Topmost Very good

0% Sales Tax 15%

100%

Labeling

requirement to

protect human

health

UAE 353.2

4

Rising Jordan and

EU 0% - - - -

Bangladesh 0.42 Declining UAE

15% - - - -

Statutory Rate 100%

Infrastructural

Surcharge 2.5%

VAT 15%

Maldives

45.65 Declining Very good

37.5%

Income Tax on

Imports

0.%

- -

121

Trade Intensity Index for Tomatoes across various markets

Markets 2003 2004 2005 2006 2007 2008

Pakistan 0.00 4.62 4.8 6.0 3.56 2.94

UAE 0.00 0.00 0.02 0.24 0.45 0.34

Bangladesh 2.00 1.8 1.5 2.2 3.1 1.9

Maldives 4.2 5.8 6.1 7.0 5.0 2.34

Conclusions

⇒ The exports are growing at a CAGR of 89.37% which is a healthy figure.

⇒ RCA is generally increasing which is a positive sign. Although state of AP needs to

develop an export strategy to improve its competitiveness since the RCA value is very

poor.

⇒ Market Analysis in descending order of priority

Growth Mkt

fluctuation TII with India TII

(Ind versus

competitors)

Tariffs Non Tariffs

(%)

Subsidy

UAE Pakistan Pakistan Maldives

UAE UAE

Bangladesh

Maldives

Pakistan

Maldives UAE

UAE Pakistan

Bangladesh Pakistan Bangladesh

Bangladesh Bangladesh Maldives Bangladesh Pakistan Maldives

Pakistan Maldives Bangladesh UAE Maldives

UAE

A comparative analysis across identified markets highlights the fact that, considering various

parameters, Pakistan stands number one in terms of growth, strength in bilateral trade with India for

indicating high acceptance for Indian tomatoes, less competition and no subsidy. If only Andhra

Pradesh tomato growers and exporters can tackle the non tariff barrier of labeling requirements in

Pakistan, this market is most suggestive. Next best market is UAE, except for the competition from

Jordan and EU.

122

TOMATO PRODUCTION IN ANDHRA PRADESH

Region/District-wise Area and Production of Tomato in Andhra Pradesh

(2002-2003 to 2006-2007)


2002-03 2003-04 2004-05 2005-06 2006-07 District

A P A P A P A P A P

Srikakulam 345 3450 526 6312 348 6264 435 8265 348 6612

Vijaya Nagaram 605 6050 643 7716 670 12060 670 12730 585 11115

Vishakhapatnam 1294 12940 1461 17532 1515 27270 2608 49552 2408 45752

East Godavari 681 6810 1423 17076 980 17640 893 16967 962 18278

West Godavari 317 3170 681 8172 196 3528 430 8170 458 8702

Krishna 1322 13220 1004 12048 536 9648 1684 31996 1707 32433

Guntur 1067 10670 315 3780 874 15732 718 13642 778 14782

Prakasam 4048 40480 4238 50856 3526 63468 0 0 16000 304000

Nellore 154 1540 44 528 41 738 145 2755 60 1140

Coastal Area 9833 98330 10335 124020 8686 156348 7583 144077 23306 442814

Chittoor 16838 168380 13296 159552 14588 262584 14678 278882 13529 257051

Cuddapa 2443 24430 2606 31272 4378 78804 4288 81472 1264 24016

Anatapuram 3356 33560 3295 39540 0 0 3906 74214 632 12008

Karnool 21469 214690 20638 247656 19686 354348 11050 209950 11050 209950

Rayalaseema Region 44106 441060 39835 478020 38652 695736 33922 644518 26475 503025

Andhra Region 53939 539390 50170 602040 47338 852084 41505 788595 49781 945839

Mehaboob Nagar 5518 55180 4942 59304 3217 57906 3650 69350 3500 66500

Ranga Reddy 10468 104680 12155 145860 2864 51552 6990 132810 6877 130663

Hyderabad 0 0 0 0 0 0 0 0 0 0

Medak 2207 22070 2474 29688 3722 66996 4081 77539 3790 72010

Nizamabad 1065 10650 2331 27972 1316 23688 2469 46911 2469 46911

Adilabad 1851 18510 1347 16164 7962 143316 21905 416195 11231 213389

Karim Nagar 813 8130 1100 13200 740 13320 1831 34789 1280 24320

Warangal 1688 16880 1085 13020 408 7344 175 3325 432 8208

Khamam 823 8230 647 7764 1375 24750 1381 26239 1400 26600

Nalgonda 1067 10670 823 9876 560 10080 300 5700 309 5871

Telangana Region 25500 255000 26904 322848 22164 398952 42782 812858 31288 594472

Andhra Pradesh 79439 794390 77074 924888 69502 1251036 84287 1601453 81069 1540311

123

The onion is one of the oldest vegetables known to mankind and is used in an array of recipes and

preparations. However, it’s rarely eaten on its own and is usually an accompaniment to the main

course. Depending on the variety, an onion can be tangy and pungent or mild and sweet. World onion

production is estimated at approximately 105 billion pounds each year. The average annual onion

consumption is approximately 13.67 pounds of onions per person across the world. Libya has the

highest consumption of onions with an astounding average per capita consumption of 66.8 pounds. At

least 175 countries grow onions. According to the United Nations Food and Agriculture Organization,

there are an estimated 6.7 million acres of land under onion cultivation in the world, producing 105

billion pounds of onions each year. Approximately 8 percent of this global onion production is traded

internationally. Leading onion production countries are China, India, United States, Turkey and

Pakistan, as can be seen from Table below.

Although onions are consumed in all the countries of the world, they are cultivated only in some

countries. Area under onion cultivation in the world is about 20 lakh hectares. India has the largest

area of about 4 lakh hectares (20 per cent) followed by China at about 3 lakh hectares.

Onions and shallots, fresh or chilled [070310]Onions and shallots, fresh or chilled [070310]Onions and shallots, fresh or chilled [070310]Onions and shallots, fresh or chilled [070310]

124

But the production is the highest in China (48 lakh MT) as against India (44 lakh MT) due to higher

productivity in China (16 MT/ha compared to India’s 14 MT/ha).

Onion production in India

Onion, a major ingredient in Indian food, and a politically-sensitive commodity, is typically cultivated

thrice a year; in monsoon, winter and summer. The onion harvested during October-December is

Kharif crop, during January-March is Rangada crop, and in April-May is called Rabi or Unhal Crop.

All three crops are available for export, with Rabi having the longer shelf life.

In India, of the four lakh hectares of area under onion, the maximum area of about 95,000 hectares

(about 24 per cent) is in Maharashtra. Andhra Pradesh is next important onion producing state facing

domestic competition with rich quality of onions from Karnataka, Orissa, U.P., Rajasthan, M.P., Tamil

Nadu, Bihar and Gujarat.

2 Source: Agricultural Statistics, Indian Horticulture Database, National Horticulture Board, Gurgaon, India 007-08 2006-07

Small onions, known as rose onion, and Krishnapuram onions are grown in Kolar district in

Karnataka and Cudappah district in Andhra Pradesh. Multiplier onion, known as Podisu and Shallots,

are grown in Tamil Nadu, Pondicherry and Andhra Pradesh.

125

District-wise breakup of production of Onion in AP is given in the table below indicating the rise in

the production levels for last five years indicating the importance of onions for the state. This section

handles the market identification for onion export from the state.

District-wise Area and Production of Onion in Andhra Pradesh


2004-05 2005-06 2006-07 2007-08 2008-09 District

A P A P A P A P A P

Coastal Area 5163 80078 3179 47685 4288 68608 4849 82433 4825 82025

Rayalaseema

Region 17825 276466 15410 231150 17097 273552 20439 347463 19167 325839

Andhra Region 22988 356544 18589 278835 21385 342160 25288 429896 23992 407864

Telangana

Region 12314 190990 10460 156900 14029 224464 12923 219691 9772 166124

Andhra Pradesh 35302 547534 29049 435735 35414 566624 38211 649587 33764 573988

Export of Onions from India

India’s onion exports have made a gradual growth during the last four-and-a-half decades. Onion is

the pride of India’s agricultural exports and earns valuable foreign exchange for the country. Of the

total fresh vegetable exports, the share of onion is 67 per cent. Onion has now become a cash crop,

which is in demand in export markets as well as in India throughout the year.

2003 2004 2005 2006 2007 2008 CAGR

119.09 231.07 409.22 476.33 293.61 678.96 41.64


during that period. The exports have been consistently increasing apart from 2007 where they fell to

293.61 US $ mn.

126


It can be seen from the above graph that India’s exports have been continuously increasing apart from

the year 2007. The growth has been tremendous from 119 US $ mn to 678.96 in 2008.

Revealed Comparative Advantage of Onion

Revealed Comparative Advantage for Indian Onion

India’s Export World's Export

Onion Total agriculture Onion Total agriculture RCA

2003 119.09 296871.65 231566.05 26636644.7 0.046

2004 231.07 364224.70 223174.66 30187384.07 0.085

2005 409.22 537491.59 241927.78 32293223.39 0.101

2006 476.33 609294.18 287299.86 37184264.96 0.101

2007 293.61 632880.05 308438.48 42953816.81 0.064

2008 678.96 683739.68 330276.34 40211871.08 0.120

127

The RCA values have been quite low starting from .04 in the year 2003 and increasing to .12 in the year

2008. This shows that India’s strength vis-a-vis world is quite weak. The strength however has

increased from 2003 to 2008.

Major Export Destination

Onions grown in India are very much in demand in Gulf Countries and Singapore, Malaysia, Sri

Lanka and Bangladesh because of strong pungency. Small onions produced in Andhra Pradesh are

exported from Chennai port to Singapore and Malaysia, and multiplier onions to Singapore, Malaysia,

Sri Lanka etc. The other major export destinations are United Arab Emirates, Canada and Saudi

Arabia.

Importing

Country 2003 2004 2005 2006 2007 2008 Growth

Canada 0.04 0 0 0.01

Saudi Arabia 1.94 2.14 1.32 0.86 1.81 3.55 16.31

UAE 13.79 19.27 16.91 16.61 46.31 35.84 26.97

Market Fluctuations

2003 2004 2005 2006 2007 2008

Iran Iran Iran Iran Kenya UAE

Turkey Turkey Turkey Turkey Turkey Canada

Nigeria UAE Syrian Arab Republic Tanzania UAE Saudi Arabia

UAE Bahamas UAE UAE Uganda Qatar

Kuwait Bangladesh Malaysia Saudi Arabia Spain Bahamas

As we can see the constant markets for last five years have been Iran, UAE and Turkey. Some of the

markets which have recently emerged in last two years are Saudi Arabia, Uganda, Spain and Canada.

But an important observation is that Canada appears only in 2008.

128

INDIA’S TII with Identified Markets for Tomato

United Arab Emirates

Year TII

2003 0.44

2004 1.41

2005 2.15

2006 1.22

2007 1.42

2008 3.55

Canada

Year TII

2003 0

2004 0

2005 0

2006 0

2007 0.002

2008 0.224

Saudi Arabia

Year TII

2003 0.74

2004 0.36

2005 0

2006 0.042

2007 0.015

2008 6.87

As we can see India’s TII in UAE has been consistently increasing, in Canada it is quite low at .224

whereas it is extremely high in Saudi Arabia at 6.87.

129

COMPETETORS TII

Competitor's export to the Market World's Export to the market

UAE Onion Total Agriculture Onion

Total

Agriculture TII

India 410.593 84930.633 625.69 4543.883 0.035

Ethiopia 11.607 23443.105 625.69 4543.883 0.0035

Netherlands 135.569 34194.423 625.69 4543.883 0.028

In UAE each of the competitors has a very low TII


Canada Onion Total Agriculture Onion

Total

Agriculture TII

India 76.191 5585.445 12292.938 12292.938 0.013

United States 11730.297 2048281.608 12292.938 12292.938 0.006

EU 47.137 65022.766 12292.938 12292.938 0.0007

In Canada also every competitor has an extremely low TII


Saudi Arabia Onion Total Agriculture Onion Total Agriculture TII

India 67.72 18302.87 142.98 142.98 0.004

Netherlands 54.52 21907.71 142.98 142.98 0.002

Egypt, Arab 12.51 69642.47 142.98 142.98 0.0002

Again in Saudi Arabia each of the country has an extremely low TII.

TII values lower as compared with India

RELATIVE COMPETITIVE ADVANTAGE

United Arab Emirates India’s Export to the Market World's Export to the market

Onion Total Agriculture Onion Total Agriculture Rel. CA

India 410.593 84930.633 557.769 142568.161 1.23

Competitor's export to UAE World's Export to the market

Competitors Onion Total Agriculture Onion Total Agriculture Rel. CA

Ethiopia 11.607 23443.105 557.769 142568.161 0.12

Netherlands 135.569 34194.423 557.769 142568.161 1.02

130

Canada

India’s Export to the Market World's Export to the market


India 76.19 5585.44 11853.62 2118889.81 2.43



United States 11730.29 2048281.60 11853.62 2118889.81 1.02

European

Union 47.13 65022.76 11853.62 2118889.81 0.13

Saudi Arabia India’s Export to the Market World's Export to the market


India 67.728 18302.879 134.756 109853.063 3.02



Netherlands 54.522 21907.713 134.756 109853.063 2.02

Egypt, Arab 12.506 69642.471 134.756 109853.063 0.14

The Trade intensity index analysis substantiated by Relative Competitive Advantage analysis

indicates advantageous position of India vis a vis other competing suppliers in all the identified major

markets.

TARIFFS

Tariff and Non Tariff barriers for Onions in Identified Markets Major Markets Import tariff NTM % NTM

United Arab Emirates 0% 0%

Canada 0% 84.6% Authorization for Plant Health Protection

Saudi Arabia 12.0% 100%

Testing, Inspection and Quarantine

Requirements



United Arab Emirates NO NO

Canada NO NO

Saudi Arabia NO NO

There is no special Safeguards duty present in Any Market

131

SUBSIDY

Subsidy on Onion in identified markets

Markets Product Specific Non Product Specific Green Box S&D Currency

UAE none none 34,00,000 90,00,000 US$ million

Canada none none US$ million

Saudi Arabia none none none none (billion Rp) Special and Differential Treatment – "Development Programs

Above are the various subsidies available in each market.

Tariff Rate Quota Structure

Tariff Rate Quota Structure of Onion in major export destinations

Markets TRQ Quantity (MT) In quota - Duty Out Quota - Duty

UAE No No No

Canada No No No

Saudi Arabia No No No

There is no Tariff Rate Quota present in any market.

Considering the fact that all the three markets are depicting positive growth in exports and have good

bilateral trade strength as compared with their competitors in the same market, absence of subsidies,

TRQs and special safeguard duty, three prospective markets for Onion export from the state of

Andhra Pradesh could be UAE, Canada and Saudi Arabia.

Strategies to boost Onion Export

Onion Village

The concept of developing the onion villages may help increase the export of onion. The provision of

financial assistance to exporters to complete in the international market may also be looked into.

Export on regular basis not only helps in getting foreign exchange earnings but also allows farmers to

get remunerative price for their produce thereby encouraging them to sustain the production and

availability of onions. Government should in fact have long term export policy and should even

introduce contract production system in suitable pockets.

132

Quality standards for export

The quality standards of onion have been fixed by Agmark although now it is not mandatory to obtain

Agmark certificate for onion export. It is necessary to maintain the quality by observing the standards.

The grades, big, medium, small and mixed are followed for different types of onions which depend on

requirements from importing country. It is observed that Middle East countries demand light red to

dark red colour, European countries and Japan demand yellowish /brown colour onions having mild

pungency, 3-4 cm sized onions are preferred in Bangladesh, 4-6 cm sized are preferred in Middle East

and Far East, while European and Japan prefer 6-7 cm sized onions. Rose onions of 2.5 - 3.5 cm size

and multiplier onions of bigger size with attractive red colour bulblets are preferred for export.

European countries and Japan prefer yellow big-sized onions. The demand in these countries is from

February and up to May and therefore Andhra Pradesh onion exporters should try to fulfill the

demand during this period like in case of onion growers from Nasik area of Maharashtra.

The bulbs selected for export should be reasonably uniform in shape , size, colour and pungency. They

should be mature ,solid, reasonably firm with tough clinging skin, thoroughly cured and dried outer

scales free from dirt and other foreign material. Defective, diseased, damaged bulbs caused by seed

stem, tops, roots, moisture, dry sunscald, sun burn, sprouting, mechanical or other injuries and

staining, free from moulds, soft rot and insect attack should not be used for export. The trained

labourer are thus required for grading and packing of onions for exports. The packing size for export

varies from 8 to 25 kg depending on requirement of onion by importing country. Although jute mesh

bags are used for export, if there is no restriction for their use due to environmental pollution

problems in some countries, plastic-wooven bags since are reusable and attractive, should be

introduced.

