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Competitiveness and Trade Performance of India's Dairy Industry

Author

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  • Ramphul Ohlan

    (Institute of Management Studies and Research, Maharshi Dayanand University, Rohtak 124001, Haryana, India)

Abstract

The study investigates the pattern, trends, competitiveness, and determinants of the export of dairy products from India—the world’s largest milk producer. Data show that exports of dairy products from India have witnessed a remarkable growth in recent years. Our estimates also establish that India has price competitiveness and comparative advantage in the production of milk. Some instability is observed in the export markets of Indian dairy products, as notably shown by the high probabilities of Bangladesh and the UAE to gain market shares from the other importers of Indian dairy products. Furthermore, the results indicate that dairy export from India is elastic to the world market size, price divergence, exchange rate, and trade policy. Based on the findings, it is recommended that India should focus on improving the quality of its dairy products to get a premium price in the world market.

Suggested Citation

  • Ramphul Ohlan, 2014. "Competitiveness and Trade Performance of India's Dairy Industry," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 11(2), pages 17-38, December.
    • Handle: RePEc:sag:seajad:v:11:y:2014:i:2:p:17-38
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    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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