Indian Stakes in the Global Coconut Scenario by the Turn of the Century: An Empirical Investigation

• Published in: South Asia economic journal (Institute of Policy Studies) 2009-01, Vol.10 (1), p.209-221
• Main Authors: Lathika, M., Kumar, C.E. Ajith
• Format: Article
• Language: English
• Subjects: Cluster analysis; Comparative advantage; Competition; Interest groups; Liberalization; Prices; Production; Trade; Turn of the century
• ISSN: 1391-5614; 0973-077X
• DOI: 10.1177/139156140901000109

The study sought to identify the prospective coconut producing countries that put up formidable trade competition to India, and to examine the growth performance of coconut in major producing countries, especially the ones identified to be real challengers to Indian interests. The cluster analysis of trend data for 18 years till 2002 on five parameters and with reference to eight dimensions of coconut performance delineated the key players in the international coconut market. Philippines, Indonesia and India formed the cluster of major stakeholders. India fared better than both the other countries in the major cluster, in respect of area, production and yield; and therefore, it should enjoy a comparative advantage. However, the acreage growth in India was stagnant during the post-liberalization phase and it does not appear to take advantage of other options available to it by moving up the value chain and thereby resisting the market pressure on domestic prices in an open economy environment. This resulted in a price crash of coconut products at the dawn of the new century.