India is presently exporting onions to mainly Gulf countries, Far East countries, Bangladesh, and Sri

Lanka where there is not much scope to increase the quantity as some countries have also started their

own production. The scope, however, exists for diversifying the market to European countries and

Japan. These countries do not prefer strong and pungent onions. In these countries, yellow onions

having mild pungency, bigger bulb size with thick fleshy layers are preferred. Similarly, there is a

scope for exporting dehydrated onions as many processing units under export-oriented unit schemes

have been installed in India. These are not presently running to their installed capacity mainly for

want of raw material. Thus, there is a scope for development of varieties suitable for dehydration.

133

Constraints in onion export

There are some constraints seen in onion exports and suggestions to overcome these problems so that

onion export from the state of AP is not only continued but maybe increased :

Suggestions for improvement

• Popularization of improved varieties, quality seed production and distribution, expansion of

area in non- traditional pockets and contract production for export.

• Planning for contract production for export market expansion of area and production of kharif

onion for early harvesting.

• Unawareness of proper post harvest practices and quality. Training of farmers and others

involved in onion production, post-harvest management and marketing.

• Packing material used is not attractive. Introduction of attractive, eco-friendly packages,

consumer packages etc.

• Electrically-ventilated containers for export of yellow onions to Europe . Adequate transport

with reasonable rates, synchronize the rail/road transport with schedule of vessel and

providing insulated wagons.

• Developing more ventilated storage godowns for onions. Providing handling sheds and make

available modified containers with proper ventilation

• To develop market intelligence for different seasons, quality of produce and corresponding

season crop in other competing countries.

STRATEGY FOR INCREASING EXPORT

The strategies suggested to improve the export of onions are :

• Production and distribution of quality seed of improved varieties in adequate quantities by

following seed village concept.

• Development of disease and insect pests resistant, heat / moisture stress tolerant varieties by

taking such work at NRC for Onion and Garlic.

• Development of biological control measures against pests and disease by taking up work with

NRC for Onion and Garlic and NHRDF.

• Development of yellow coloured hybrid and OPs for export to European and Japanese

markets by popularizing the technology for production during late-kharif based on work

undertaken by NHRDF and adopting contract production.

• Development of bigger bulblet varieties in multiplier onion.

• Training of farmers, traders and exporters involved in onion production, handling and

marketing.

• Creation of adequate curing and storage facilities at field level and at ports.

Popularizing various onion products in export markets developing varieties suitable for various

processed products.

134

ONION PRODUCTION IN ANDHRA PRADESH

Region/District-wise Area and Production of Onion in Andhra Pradesh

(2002-2003 to 2006-2007)


2002-03 2003-04 2004-05 2005-06 2006-07

District Area

Produ-

ction Area

Produ-

ction Area

Produ-

ction Area

Produ-

ction Area

Produ-

ction

Srikakulam 1541 23901 1129 16935 1620 25920 1831 31127 1620 27540

Vijaya Nagaram 620 9616 395 5925 300 4800 300 5100 855 14535

Vishakhapatnam 540 8375 221 3315 445 7120 470 7990 450 7650

East Godavari 372 5770 303 4545 208 3328 370 6290 550 9350

West Godavari 1 16 0 0 4 64 0 0 0 0

Krishna 223 3459 92 1380 8 128 179 3043 0 0

Guntur 1576 24444 867 13005 843 13488 1699 28883 650 11050

Prakasam 211 3273 95 1425 0 0 0 0 700 11900

Nellore 79 1225 77 1155 860 13760 0 0 0 0

Coastal Area 5163 80078 3179 47685 4288 68608 4849 82433 4825 82025

Chittoor 671 10407 518 7770 601 9616 430 7310 509 8653

Cuddapa 3954 61327 2662 39930 3147 50352 3459 58803 2080 35360

Anatapuram 1545 23963 1381 20715 0 0 500 8500 528 8976

Karnool 11655 180769 10849 162735 13349 213584 16050 272850 16050 272850

Rayalaseema

Region 17825 276466 15410 231150 17097 273552 20439 347463 19167 325839

Andhra Region 22988 356544 18589 278835 21385 342160 25288 429896 23992 407864

Mehaboob

Nagar 3202 49663 2246 33690 3574 57184 3574 60758 2674 45458

Ranga Reddy 2618 40605 2224 33360 358 5728 862 14654 759 12903

Hyderabad 0 0 0 0 0 0 0 0 0 0

Medak 3454 53572 3551 53265 3500 56000 3522 59874 3522 59874

Nizamabad 1524 23637 1042 15630 1820 29120 355 6035 355 6035

Adilabad 599 9290 547 8205 3641 58256 3670 62390 1226 20842

Karim Nagar 688 10671 654 9810 720 11520 806 13702 806 13702

Warangal 213 3304 175 2625 274 4384 0 0 296 5032

Khamam 4 62 3 45 120 1920 134 2278 134 2278

Nalgonda 12 186 18 270 22 352 0 0 0 0

Telangana

Region 12314 190990 10460 156900 14029 224464 12923 219691 9772 166124

Andhra Pradesh 35302 547534 29049 435735 35414 566624 38211 649587 33764 573988

135

Trend Analysis for Salad beetroot, salsif, celeriac, radish & sim edible roots fresh or chilled

Table 2 Trend in exports for 070690

Code 2003 2004 2005 2006 2007 2008

CAGR

070690 117701.1 166504.5 152837 226423.8 263593.9 330584.6 22.94


during that period. The exports have been consistently increasing apart from 2005 where they fell to

15283 US $ mn.


It can be seen from the above graph that India’s exports have been continuously increasing apart from

the year 2005. The growth has been tremendous from 117701 US $ mn to 330584.64 in 2008.

Radish [Radish [Radish [Radish [070690]070690]070690]070690]

136

Revealed Comparative Advantage of 070690

RCA for Radish

The RCA values have been quite low starting from .04 in the year 2003 and increasing to .12 in the year

2008. This shows that India’s strength vis-a-vis world is quite weak. The strength however has

increased from 2003 to 2008.

India’s export World export

Radish

Total

Agriculture Radish Total Agriculture RCA

2003 117701.12 296871.65 1271288.62 26636644.7 8.30

2004 166504.49 364224.70 1457308.74 30187384.07 9.46

2005 152836.96 537491.59 1450810.18 32293223.39 6.32

2006 226423.77 609294.18 1766911.72 37184264.96 7.82

2007 263593.91 632880.05 2198338.90 42953816.81 8.13

2008 330584.64 683739.68 2110591.91 40211871.08 9.21

137

Major Export Destination

Major Export Destinations are:

Pakistan

Bangladesh

Malaysia


MARKET FLUCTUATIONS

2003 2004 2005 2006 2007 2008

Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh

Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia

Sri Lanka

United Arab

Emirates Sri Lanka

United Arab

Emirates

United Arab

Emirates

United Arab

Emirates

United Arab

Emirates Sri Lanka

United Arab

Emirates Sri Lanka Sri Lanka Sri Lanka

Nepal Bahamas, The Pakistan Pakistan Pakistan Philippines

INDIA’S TII

Bangladesh

Year

Market's Export

from India of 6

digit

Market's

Export from

India of 2 digit

Market's Export

from World 6

digit

Market's Export

from World 2

digit

TII

2003 42934.665 73682.946 42934.665 169098.842 2.29

2004 76359.206 111562.055 76359.206 203002.386 1.81

2005 61870.719 131809.635 61870.719 209632.394 1.59

2006 71719.077 123763.658 71719.077 262692.466 2.12

2007 88026.852 105162.724 88026.852 339348.18 3.22

2008 133666.527 137560.889 133666.527 265463.202 1.92

Malaysia

Year

Market's Export

from India of 6

digit

Market's

Export from

India of 2 digit

Market's Export

from World 6

digit

Market's Export

from World 2

digit

TII

2003 31546.457 33894.73 50110.925 191542.012 3.55

2004 31644.749 33596.562 55232.94 227554.997 3.88

2005 35465.906 43444.411 64986.826 266132.631 3.34

2006 54865.894 62071.292 81848.591 353317.254 3.81

2007 52359.406 54398.383 94874.985 389454.313 3.95

2008 67818.733 69328.153 91988.354 390391.838 4.15

138


Year

Market's Export

from India of 6

digit

Market's

Export from

India of 2 digit

Market's Export

from World 6

digit

Market's Export

from World 2

digit

TII

2003 13033.242 27077.266 19070.617 172167.992 4.34

2004 21166.311 40922.252 26996.229 179877.944 3.44

2005 15630.118 41197.899 21518.415 257031.925 4.53

2006 34311.771 81988.955 38248.562 363027.674 3.97

2007 46846.066 91305.676 56276.237 426330.857 3.88

2008 39287.293 84930.633 44447.69 460260.239 4.79

Pakistan

Year

Market's Export

from India of 6

digit

Market's

Export from

India of 2 digit

Market's Export

from World 6

digit

Market's Export

from World 2

digit

TII

2003 779.987 52.317 58586.399 0

2004 1.72 2200.907 3.998 73272.47 14.32

2005 6351.49 28304.464 6568.336 139344.475 4.76

2006 16080.538 34635.066 19035.201 219060.309 5.34

2007 5611.22 53127.752 5701.565 186495.373 3.45

2008 4570.244 68818.789 4600.001 202686.982 2.92

COMPETITOR’S TII

Competitor's export to market World's Export to market

Bangladesh Radish Total Agri Radish Total Agri TII

India 133666.527 137560.889 133666.527 265463.202 1.92

Turkey 171.6 305.115 133666.527 265463.202 1.11

Thailand 0.089 499.413 133666.527 265463.202 0.0003

Malaysia Radish Total Agri Radish Total Agri TII

India 67818.733 69328.153 91988.354 390391.838 4.15

Netherlands 10443.261 11966.943 91988.354 390391.838 3.70

China 6740.486 231863.702 91988.354 390391.838 0.12

UAE Radish Total Agri Radish Total Agri TII

India 39287.293 84930.633 44447.69 460260.239 4.79

Pakistan 2482.421 6894.893 44447.69 460260.239 3.72

Egypt 908.335 23847.943 44447.69 460260.239 0.39

Pakistan Radish Total Agri Radish Total Agri TII

India 4570.244 68818.789 4600.001 202686.982 2.92

China 29.757 47682.79 4600.001 202686.982 0.027

India better off than other competing suppliers

139

RELATIVE COMPARATIVE ADVANTAGE

Bangladesh

Country’s export to market World's Export to market

Radish Total Agri Radish Total Agri RCE

India 133666.527 137560.889 133838.216 138365.417 1.004

Turkey 171.6 305.115 133838.216 138365.417 0.58

Thailand 0.089 499.413 133838.216 138365.417 0.00019

Malaysia

India 67818.733 69328.153 85002.48 313158.798 3.60

Netherlands 10443.261 11966.943 85002.48 313158.798 3.21

China 6740.486 231863.702 85002.48 313158.798 0.10

UAE

Country’s export to market World's Export to market

Radish Total Agri Radish Total Agri RCE

India 39287.293 84930.633 42678.049 115673.469 1.25

Pakistan 2482.421 6894.893 42678.049 115673.469 0.97

Egypt 908.335 23847.943 42678.049 115673.469 0.10

Pakistan

India 4570.244 68818.789 4600.001 116501.579 1.68

China 29.757 47682.79 4600.001 116501.579 0.015

Relative competitive advantage of India better off than these other suppliers in identified export

markets.

Tariff and Non Tariff barriers for Radish in Identified Markets


applicable Major

Markets

Import tariff

Tariff description

Tariff

rate

NTM

%

NTM

Statutory Rate 100%

Instructional

Surcharge 3% Bangladesh

25%

VAT 15%

0%

Malaysia 0% 100%

Testing, Inspection and Quarantine

Requirements

UAE 0% 0% 0% 0% -

Customs Duty 35%

Product Characteristics requirement

to protect humans

Pakistan

0%

Sales Tax

15%

100%

Labeling requirement to protect

human health

140



Bangladesh NO NO

Malaysia NO NO


Pakistan NO NO

Tariff Rate Quota Structure for Radish in major export destinations

Markets

TRQ Quantity (METRIC

TONS)

In quota -

Duty

Out Quota -

Duty

Bangladesh No No No

Malaysia No No No

UAE No No No

Pakistan No No No

SUBSIDIES

Markets Product Specific Non Product Specific Green Box S&D* Currency

Bangladesh Not Applicable 40.18 n/a n/a (billion Rp)

Malaysia n/a n/a 756 217 US$ million

United Arab Emirates n/a 34,00,000 90,00,000 US$ million

Pakistan 3.66 n/a n/a n/a * Special and Differential Treatment – Development Programs

Conclusion

Radish Exporters from Andhra Pradesh should majorly concentrate on finding the buyer in the order

of UAE first since the bilateral trade strength of UAE for Indian radish is much higher than that of

Malaysia and Pakistan. Also there is least competition in UAE from other suppliers and import duties

are also zero along with the absence of any type of non tariff barriers. Bangladesh on the other hand

has highest import duty levels along with other type of tariffs like Statutory Rate, Instructional

Surcharge and VAT. Malaysia has 100% SPS on all its 8 digit tariff lines along with ASEAN

preferential duty rates for other competing ASEAN countries and also special and differential

developmental subsidies due to which exporters from India/ AP would loose on the price

competitiveness.

141

Banana is one of the world’s most important food crops. In India, banana crop accounts for 2.8 per

cent of agricultural GDP. It is an important crop for subsistence farmers, and ensures year-round

security for food or income. Edible bananas are of two types—cooking bananas, known as plantations

which can be considered starchy vegetables, and the fruit bananas.

Developed countries are the destination for export of bananas. Around onefifth of globally produced

bananas are exported from the developing countries to the developed countries. Latin America and

Caribbean account for bulk of exports. Philippines is the only Asian country listed among top

exporters of banana in the world. Though India is the largest producer of bananas in the world with a

whopping 23 per cent share, the country’s international banana exports are negligible.

Although one-third of the total fruit production in India constitute banana, its share in the world

banana exports is negligible, largely due to wastage (around 40%), poor handling and lack of proper

post harvest management. However, for banana, besides as a fresh fruit export, potential also lies in

exports in processed forms, and as fibre. Some of the processed food products that are increasingly

gaining importance in the domestic as well as international markets are banana wafers, banana figs,

banana pulp, banana juice and banana flour/powder.

Banana wafers and dehydrated ripe banana, popularly known as banana figs manufactured in the

small and cottage scale sectors are quite prevalent and popular as snack food. Demand for banana

powder and pulp is also increasing. Banana powder and pulp is largely used in the baking and

confectionery, and baby food industries.

Maharashtra accounts for 25% of banana production in India, followed by Tamil Nadu (20%), Gujarat

(15%), Karnataka (10%) and Andhra Pradesh (10%).

Banana [070990]Banana [070990]Banana [070990]Banana [070990]

142

Trend in Exports

There has been an increasing trend in the exports of 070990 with a CAGR of 29% over the period 2003-

08. It can be seen that the growth has been really high 2005-06 region as the export figures zoomed

from US$18.59 to US$44.06 which is a growth of a phenomenal 137%.

Table 1

Trend in Exports for 070990 (US$ mn)

Code 2003 2004 2005 2006 2007 2008 CAGR

70990 13.39 15.61 18.59 44.06 46.90 48.43 29%

RCA

The increasing trend is not just in the absolute values of the exports in this product category. The RCA

values reveal the increasing comparative advantage of Indian exports vis-à-vis World exports in

070990.

Table 2

Comparative Advantage of Banana

Year India's exports India's total exports World's exports World's total exports RCA

2003 13.39 324.57 1687.95 26665.51 0.65

2004 15.61 360.68 1859.40 30182.20 0.70

2005 18.59 570.05 2113.45 32319.23 0.50

2006 44.06 622.35 2596.00 37185.49 1.01

2007 46.90 632.88 2868.64 42938.02 1.11

2008 48.43 683.74 2458.22 39926.02 1.15

143

Major Export Destinations for Banana from AP

The top five destination which can be considered for banana exports are as follows:

• United Arab Emirates

• United Kingdom

• Qatar

• Kuwait

• Saudi Arabia

Table 3

Major Export Destinations for 070990

Partner Name 2003 2004 2005 2006 2007 2008 CAGR

United Arab Emirates 2963.438 2773.834 5450.86 10746.321 12550.616 12805.15 34.00

United Kingdom 1994.664 3310.981 2575.985 11045.761 11926.872 8862.032 34.75

Qatar 523.341 528.076 779.656 2850.179 3408.55 4923.197 56.56

Kuwait 830.003 1328.983 1325.037 2453.903 3237.871 4805.445 42.08

Saudi Arabia 1663.925 1795.211 1966.984 5915.536 5116.197 4581.459 22.45

These are the top 5 destinations according to the export figures of 2008 with exports to UAE leading

the pack with US$12.8 mn followed by exports to United Kingdom at US$8.86 mn. However, it must

be noted that over five years the CAGR value stand highest for Qatar at 56.56% where the exports

have grown from US$0.52 mn to US$4.9 mn surpassing Kuwait and Saudi Arabia which have grown

at 42.08% and 22.45% respectively.

144

It must be noted that the exports to United Kingdom as well as Saudi Arabia have fallen drastically

from 2007 to 2008 while the exports to other countries have remained on the same trend.

