TRADE ASPECT OF PLANTATION SECTOR OF INDIA

Abstract

The central objective of the present study is to analyze the present status of trade in four major plantation commodities (Black Pepper, Tea, Coffee and Cardamom) and identify the issues for further research. Due to growing domestic demand and emergence of new low cost producers like Vietnam on the one hand and emergence of European countries in exporting value added products in the international market on the other, India is losing export competitiveness in the international market. However, India has the opportunity in exporting value added pepper, tea and coffee in the international market, especially in European market. ASEAN countries are source of low priced pepper, tea and coffee. There is high possibility that Vietnam may increase its exports to India. Is it a concern for India’s plantation economy? Can India re- export by importing low priced pepper, tea and coffee from ASEAN? The paper makes the case for enabling policy interventions specific to commodities and thereby the development of infrastructure which would encourage value addition and re-exports.