2. LITERATURE REVIEW.

In the context of India’s tea export, there exists vast literatures .But for this study we have included some of the important empirical works which are matched with our objectives.

Chand and Tiwari,(1991),analyzead growth and instability of India’s export and import of agricultural commodities. Jaganathan , (1992) , in his paper examined the instabilities of export earnings of selected groups and selected commodities and all the commodities from the period 1974-75 to 1989-1990. Pal , (1992) , analyzed the magnitude , causes and effects of instability of agricultural export earnings of India for the period 1979 to 1989.Subramaniam , (1995) , analyzed the impact of fluctuations in tea production and exports on international tea trade .He articulated that India plays a significant role in world tea trade , being the world’s largest producer , consumer , and exporter . Therefore , fluctuations in India’s tea production , consumption and exports are enough to disturb international tea trade . Aiello , (1999) , analyzed that the effects of export earnings instability on economic growth of developing countries has long interested economists for several reasons . Reddy , (2001) , examined global demand for and supply of tea by estimating semi – log trends separately using data of the recent past , 1974 to 1988 , on the area under cultivation of tea , production , export and retention of tea for domestic consumption . Debraj , (2003) , in a column in India together news letter said that globalization has hit the Indian tea industry . He added that its traditional market in the countries that made up the former Soviet Union have been steadily drained up and hence results in falling demand for tea in abroad .Sathe and Deshpande , (2006) , in their paper made an attempt to review the changes in their trends and composition of agri-trade from 1990 till 2004 . South Asian watch on Trade (2006) analyzed that in Nepal, tea had potential to benefit large segments of rural population and lift them out of poverty and stagnation. Shinoj and Mathur , (2008) , in their paper identified that the recent developments in the international trade scenario and corresponding alterations in India’s foreign trade policies has depicted for reaching implications for India’s agricultural sector and agricultural exports in particular . The study also revealed that India had been able to maintain its comparative advantage , but several others such as tea , coffee , spices , etc., had been negatively affected by trade openness policy . Wong ,(2006) ,proclaimed that the existence of a positive and significant effect of trade openness on the productivity of manufacturing industries in export - oriented industries in the years after trade reforms curve implemented, but decreasing productivity after 2000 .Yucel, (2009), examined the causal relationship between trade openness and economic growth (GDP) for the Turkish economy . The findings of his study showed that while trade openness has a positive effect , financial development has a negative effect on growth. Vander and Wall (2008) examined the sustainability issue in the tea sector for six leading tea producing countries in the world,viz ,India ,Srilanka , Vietnam , Indonesia , Kenya and Malawi .This study is based on an extensive field study of civil society organization in these countries . A considerable number of studies have attempted to explain empirically the relationship between trade openness and government expenditure. Rodrik , (1998), Adsera and Boix , (2000), and Albertos , (2002), proclaimed that existence of positive linkage between trade openness and government spending is due to high compensation hypothesis where as Alesina and Spolaore ,(1997), Alesina et al (1997) , Frankel and Romer (1999) , and Bretschger and Hettich , (2002) , indicated that government size and trade openness are interrelated with country size . Smaller countries tend to have higher trade shares than the larger countries as the same amount of trade flows represents a different shares of GDP . Alkan , et al .,(2009) in their paper investigated the importance of tea sector all over the world among major producer. Nagoor (2009) examined the performance of India’s tea exports and identified the underlying factors . The study also looked at tea exports and production response in major tea exporting countries under WTO regime . Nagoor and kumar , (2010) in their paper investigated that with the signing of the Free Trade Agreement with the Association of South East Asian nations , there are apprehensions that the consequent reduction in import tariffs will adversely affect the Indian tea industry . Adhikary and Maity, (2010) computed instability indices of various sections of export for 1966 - 1967 to 1986 - 1987 .

Keeping all these studies in mind we now return back to our main study i.e, the study of analyzing the trend of India’s tea export in the scenario of trade openness . The next section will not only analyze the results but also we will try to explain the reasons behind these results . Finally , on the basis of our study we will suggest several policy prescriptions to take the advantage of trade openness for exporting tea from India.

Review of literature

2.1. Review of literature is an integral part of any research study. It palys a significant role in shaping the purspective of researching to set the tone of the study. A huge vollume of literature is avilable with regard to export of rice from india, particularly rice.Here, a brief attempts is being made to explore of a little of the vast aray of literature resources relating to export of rice from india to other countries.