Market Fluctuations of Major Export Markets

The following table displays how over the years the major export destinations have switched places.

• United Arab Emirates and United Kingdom have been either first or second preferred export

destination throughout the period under study.

• High growth rates in the exports to Qatar have enabled Qatar to usurp the third position long

held by Saudi Arabia.

• On an overall basis it can be seen that amongst the top five major destinations four are in the

Middle East region and hence this reveals the importance of this region for exports of banana.

145

Market Fluctuation

2003 2004 2005 2006 2007 2008

United Arab

Emirates

United

Kingdom

United Arab

Emirates

United

Kingdom

United Arab

Emirates

United Arab

Emirates

United

Kingdom

United Arab

Emirates

United

Kingdom

United Arab

Emirates

United

Kingdom

United

Kingdom

Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia Qatar

Nepal Kuwait Bahrain Qatar Qatar Kuwait

Kuwait Nepal Kuwait Kuwait Kuwait Saudi Arabia

Trade Intensity Index for banana with respect to Major Export Markets


The trade intensity index with UAE has been fairly stable over the years meeting an average of 1.3. As

can be seen from the figure below the trend has been fairly constant over the last few years.

146

United Kingdom

The trade intensity index with UK has been growing over the years touching a high of 4.19 in the year

2007 and 3.79 in 2008. As can be seen from the figure below the trend has been fairly increasing over

the last three years. Furthermore, if 2005 is regarded as an outlier year then the linear increase seems

to work out in this case.

Saudi Arabia

The trade intensity index with Saudi Arabia has been growing over the years touching a high of 5.80

in the year 2007 and 5.15 in 2008. This TII is highest amongst other market destinations. As can be seen

from the figure below the trend has been fairly increasing over the last few years.

147

Qatar

The trade intensity index with Qatar has been growing over the years with 2008 having a higher TII of

2.83 than 2007 which is contrary to the trends seen in other export destinations. As can be seen from

the figure below the trend has been fairly increasing over the last three years.

Kuwait

The trade intensity index with Kuwait has grown steeply over the last few years with 2008 having a

very high TII of 4.14 which is much more than the average TII of 1.77 seen over the last five years.

148

Competitor Analysis

The following table lists down the five major competitors considered for each of the markets. The

competitors have been chosen according to their vicinity to the Indian export figures to these markets

as we consider these countries more intense rivals to the position of India.

We further saw as to what is the current market share of Indian exports in each of these destinations

(as can be seen from the table below). It can be seen that Indian exports command highest market

share in the Kuwait market at 43% approximately followed by 33% and 34% in Qatar and Saudi

Arabia respectively. It is however in the UK market that it commands a very small 2.41% of market

share showing an immense potential that lies in the UK market which Indian exports can tap.

UAE UK Saudi Arabia Qatar Kuwait

24.21% 2.41% 33.70% 32.88% 42.79%

2004 2005 2006 2007 2008

UAE UK Saudi Arabia Qatar Kuwait

Netherlands Kenya Greece Netherlands Netherlands

Egypt, Arab Rep. France Egypt, Arab Rep. United Arab Emirates Egypt, Arab Rep.

Thailand Netherlands Netherlands France Sri Lanka

France Cyprus Jordan Egypt, Arab Rep. United States

Kenya Panama Sri Lanka Sri Lanka United Arab Emirates

149

Trade Intensity Index of Competitors


Four out of the five major competitors have very high TII values when compared to the TII value that

India holds in respect to the United Arab Emirates. While India has a TII value of 1.3 for the current

year its competitors stand in the range of 5.8 to 7.3 and hence this shows that it would be tough for

India to penetrate the UAE market with these competitors standing in the way.

United Kingdom

For this country, the two competitors having a TII more than India are Kenya and Panama. 85%

of the Kenyan exports to UK in the 07 category are for the product 070990. And hence the very high

value for the TII between Kenya and UK. On the other hand, Panama’s export of Product 070990 to

UK stands comparable to India and thus is the closest competitor.

150

Saudi Arabia

The two major competitors that have a very high TII with Saudi Arabia are Greece and Jordan with the

values of 19.87 and 14.31 respectively which stands much higher than the TII value of 5.15 that India

holds with respect to Saudi Arabia.

Qatar

Three major competitors have TII higher than that of India namely, Netherlands, France and

Sri Lanka that hold the values of 2.95, 3.80 and 4.37 respectively as in comparison to the 2.83 that India

holds in the product category 070990 with respect to Qatar.

151

Kuwait

India stand second highest amongst all its competitors to the export market of Kuwait with the TII

value of 4.14 being slightly behind than that of Netherlands which has a TII value of 4.49. Hence,

clearly India has a steadily strengthened its position in the Kuwait market accompanies with the rising

trend in exports as well as the rising TII values of the years.

Relative Competitive Advantage for 070990 vis-à-vis other Suppliers in Major Markets in 2008


India has one of the least Relative competitive advantage vis-à-vis the other competitors. It has an RCE

value of 0.5 as compared to an average 2.48 RCE value shared by Netherlands, Thailand, France and

Kenya. (See the RCE table attached in the appendix)

United Kingdom

India has an RCE value of 2.73 and stands third in the overall ranking behind Kenya and Panama with

4.96 and 4.26 respectively. It must be noted that both the countries also have higher TII values than

India for this export destination.

152

Saudi Arabia

For this market, India has an RCE value of 2.96 which stand much lower than the value of 11.83 that

Greece.

Qatar

For this market, India has an RCE value of 1.36 as compared to 2.36 that Sri Lanka holds and 2.05 that

France holds.

Kuwait

India has the 2nd highest RCE value of 2.83 in this market after Netherlands which holds an RCE value

of 3.52 and thus is similar to the trend that we say while calculating TII of India’s competitors with

respect to Kuwait.

153

Tariff and Non Tariff barriers for Banana in Identified Markets

Major

Markets

Import

tariff


applicable

NTM

%

NTM

Tariff

description

Tariff

rate

UAE NA NA NA NA

UK NA NA NA NA

Saudi

Arabia

MFN Rates 12.00% 100% Testing, Inspection or quarantine

requirements

Qatar NA NA NA NA

Kuwait NA NA NA NA

Amongst the five destination markets namely, UAE, UK, Qatar, Saudi Arabia and Kuwait it was seen

that the only country that which has import tariff applicable is that of Saudi Arabia. Saudi Arabia

applies a MFN rate of 12% to the imports under this category of products. It is also the only country

amongst the lot to have 100% Non tariff mechanism which it applies to the “Testing, Inspection or

quarantine requirements”

FTA/PTA

Amongst the five destination markets namely, UAE, UK, Qatar, Saudi Arabia and Kuwait, India does

not hold any Free Trade or Preferential Trade agreement with any of them.

Country FTA/PTA Rate

UAE None -

UK None -

Saudi Arabia None -

Qatar None -

Kuwait None -

154

Tariff Rate Quota Structure in major export destinations

No tariff quotas are applied in any of the export destinations for product 070990.


Markets TRQ Quantity (METRIC TONS) In quota - Duty Out Quota - Duty

UAE No No No

UK No No No

Saudi Arabia No No No

Qatar No No No

Kuwait No No No


No Special safeguard duty is present in any of the export destinations for product 070990.


Country Volume Trigger

Price

Trigger

UAE NO NO

UK NO NO

Saudi

Arabia NO NO

Qatar NO NO

Kuwait NO NO

Subsidy Structure

While none of the markets have product specific subsidies applicable. It must be noted that UK and

Saudi Arabia have Non Product Specific subsidies existing. In the case of UK, the NPS subsidies have

been taken as applicable to the notifications sent by the EEC.

Markets Non

Product

Specific

Green Box Special and

Differential

Treatment –

"Development

Programs"

Currency Year

UAE 0 3400000 9.000,000 (Dh) 2000/01

UK 728.4 22130.3 21520.8 Mio ECU 1996/97

Saudi Arabia 838.4 674.296 0 (mn SRls) 2006

Qatar 0 0 0 Rial 2004

Kuwait 0 0 0 Dinar -

155

Green Box subsidies are applicable to UAE, UK as well as Saudi Arabia and do not exist in either

Qatar or Kuwait. It must be noted that Kuwait and Qatar are the regions also where Indian exports

have faced highest growth over last 5 years.

Strategy for Promotion of Banana Export from Andhra Pradesh

Of course, the shipping companies are offering service in the form of refrigerated containers for

banana exporters. The specialised containers would enable farmers to transport the produce from

farms to international destinations, while increasing the shelf-life of bananas up to three weeks. Reefer

containers provide a cost-effective logistics solution for fruits and other perishables. Banana

cultivation is facing problems like non-availability of standardised, good-quality planting material and

quality certification of plant material. Though banana is a highly perishable crop, currently no

insurance facility is available for farmers. Air tariffs for banana are also very high. There is an urgent

need for standardisation, certification and rapid multiplication for yielding good-quality material

through tissue culture. Through tissue culture, it would be possible to multiply government

assistance, tissue-culture companies can achieve economies of scale and this can bring down the cost

of planting materials. The insurance facility for farmers is also important. There are centers for

research in banana in Andhra Pradesh which can further be developed for these purposes.

156

Appendix

Table 4: Trade Intensity Index for Banana with respect to Major Export Markets

India's export World Export

Year 070990 07 070990 07 TII

2003 2.96 33.01 12.91 178.11 1.24

2004 2.77 37.20 13.50 176.16 0.97

2005 5.45 44.74 22.64 260.58 1.40

2006 10.75 97.45 32.27 378.46 1.29

2007 12.55 91.31 44.18 426.33 1.33

TII UAE

2008 12.81 84.93 52.90 460.41 1.31


Year 070990 07 070990 07 TII

2003 1.99 10.79 221.79 2481.69 2.07

2004 3.31 13.84 253.77 2811.19 2.65

2005 2.58 14.17 309.47 3076.26 1.81

2006 11.05 26.90 390.40 3468.52 3.65

2007 11.93 23.47 472.83 3885.75 4.18

TII UK

2008 8.86 18.94 368.17 2979.97 3.79


Year 070990 07 070990 07 TII

2003 1.66 11.35 10.35 106.38 1.51

2004 1.80 12.28 14.02 130.29 1.36

2005 1.97 14.52 14.16 142.57 1.36

2006 5.92 19.72 17.75 277.54 4.69

2007 5.12 18.13 17.03 349.81 5.80

TII Saudi Arabia

2008 4.58 18.30 13.59 279.75 5.15


Year 070990 07 070990 07 TII

2003 0.52 2.06 8.45 31.31 0.94

2004 0.53 2.92 4.82 35.15 1.32

2005 0.78 4.30 13.22 45.17 0.62

2006 2.85 7.26 10.71 56.28 2.06

2007 3.41 6.70 16.20 73.89 2.32

TII Qatar

2008 4.92 8.68 14.97 74.40 2.82


Year 070990 07 070990 07 TII

2003 0.83 5.20 7.89 68.09 1.38

2004 1.33 7.43 7.44 70.03 1.68

2005 1.33 9.62 24.10 91.55 0.52

2006 2.45 12.03 21.92 122.72 1.14

2007 3.24 10.57 23.06 132.19 1.76

TII Kuwait

2008 4.81 12.05 11.23 116.52 4.14

157

TII with other suppliers

UAE Competitor 's

export of 070990

Competitors's

Total Export of 07

World 's export of

070990

World 's export

of 07

TII

Netherlands 22.84 34.19 52.90 457.70 5.78

Egypt, Arab

Rep.

3.53 23.85 52.90 457.70 1.28

Thailand 3.05 4.10 52.90 457.70 6.44

France 2.84 4.05 52.90 457.70 6.06

Kenya 2.51 2.98 52.90 457.70 7.27

UK Competitor 's

export of 070990

Competitors's

Total Export of 07

World 's export of

070990

World 's export

of 07

TII

Kenya 151.81 178.52 368.17 2837.48 6.55

France 58.68 290.27 368.17 2837.48 1.56

Netherlands 29.84 1038.86 368.17 2837.48 0.22

Cyprus 10.40 27.79 368.17 2837.48 2.89

Panama 8.88 12.17 368.17 2837.48 5.62

Saudi

Arabia

Competitor 's

export of 070990

Competitors's

Total Export of 07

World 's export of

070990

World 's export

of 07

TII

Greece 4.08 4.08 13.59 270.04 19.87

Egypt, Arab

Rep.

2.62 69.64 13.59 270.04 0.75

Netherlands 0.76 21.90 13.59 270.04 0.69

Jordan 0.42 0.58 13.59 270.04 14.31

Sri Lanka 0.42 2.00 13.59 270.04 4.14

Qatar Competitor 's

export of 070990

Competitors's

Total Export of 07

World 's export of

070990

World 's export

of 07

TII

Netherlands 6.02 9.06 14.97 66.46 2.95

United Arab

Emirates

1.65 9.36 14.97 66.46 0.78

France 0.67 0.78 14.97 66.46 3.80

Egypt, Arab

Rep.

0.65 6.04 14.97 66.46 0.48

Sri Lanka 0.43 0.44 14.97 66.46 4.37

Kuwait Competitor 's

export of 070990

Competitors's

Total Export of 07

World 's export of

070990

World 's export

of 07

TII

Netherlands 3.44 6.94 11.23 101.77 4.49

Egypt, Arab

Rep.

1.68 18.69 11.23 101.77 0.81

Sri Lanka 0.45 1.21 11.23 101.77 3.40

United

States

0.36 8.29 11.23 101.77 0.39

UAE 0.21 8.48 11.23 101.77 0.22

158

Relative Competitive Advantage for 070990 vis-à-vis other Suppliers in Major Markets in 2008

UAE Competitor 's

export of

070990

Competitors's

Total Export of

07

All Competitor

's Export of

070990

All

Competitor 's

Export of 07

Rel.

Comp.

Adv.

Netherlands 22.84 34.19 47.57 154.10 2.16

India 12.81 84.93 47.57 154.10 0.49

Egypt, Arab

Rep.

3.53 23.85 47.57 154.10 0.48

Thailand 3.05 4.10 47.57 154.10 2.41

France 2.84 4.05 47.57 154.10 2.27

Kenya 2.51 2.98 47.57 154.10 2.72

UK Competitor 's

export of

070990

Competitors's

Total Export of

07

All Competitor

's Export of

070990

All

Competitor 's

Export of 07

Rel.

Comp.

Adv.

Kenya 151.81 178.52 268.48 1566.55 4.96

France 58.68 290.27 268.48 1566.55 1.18

Netherlands 29.84 1038.86 268.48 1566.55 0.17

Cyprus 10.40 27.79 268.48 1566.55 2.18

Panama 8.88 12.17 268.48 1566.55 4.26

India 8.86 18.94 268.48 1566.55 2.73

Saudi

Arabia

Competitor 's

export of

070990

Competitor’s

Total Export of

07

All Competitor

's Export of

070990

All

Competitor 's

Export of 07

Rel.

Comp.

Adv.

India 4.58 18.30 8.30 98.20 2.96

Greece 4.08 4.08 8.30 98.20 11.83

Egypt, Arab

Rep.

2.62 69.64 8.30 98.20 0.45

Netherlands 0.76 21.90 8.30 98.20 0.41

Jordan 0.42 0.58 8.30 98.20 8.52

Sri Lanka 0.42 2.00 8.30 98.20 2.47

Qatar Competitor 's

export of

070990

Competitors's

Total Export of

07

All Competitor

's Export of

070990

All

Competitor 's

Export of 07

Rel.

Comp.

Adv.

Netherlands 6.02 9.06 14.35 34.36 1.59

India 4.92 8.68 14.35 34.36 1.36

United

Arab

Emirates

1.65 9.36 14.35 34.36 0.42

France 0.67 0.78 14.35 34.36 2.05

Egypt, Arab

Rep.

0.65 6.04 14.35 34.36 0.26

Sri Lanka 0.43 0.44 14.35 34.36 2.36

159

Kuwait Competitor 's

export of

070990

Competitors's

Total Export of

07

All Competitor

's Export of

070990

All

Competitor 's

Export of 07

Rel.

Comp.

Adv.

India 4.81 12.05 6.14 43.60 2.83

Netherlands 3.44 6.94 6.14 43.60 3.52

Egypt, Arab

Rep.

1.68 18.69 6.14 43.60 0.64

Sri Lanka 0.45 1.21 6.14 43.60 2.66

United

States

0.36 8.29 6.14 43.60 0.31

United

Arab

Emirates

0.21 8.48 6.14 43.60 0.17

160

GGGGrape cultivation is one of the most remunerative farming enterprises in India. Grapes occupies fifth

position amongst fruit crops with cultivation of over an area of 34,000 hectares and production of 1.08

MT from an area of 0.04 Million ha. Grape is grown under a variety of soil and climatic conditions in

three distinct agro-climatic zones, namely, sub-tropical, hot tropical and mild tropical climatic regions

in India. The major varieties of grapes grown in India are, Thomson Seedless, Sonaka, Anab-e-Shahi,

Perlette, Banglore blue, Pusa seedless, Beauty seedless etc. Maharashtra occupies the first position

with a production of 0.68 MT of grapes, followed by Karnataka. Andhra Pradesh

The Chittoor is the major district in the mid tropical region where the Grapes are grown in Andhra

Pradesh. Besides, in the hot tropical region in Andhra Pradesh, Grapes are grown in around 10,000

acres in the state in the districts of Ranga Reddy, Medak and parts of Mahbubnagar districts as

compared to approximately one lakh acre in Maharashtra. Although Andhra Pradesh falls behind MS

and Karnataka in grape production, but still this is a major fruit for the state in terms of rural

population dependent on it. Though grapes are grown in Chittoor and Anantapur districts also, the

seed variety, Dilkush or Sharad, or seedless Taj Ganesh are mainly meant for domestic consumption.

