India’s Export Horticulture Markets in Multispeed World Economies: Trends of Exports, Prices, Elasticities and Policies

Abstract

We are living in multispeed world economies. The globe has initiated measures to support horticulture industry. India is the fruit and vegetable basket of the world. The vast production base offers India tremendous opportunities for exports. During 2011-12, India exported vegetable and fruits worth Rs. 4801.29 crores. The main objective of the study is to estimate exports, price trends, elasticity’s and identifies major destinations for India’s fruits, vegetables and flowers. The study period is 1990-91 to 2012-13. The sample size is the time series data of 23 years. The methodology adopted is compound annual growth rates and Coefficient variation of instability index. India is exporting these commodities to130 countries. The study found that fruits, vegetables, flowers quantity export growth rates positive and high except walnut and mushrooms. Whereas all commodities price growth rates in the export destinations were positive and high. The study found that all elasticity’s of fruits, vegetables and flowers are elastic except walnut and mushrooms (inelastic). Among fruits, banana has high export elasticity (4.38%) and among vegetables, green chilies have high (3.98%). Over 65-90% fruits and 50 to 65% vegetables of India’s exports in fresh products go to West Asia and East European markets. Exports of Gherkins (53%), Mushrooms (94%) going to the USA, United Kingdom, France, Spain, Israel and Russia. The major destinations for India’s Rose are Netherland, Ethiopia and UAE and for walnut are Nepal, UK and France (40%). The study strongly advocates that India should design multispeed strategies to boost horticultural exports, foreign earnings and develop modern export supply chains.