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Production and Export Performance of Major Indian Spices - An Economic


Analysis

Thesis · January 2010

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M. Krishnadas
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Production and Export Performance of Major Indian Spices - An
Economic Analysis
KRISHNADAS M. 2010 Dr. S. M. MUNDINAMANI
Major Advisor

ABSTRACT

The production and export performance of major Indian spices viz. chilli, black
pepper, turmeric, coriander and cumin were analysed for the period from 1979-80 to
2006-07 using state wise and national level time series data. The statistical tools
namely, compound growth rate analysis, coefficient of variation, Hazell’s
decomposition analysis, Markov chain analysis and multiple regression analysis were
employed.

The results revealed that the growth in area under chilli was found to be
negative, while production showed increasing growth due to increased productivity. The
area, production and productivity of black pepper and turmeric showed positive and
significant growth. The coriander area growth was found to be meagre, while
production showed productivity led growth. The growth in productivity of cumin was
found to be negative, while production showed area led growth. The black pepper and
production were found to be stable than other spices. The exports of chilli, turmeric,
cumin and coriander in terms of quantity and value were found to be increasing. The
growth of export earnings of black pepper was found to be increasing, while the volume
of export was declining. The export shares of the spices to major destinations were also
found to be declining. The exports of these spices were also unstable. The production
and export of these spices were influenced by domestic and export price.

Based on the findings of the study it can be concluded that the emphasis should
be given for promotional programmes to augment the area under chilli and coriander.
There is a need to improve productivity of spices by developing improved production
technologies and suitable improved varieties. Productivity and area should be stabilised
through crop insurance scheme for spices to protect the producers from price
fluctuations. Appropriate measures should be taken to augment and stabilise the export
earnings from spices.

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