Therefore this section of the report tries to explore the export prospects of the grapes and raisins from

AP and assists grape exporters to identify right markets for their fresh and processed grapes. The

section also suggests strategies for export development of grapes from the state.

Grapes [080610]Grapes [080610]Grapes [080610]Grapes [080610]

161

Trend Analysis of Fresh Grapes (080610)

The exports of Fresh Grapes have risen at a CAGR of 30.11% from 2003 to 2008. After a drop in 2004,

the exports consistently rose, with the exports recording the maximum growth of 50.92% for the year

2008.

Code 2003 2004 2005 2006 2007 2008 CAGR

080610 24.31 19.27 43.35 53.37 60.06 90.64 30.11

As evident from the graph, the trend started from 2005 and continued till 2008 (last period under

consideration), with the steep in crease in 2008.

Revealed Comparative Advantage of Fresh Grapes

India's exports World's exports

Year Frsh Grapes Total ag exports Frsh Grapes Total ag exports RCA

2003 24.31 63034.64 3081.83 6937313.35 0.87

2004 19.27 79834.06 3189.23 8662344.87 0.66

2005 43.35 103404.17 3914.78 9850379.02 1.05

2006 53.37 126125.50 3966.66 11507961.40 1.23

2007 60.06 145898.05 4543.69 13112639.45 1.19

2008 90.64 1133227.48 4259.43 53692351.62 1.01

162

Figure 5 RCA for 080610

As for the figures depicted above, India gained competitiveness in the Fresh Grapes market in the

world, post 2005 when its RCA value increased from 0.66 in 2004 to 2005. Since then, India has

displayed revealed comparative advantage in the exports of grapes consistently, with the figure

dropping to 1.01 by the end of 2008.

Major Export Destinations for Fresh Grapes

Approximately, 2.5 percent (22,000 t) of fresh grapes are exported to the Middle East and European

countries as of now. This section will explore the possibilities of export market diversification for

grape and raisin export from Andhra Pradesh.


Bangladesh 142.02 606.548 2587.443 4764.899 8652.273 11446.371 140.58

Belgium 250.429 826.032 1070.448 3317.478 2625.527 855.591 27.85

Netherlands 5090.784 3853.734 14486.334 17164.885 18156.255 39639.126 50.75

United Arab

Emirates 4256.413 4679.273 7174.752 7750.402 7302.237 10096.385 18.86

United Kingdom 8828.144 5146.036 13054.562 13388.332 15354.358 18479.821 15.92

163

Of the major Export Destinations as depicted above, the exports to Bangladesh increased the most

over the period under review. In absolute terms, Netherlands is the biggest importer of Indian Fresh

Grapes. Belgium seems to be unattractive considering the low value of exports to it compared to the

other export destinations.

Below is the depiction of the market fluctuation in terms of value of exports of fresh grapes from India

to the markets.


2003 2004 2005 2006 2007 2008

United

Kingdom

United

Kingdom Netherlands Netherlands Netherlands Netherlands

Netherlands

United Arab

Emirates

United

Kingdom

United

Kingdom

United

Kingdom

United

Kingdom

United Arab

Emirates Netherlands

United Arab

Emirates

United Arab

Emirates Bangladesh Bangladesh

Belgium Belgium Bangladesh Bangladesh

United Arab

Emirates

United Arab

Emirates

Bangladesh Bangladesh Belgium Belgium Belgium Belgium

United Kingdom slipped from the top export market in 2003 to second most attractive destination in

terms of value of exports. Going by value of exports Netherlands with the CAGR of 50.75% from 2003

to 2008 emerged as the top export destination for Indian Fresh Grapes. As for other destinations,

Bangladesh increased its attractiveness whereas decline in exports to Saudi Arabia pushed it to

number 4 slot in terms of value of exports during 2008.

Trade IntenTrade IntenTrade IntenTrade Intensity Index with Major Marketssity Index with Major Marketssity Index with Major Marketssity Index with Major Markets

Bangladesh India's export World Export

Year Frsh Grapes Total ag exports Frsh Grapes Total ag exports TII

2003 142.02 20338.352 2159.881 41502.423 0.13

2004 606.548 27040.788 3215.784 54362.305 0.38

2005 2587.443 25542.659 5373.14 64872.992 1.22

2006 4764.899 33787.354 7673.077 65795.779 1.21

2007 8652.273 29083.696 11546.96 81721.554 2.11

2008 11446.371 43839.99 15810.397 113599.879 1.88

India’s Trade Intensity Index (TII) with Bangladesh increased consistently peaking in 2007 before

falling to 1.88 in 2008.

164

Belgium


Year Frsh Grapes

Total ag

exports Frsh Grapes

Total ag

exports TII

2003 250.429 8169.36 107596.499 1285353.66 0.37

2004 826.032 12840.373 118383.583 1526669.706 0.83

2005 1070.448 15715.967 141525.514 1796771.385 0.86

2006 3317.478 14946.813 136124.459 1878577.794 3.06

2007 2625.527 15344.177 135141.98 2012330.922 2.55

2008 855.591 16522.208 147026.894 1944817.771 0.68

India’s TII with Belgium decreased implying that India as a partner in exports of 080610 as compared

to the rest of the world has weakened over the period under review.

Netherlands India's export World Export

Year Frsh Grapes

Total ag

exports Frsh Grapes

Total ag

exports TII

2003 5090.784 58401.15 240595.484 2153122.327 0.78

2004 3853.734 76329.219 284926.349 2568617.022 0.46

2005 14486.334 124295.9 367960.022 3044976.206 0.96

2006 17164.885 132910.994 355062.15 3309568.527 1.20

2007 18156.255 113752.627 413969.945 3830359.157 1.48

2008 39639.126 158211.567 392881.319 3279036.797 2.09

Trading relationship with Belgium with regards to export of 080610 increased largely consistently over

the period with the value being 2.09 in 2009.

UAE India's export World Export

Year Frsh Grapes

Total ag

exports Frsh Grapes

Total ag

exports TII

2003 4256.413 47066.2 14649.526 556908.882 3.44

2004 4679.273 56490.379 14251.882 481703.906 2.80

2005 7174.752 81907.086 20174.688 525133.565 2.28

2006 7750.402 95889.005 24690.735 688986.507 2.26

2007 7302.237 112573.719 26480.526 536474.976 1.31

2008 10096.385 174317.925 28722.01 621714.502 1.25

India’s trade intensity in exports of 080610 to UAE decreased over time with the value decreasing

from 3.44 in 2003 to 1.25 in 2008.

165

UK India's export World Export

Year Frsh Grapes

Total ag

exports Frsh Grapes

Total ag

exports TII

2003 8828.144 36458.464 254761.63 2370387.744 2.25

2004 5146.036 42561.788 283165.301 2822510.685 1.21

2005 13054.562 58973.593 356783.915 3270182.03 2.03

2006 13388.332 53262.714 359559.379 3498413.467 2.45

2007 15354.358 53232.905 444920.677 4019689.341 2.61

2008 18479.821 55564.969 356240.666 3135911.784 2.93

India’s trade relation in comparison to rest of the world in export of 080610 remained roughly the

same. That is there was no major change in the intensity of trade relation between the two countries

over the period under the review. Looking at the markets on the whole, India’s trade intensity in the

exports of 080610 has declined over the period with many of its important export markets

Competitor’s Analysis in Each Market

In this section we will analyse the competition that Indian exporters face from exporters in different

countries in each of the destination markets. For the competitor analysis, the top seller to the market

and sellers immediately above and below (in terms of value of exports of 080610 to the market) are

considered.

Market: Bangladesh

The competitors to Indian exports and their exports value is depicted by the chart below:

166

As is depicted by the graph above, India is the predominant exporter to Bangladesh with United States

and Australia being distant second and third respectively. There is little competition to the exports of

080610 from India to Bangladesh. However, as for TII with Bangladesh Australia has the highest TII of

6.15 in 2008 followed by United States and India being last with a TII of 1.88 in 2008.

Market: Belgium


Clearly, Italy is the biggest exporter of Fresh Grapes to Belgium with the exports of 39154.97 ‘000 USD.

Competitors close to India are Israel and United Kingdom which are ahead of India and Turkey and

United States following India. Clearly, there is a stiff competition for Indian exports to the Belgium.

167

Even with regards to the TII, the top exporter (Italy) and the close competitors of India have a higher

TII than India. Thus the Trade intensity of India is smaller as compared to the trade intensity of

competitors with Belgium.

Market: Netherlands


South Africa is the biggest exporter of Fresh Grapes to Netherlands. As for close competitors to India,

in terms of value of exports, Italy and Greece follow closely with exports of 27988.2 thousand USD and

22923.77 thousand USD respectively.

168

As for TII, Greece has the highest TII with Netherlands with a value of 3.93 in 2008. Even though low

in comparison to the competitors, India a strong trade intensity with Netherlands with a value of 2.09

Market: United Arab Emirates


India is the leading exporter of Fresh Grapes to UAE with Unted States and South Africa as distant

second and third. Clearly, as depicted from the graph, there is notmuch competition to the exports

from India to UAE.

169

Although India’s TII with UAE is greater than 1 but Australia and Italy has a stronger TII with a value

of 2.27 and 3.58 for the year 2008.

Market: United Kingdom


Egypt is the biggest exporter of Fresh Grapes to the market with Italy, Netherlands, Germany and

Namibia being the closest competitors of India (in terms of value of exports).

170

India has a strong trade intensity index value of 2.93 for the year 2008, India’s competitor Namibia has

a strong tie in terms of its exports of Fresh Grapes to UK vis-a-vis its total exports to the country.

For detailed figures on Competitors’ exports in 2008 and their TII refer to Annexure I table 1 – Table 5

Relative Comparative Advantage: This section as part of the competitor’s analysis reveals the

comparative advantage of India and the competitors in various export markets.

Bangladesh

Competitor 's

export of

080610

Competitors’

Total Export

of 08

All Competitor

's Export of

080610

All Competitor

's Export of 08

Rel.

Comp.

Adv.

India 11446.37 43839.99 15116.41 49625.22 0.86

United States 1924.37 3744.23 15116.41 49625.22 1.69

Australia 1745.67 2041 15116.41 49625.22 2.81

As evident from the table, India’s Relative comparative advantage value is 0.86 which is lower than 1

and implying that with respect to all the competitors identified in the export market, India has no

comparative advantage and going by the values, Australia has the highest comparative advantage in

the exports of Fresh Grapes to Bangladesh.

171

Belgium

Competitor 's

export of

080610

Competitors’

Total Export

of 08

All Competitor

's Export of

080610

All Competitor

's Export of 08

Rel.

Comp.

Adv.

India 855.591 16522.208 42229.494 349729.608 0.43

Italy 39154.97 98147.06 42229.494 349729.608 3.30

Israel 941 12873 42229.494 349729.608 0.61

United Kingdom 882.262 4725.9 42229.494 349729.608 1.55

Turkey 280.471 72843.01 42229.494 349729.608 0.03

United States 115.2 144618.43 42229.494 349729.608 0.01

With respect to competitors in the export of Fresh Grapes to Belgium, India does not have a relative

comparative advantage. Italy has the maximum value of 3.3

Netherlands

Competitor 's

export of

080610

Competitors’

Total Export

of 08

All Competitor

's Export of

080610

All Competitor

's Export of 08

Rel.

Comp.

Adv.

India 39639.126 158211.567 289682.186 965110.597 0.83

South Africa 133903.87 381808.4 289682.186 965110.597 1.17

Italy 27988.2 88520.99 289682.186 965110.597 1.05

Greece 22923.77 48635.96 289682.186 965110.597 1.57

Brazil 65227.22 287933.68 289682.186 965110.597 0.75

Again as with the Bangladesh and the Belgium markets, India does not have a relative comparative

advantage (comparative advantage with respect to the exporters of the Fresh Grapes in that particular

market). Greece has the highest relative comparative advantage value of 1.57

United Arab

Emirates

Competitor 's

export of

080610

Competitors’

Total Export

of 08

All Competitor

's Export of

080610

All Competitor

's Export of 08

Rel.

Comp.

Adv.

India 10096.385 174317.925 26596.165 447418.925 0.97

United States 5980.12 138958.32 26596.165 447418.925 0.72

South Africa 4700.53 75358.43 26596.165 447418.925 1.05

Australia 3089.39 29452.07 26596.165 447418.925 1.76

Italy 1478.77 8943.74 26596.165 447418.925 2.78

Egypt 1250.97 20388.44 26596.165 447418.925 1.03

Although being the biggest exporter of Fresh Grapes to United Arab Emirates, India does not have a

relative comparative advantage in the Fresh Grapes exports to UAE market. Italy has the highest

relative comparative advantage with the value of 2.78 in the year 2008.

172

United Kingdom

Competitor 's

export of

080610

Competitors’

Total Export

of 08

All Competitor

's Export of

080610

All Competitor

's Export of 08

Rel.

Comp.

Adv.

India 18479.821 55564.969 356240.666 3135911.784 2.93

Italy 27167.91 273770.86 356240.666 3135911.784 0.87

Netherlands 25245.37 321062.13 356240.666 3135911.784 0.69

Germany 11305 66917 356240.666 3135911.784 1.49

Egypt 69424.2 100029.18 356240.666 3135911.784 6.11

Namibia 10812.79 10833.31 356240.666 3135911.784 8.79

In the exports to the market United Kingdom, India has tough competition from Egypt and Namibia.

India better off than these countries Countries giving competition to India in identified export

market

Tariff and Non Tariff measures on fresh grapes

The tariff and non Tariff as imposed by the importing countries on import of Fresh Grapes are given in

the following table:

Other Tariff where ever applicable

Major Markets

Import

tariff

Tariff description

Tariff

rate

NTM

%

NTM

Statutory Rate 100.0%

Infrastructural Surcharge 2.5%

Bangladesh 15% VAT 15.0% 0 -

European Union 14% 0 -

Note: Here the figures for the markets: Belgium, Netherlands and United Kingdom are indicated

under the head European Union as these countries form part of Custom Union and hence same trade

laws, rules and regulation.Clearly, as is evident from the table above there is no Non tariff measured

imposed by the export markets identified. As between the two markets, Bangladesh has a higher tariff

regime.

Preferential / Free Trade Agreement

The below table depicts any preferential / Free trade agreement that the identified exports market

have and the tariffs on fresh grapes under such arrangement.

173


Tariff Line Agreement

080610.1005 Preference for Egypt 3.2%

Preference for Morocco 0.0%

Preference for Tunisia 3.2%

Preference for Algeria 0.0%

080610.1091

GSP rates 9.7%

Preference for ACP countries 0.0%

preference for Egypt 4.6%




080610.1099

GSP rates 9.7%

preference for Egypt 4.6%




080610.9000

GSP rates 12.2%

European Union

GSP for LDC 0.0%

European Union has agreements with various countries / regions and hence charges lower duty on

imports of Fresh Grapes from certain markets, giving them the advantage. India allows advantage

under the GSP (Global System of Preferences) agreement.

Tariff Rate Quotas, SSG and Tariff Escalation on Import of Fresh Grapes

Markets TRQ Quantity (METRIC TONS)

In quota -

Duty

Out Quota -

Duty

Bangladesh No No No

United Arab Emirates No No No

European

Community No No No

Clearly there are no TRQ imposed by the identified markets on the import of Fresh Grapes which a

healthy signal for the exporters.

174

Special Safeguard Mechanisms

Country

Volume

Trigger

Price

Trigger Period

Bangladesh NO NO NA

United Arab

Emirates NO NO NA

European

Community YES NO 21-jul-2006 to 20-nov-2007

As given in the table, European Community has often resorted to the imposition of Special Safeguard

duty on Volume Trigger to safeguard the interests of its domestic markets. Besides no special

safeguards have been imposed by Bangladesh and United Arab Emirates

Tariff Escalation

Since Fresh Grapes is a primary product there is no consideration for studying the tariff escalation

faced by the import of the commodity in the identified markets for exports.

Subsidies

Markets

Product

Specific

Non Product

Specific

Green

Box S&D Currency

Bangladesh NA 40.18 42.01 0.22

Million

USD

European

Community 112.7 573.5 20661.2 Not Applicable

Million

Euro

United Arab

Emirates

Not

Applicable Not Applicable 3400000 9000000 Dh

Special and Differential Treatment – "Development Programmes"

European Community had given a Product Specific subsidy of 112.7 Million Euro in 2001-2002, giving

an advantage to its farmers. Whereas both Bangladesh and UAE provide support to its domestic

markets in the form of Green Box Subsidy and Development Programmes, Bangladesh also provide

non product specific subsidy to its farmers.

