When World Trade Organisation (WTO) brought agricultural trade in its domain there was great expectation that trade of agricultural items will improve and masses will gain from it through greater market access and better prices particularly to the developing nations. But at the same time there was fear among the developing nations that foul play of some developed nations may have negative impact on market access and better prices for their produce. The present paper analyses the Indian concerns in this respect. It is found that the negative impact of WTO on agricultural commodities exports as it was thought is not a valid case for India. India’s agricultural items have got a due respect in international market. Not only the quantity of export has increased but also there is improvement in the prices of agricultural items. Non traditional agricultural items have got greater market access and better prices followed by traditional items and items of future potential.
Table of Contents
1. INTRODUCTION
2. INDIA’S EXPECTED GAINS
3. METHODOLOGY
4. PERFORMANCE OF AGRICULTURAL EXPORTS
5. RESULTS AND DISCUSSION
6. CONCLUSION
Research Objectives and Core Themes
This paper examines the performance of Indian agricultural exports following the establishment of the World Trade Organisation (WTO), specifically analyzing whether the anticipated benefits of greater market access and improved pricing have been realized for Indian farmers. The study addresses concerns regarding the competitive challenges within the international market for traditional, non-traditional, and emerging agricultural products.
- Analysis of Indian agricultural export performance under the WTO regime.
- Evaluation of market accessibility through calculated quantity indices.
- Assessment of price trends for various agricultural commodity groups.
- Comparative study between traditional and non-traditional export items.
- Identification of infrastructure and technological limitations affecting agricultural growth.
Excerpt from the Publication
RESULTS AND DISCUSSION
The available data have shown a distinct behaviour of the three groups of agricultural exports under WTO regime. Each and every group of exportable items shows a different path of movement of quantity of export and prices paid for these items. In case of traditional items, India exported the maximum amount of quantity in the second year of the working of WTO. Thereafter there is the phase of decline in the export quantity of the traditional item. This phase continued till 2001-02. After 2001-02, the export quantity of traditional items follows a rising trend. It seems that the opening up of the world agricultural market in 1995 provided immense scope for India to export traditional agriculture items but gradually we had to face stiff competition with other countries. Consequently, India failed in maintaining her position in later period of World Trade Organisation regime due to lack of required infrastructural facilities and proper information. During this period a number of export promotion agencies were established for quality control and maintenance of the other obligations of the consignments including the time of delivery. This has shown its impact and the quantity of traditional agricultural exports started moving up after 2001-02.
In comparison to the quantity exported, the movement in prices of traditional exports is slow and smooth. The emergence of free trade market by elimination of tariff and quota restrictions improved the prices of agricultural products. The prices of traditional items started moving up with the removal of tariff barriers. This improved prices of traditional items, created a flood like situation in the market and hence the demand and supply factors became stronger in determining the prices of these items than the waving out of restrictions in form of tariff/quota and subsidies. The excess supply of items of traditional agricultural exports changed the form of market situation and the market of these commodities became consumers’ market. Due to this a decline in the prices of these items became evident. The same path of movement in the prices of individual commodities of traditional items can also be seen except in tobacco and to a certain extent in tea.
Summary of Chapters
INTRODUCTION: Provides an overview of the role of the WTO in agricultural trade, highlighting expectations for market access and the specific challenges faced by the Indian agricultural sector.
INDIA’S EXPECTED GAINS: Details the historical context of India's post-Green Revolution agricultural state and the specific hopes associated with the establishment of the WTO in 1995.
METHODOLOGY: Outlines the categorization of agricultural exports into traditional, non-traditional, and future potential groups, and describes the mathematical indices used for evaluation.
PERFORMANCE OF AGRICULTURAL EXPORTS: Presents the statistical findings and trends regarding the quantity and price movements of Indian agricultural exports under the WTO.
RESULTS AND DISCUSSION: Analyzes the variations in performance across different export groups, discussing the impact of market forces, infrastructure, and competition.
CONCLUSION: Summarizes the study's findings, affirming positive results in terms of market access and pricing while emphasizing the need for infrastructure improvement.
Keywords
World Trade Organisation, WTO, Indian Agriculture, Agricultural Exports, Market Access, Price Index, Traditional Items, Non-traditional Items, Green Revolution, Fisher’s Ideal Index, Trade Liberalization, Commodity Export, Export Performance, Infrastructure, Tariff Barriers
Frequently Asked Questions
What is the fundamental focus of this research?
The paper evaluates the impact of the WTO regime on India's agricultural export sector, focusing on whether expectations of better market access and improved pricing for agricultural commodities have been achieved.
What are the primary thematic areas addressed?
The core themes include the categorization of agricultural exports into traditional, non-traditional, and future-potential groups, and the measurement of their performance using specific quantity and price indices.
What is the primary objective of this study?
The goal is to analyze the problems and prospects of India's agricultural exports since 1995, specifically assessing the movement of export volumes and price realizations in the global market.
Which scientific methodology is employed?
The study utilizes quantitative analysis, specifically applying Fisher’s Ideal Index to calculate and compare the quantity and price indices for different groups of agricultural export items over the years.
What is covered in the main body of the work?
The main body examines statistical trends for distinct export categories, analyzes the influence of trade liberalization, and discusses how internal factors like infrastructure and technology affect export performance.
Which keywords define the scope of this work?
The work is defined by terms such as WTO, Agricultural Exports, Market Access, Price Index, Indian Agriculture, and Trade Liberalization.
How did traditional agricultural items perform under the WTO?
Traditional items showed initial growth followed by fluctuations; while they have secured a stable position, their export volume faced challenges in the early 2000s before recovering through better export promotion efforts.
Why are non-traditional items described as having "lop-sided" growth?
The growth is primarily influenced by the performance of specific items like rice, rather than a broad, uniform increase across all non-traditional categories, leading to significant volatility in the quantity index.
What conclusion does the author reach regarding infrastructure?
The author concludes that India must urgently improve rural infrastructure and upgrade technological know-how to successfully transition potential export opportunities into reliable, long-term trade growth.
- Arbeit zitieren
- Dastgir Alam (Autor:in), 2011, The World Trade Organisation and India's Agricultural Exports, München, GRIN Verlag, https://www.hausarbeiten.de/document/177691
