Author(s):

Dr. Parminder Kaur and Sserunjogi Brian

Abstract: In India, the share of the livestock sector to agricultural Gross Domestic products (AgGDP) exhibited a consistently rising trend in three decades. The impressive growth trends in the livestock subsector were attributed to effective liberalization policy that was initiated in early 1990’s. The liberalisation of Indian economy eased export trade by removing quantitative restrictions on trade, reduced export taxes, direct participation of the private sector to invest in marketing and organising of farmers into cooperatives. The performance of India’s milk and milk products in the world’s livestock export value showed an increasing trend. The total foreign earnings from export of milk and milk products increased from an average of US$1.41 thousand in TE 1992 to US$ 6.38 thousand in TE 1994. The post WTO period experienced a huge increase in the foreign earnings from export of milk and milk products as export revenue rose consistently from US$ 5.16 thousand to US$ 130.30 thousand in TE 2014. During the post –WTO period, the export of all dairy products increased in absolute and percentage terms however, skimmed milk powder registered higher share followed by whole milk powder, cheese, whey dried, butter and whole fresh cow milk. Milk exports were significantly influenced by the exchange rate, GDP of importing country and institutional credit while world milk production had negative impact. In milk and milk products, India exhibited little export competitiveness for dry milk exports. However, the NPC’s for butter were above unity during pre and post WTO period indicating that India lacked a competitive advantage in export of butter. To strengthen export supply capacity and competiveness, India needs to improve value addition to its livestock exports by subsidizing its exports through increased public and private expenditure on processing plants, cold chains and refrigerated trucks.. Also strict adherence with various sanitary and phyto-sanitary requirements should be followed to increase market access to developed countries where India could earn high value per quantity of exports.

Pages: 476-481  |  855 Views  262 Downloads

Download (568KB)