175

Conclusion

Grape exports from India are growing at 30%. The RCA values have also risen from 0.87 to 1.01 in last

five years indicating the rising comparative advantage of India in grapes in the International market.

Out of the five major markets identified for fresh grapes export from AP, highest growth is seen for

Bangladesh followed by EU countries including Belgium, Netherlands and UK. UAE is another

market with 18% growth. Out of these, Netherlands and Bangladesh has witnessed a growing pattern,

while UAE is declining. Bilateral trade strength is also relatively better for EU countries; however,

fresh grapes from AP will have to face tough competition in European Union market from grapes

coming from Italy, Israel, South Africa and Australia. UAE received good quality grapes from Egypt

and Namibia.

EU again becomes difficult for AP exporters due to the presence of lot many number of FTAs with

Egypt, Morocco, Tunisia, Algeria and other ACP countries. Therefore while grape exporters from

Andhra Pradesh will be facing an import duty of 14% in EU markets, these competing suppliers will

face preferential duty rates of 3-4% and generalized system of preference duty rates of 12% thus

loosing the price competition in the EU market. EU also provides a lot of subsidies to its grape

farmers.Thus we conclude in recommending Middle East and Bangladesh as relatively easy markets

for AP grape exporters. Also since USA has depicted poor TII values depicting poor competetiveness

in these markets, USA can also be explored.

176

ANNEXURE : Trade Intensity Index for Competing suppliers in Identified Markets

Bangladesh

Competitor 's

export of 080610

Competitors’

Total Export of 08

Total export of

080610

Total export of

08 TII

India 11446.37 43839.99 15810.397 113599.879 1.88

United States 1924.37 3744.23 15810.397 113599.879 3.69

Australia 1745.67 2041 15810.397 113599.879 6.15

Belgium

Competitor 's

export of 080610

Competitors’

Total Export of 08

Total export of

080610

Total export of

08 TII

Italy 39154.97 98147.06 147026.894 1944817.771 5.28

Israel 941 12873 147026.894 1944817.771 0.97

United

Kingdom 882.262 4725.9 147026.894 1944817.771 2.47

India 855.591 16522.208 147026.894 1944817.771 0.68

Turkey 280.471 72843.01 147026.894 1944817.771 0.05

United States 115.2 144618.43 147026.894 1944817.771 0.01

Netherlands

Competitor 's

export of 080610

Competitors’

Total Export of 08

Total export of

080610

Total export of

08 TII

South Africa 133903.87 381808.4 392881.319 3279036.797 2.93

Brazil 65227.22 287933.68 392881.319 3279036.797 1.89

India 39639.126 158211.567 392881.319 3279036.797 2.09

Italy 27988.2 88520.99 392881.319 3279036.797 2.64

Greece 22923.77 48635.96 392881.319 3279036.797 3.93

United Arab

Emirates

Competitor 's

export of 080610

Competitors’

Total Export of 08

Total export of

080610

Total export of

08 TII

India 10096.385 174317.925 28722.01 621714.502 1.25

United States 5980.12 138958.32 28722.01 621714.502 0.93

South Africa 4700.53 75358.43 28722.01 621714.502 1.35

Australia 3089.39 29452.07 28722.01 621714.502 2.27

Italy 1478.77 8943.74 28722.01 621714.502 3.58

Egypt, Arab

Rep. 1250.97 20388.44 28722.01 621714.502 1.33

United

Kingdom

Competitor 's

export of 080610

Competitors’

Total Export of 08

Total export of

080610

Total export of

08 TII

Egypt, Arab

Rep. 69424.2 100029.18 356240.666 3135911.784 6.11

Italy 27167.91 273770.86 356240.666 3135911.784 0.87

Netherlands 25245.37 321062.13 356240.666 3135911.784 0.69

India 18479.821 55564.969 356240.666 3135911.784 2.93

Germany 11305 66917 356240.666 3135911.784 1.49

Namibia 10812.79 10833.31 356240.666 3135911.784 8.79

177

Trend Analysis of Dry Grapes (080620)

Code 2003 2004 2005 2006 2007 2008 CAGR

080620 0.08 0.71 0.34 0.28 0.16 4.55 123.12

Although the export of Dry Grapes has shown a considerable increase from 0.08 mn USD in 2003 to

4.55 mn USD in 2008, with an impressive CAGR of 123.12, they still account for very low proportion of

world export in Dry Grapes.


As evident from the graph, the exports first declined in the year 2005 up to the year 2007 before

recovering sharply in the year 2008. The export of Dry Grapes has shown an erratic trend over the

period with burst of growth and fall.

Dried Grapes [080620]Dried Grapes [080620]Dried Grapes [080620]Dried Grapes [080620]

178

Revealed Comparative Advantage of 080620

Year

India's

exports

India's total

exports

World's

exports

World's total

exports RCA

2003 0.08 63034.64 643.03 6937313.35 0.01

2004 0.71 79834.06 787.47 8662344.87 0.10

2005 0.34 103404.17 875.34 9850379.02 0.04

2006 0.28 126125.50 954.04 11507961.40 0.03

2007 0.16 145898.05 912.44 13112639.45 0.02

2008 4.55 1133227.48 986.18 53692351.62 0.22

Figure 7 RCA for 080620

As indicated by the figures, India does not have comparative advantage in the Dry Grapes exports in

the world. Although, India’s RCA value increased to 0.22 in 2008, it still does not have a strong

position in the Dry Grapes industry. Moreover, the increase in the exports for the year 2008 does not

show a trend that is sustained growth.

179

Major Export Destinations for Dried Grapes: raisins

Partner

Name 2003 2004 2005 2006 2007 2008 CAGR

Bangladesh - - - 5.772 13.873 148.278 406.85

Nepal 12.827 15.037 6.417 38.838 23.272 78.481 43.66

Philippines - 0.071 - 43.246 0.076 79.789 478.99

Singapore 0.018 0.151 0.023 0.002 0.999 13.401 275.30

Sri Lanka 19.271 - 10.622 - 1.757 141.016 48.89

Of the major Export Destinations as depicted above, the exports to Bangladesh is the most attractive

destination when both the growth and value in absolute terms is taken into consideration. Besides,

exports to the entire major destination depicted above, witnessed a considerable growth in the period

under review, with Philippines becoming an attractive destination on account of highest CAGR.

Below is the depiction of the market fluctuation in terms of value of exports of 080620 from India to

the markets.


2003 2004 2005 2006 2007 2008

Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh

Nepal Nepal Singapore Nepal Nepal Nepal

Singapore Singapore Nepal Singapore Singapore Singapore

Sri Lanka Sri Lanka Sri Lanka Sri Lanka Sri Lanka Sri Lanka

Philippines Philippines Philippines Philippines Philippines Philippines

There has been no major fluctuation in the share of export markets to the export of 080620 from India

with Bangladesh remaining the most attractive destination (in terms of value) throughout the period

under review followed by Nepal, Singapore, Sri Lanka and Philippines.

180

Trade Intensity Index with Major Markets

Bangladesh India's export World Export

Year 080620 08 080620 08 TII

2003 - 20338.352 180.095 41502.423 -

2004 - 27040.788 216.092 54362.305 -

2005 - 25542.659 2821.56 64872.992 -

2006 5.772 33787.354 47.179 65795.779 0.24

2007 13.873 29083.696 2613.046 81721.554 0.01

2008 148.278 43839.99 1881.1 113599.879 0.20

India’s Trade Intensity Index (TII) with Bangladesh reveals that the value of trade between the two

countries is less than as expected on the basis of their importance in the world trade.

Nepal


Year 080620 08 080620 08 TII

2003 12.827 5876.779 73.139 11338.304 0.34

2004 15.037 8487.201 114.812 16334.852 0.25

2005 6.417 6648.813 88.942 16198.584 0.18

2006 38.838 7295.944 159.143 17349.604 0.58

2007 23.272 11635.237 275.912 32177.92 0.23

2008 78.481 13538.366 288.793 31289.203 0.63

Although India’s TII with the Belgium increased over the period, but largely 080620 is not an

important commodity of trade compared to importance of India’s trade with Nepal in the context of

world trade

181

Philippines


Year 080620 08 080620 08 TII

2003 - 73.585 3068.273 68822.629 -

2004 0.071 28.117 3249.845 71794.886 0.06

2005 - 96.064 3317.462 78695.611 -

2006 43.246 86.442 4508.343 101705.251 11.29

2007 0.076 3.514 2004.826 122008.705 1.32

2008 79.789 164.97 3184.76 153106.789 23.25

With the drastic increase of India’s TII with Philippines with the value reaching 23.25 in 2008, the

value of trade between the two countries is greater than as expected on the basis of trading importance

of the 2 nations in the world trade.


Year 080620 08 080620 08 TII

2003 0.018 5028.824 3027.499 205803.866 0.0002

2004 0.151 5619.505 3105.64 192159.584 0.0017

2005 0.023 7734.735 3907.662 188834.459 0.0001

2006 0.002 5936.839 3919.655 206093.758 0.0000

2007 0.999 7965.627 3868.284 244993.654 0.0079

Singapore 2008 13.401 9178.199 4246.92 262829.95 0.0904

Although India’s trade intensity with Singapore increased under the period under the review, it is still

smaller than the expectations on the basis of their importance in the world trade.

182


Year 080620 08 080620 08 TII

2003 19.271 1470.523 124.385 19816.421 2.09

2004 - 860.509 201.962 16417.631 -

2005 10.622 1107.949 1255.586 19034.003 0.15

2006 - 1460.105 298.433 20537.563 -

2007 1.757 970.929 1155.831 22284.04 0.03

Sri Lanka 2008 141.016 1794.787 1685.095 26125.313 1.22

India’s trade of 080620 with Sri Lanka is greater than expectations on the basis of their importance in

the world trade.Looking at the markets on the whole, the value of the trade of between and the major

markets for 080620 is less favourable as expected on the basis of importance on the world trade.

Competitor’s Analysis in Each Market

In this section we will analyse the competition that Indian exporters face from exporters in different

countries in each of the destination markets. For the competitor analysis, the top seller to the market

and sellers immediately above and below (in terms of value of exports of 080620 to the market) are

considered.

Market: Bangladesh


Figure 3

183

As is depicted by the graph above, UAE is the predominant exporter to Bangladesh with China being

the closest competitor to India. There is intense competition to exports of 080620 to Bangladesh.

Even with regards to TII India’s TII is lower to its closest competitors China and Pakistan, with UAE

having a high TII value of 12.64 for the year 2008.

Market: Nepal


The only competitor to Indian exports of Dry Grapes to Nepal is from China with exports of China

nearly equal to 3 times the value of exports from India.

184

Even with regards to the TII China has higher value as compared to India.

Market: Philippines


United States is the biggest exporter of Dry Grapes to Philippines, with India being a minor player. As

for close competitors, South Africa and Thailand are close competitors to India in terms of value.

185

As for TII, India has the highest TII with Philippines with a value of 23.25 in 2008.

Market: Singapore


India is a very minor player in the Singapore, with United States the biggest exporter with a value of

3582.83 ‘000 USD and India’s export to Singapore of 13.401 ‘000 USD.

186

Greece has the highest value of TII (61.89) with Singapore for the year 2008 signifying the importance

of the commodity in the trading relations between thee 2 countries. Exports of Dry Grapes does not

form a significant proportion of India’s exports to Singapore as compare to the proportion of world’s

Grapes to its total exports of Fruits & Nuts to Singapore.

Market: Sri Lanka


UAE is the biggest exxporter of Dry Grapes to Sri Lanka, with India exporting around 11.6% of value

of UAE exports to Sri Lanka. China and Singaore are close competitors to India (in terms of value of

exports).

187

India has a strong trade intensity index value of 1.22 for the year 2008, India’s closest competitor

Singapore has a higher TII value of 2.29 with Sri Lanka.

For detailed figures on Competitors’ exports in 2008 and their TII refer to Annexure I table 1 – Table 5

Relative Comparative Advantage: This section as part of the competitor’s analysis reveals the

comparative advantage of India and the competitors in various export markets.

Table 10

Bangladesh

Competitor 's

export of

080620

Competitors’

Total Export of

08

All

Competitor 's

Export of

080620

All

Competitor 's

Export of 08

Rel.

Comp.

Adv.

United Arab

Emirates 1497.62 7154.89 1880.422 81948.7 9.12

China 202.25 27697.56 1880.422 81948.7 0.32

India 148.278 43839.99 1880.422 81948.7 0.15

Pakistan 30.459 1251.18 1880.422 81948.7 1.06

Singapore 1.815 2005.08 1880.422 81948.7 0.04

188

As evident from the table, India’s Relative comparative advantage value is 0.15 which is lower than 1

and implying that with respect to all the competitors identified in the export market, India has no

comparative advantage and going by the values, United Arab Emirates has the highest comparative

advantage in the exports of Dry Grapes to Bangladesh.

Nepal

Competitor 's

export of

080620

Competitors’

Total Export of

08

All

Competitor 's

Export of

080620

All

Competitor 's

Export of 08

Rel.

Comp.

Adv.

China 210.312 8840.06 288.793 22378.426 1.84

India 78.481 13538.366 288.793 22378.426 0.45

With respect to competitors in the export of Dry Grapes to Nepal, India does not have a relative

comparative advantage. China the biggest exporter and the only competitor has the relative

comparative advantage in the exports of the goods to that market with the value of 1.84

Philippines

Competitor 's

export of

080620

Competitors’

Total Export of

08

All

Competitor 's

Export of

080620

All

Competitor 's

Export of 08

Rel.

Comp.

Adv.

United States 2602.07 29097.88 3170.389 135586.46 3.82

China 387.816 102352.52 3170.389 135586.46 0.16

India 79.789 164.97 3170.389 135586.46 20.68

South Africa 75.201 1137.55 3170.389 135586.46 2.83

Thailand 25.513 2833.54 3170.389 135586.46 0.39

India has a high relative comparative advantage (value of 20.68) in the exports of the Dry Grapes to

Philippines where South Africa also has the relative comparative advantage but with the lower value

of 2.83.

189

Singapore

Competitor 's

export of

080620

Competitors’

Total Export of

08

All

Competitor 's

Export of

080620

All

Competitor 's

Export of 08

Rel.

Comp.

Adv.

United States 3582.83 48666 3651.928 91107.023 1.84

Taiwan, China 21.141 2463.05 3651.928 91107.023 0.21

Hong Kong, China 13.841 1106.78 3651.928 91107.023 0.31

India 13.401 9178.199 3651.928 91107.023 0.04

Australia 12.841 29685.12 3651.928 91107.023 0.01

Greece 7.874 7.874 3651.928 91107.023 24.95

Both in terms of export value and having relative comparative advantage India stands below in

rankings in the Singapore market for the exports of the Dry Grapes.

Sri Lanka

Competitor 's

export of

080620

Competitors’

Total Export of

08

All

Competitor 's

Export of

080620

All

Competitor 's

Export of 08

Rel.

Comp.

Adv.

United Arab

Emirates 1214.25 3355.72 1684.789 18450.264 3.96

China 217.024 12110.96 1684.789 18450.264 0.20

India 141.016 1794.787 1684.789 18450.264 0.86

Singapore 108.499 735.797 1684.789 18450.264 1.61

Germany 4 453 1684.789 18450.264 0.10

Vis-à-vis the competitors in the Sri Lankan Markey India does not have relative comparative

advantage, where United Arab Emirates has the highest relative advantage in the exports of Dry

Grapes to Sri Lanka.

190

Tariff and Non Tariff measures on 080620

The tariff and non Tariff as imposed by the importing countries on import of Dry Grapes are given in

the following table:

Major

Markets

Import

tariff Other Tariff where ever applicable

NTM

% NTM

Tariff description

Tariff

rate

Statutory Rate 100.0%

Infrastructural

Surcharge 2.5%

Supplementary Duties 2.5%

Bangladesh 37.5% VAT 15.0% 0.0%

Sri Lanka 25.0% 0.0%

Nepal 15.0% 0.0%

Philippines 3.0% 0.0%

0.0% Automatic License

Singapore 0.0% 100.0%

License to protect plant

health

Clearly, as is evident from the table 15, Bangladesh imposes the maximum import duty on the import

of Dry Grapes, besides other tariff that is applicable like VAT, Infrastructural Surcharge etc.

Philippines attract a very low tariff of 3% on import of Dry Grapes and also impose no NTMs.

Although Singapore does not impose any duty on the duty of Dry Grapes, however it has put up some

of the Non tariff measures.

Preferential / Free Trade Agreement

The below table depicts any preferential / Free trade agreement that the identified exports market

have and the tariffs on 080620 under such arrangement.


Bangladesh None -

Sri Lanka None -

Nepal None -

Philippines ASEAN -

Singapore ASEAN -

191

As is evident from table 16 there is no preference given by the identified markets to any exporting

countries in terms of import tariffs.