2.2. Maizels ,(1968) tested the hypothesis relation between exports and saving. He took annual data from 11 member nation of the overseas sterling area for the period 1950 to 1960 and found a significant degree of correlation between savings and exports.

Kelker and sharma (1976) examined the trend and determinants of india’s export performance for the period 1961 to 1974. He concluded that reason for loss of india’s export share in world maekt lies on supply as well as on demand side.

Kannan, (1986) analysed the export performance of agricultural commoditis from 1968-69 to 1881-82. In case of almost all the commodities, incresed unit value was primarily an important factor in the achievement of higher export earnings. In case of rice, marine products, quantum increse was reinforcing factor.The export of rice sugar and raw cotton were subject to considerable instability.

Pahariya and Ahuja, (1986) applied the Heckscher-Ohilin Sumuleson model to indian economy to explain the commodity pattern of her trade. They concluded that physical capital intensity was not good predictor of india;s tarde pattern as a single explanatory variable the human capital did better job than any other variable.

Mukherjee, (1987) empirically investigated the relationship between exports and economic growth in India for the period 1950-51 to 1980-81.she observed the negative regression coefficients between GNP growth and export growth showing that ‘a 1 percent increase of bringing about any increase in income, was seen to be accompanied by decrease in income’.

Nayyar, (1987) studied india’s export performance for the period 1970-85 as well as for two sub-periods 1970-78 and 1978-85.He argued that during 1970-78 ,various internal factors like decrease in agricultural production increased domestic demand for manufactured goods contributed to slowing down of export growth but after 1978 external factors were responsible for slow growth.

Tyagi, D.S. (1990) in his article analyzed the problems and alternatives related to Indian food economy. In his article he suggested that although a very well developed Statistical system exist in India, neither the degree of reliability is very high nor the statistic are available on time. so, immediate steps should have to be taken to improve the reliability and timeliness of basic information required for managing the food economy,

Nandi and Biswas, (1991) tested two way causality between export growth and growth of income in India for the period 1960-1985.The econometric results showed that in Indian context, causality ran one way only i.e. export growth-led growth of national income but growth of income had no impact on growth of export.

Dutta, (1996), mentioned that a major problem of Indian rice milling industry is that, due to large varities in grades and grain sizes, machinary adjustment become different. De- husking paddy, seperation and polishing equipments require improvement in designs by incropting hydraulic and electronic controls. This is needed if Indian rice is to cater to the needs of the premium markets both at home and abroad.

Patnaik, U. (1997) observed falling total area under foodgrains and decelerating growth of foodgrains outfood below the population growth rate during the period of structural adjustment.

Durga, P.K. (1997) in his article also discussed the world rice market with properly of India’s rice export.

Childs, N. & Burdett, A. (2000) in there article analyzed the U.S rice export market. This article breaks up the us rice export market by type of rice exported and describes recent trends within each market. In their article, they found that U.S share of global rice exports have declined since 1989.The U.S exports raise in all three form: paddy, brown and rough. However since the mid 1990s only rough rice has shown any sustained growth.

Dorosh, P.A , (2001) in his article analyzed the issue of trade liberalization and food security with giving emphasis or focus on the rice trade between Bangladesh and India .From his study he found that the trade liberalization offers potential benefits for national food security by enabling a rapid increase of food supplier following domestic production short falls.

Khan, A.U, (2004) in his article discussed growth and farmer related issues related to the Indian agriculture. In his analysis , he also included the impact of GREEN REVOLUTION on agriculture.

Gruere, G. et al. (2004) In there article analyzed the potential effects of introducing GM rice in India with or without China.They also focused on 4 types of GM rice resistance to biotic and a biotic stresses, such as drought resistant rice and use a multi country , CGE model to stimulate their introduction in India.

Wailes, E .T.,(2004) in his article discussed the various implication of the WTO DOHA ROUND for the rice sector, In other words he analyzed the impact of WTO DOHA ROUND on the rice sector.At the end of his study ,he found that the benefits of such policy reform on a global basic will benefits Japan, China the Europe union and Australia by large measure and the policy reform one rarely zero sum as is suggested by the estimate given in his study .

