An impact of India’s export tariff on coconut products: A multi-market model approach

For a long time, India’s primary agricultural export source was products made from coconuts. The specific objective is to create a multi-market model to study the effects of various policies on the export tax rates for Indian coconut products. Various coconut products’ production, prices, consumption, and exports are just a few of the consequences that can be quantified along with alternate options. On the production and exports of coconut-related value added commodities, the study relied on secondary sources. The results of simulations assessing the impact of changing export tax rates on the incomes of producers, processors, exporting firms, and the government showed that reductions in export tax rates by 30 per cent, led to positive growth in industry income, the income of suppliers of coconut products, and the income of exporting firms, but a loss in tax revenue for the government except for the activated carbon market. When there is an increase or decrease in the export price, activated carbon markets seem to be positive for all the stakeholder groups. Hence, the government has to improve the export market through the development of the coconut industry, which needs a major investment from the government or other partners in the private sector and also needs investment to modernise production and exports.