Tariff Rate Quotas, SSG and Tariff Escalation on Import of 080620

Markets TRQ Quantity (METRIC TONS)

In quota -

Duty

Out Quota -

Duty

Bangladesh No No No

Sri Lanka No No No

Nepal No No No

Philippines No No No

Singapore No No No

Clearly there are no TRQ imposed by the identified markets on the import of Dry Grapes which a

healthy signal for the exporters.

Special Safeguard Mechanisms

Country

Volume

Trigger

Price

Trigger

Bangladesh NO NO

Sri Lanka NO NO

Nepal NO NO

Philippines NO NO

Singapore NO NO

As given in the table, no country has resorted to Special Safeguard Mechanisms to impose barriers to

import of Dry Grapes. It is a healthy signal with regards to all the markets under study.

192

Tariff Escalation

Import Duty Structure

Market Primary

Semi

Processed Processed

Bangladesh 37.5% 37.5%

Sri Lanka 25.0% 25.0%

Nepal 10.0% 15.0%

Philippines 10.0% 3.0%

Singapore 0.0% 0.0%

Semi Processed is Dry Grapes and Primary is Fresh Grapes

As can be seen, some tariff escalation is observed in the Nepalese markets.

Subsidies

Markets

Product

Specific

Non Product

Specific Green Box

Special and

Differential

Treatment –

"Development

Programmes" Currency

Bangladesh

Not

Applicable 40.18 42.01 0.22 Million USD

Sri Lanka

Not

Applicable Not Applicable 4132.71 1525.86

Million Sri

Lankan

Rupees

Nepal

Not

Applicable Not Applicable

Not

Applicable

Not

Applicable

Philippines

Not

Applicable Not Applicable 11040982 2866258 000 Pesos

Singapore

Not

Applicable Not Applicable

Not

Applicable

Not

Applicable

There is a high Green Box subsidy provided by Philippines, Bangladesh and Sri Lanka to its domestic

agriculture market. Besides, Bangladesh Government provides aid in the form of non product specific

subsidy to its farmers. These provide an edge to the farmers in Bangladesh, Sri Lanka and Philippines.

193

ANNEXURE I: Trade Intensity Index between major markets and other suppliers

Bangladesh

Competitor 's

export of 080620

Competitors’

Total Export of 08

Total export of

080620

Total export

of 08 TII

United Arab

Emirates 1497.62 7154.89 1881.1 113599.879 12.64

China 202.25 27697.56 1881.1 113599.879 0.44

India 148.278 43839.99 1881.1 113599.879 0.20

Pakistan 30.459 1251.18 1881.1 113599.879 1.47

Singapore 1.815 2005.08 1881.1 113599.879 0.05

Nepal

Competitor 's

export of 080620

Competitors’

Total Export of 08

Total export of

080620

Total export

of 08 TII

China 210.312 8840.06 288.793 31289.203 2.58

India 78.481 13538.366 288.793 31289.203 0.63

Philippines

Competitor 's

export of 080620

Competitors’

Total Export of 08

Total export of

080620

Total export

of 08 TII

United States 2602.07 29097.88 3184.76 153106.789 4.30

China 387.816 102352.52 3184.76 153106.789 0.18

India 79.789 164.97 3184.76 153106.789 23.25

South Africa 75.201 1137.55 3184.76 153106.789 3.18

Thailand 25.513 2833.54 3184.76 153106.789 0.43

Singapore

Competitor 's

export of 080620

Competitors’

Total Export of 08

Total export of

080620

Total export

of 08 TII

United States 3582.83 48666 4246.92 262829.95 4.56

Taiwan, China 21.141 2463.05 4246.92 262829.95 0.53

Hong Kong, China 13.841 1106.78 4246.92 262829.95 0.77

India 13.401 9178.199 4246.92 262829.95 0.09

Australia 12.841 29685.12 4246.92 262829.95 0.03

Greece 7.874 7.874 4246.92 262829.95 61.89

194

Sri Lanka

Competitor 's

export of 080620

Competitors’

Total Export of 08

Total export of

080620

Total export

of 08 TII

United Arab

Emirates 1214.25 3355.72 1685.095 26125.313 5.61

China 217.024 12110.96 1685.095 26125.313 0.28

India 141.016 1794.787 1685.095 26125.313 1.22

Singapore 108.499 735.797 1685.095 26125.313 2.29

Germany 4 453 1685.095 26125.313 0.14

195

1. Trend

India's Export to the World

2003 2004 2005 2006 2007 2008 CAGR

14.729 26.636 271.094 40.003 15.008 37.476 20.53

figs in Mil $

The trend is of a sharp increase in exports in 2005 and then again it bottomed out in 2007. Again in

2008 it rose slightly.

2. Revealed Competitive Advantage:

India's Export World Export

YEAR

Preserved

Citrus Total Agri Preserved Citrus Total Agri RCA

2003 14.729 84861.2 338155.341 24958165.93 0.012

2004 26.636 92286.715 363330.032 28188641.54 0.022

2005 271.094 154926.231 434568.634 30765153.1 0.123

2006 40.003 193771.264 485088.795 35218728.16 0.015

2007 15.008 197329.655 574615.606 43836079.57 0.006

2008 37.476 266477.73 526873.269 43911597.7 0.0119

Figs In Mil $

Preserved Citrus Fruits

[200830]

196

The RCA also shows the same trend as the trend of exports and thus we see it has come down to 0.012

in 2008.

3. Major Export Destinations:

Country 2003 2004 2005 2006 2007 2008 CAGR

UK 3.925 5.581 87.528 18.224 0.001 -87.366

UAE 8.957 20.349 7.818 1.011 -51.6723

USA 1.571 5.751 1.346 24.195 148.7997

United Kingdom is a market where the exports have practically become non existent which is a cause

of concern. On the other hand US is a very promising market.

197

4. Market Fluctuations:

2003 2004 2005 2006 2007 2008

UK UAE UK UK USA USA

UAE UK UAE UAE UAE UAE

USA USA USA USA UK UK

As we see there is heavy fluctuation in the markets with US coming up to dominant position in the

recent years while share of UK has declined.

5. India’s Trade Intensity Index with major markets:

UAE

India's export of

6 digit to market

India's export of

2 digit to market

World's Export of

6 digit to market

World's Export of

2 digit to market TII

2003 4650.887 70.721 124790.243 0

2004 8.957 3577.56 244.117 122922.98 1.26

2005 20.349 5857.419 2040.117 178357.913 0.30

2006 7.818 7581.459 2130.915 209854.452 0.10

2007 1.011 11335.64 2308.074 299854.922 0.01

2008 10390.515 2798.173 257520.384 0

198

United

Kingdom

India's export of

6 digit to market

India's export of 2

digit to market

World's Export of

6 digit to market

World's Export of


2003 3.925 6438.725 35543.254 2048266.831 0.035

2004 5.581 6388.512 39063.958 2267940.061 0.050

2005 87.528 11399.349 40700.994 2325584.729 0.437

2006 18.224 15640.636 42268.885 2758702.797 0.0760

2007 0.001 16700.588 42036.427 3454306.624 4.92E-06

2008 19563.05 19565.195 3343836.551 0

United

States

India's export of

6 digit to market

India's export of 2

digit to market

World's Export of

6 digit to market

World's Export of


2003 23418.563 117272.839 2952651.911 0

2004 24490.151 125256.125 3411643.107 0

2005 1.571 29976.807 144340.572 3705853.868 0.0013

2006 5.751 47779 179151.143 4157959.386 0.0027

2007 1.346 41497.442 212738.971 5269385.062 0.0008

2008 24.195 58702.257 241857.032 5247209.412 0.0089

199

As was expected TII with UK and UAE is going down rapidly while that with US has increased

exponentially. So the UK and UAE markets need to be considered properly for exports.

6. Competitor's TII(2007 only):

Market Name

United

Kingdom

Competitors

Competitor's

export of 6

digit to market

Competitor's

export of 2 digit to

market

World's Export

of 6 digit to

market

World's Export

of 2 digit to

market TII

Spain 18195.671 221158.751 42036.427 3454306.624 6.76

Hong

Kong(China) 1.272 1124.56 42036.427 3454306.624 0.092

Poland 0.773 63279.337 42036.427 3454306.624 0.001

Thailand 0.537 58868.823 42036.427 3454306.624 0.0008

Ghana 0.392 429.973 42036.427 3454306.624 0.074

India 0.001 16700.588 42036.427 3454306.624 4.92E-06

Market Name

United Arab

Emirates

Competitors

Competitor's

export of 6

digit to market

Competitor's


market

World's Export

of 6 digit to

market

World's Export

of 2 digit to

market TII

China 1510.275 59626.237 2308.074 299854.922 3.29

Thailand 5.385 17724.532 2308.074 299854.922 0.039

Germany 4 4048 2308.074 299854.922 0.128

Korea, Rep. 1.206 102.242 2308.074 299854.922 1.53

Morocco 1.202 33.878 2308.074 299854.922 4.60

India 1.011 11335.64 2308.074 299854.922 0.011

200

Market Name United States

Competitors

Competitor's


market

Competitor's


market

World's Export

of 6 digit to

market

World's Export

of 2 digit to

market TII

China 128214.325 958213.248 212738.971 5269385.062 3.31

Italy 3.716 105926.111 212738.971 5269385.062 0.00086

Japan 1.915 16241.313 212738.971 5269385.062 0.0029

India 1.346 41497.442 212738.971 5269385.062 0.0008

Russian Fed. 0.947 4402.093 212738.971 5269385.062 0.0053

Chile 0.691 101201.186 212738.971 5269385.062 0.00017

201

As we see in all the three major markets , India’s TII is negligible compared to the topmost players and

even with the nearer competitors. So government initiatives need to be properly evaluated and used

for exporting to these markets.

7. Relative CA(2007):

Market Name

United

Kingdom

Competitors

Competitor's

export of 6

digit to market

Competitor's

export of 2 digit

to market

All

Competitior's

Export of 6 digit

to market

All

Competitior's

Export of 2 digit

to market Rel. CA

Spain 18195.671 221158.751 18198.646 361562.032 1.63

Hong

Kong(China) 1.272 1124.56 18198.646 361562.032 0.022

Poland 0.773 63279.337 18198.646 361562.032 0.0002

Thailand 0.537 58868.823 18198.646 361562.032 0.0001

Ghana 0.392 429.973 18198.646 361562.032 0.018

India 0.001 16700.588 18198.646 361562.032 1.19E-06

202

Market Name

United Arab

Emirates

Competitors

Competitor's


market

Competitor's

export of 2 digit

to market

All

Competitior's

Export of 6 digit

to market

All

Competitior's

Export of 2 digit

to market Rel. CA

China 1510.275 59626.237 1523.079 92870.529 1.544

Thailand 5.385 17724.532 1523.079 92870.529 0.0185

Germany 4 4048 1523.079 92870.529 0.0602

Korea, Rep. 1.206 102.242 1523.079 92870.529 0.7192

Morocco 1.202 33.878 1523.079 92870.529 2.163

India 1.011 11335.64 1523.079 92870.529 0.0054

Market Name United States

Competitors

Competitor's

export of 6 digit

to market

Competitor's

export of 2 digit

to market

All Competitior's

Export of 6 digit

to market

All

Competitior's

Export of 2 digit

to market Rel. CA

China 128214.325 958213.248 128222.94 1227481.393 1.280

Italy 3.716 105926.111 128222.94 1227481.393 0.0003

Japan 1.915 16241.313 128222.94 1227481.393 0.0011

India 1.346 41497.442 128222.94 1227481.393 0.0003

Russian Fed. 0.947 4402.093 128222.94 1227481.393 0.0020

Chile 0.691 101201.186 128222.94 1227481.393 6.54E-05

203

With respect to its competitors, India stands in a disadvantaged position when it comes to these three

markets as can be seen from the graphs above.

8. Tariff and Non Tariff Measures:

Selected importers Import tariff NTM % NTM

United Kingdom 16% na

United Arab Emirates 5% na

United States 4% 100

9. FTA and PTA:


United Arab Emirates None

United Kingdom None

Carribean basin economic recovery

act 0%

US-Canada FTA 0%

US-Israel FTA 0%

ANDEAN Trade Preference Act 0%

United States

US-Mexico Act 0%

204

10. TRQ:


Markets TRQ Quantity (METRIC TONS) In quota - Duty Out Quota - Duty

United Kingdom No No No

United Arab Emirates No No No

United States No No No

11. Special safeguards :



United Kingdom NO NO


United States NO NO

12. Subsidies:

Subsidy Structure on 200830

in identified markets

Markets Product specific

Non Product

Specific

Green

Box

Special and

Differential

Treatment –

"Development

Programmes"

United

Kingdom NA NA NA NA

United Arab

Emirates NA NA

UAE

GB.pdf USA SD.pdf

United States NA USA NPS.pdf

USA

GB.pdf USA PS.pdf

13. Conclusions:

a) UK is a good market for the exports but due to high duties maybe exports are suffering .

b) UAE and US are comparatively better although we have to go a long way before we can

really make any headway in these markets.

205

FFFFruits and dried fruits constitute a wide dimension for Indian economy, because of the climatic

diversity in the country accounts to grow spectrum of fruits, fresh or dried. The fruits are considered

important by the horticulture board of India, mostly grown in the areas of Jammu & Kashmir,

Himachal Pradesh, hilly regions of north Uttar Pradesh, Tamil Nadu, Maharashtra, Karnataka,

Gujarat, Andhra Pradesh, Assam, Madhya Pradesh, Rajasthan, Punjab, Tripura, West Bengal and

Orissa. The fruits range to mango, banana, pineapple, oranges, grapes, apple, lemon etc. India is

world's largest producer of mango and banana and places 4th and 5th in pineapple and orange

production respectively.

An instance of a dried fruit under HS code 081340 is dried apricot or apricot oil that has plenty of

manufacturers in Andhra Pradesh.

Dry Fruits [081340]Dry Fruits [081340]Dry Fruits [081340]Dry Fruits [081340]

206

I. Trend Analysis of Other fruits (dried ones)

India's Export to the World

Code 2003 2004 2005 2006 2007 CAGR

081340 3009.00 2632.00 5542.00 6571.00 7966.00 27.56

Figs in '000 $

The CAGR from the year 2003 to 2007 is 27.56%. The overall trend shows a very positive growth rate

during that period. Except for the year 2004, the growth rate has been consistent.

It can be seen from the above graph that India’s export of HS code 081340 has been increasing at a

consistent rate except for the year 2004 when it witnessed a small decline.

Revealed Comparative Advantage for Dry Fruits

Year

India's

exports

India's total

exports

World's

exports

World's total

exports RCA

2003 3009.00 527514.00 260540.00 35859790.00 0.79

2004 2632.00 687592.00 235360.00 39224400.00 0.64

2005 5542.00 868298.00 254469.00 45723607.00 1.15

2006 6571.00 855428.00 290655.00 48939917.00 1.29

2007 7966.00 873448.00 367128.00 55824814.00 1.39

Figs In '000 $

207

The product had an RCA value of 0.8 in the year 2003. The value declined to 0.64 in the year 2004. It

can be observed that for these two years India was worse off than the world in exporting 081340. It

had a revealed comparative disadvantage as the value was less than 1. RCA in the year 2005 increased

considerably to 1.15. This shows that India gained comparative advantage and became better than

world in exporting this product. The RCA values for the years 2006 and 2007 were 1.29 and 1.38 which

shows that during these years India had gained in comparative advantage as values had been rising.

Over the years India’s comparative advantage in 081340 has increased.

Major Export Destinations


Netherlands 16.458 12.77 41.24 6.753 43.237 NA 27.31

United Arab

Emirates 527.399 492.912 862.877 1918.286 2160.77 2101.27 42.27

Syrian Arab

Republic 133.385 122.823 849.946 1022.542 866.933 1169.02 59.66

Saudi Arabia 267.752 198.307 495.71 352.251 606.449 810.889 22.67

United Kingdom 171.939 304.305 577.926 431.545 445.923 549.653 26.90

India’s major export destinations for 081340 are Netherlands, UK, UAE, Saudi Arabia and Syrian Arab

Republic. The export to all these countries except UK declined during the period 2004.

208

The exports to Netherlands have not been consistent. It experienced a huge surge in year 2005,

followed by a huge decline in 2006, further accompanied by a big surge in 2007. The CAGR for the

product for the time period 2003 to 2007 was 27%.

UAE is among the countries that has shown consistent rise in Indian exports of 081340 over the years.

The interesting fact is that while the Indian exports fell to other markets in 2006, they rose significantly

(more than doubled) to UAE. The CAGR over the period 2003-08 has been 42.27%

209

Indian exports to Saudi Arabia have shown a rising trend across the years, with a sight decline in 2004

and 2006. The CAGR over the years has been substantial at 22.67%.

The exports to Syrian Arab Republic were not substantial in the years 2003 and 2004, but experienced

a momentous increase in the year 2005, and sustained at higher levels for the upcoming years. The

CAGR over the years has been 59.67%.

210

India’s export to UK has been consistently rising except for the significant decline in year 2006. The

CAGR for the year 2003 to 2008 has been 26.9%.