Barah,B.C,(2005) article analyzed the dynamics of rice economy in India a and he also discussed the emerging scenario &policy option related to the Indian rice economy .He also used spatio temporal rice related data from secondary sources pertaining to rice growing the areas to study the trends and growth pattern over the decades (1950-51 to 2001-02) He also discussed the poor performance of agriculture sector in eastern India & thus it requires the enhancement of rice productivity and rice based system by focusing & prioritizing the rise research in eastern India.

Warr, P.G & Wollmer, F.T,(2005) in his article examined the long demand relationship of Thailand exports of rice drowning upon recent developments in the statistical analysis of economy time series and the inside of airsing from a recent debate on the elasticity of demand for manufactured exports from LDC’s. A relatively robust long run price elasticity of demand for rice is obtain to between -1.2 ands 1.9.The “small country “hypothesis is rejected using the specification of the price normalized demand equation .They also found that the result of there analysis are relevant for current agriculture policy debate in Thailand.

Boriss, H.(2006) in his article analyzed the various aspects of US, Rice market. In his article, he also analyzed the various industry characteristics & production related to rice in US.US rice policy & govt. programmes are also a part of his analysis He discussed various issues such as export import etc. related to US rice sector.

Banik, N.(2007) in his article identified a set of factors that appear to be responsible for an increase in India’s export growth during recent years .He also examined the possible impediments to high export growth in a sustained manner .He found that increase in India export‘s during the year following 2000 is predominantly services driven and is attributed to increase in factor productivity , growth in world trade, an increase intra –industry trade and external sector reform .He suggested that India should be willing to take a more constructive approach ,along with other developing countries, at multilateral forms such as WTO.

Slaton, T.& Timmer ,P(2008) in his article analyses the crisis. in the world rice market .in this article ,they analyses that under the leadership of U.S, the countries like Japan ,China & Thailand can solve the problem of world rice crisis

Pandian, B.J.,(2009) in his article discussed about the System of Rice Intensification (SRI) in Tamil Nadu. In his article, he has mentioned that the System of Rice Intensification is a holistic agro-ecological crop management technique seeking alternatives to the conventional high input oriented agriculture through effective integration of crop, soil, water and nutrient management. He further stated that SRI grown rice is introduced to the US food trade & consumers also. He also discussed the Chinese experience related to the SRI.

Mitra, S & Jasling T (2009) In their article analyzed export restrictions from two different but related angles. In their analysis, they dicussed the welfare implications of export restrictions both for the country imposing such measures as well as for the rest of the world. They further tried to explore an overview of how export restrictions have been addressed in trade negotiations and agreements and other such efforts to achieve greater market stability. They also stated the global and domestic impact of export restrictions and tried to estimate the change in world welfare due to export restrictions.

Kulkarni, K. G (2009) in their article analyzed the effects of India’s trade policy on rice production and exports. They analyzed the economic effects of such trade policy in the framework of Comparative Static Model that explains the costs and benefits of tariffs and subsidies. They found that the protectionists trade policy actions undertaken in 2008 resulted in an estimated $ 260 million increase to national welfare consumers benefited from lower prices and the loss to producers was offsets the govt. aid, including debt reduction. While it’s policies appeared to limit the transmission of higher world prices to Indian consumers, India’s monopoly power in the production of rice could have limited the full effect of price decrease.

Iqbal,B.A,&Merwe,T.V.D(2010)in their article discussed the issues of Indian food crisis. They also analyzed the issue of Indian food crisis by examining the reasons for food crisis, existing trends in production of food crops, state wise procurement of wheat, and rice, per-capita availability of food grains, trends in price rice, genesis of crises and fear that Indian planners are having in mind. They also discussed the currents trends and economic impacts of food grains and at the end, they found that slow agricultural growth has been a cause of food crisis.

Sharma , A , (2011) in his article analysis about the Rosola basmati rice .com , an agro-product export comp. that intoduces high quality of Basmati rice and the various issues related to its export from India. In his article he also talked about royal basmati rice which is also another variety of Indian rice that the rosola BASMATI RICE com. company also supplies to many foreign markets.

2.3. Hence, this attempt to review a few of the studies that had been conducted in this field not only brought certain trends and charecteristics of rice trade in india but also can serve the purpose of forming hypothesis of this study. So, kepping all these studies in mind, we came back to our main study, i.e. ‘Export of rice from India to abroad.’

