International Trading Prices Of India’s Oilseed Crops: Growth Rates, Elasticities And Foreign Trade Policy

Abstract

World prices influence international trade and so economic precision is required. This foreign trade research study examines exports and imports of India's major oilseeds from 1990-91 to 2015-16. The methodology employed is the estimation of CAGR, Instability Index, Export import price elasticities of oilseeds and identification of top export import destinations. The results show that export prices of groundnut, soybean, niger, safflower, sesamum and sunflower were higher than import prices indicating that India has a comparative advantage in these crops. The terms of trade of India's oilseeds were found to have increased for all oilseeds except mustard crop. The exports price growth rate of groundnut, niger, safflower and sunflower were higher than imports. The study found that among oilseeds, mustard (0.97 %) has high export elasticity and that export imports prices of groundnut, soybean, safflower, sunflower and niger crops were found to be stable. It also found that India's major exports destinations for groundnut, soybean, niger seeds, sesamum, and sunflower are Indonesia, USA, South Korea and Philippines respectively, whereas major imports destinations are Germany, USA, Nigeria and Ukraine for groundnut, soybean, sesamum, and sunflower respectively. The study suggests that multilateral trade relationship with countries having high export imports share would help in smooth trade of oilseeds. These findings have important implications for policy research and R&D strategies in response and re-orientation of the R&D system to the changing trade scenario to benefit from WTO.

Global merchandise and agricultural trade developments during WTO regime: Commercial crops performance

“…The rice witnessed high export elasticities. Export–import prices of all cereals were unstable (Dastagiri et al, 2018). Dastagiri et al (2021) found that, globally, the export price elasticity was inelastic in all countries of grapes, oranges, and bananas except Italy in oranges and Panama in bananas, 1990–2018.…”

“…The study found that export price elasticity of mangoes was marginally higher in the Spain and the Netherlands. Dastagiri et al (2020) found that, globally, import prices of coffee and tea were higher than export prices during 1990-1991 to 2017-2018. Globally, export price elasticities of coffee in MERCOSUR and COMESA were marginally higher than import price elasticity (Dastagiri et al, 2020).…”

“…during the study period during 1990-1991to 2018 China have shown the highest significant growth potential of agricultural exports, whereas China, Canada, and USA have shown the highest growth rate of agricultural imports in the world during the study period (Dastagiri, 2021). Dastagiri et al (2018) found that, during 1990-1991 to 2015-2016, wheat export prices were more than import prices, indicating that India has comparative advantage in wheat. The terms of trade for wheat and total cereals were found to be more than rice and maize crops.…”