Market Fluctuation

2003 2004 2005 2006 2007

United Arab

Emirates

United Arab

Emirates

United Arab

Emirates

United Arab

Emirates

United Arab

Emirates

Saudi Arabia United Kingdom

Syrian Arab

Republic

Syrian Arab

Republic

Syrian Arab

Republic

United Kingdom Saudi Arabia

United

Kingdom

United

Kingdom Saudi Arabia

Syrian Arab

Republic

Syrian Arab

Republic Saudi Arabia Saudi Arabia United Kingdom

Netherlands Netherlands Netherlands Netherlands Netherlands

The graph above shows the ranking of selected markets over the years. It can be observed that UAE

has been consistent topper. Syria rose in its position substantially in 2005 and maintained its position

at number two. Netherlands has consistently remained the weakest destination out of the selected five

destinations. UK and Saudi Arabia have also managed to stay among top 4 positions over the years.

211

Competitors in Identified Export Markets

Figure 1: Competitor analysis in Netherlands

It can be seen from the above pie chart that Germany, Spain, US and France are major exporters to

Netherlands. India’s share (or that of any other nation than those mentioned above) in the exports of

081340 to Netherlands is very negligible.

Figure 2: Competitors Analysis: UAE

It can be seen from above graph that India has just 30% share in exports to UAE. Major competitors of

India are Thailand and Pakistan, although all the three players have more or less the same market

share in UAE.

212

Figure 8 Competitors Analysis: Syria

India has a leading position in Syria, and accounts for 90% of exports of 081340 into the country.

Pakistan is the only competitor of India in Syrian Arab Republic.

Figure 9 Competitors Analysis: Saudi Arabia

Going by the above pie-chart, Syria accounts for 75% of exports of 081340 into Saudi Arabia. Syria is

followed by Pakistan and India. Major competitors of India are Thailand, Pakistan and India.

213

Figure 10 Competitors Analysis: UK

Germany, Spain, Italy and France have major share of exports in UK. These four nations together,

account for around 60% of exports into UK.

Trade Intensity Index with Major Export Destinations

214

India has achieved high TII values in Syria. This shows that India is performing relatively well

bilaterally with Syria then rest of the world at 2digit level. A very high value of 19 in the year 2004

shows over saturation in that market in that year. TII in Syria is on decline. India’s TII has always been

negligible in Netherlands. This shows that India is performing relatively worse bilaterally with Syria

then rest of the world at 2digit level. TII in other three markets, i.e., UAE, UK and Saudi Arabia have

been fluctuating between .5 and 3, though most of the times, they have been greater than 1.

II. TII: Analysis of Competitors

on a 6 digit level on 2 digit level

on a 6 digit

level on 2 digit level

Netherlands

Competitor 's

export

Competitor’s

Total Export

World

Export

World Total

Export TII

Germany 2022 120662 5967 3830130 10.76

Spain 888 454323 5967 3830130 1.25

US 855 187513 5967 3830130 2.93

France 839 211375 5967 3830130 2.55

In Netherlands, TII of Germany is quite high at 10.76. Even TII of Spain, US and France are higher than

India. India, unlike these competitors, has a low TII of .24 in Netherlands.


on a 6 digit


United

Arab

Emirates

Competitor 's

export

Competitors's

Total Export World Export

World Total

Export TII

Pakistan 2905 17376 7530 536461 11.91

India 2297 112573 7530 536461 1.45

Thailand 2110 7950 7530 536461 18.91

In UAE, TII of India is much less than that of other competitors, viz, Pakistan and Thailand.


on a 6 digit


Saudi

Arabia

Competitor 's

export

Competitors's


World Total

Export TII

Syria 6151.00 20525.00 8070.00 429261.00 15.94

Pakistan 797.00 8996.00 8070.00 429261.00 4.71

India 606.00 63639.00 8070.00 429261.00 0.51

Thialand 439.00 2032.00 8070.00 429261.00 11.49

215

In Saudi Arabia, TII of India is .51 (less than 1) unlike that of other competitors, viz, Syria, Thailand

and Pakistan. Syria has highest TII of 15.94 followed by Thailand and Pakistan.


on a 6 digit


Syrian

Arab

Republic

Competitor 's

export

Competitors's


World Total

Export TII

India 866 8169 935 49910 5.66

Pakistan 65 347 935 49910 10.00

In Syrian Arab Republic, Pakistan is the only competitor of India, and has TII of 10, higher than that of

India’s TII of 5.66.


on a 6 digit


United

Kingdom

Competitor 's

export

Competitors's


World Total

Export TII

Germany 6123 85195 36605 4019636 7.89

Spain 5652 689956 36605 4019636 0.90

Italy 4333 300695 36605 4019636 1.58

France 4096 357011 36605 4019636 1.26

In UK, India has low TII of 0.91. Although Germany has high TII of 7.89, Italy and France have TIIs

slightly greater than 1.

IX: RCE: Analysis of competitors

on a 6 digit


on a 6 digit

level

on 2 digit

level

Netherlands

Competitor

's export

Competitors's

Total Export

All

competitors

Export

All

competitors

Total Export RCE

Germany 2022 120662 3448.237 530217.627 2.58

France 839 187513 3448.237 530217.627 0.69

Thailand 358 7517 3448.237 530217.627 7.32

China 186 100773 3448.237 530217.627 0.28

India 43.237 113752.627 3448.24 530217.63 0.06

In Netherlands, India has a very low RCE compared to its competitors stating that there is a long road

ahead to go.

216

on a 6 digit


on a 6 digit

level

on 2 digit

level

United Arab

Emirates

Competitor

's export

Competitors's

Total Export

All

competitors

Export

All

competitors

Total Export RCE

Pakistan 2905 17376 7312 137899 3.15

India 2297 112573 7312 137899 0.38

Thailand 2110 7950 7312 137899 5.01

In UAE also, India has very low RCE, meaning that its exports of 081340 as a proportion to those of 08

are very low.

on a 6 digit


on a 6 digit

level

on 2 digit

level

Saudi

Arabia

Competitor

's export

Competitors's

Total Export

All

competitors

Export

All

competitors

Total Export RCE

Syria 2022 120662 4604.00 973873.00 3.54

Pakistan 888 454323 4604.00 973873.00 0.41

India 855 187513 4604.00 973873.00 0.96

Thialand 839 211375 4604.00 973873.00 0.84

In Saudi Arabia, RCE of Syria is much greater than 1 at 3.54, while that of Pakistan, India and Thailand

is less than 1.

on a 6 digit


on a 6 digit

level

on 2 digit

level

Syrian Arab

Republic

Competitor

's export

Competitors's

Total Export

All

competitors

Export

All

competitors

Total Export RCE

India 866 8169 935 49910 5.66

Pakistan 65 347 935 49910 10.00

In Syria, Pakistan is the only competitor of India. Although its RCE is greater than 1, but half of that of

Pakistan.

on a 6 digit


on a 6 digit

level

on 2 digit

level

United

Kingdom

Competitor

's export

Competitors's

Total Export

All

competitors

Export

All

competitors

Total Export RCE

Germany 6123 85195 20649 1486189 5.17

Spain 5652 689956 20649 1486189 0.59

Italy 4333 300695 20649 1486189 1.04

France 4096 357011 20649 1486189 0.83

India 445 53332 20649 1486189 0.60

217

In UK also, India has a RCE much less than 1. While Germany has highest RCE of 5.17, Italy has a RCE

slightly greater than 1. The RCE of Spain and France are also less than 1.

III. Any FTAs or PTAs


0813401000 Preference for S-Africa 4.4

0813401000 Preference for Morocco 2.8

0813403000 Preference for S-Africa 3.4

0813405000 Preference for Egypt 1

0813405000 Preference for Morocco 1



Netherlands and

UK


UAE None

Syria None

Saudi Arabia None

As shown above, Netherlands and UK have preference for South Africa, Morocco, Egypt for certain

products at 10 digit level. The rates applicable on 081340 in FTAs are given in the figure. The product

is not covered in any FTA by other countries.

218

IV. TARIFF BARRIERS AND NTMs

ad valorem tariff barrier NTM % Description

Saudi Arabia 5.00% 0%

United Kingdom 1.00% 12.50% prior surveillance

Syria 26.00% na

Netherlands 1.00% 12.50% prior surveillance

United Arab

Emirates 5.00% na

As shown above, the tariffs in Syria are very high. Besides, there are non-tariff barriers in UK and

Netherlands in the form of prior surveillance requirements.

The above table shows other tariff barriers on some products at 10 digit level in EU.

SAFEGUARD DUTIES



UK NO NO

Netherland NO NO

Syria NO NO

Saudi Arabia NO NO


No safeguard duties are applicable to the product 081340 in any of the above market destinations.

Other tariff

barriers

European

Union 0813401000 0813403000 0813405000 0813409515 0813409520 0813409590

Description

Ad-valorem

Equivalent

MFN Rate 4.7 6.4 2 2.4 2.4 2.4

GSP Rate 0 4.4

GSP for LDC 0

Saudi Arabia

MFN Rate 12

219

V. Tariff escalation and TRQs

dry grapes fresh grapes

grape

wine

Market Primary Input Semi Processed Processed

Netherlands 0.60% 8.97% 5.98%

Saudi

Arabia

0.00% 0.00% 0.00%

Syrian Arab

Republic

30.00% 30.00% 117.41%

United

Arab

Emirates

0.00% 0.00% 50.00%

United

Kingdom

0.60% 8.97% 5.98%

As shown above, there is highest tariff escalation in Syrian Arab Republic, followed by UAE.

Tariff quotas were not invoked by any countries during the years 2003 to 2007 on 200899.

XII: SUBSIDY STRUCTURE

Subsidy Structure on 081340 in identified markets

Markets

Product

Specific

Non

Product

Specific

Green

Box

Special and

Differential

Treatment –

"Development

Programmes" Currency Year

United

Kingdom

Applicable

(on

apricots) 938 20404

MILLION

EUROS

2002-

03

UAE

Not

Applicable 900000 900000 (Dh)

2000-

01

Netherlands

Applicable

(on

apricots) 938 20404

MILLION

EUROS

2002-

03

Saudi

ARABIA

Not

Applicable 834 674

MILLION

SRI 2006

Syria

Not

Applicable

220

As can be seen from the above table that product specific subsidy was given to some items that come

under other fruits (dried nes), say, apricots, in UK and Netherlands. No product specific subsidy was

given in the other markets to 081340. So a producer need not worry exporting 081340 to these

countries. The exporter should keep an eye over Non Product Specific support, Green Box support

and Special Treatment given by the countries to agricultural sector as whole to have an overall idea of

support given by national governments to agricultural sector. A very high support can affect the

Exporter adversely as his product may not remain competitive in that country.

CONSTRAINTS IN GRAPE PRODUCTION DEVELOPMENT

Grape is cultivated over an area of 34,000 hectares with an annual production of 1,000,000 tonnes.

Although, the returns per unit area of land are very high with grape cultivation, the area under grapes

is not expanding fast owing to the high initial cost of establishing the vineyards and high recurring

cost of production. The risk of losing a crop due to unprecedented changes in weather is also very

high. Since the highest productivity in grapes has been achieved, efforts are needed to extend grape

cultivation to newer areas. Soil and water salinity and drought are the impediments in this direction,

for which suitable rootstocks are to be identified.

Although grape cultivation is considered as highly remunerative, the area under grapes is confined to

only 34,000 hectares due to the following constraints.

a) Heavy initial investment for establishing a vineyard.

b) High recurring costs in vineyard management.

c) Narrow variety base and lack of diversity in utilization of the germplasm available in grape

growing countries.

d) High risk of losing the crop due to unprecedented changes in weather.

e) Soil and water salinity in Maharashtra and drought in the hot tropical areas.

f) Short period available for ripening in the north.

g) Very low proportion of export quality grapes.

h) Wine is not a popular drink at present.

i) Marketing problems in table grapes.

221

Strategies to boost Grape Export from Andhra Pradesh

AP has the distinction of achieving the highest productivity in grapes in the world, with an average

yield of 30 t/ha.

a) Sustaining productivity and minimizing risks in grape cultivation is possible because of the

availability of a variety of agro-climatic regions suitable for grape cultivation for table, raisin and wine

grapes.

b) Technologies to achieve high productivity are currently available.

c) Scope for double cropping in certain regions and harvesting round the year in certain varieties is

practically feasible.

d) Technologies to produce export quality grapes and quality raisins are available.

There is a need to diversify the uses of grapes. Currently more than 80 percent of the produce is used

for table purposes. The major bulk of the produce is harvested in March-April, but as cold storage

facilities are currently inadequate there are frequent market gluts. Diversification of uses as wine/juice

and export of table grapes can ease the marketing problems. Maintenance of quality of table grapes by

crop regulation is the priority consideration to increase exports. For the survival of the grape industry

in India, the produce should be quality and cost competitive. Future efforts are to be concentrated in

this direction.

State had to strictly abide by EurepGap standards following the rejection of some containers by

importers owing to pesticide residues. As the cost of certification was high at Rs 70,000, the exporters

have urged the National Horticulture Board to raise subsidy levels from 30 per cent to 50 per cent.

Besides adherence to global standards, exporters are also required to go in for sample testing at

certified laboratories like Vimta Labs in the city.

Sampling needs to be carried out for chemical/ residues with cost for the tests pegged around Rs 8,000

per hectare.With exporters starting to use bio-pesticides, production costs have started to spiral and

therefore cost effective ways of complying to these standards needs to be formulated.

Potential for the agri export zone (AEZ), especially set up a year ago for grapes in the three grape-

growing districts, except for a cold storage linkage in the area, there was no perceptible benefit from

carving out a special zone for grapes. State may like to have a relook on the same.

222

GOVERNMENT POLICIES AND PLANS FOR RESEARCH AND DEVELOPMENT OF GRAPES

The Government of India is supporting the grape industry of the country in the following ways:

a) Encourage and support the farmers for establishing the vineyards and installing drip irrigation

systems by providing soft loans and subsidies.

b) Provide research support to sustain the productivity of grapes under adverse situations.

c) Promote and support the export of fresh grapes by training the growers and providing soft loans

and subsidies for pre-cooling and cold storage facilities.

Research on grapes is carried out by the Indian Council for Agricultural Research (ICAR) Institutes

and State Agricultural Universities at different centres under the All India Coordinated Research

Project on Grapes. The National Research Centre for Grapes (ICAR) located at Pune, Maharashtra is

the focal point for conducting and coordinating the research activities on grapes throughout the

country. WTO cell of AP can keep a regular update on the research findings and explore new uses of

grapes to cater to the demands of the identified markets.

223

Mangoes are one of the most important and popular Asian fruits. India is the main producer,

growing more than half of the world's supply. Mango, the most important fruit of India, is grown in

an area of 1.23 million ha with an annual production of 10.99 million tonnes, which accounts for 63 per

cent of the total world production. The mango accounts for 22.06 per cent of total area under fruit and

23.93 per cent of total fruit production in the country. There are thought to be 24 major cultivars in the

Indian sub-continent, and possibly a thousand lesser-known varieties that are often only available

locally and not widely marketed. Some of the more well-known varieties include alphonso,

banganapalli, langra, malda, mulgoa, totapuri, chausa and dashehari.

Though Uttar Pradesh has the largest area of 0.27 million hectares under mango, Andhra Pradesh is

India's second largest producer of mangoes. It has the highest productivity of 12 tonnes per hectare.

While Andhra Pradesh produces 3.07 million tonnes of mango, U.P., Bihar and Karnataka produce

2.39, 1.79 and 0.92 million tonnes, respectively. Varieties grown in the state of Andhra Pradesh

includes Banganpalli, Bangalora,Cherukurasam, Himayuddin & Suvarnarekha.

Andhra Pradesh continues to be the leading producer in the country enabling India to account for 63

per cent of world production. However, the country still occupies only third position in total mango

exports. This section of the report will assist the mango exporters of Andhra Pradesh the current status

of exports from the state, profitability of business in fresh mango versus the processed varieties of

mango and to identify the right export markets for the same. The commodities handled here are as

follows:

080450 Mangoes fresh

080450 Mangoes sliced dried

080450 Mango pulp

081290 Mango slices in brine

200980 Mango juice

200899 Mango squash

Mango: Fresh and Processed [080450]

224

Trend in Exports of Fresh Mango from India (US Million $)

2003 2004 2005 2006 2007 2008 CAGR

72873.83 93346.4 115644.3 153379.3 162723.1 214580.9 24%

Mango exports are growing at a positive rate of 24% for last five years from 72 bn$ to 214 bn US$.

Exports of 080450

0

50000

100000

150000

200000

250000

2003 2004 2005 2006 2007 2008

Exports

This rising trend in exports of fresh mango is a positive sign for the mango exporters from Andhra

Pradesh as it indicates the acceptance of Indian mangoes in the international market.