Radha Charan Rabidas

Roll No.: 15 (4th Sem)

Email ID: radhacharanr.aus@gmail.com

REVIEW OF LITERATURE:

2.1. There are vast literature to review regarding the pattern and trend of rice production in India. Regarding this concept many researchers and scholars contributed by their empirical works. In the following sections an attempt has been made to review some of the available literature on the pattern and trend of rice production in India.

2.2. SOME MAJOR EMPERICAL WORKS:

Blyn, (1966), in his article he found that as every foodgrains plays an important role in Indian food economy. There is no separate government policies for boosting rice production. He also mentioned that performance of Indian agriculture after independence was much better than before independence. Sen, A.K. (1967), in his article analysis that the production related issues of rice. In his article he also discussed that the high rates of increase in production, the instability or year to year fluctuations in rice output increased during the post-green revolution period particularly in the second decade. Many explanations are offered for this phenomenon. Bhuian,(1992), mentioned that there is a need to study the input use pattern and the practices followed by the farmers in paddy growing regions. Since water is also very important input in rice production, so nearly half of irrigation water is used for rice production. Tiwari, K.N. (2002), according to him to achieve rice production target by 2012, balanced and adequate phosphorous and potassium fertilizer as well as nitrogen, sulphur and zinc is essential. To improved rice production and productivity in rainfed areas may not only help the resources. For farmers, but also substantially increased food production. He also mentioned that there is urgent need to educate farmers about the importance of balanced used of fertilizers in increasing yields and profits in rainfed rice ecology. Uphoff and Randriamiharisoa,(2002), in their study they found that more rice can be produced by using less water, provided that concurrent changes are made in the way that plants, soil nutrients are managed. Ramasamy, (2003), mentioned the production elasticity estimated by the studies conducted in different states over the period indicates that either there is no production response to various factors inputs or the response is declining. The total factor productivity which grew at an average rate of 1.37 percent per annum in the 1970s and 1.33 % in 1980s.Kapur, B.N.(2003), showed that the status of rice production in the state of Haryana has also been remarkable with the production of 2.68 million tones in the year 2000-2001 over an area of 10.5 million hectare contributing to 3.16% of total production in the country. Vittal, K.P.R. et al. (2004), in their article, they discussed the two main seasons related to rice production in India. They also analysed the method of rice production in India. They also calculated the area and yield growth rate of each district in India. Although the rate are treated as stagnant and others were decided based on the sign positive or negative. Ravichandran, S and Singh, (2005), in their article they found that during the year 2002-2003, the production of rice was declined due to the draught. The stock of rice reduced from 25.62million tones in 2001-2002 to 19.37million tones in 2002-2003. From their article we can say that the intensity of draught experienced in year2002-2003 and the decline in rice reserve. Barah, B.C. (2005), state that the rice sector has witnessed rapid dynamism in production processes. After climbing a height of fourfold increase in production during past four decades, the production curves have started showing downward trend and productivity decelerating since the later half of the 1990s. Leip, A. and Bocchi, S. (2OO7), in their article they state that rice cultivation and production is both an important sequester of carbon dioxide from the atmosphere an important source of green house gasses. In this context they given example as, in 2004 the global paddy rice output was 607.3million tones at 14% moisture content. At the gain/straw ratio of 0.9 for most currently planted rice varieties, the global rice straw output in 2004 was about 676 million tones at 14% moisture content. This means that in 2004, rice sequestered about 1.74 billion tones of carbondioxide from the atmosphere to produce about 1.16million tones of biomass at 0% moisture content. Sanjay. K. Srivastava, et al. (2009), in this paper they concern the impact of climate change on agricultural production as well as rice production. Increase in temperature, higher carbon-di-oxide concentrations and abnormal patterns of precipitations coupled with higher frequency and intensity of drought and floods are likely to enhance considerably the climate risk to the major agricultural ecosystems. Towards this, the study on climate risk assessment to rice based agro ecosystems, which support the livelihood security for very large number of poor and marginalize in India has been reported this paper.

2.3. In the next section ie.section 3 we will study the pattern and trend of rice production in India. We will also analyse the research result explaining the reason behind these result. Finally, like any other research work we will also indicate the line of our future research.