Commodity

Code

Commodity

Name 2003 2004 2005 2006 2007 2008 Growth

08045040 Mango pulp 1.31 52.7 70.24 82.26 111.71 126.66 149.50

20089911 Mango squash 0.22 1.06 1 0.63 1.52 12.2 123.25

08045030

Mangoes sliced

dried 0.23 3.23 2.29 2.46 2.42 1.88 52.23

08129010

Mango slices in

brine 1.8 5.16 5.36 2.51 4.56 3.59 14.81

08045020 Mangoes fresh 17.43 24.07 19.94 28.93 31.35 31.66 12.68

20098010 Mango juice 3.39 2.71 3.49 2.87 1.67 0.87 -23.82

Source: India Trades 2008

As witnessed in the table above, amongst all the forms of mango, India exports fresh mangoes in

highest quantity, however, growth rate for last five years has been highest in case of processed mango

products including mango pulp (149.50%), followed by mango squash (123.25%), sliced mango and

dried mango products indicating the shift of consumer demands from primary to processed mango

225

products. However, since the comparative advantage of fresh mango is highest, mango exporters from

AP should concentrate on the exports of fresh mango but also gradually look in to the shifts in the

consumer demands in most of the developed country markets. Below is described such shifts in major

preferred markets.

In Australia, the mango season overlaps Christmas. Mangoes are eaten for breakfast during this

period and the first box of mangoes is auctioned off for charity. In the Philippines, unripe mango

is eaten with bagoong. Dried strips of sweet, ripe mango (sometimes combined with seedless

tamarind to form Mangorind) are also popular, with those from Cebu exported worldwide.

Mangoes are also used to make juices, mango nectar, and as a flavoring and major ingredient in

ice cream and sorbetes. Guimaras produces a delicious mango.

In Mexico, mango is used to make juices, smoothies, ice cream, fruit bars, raspados, aguas frescas,

pies and sweet chili sauce, or mixed with chamoy, a sweet and spicy chili paste. It is popular on a

stick dipped in hot chili powder and salt or also as a main ingredient in fresh fruit combinations.

In Central America (Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica), mango is

either eaten green with salt, pepper and hot sauce, or ripe in various forms. Only in Costa Rica,

ripe mangoes are called manga to differentiate them. In Guatemala, toasted and ground pumpkin

seed (called Pepita) with lime and salt are the norm when eating green mangoes. In Colombia

mango is also eaten either green with salt and/or lime, or ripe in various forms.

Pieces of mango can be mashed and used as a topping on ice cream or blended with milk and ice

as milkshakes. In Thailand and other South East Asian countries, sweet glutinous rice is flavored

with coconut then served with sliced mango as a dessert. In other parts of South-east Asia,

mangoes are pickled with fish sauce and rice vinegar. In Indonesia and Thailand, green mango is

sold by street vendors with sugar and salt and/or chili, or used in a sour salad called rujak or

rojak in Indonesia and Singapore. Green mangoes can be used in mango salad with fish sauce

and dried shrimps. In Taiwan, mango is a topping that can be added to shaved ice along with

condensed milk

226

Revealed Comparative Advantage of Fresh Mango

India's export World's export

Fresh Mango Total fruit Fresh Mango Total fruit RCA

2003 72873.83 527514.2 515090.3 34840427 9.34

2004 93346.4 687592.3 567589.8 40297580 9.64

2005 115644.3 868298.1 642428.8 46962590 9.74

2006 153379.3 855428.5 730671.7 50378119 12.36

2007 162723.1 873448.2 950253.2 57555091 11.28

2008 214580.9 1133227 1009059 53692352 10.08

The analysis of comparative advantage for last five years depicts a very high RCA values ranging

between 9.34 in 2003 to as high as 12.36 by 2006 and a slight decline due to recession in USA in 2007

and 2008. This rate of growth of the comparative advantage values is highly encouraging for the

mango growers and exporters for it determines the growing importance of Indian mangoes in the

international market as compared to our competing suppliers.

Major Export Destinations

Major export destinations for last five years vary from fresh mango to mango products. The only

constant market across all forms of mango and mango products is UK. Japan accepts processed forms

of mango pulp and mango sliced dried with growth as high as 91.86%, Netherlands accepts mango

slices in brine and mango squash. UAE accepts fresh mango and mango pulp. Saudi Arabia accepts

Mango slice dried, Mango pulp and mango slices in brine. New emerging markets are in the form of

Yemen and Angola.

Mango Products Major Export Destinations

Fresh Mangoes Nepal, UK, USA, UAE

Mango Slices dried Japan, Saudi Arabia, UK

Mango Pulp Saudi Arabia, UAE, Yemen, Japan

Mango slices in Brine Saudi Arabia, Netherlands, UK

Mango Squash USA, Netherlands, Ukraine, UK

Mango Juice UK, Angola

227

Trends in Export to Major Export destinations across Mango and Mango products

Mangoes fresh [8045020]

2003 2004 2005 2006 2007 2008 Growth

Nepal 0.08 0.53 0.6 0.73 1.56 1.58 81.60

UK 1.1 1.57 1.66 1.21 2.52 4.92 34.93

USA 0.22 0.29 0.04 0.1 0 0.49 17.37

UAE 7.67 10.64 6.46 16.5 14.53 15.71 15.42

Source: CMIE, India Trades, 2009

Mangoes sliced dried [08045030]

2003 2004 2005 2006 2007 2008 Growth

Japan 0.01 0.01 0.02 0.09 0.11 0.26 91.86

Saudi Arabia 0.02 0.24 0.66 0.38 0.82 0.3 71.88

UK 0.14 0.22 0.29 0.31 0.25 0.15 1.39

Mango pulp [0845040]

2003 2004 2005 2006 2007 2008 Growth

Saudi Arabia 0.05 16.1 20.92 23.12 29.85 29.41 258.02

UAE 0.03 3.77 5.95 7.18 8.85 9.92 219.06

Netherlands 0.28 6.1 7.81 8.89 18.64 19.22 132.98

Yemen 3.91 7.06 7.14 9.54 10.69

Japan 0 1.28 2.86 3.6 5.78 8.67

Mango slices in brine [08129010]

2003 2004 2005 2006 2007 2008 Growth

Netherlands 0.09 0.89 0.36 0.03 0.34 0.73 51.99

Saudi Arabia 0.29 0.82 2.44 1.46 2.08 1.83 44.55

UK 0.74 1.06 1.14 0.3 0.77 0.76 0.53

Mango squash [20089911]

2003 2004 2005 2006 2007 2008 Growth

USA 0.01 0.09 0.04 0 0.03 0.78 139.01

Netherlands 0.1 0.03 0.03 0.68 4.52 114.30

UK 0.18 0.3 0.4 0.33 0.73

Mango juice [20098010]

2003 2004 2005 2006 2007 2008 Growth

UK 0.07 0.24 0.04 0.14 0.07 0.12 11.38

Angola 0.01 0.01 0.14

228

Market Fluctuations of Major Export Markets for Fresh Mangoes

2003 2004 2005 2006 2007 2008

Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia

United Arab

Emirates

United Arab

Emirates

United Arab

Emirates

United Arab

Emirates

United Arab

Emirates

United Arab

Emirates

Bangladesh Netherlands Netherlands Netherlands Netherlands Netherlands

Netherlands Bangladesh Yemen Yemen Yemen United Kingdom

Kuwait Yemen Bangladesh Bangladesh United Kingdom Yemen

Saudi Arabia is the constant topmost market for fresh mangoes and exporters from Andhra Pradesh

can explore the same. UAE has been the next best market for last so many years. Amongst the EU

market, Netherlands is the market to be looked at. Export diversification possibility can be explored in

Yemen.

Trade Intensity Index for Fresh Mangoes in identified MarketsTrade Intensity Index for Fresh Mangoes in identified MarketsTrade Intensity Index for Fresh Mangoes in identified MarketsTrade Intensity Index for Fresh Mangoes in identified Markets

Saudi Arabia UAE Netherlands Yemen Bangladesh

2003 7.08 5.86 3.69 3.08 2.03

2004 6.34 4.05 4.65 1.52 1.99

2005 5.18 3.88 3.24 3.34 2.52

2006 5.97 5.02 5.24 3.10 1.94

2007 4.48 3.28 5.98 3.43 2.78

2008 4.28 2.61 4.21 2.56 2.58 Source: Author’s CalculationsSource: Author’s CalculationsSource: Author’s CalculationsSource: Author’s Calculations

Bilateral trade strength for Fresh Mangoes has been highest with Saudi Arabia, followed by 5.98 in

Netherlands and 5.86 in UAE, 3.43 in Yemen. Poorest bilateral trade strength is seen in case of

Bangladesh.

Saudi Arabia

India's Competitors TII RCE

India 4.28 2.10

Kenya 5.27 2.59

Yemen 2.56 1.26

Pakistan 4.06 1.99

Egypt 0.33 0.16

UAE 0.51 0.25

Tough competition from Kenya

229



India 2.61 1.37

Pakistan 4.01 2.11

Kenya 8.21 4.31

Egypt 1.00 0.53

Australia 0.36 0.19

South Africa 0.10 0.05

Netherlands


India 4.21 1.97

Brazil 4.47 2.09

Peru 6.02 2.82

France 0.91 0.43

Belgium 0.20 0.09

Israel 2.95 1.38

Yemen


India 0.11 1.05

Egypt 2.41 22.08

Bangladesh


India 2.58 1.50

Australia 0.03 0.02

Pakistan 0.33 0.19

India with better competitiveness than other suppliers. Tough competition for India

Tough competition from Pakistan and Kenya

Tough competition from Brazil and Peru

Tough competition from Egypt

No competition

230

Tariff and Non Tariff barrier for Fresh Mango in Major Markets

Other Tariff where ever applicable

Major

Markets Import tariff Tariff description

Tariff

rate NTM % NTM

Saudi Arabia 12 - - 100%

Testing, inspection or quarantine

requirements to protect human

health

Statutory Rates 100

MFN Rates (General exemption) 25

Infrastructural surcharge 2.5

Bangladesh 29.2 Value added tax 15 0%

UNCTAD TRAINS database, 2009

Amongst the two markets, it is a surprising combination. Saudi Arabia where the import tariff is

lower, the non tariff barrier is 100% in terms of testing, inspection or quarantine requirements to

protect human health. Bangladesh where there is no non tariff barrier, the import duty rates are as

high as 29.2 with additional taxes in the form of statutory rates, infrastructural surcharge and value

added tax.

Country FTA/PTA

Saudi Arabia None

UAE None

Netherlands None

Yemen None

Bangladesh None

Subsidy structure for Fresh Mangoes in major markets

Markets Product Specific Non Product Specific Green Box S&D Currency

Saudi Arabia None 838.84 674.296 NA million SRIs

UAE None NA 2,500,000 3,500,000 Dhs

Netherlands None NA NA NA NA

Yemen None NA NA NA NA

Bangladesh None 40.18 42.01 0.22 US $ million

None of these markets extend subsidies on mangoes specifically. However, a lot of green box and

special subsidies are extended in Saudi Arabia and UAE.

231

Strategy to boost Mango Exports from Andhra Pradesh

India continues to be the leading producer in the world accounting for 63 per cent of world

production. However, India occupies only third position in total mango exports. Exports from India

accounts for 0.11 per cent of the total domestic production as against about 4 per cent in case of other

exporting countries like Mexico, Philippines and Venezuela. Indian exports are confined mostly to

Gulf countries, USSR, and UK.

Though there is a vast potential for export to western countries, constraints like suitability of a few

varieties for exports, pests and disease problems, high freight charges, limited cargo space and high

packing cost have restricted the expansion of the exports from India. Removal of some of the

constraints will increase the potential for exports to USA and Japan. Research efforts are also needed

for prolonging the shelf life of fruit so that it could be made available for longer period in the

international market.

232

Annexure: Trade Intensity Index for Fresh Mangoes in Identified MarketsAnnexure: Trade Intensity Index for Fresh Mangoes in Identified MarketsAnnexure: Trade Intensity Index for Fresh Mangoes in Identified MarketsAnnexure: Trade Intensity Index for Fresh Mangoes in Identified Markets

India's Export to market Word's export to the market

Saudi Arabia Mango Total fruit Mango Total fruit TII

2003 17188.729 33158.981 22474.816 307101.64 7.08

2004 22460.841 39937.534 28678.547 323091.182 6.34

2005 25469.716 45344.821 38218.24 352430.035 5.18

2006 30968.249 52945.265 41271.635 421475.72 5.97

2007 33243.166 63639.44 50001.845 429261.833 4.48

2008 51035.275 83576.557 75425.858 529257.082 4.28


UAE Mango Total fruit Mango Total fruit TII

2003 13212.351 47066.2 26683.782 556908.874 5.86

2004 11674.725 56490.379 24600.731 481703.898 4.05

2005 23048.907 81907.086 38099.191 525133.549 3.88

2006 26093.129 95889.005 37349.845 688986.505 5.02

2007 25069.879 112573.719 36412.258 536461.548 3.28

2008 36340.163 174317.925 49626.99 621714.471 2.61


Netherlands Mango Total fruit Mango Total fruit TII

2003 6073.124 58401.15 60613.694 2153122.288 3.69

2004 9347.908 76329.219 67621.291 2568617.035 4.65

2005 10151.183 124295.9 76834.215 3044976.206 3.24

2006 22097.853 132910.994 104993.109 3309568.504 5.24

2007 21359.092 113752.627 120271.99 3830130.053 5.98

2008 26360.863 158211.567 129759.894 3279036.769 4.21


Yemen Mango Total fruit Mango Total fruit TII

2003 3029.828 4195.961 3138.831 13381.666 3.08

2004 7608.983 8400.784 7608.983 12774.658 1.52

2005 7528.864 8110.023 7580.77 27267.278 3.34

2006 9400.541 9697.734 9405.707 30045.396 3.10

2007 11249.435 11942.454 11314.054 41247.82 3.43

2008 11865.109 12214.937 12088.44 31907.512 2.56


Bangladesh Mango Total fruit Mango Total fruit TII

2003 7951.395 20338.352 7989.129 41502.415 2.03

2004 8908.964 27040.788 8980.355 54362.303 1.99

2005 7246.335 25542.659 7298.63 64872.982 2.52

2006 9238.376 33787.354 9266.464 65795.783 1.94

2007 5321.442 29083.696 5386.532 81721.554 2.78

2008 10479.396 43839.99 10533.446 113599.873 2.58

233

Saudi Arabia

India's Competitors

Competitor's export

of 080450 to market

Competitor's

export of 08 to

market

World's Export

of 080450 to

market

World's Export of

08 to market TII RCE

India 51035.28 83576.56 75425.86 529257.08 4.28 2.10

Yemen 9792.72 26860.34 75425.86 529257.08 2.56 1.26

Pakistan 5444.10 9413.90 75425.86 529257.08 4.06 1.99

Egypt, Arab Rep. 4699.89 98792.77 75425.86 529257.08 0.33 0.16

United Arab Emirates 2732.30 37724.90 75425.86 529257.08 0.51 0.25

Kenya 1210.85 1611.44 75425.86 529257.08 5.27 2.59


India's Competitors

Competitor's

export of

080450 to

market

Competitor's

export of 08 to

market

World's Export

of 080450 to

market

World's Export

of 08 to market TII RCE

India 36340.16 174317.93 49626.99 621714.47 2.61 1.37

Pakistan 5970.27 18649.94 49626.99 621714.47 4.01 2.11

Kenya 3855.09 5882.72 49626.99 621714.47 8.21 4.31

Egypt, Arab Rep. 1634.62 20388.44 49626.99 621714.47 1.00 0.53

Australia 841.11 29452.07 49626.99 621714.47 0.36 0.19

South Africa 592.06 75358.43 49626.99 621714.47 0.10 0.05

Netherlands

India's Competitors

Competitor's

export of 080450

to market

Competitor's

export of 08 to

market

World's

Export of

080450 to

market

World's

Export of 08

to market TII RCE

Brazil 50913.43 287933.68 129759.89 3279036.77 4.47 2.09

India 26360.86 158211.57 129759.89 3279036.77 4.21 1.97

Peru 25098.06 105267.59 129759.89 3279036.77 6.02 2.82

France 6686.70 185293.78 129759.89 3279036.77 0.91 0.43

Belgium 4987.75 623352.17 129759.89 3279036.77 0.20 0.09

Israel 4143.00 35474.00 129759.89 3279036.77 2.95 1.38

234

Yemen

India's Competitors

Competitor's

export of 080450

to market

Competitor's

export of 08 to

market

World's

Export of

080450 to

market

World's

Export of 08

to market TII RCE

Egypt, Arab Rep. 222.71 243.71 12088.44 31907.51 2.41 22.08

India 11865.11 273770.86 12088.44 31907.51 0.11 1.05


Bangladesh

India's Competitors

Competitor's

export of 080450

to market

Competitor's

export of 08 to

market

World's

Export of

080450 to

market

World's

Export of 08 to

market TII RCA

Australia 5.31 2041.00 10533.45 113599.87 0.03 0.02

India 10479.40 43839.99 10533.45 113599.87 2.58 1.50

Pakistan 38.39 1251.18 10533.45 113599.87 0.33 0.19

Singapore 0.03 2005.08 10533.45 113599.87 0.00 0.00

Thailand 9.38 9623.58 10533.45 113599.87 0.01 0.01


Documents

fruits and veg 109-234