Rupak Kumar Doley

Roll No.: 44 (4th Sem)

Email ID: rupakdoley@gmail.com

Review Of Literature:

2.1. Review of literature is an indespensible part of any research works that provides an important and usefull track to frame their research works. There are sufficient literature regarding the current export situation of coffee from India, contributed by many different researchers and scholars. Now we will try to review those literature that match with the concept of coffee export from India.

2.2. Dudeja, (1989), in his article, ‘India hopes to export surplus coffee’ publish in Tea and Coffee Trade Journal, mentioned various demands of the coffee exporters and coffee growers in order to increase the internal as well as external demand. Mehta, (1996), in his article, ‘Indian coffee exporters aims for US market’ mentioned different steps, which are taken to increase the export of coffee in US market. Gahiro, L. (2000), assessed the fluctuations in Burundi’s coffee production in different years and also the results of the slight change in coffee marketing structure in 1991 due to the partial liberalisation initiated by the World Bank. Lewin, B. and Giovannucci, D. (2002), in their article, Global Supply and Demand: New Paradigms in the Coffee Markets, assessed the larger global situation in terms of both the dominant supplying countries and the evolution of demand. Achoth, L. (2005), mentioned the status of the Indian coffee industries as an export industries with 70% of the total production being exported. He also mentioned the various research activities of the Coffee Board of India to find out the comprehensive problem of the mould contamination in coffee after the country received its first report of rejection of coffee from Africa during 1994, which left the coffee producing countries with no alternative but to fall in line with international standards. Bhat, R. V. (2005), described the organisation and the activities of different research institutions and training centres by the Coffee Board of India in order to maintain the coffee quality and safety management and control in India with positive effect. Potts et al. (2007) assessed the need for economic stability of coffee producers, its stratigies for development and put forwarded some specific recommendations for actions. Mercereau and Vignault, (2008), identified the status of the quality of coffee and coffee industries in India with Italy and ex-communist block as the major export destination. They also mentioned that the sustainable standards have low penetration in the Indian coffee intustries. Giovannucci,D. and Potts, J. (2008), mentioned that among the certified commodities, the certified coffee has been growing at a much faster pace than any other segment of the coffee industry after its first trade in 1967 through fair trade.

Mohan, S. and Russel, B. (2008), in their paper modeled the relationship between the producers and the world price of coffee in three different countries, viz., Brazil, Guatemala and India allowing for the effects of changes in market structures. They also found that liberalization has benefited producers substantially in terms of higher real coffee prices and a higher share of the world price of coffee. Mutandwa et al. (2009), using the Boston consulting group (BCG) matrix for analyzing the market for coffee export in Rwanda, recommendate that, if the role of coffee export to the country economic vistas is to be consolidated, there is a need of understanding the social, economic, cultural, institutional and technological factors affecting sub population in the importing countries. They also discussed appropriate strategies for their destination. Smith, E.S. (2010), in his thesis, he found the Fair Trade to be the key contributor to sustainable income- generating strategies and socio- economic stability among rural and small scale coffee farmers. Mohapatra,(2010), mentioned that India’s coffee exports may be hit due to the higher prices that received by the domestic producers in the domestic spot market. In the paper, he also mentioned that theb domestic player can expect much better result from high international future price. Jonsson, L. (2010), in his paper focused the attention on describing political rent seeking on the Rwandan coffee sectors institutional structure. In the paper, it is also mentioned that , the institutional changed with the liberalisation of the coffee sector and this change, in turn, provided an opportunity to analyse how and why political actions taken that changed the institutional structures and thereby curbed corruption. Govindan, A. (2010), identified the decline in the production and the increase in the consumption of coffee in India. He represented the imposition of production subsidy in order to increase and improve the quality of coffe and also mentioned the imposition of export susidy in order to export Indian branded value added coffees and high value coffees to the far off markets, such as United States, Canada and Japan. Daumal, M. (2010), in the paper determined through time series regression whether the regional disperities are linked to countries’ (India and Brazil) trade openness with the result that Brazil’s trade openness has contrbuted in reducing the regional inequalities, while, the opposite result has been found in case of India.

2.3. After reviewing and keeping all those study in mind now we are back to our main study, ‘Current Export Situation Of Coffee From India’, corresponding to the future analysis of the research results along with the explanation of the reason behind these results.

Danswrang Basumatary

Roll No.: 01 (4th Sem)

Email ID: o.danzz@yahoo.in