Millet [100820] Figure 0-1 India s export of Millet to World. Please refer to Table 1 of Annexure.

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2 Millet [100820] Figure 0-1 India s export of Millet to World. Please refer to Table 1 of Annexure. It can be seen from the above graph that India s export of millet was steadily increasing from year 2003 to The exports showed a downward trend from year In the year 2007 the exports were 13.7 million US $. At its peak, the export of Millet was million US$. The export of Millet increased at a CAGR of 23.04%. 424

3 Figure 0-2 Revealed Comparative Advantage of Please refer to Table 2 of Annexure. India has good RCA value for all the years in this product. The RCA value is considerably higher than 1 for all the years which shows that India was better off than world in exporting this commodity. The RCA peaked at which is a pretty high value. RCA followed an upward trend during the years 2003 to 2005 and thereafter it declined steeply, though India is in comfort zone even after the decline. Figure 0-3 India's Export to Yemen.Please refer to Table 3 of Annexure. India s exports to Yemen have been increasing at a good rate. The export to Yemen increased considerably in the year The CAGR for the product for the period 2003 to 2008 is 108%. Major Export Destination India s major export destinations for are Yemen, UAE, Saudi Arabia, Egypt and Sri Lanka. For most of the markets export is showing a steady growth trend. Destination wise description is as follow: 425

4 Figure 0-4 India's Export to UAE. Please refer to Table 3 of Annexure. India s exports to UAE were low in year and 2006.The exports were high in 2004 and The CAGR for this market is 71.67% Figure 0-5 India's Export to Saudi Arabia.Please refer to Table 3 of Annexure. India s export to Saudi Arabia are comparatively stable than the other markets. Export were lowest in year 2003 and thereafter it remained around US$. The CAGR in this destination for the period 2003 to 2008 is 43.5%. 426

5 Figure 0-6 India's Export to Egypt. Please refer to Table 3 of Annexure. India s exports to Egypt have increased steadily from 2003 to The CAGR for the period is 48.8%. Figure 0-7 India's Export to Egypt. Please refer to Table 3 of Annexure. India s exports to Sri Lanka have increased considerably in the For the rest of the years the exports were not that high. Sri Lanka can be looked upon as an emerging market. 427

6 Market Fluctuations UAE UAE Saudi Arabia Saudi Arabia Yemen Saudi Arabia Saudi Arabia UAE UAE UAE Yemen Yemen Yemen Egypt Saudi Arabia Egypt Egypt Egypt Yemen Egypt Sri Lanka Sri Lanka Sri Lanka Sri Lanka Sri Lanka Figure 0-1 Market Fluctuations The graph above shows the ranking of selected markets over the years. It can be observed that the relative positions of the markets have remained relatively stable over the years. There is not much change in the rankings of the countries. UAE topped the rankings for three years. India is the only supplier to Egypt. India has lion s share in the exports to Saudi Arabia. Others competitors have very low market share. India has a market share of 97%.India has nearly captured the whole market in Sri Lanka. India has a market share of 95.9% in UAE. India is performing very well in this market. India is the only supplier to Yemen. India has complete monopoly in this market. 428

7 Trade Intensity Index with respect to Major Export Destination India has a TII value of more than 1 in all the countries. This shows that India is performing relatively well bilaterally with Export Destinations then rest of the world at 2digit level. India is not showing a steady growth or decline in any market. TII analysis of Egypt has been done separately because it is showing very high TII values. TII values for Egypt are very high because India is the only exporter to Egypt of millet and India is not exporting much of HS code 10 to Egypt. Trade Intensity Index: Analysis of competitors UAE TII Saudi Arabia TII India 2.78 India 6.01 Saudi Arabia Yemen USA 0.24 UAE Pakistan 0.02 Figure 0-2 Trade Intensity Index Part 1. Please refer to Table India has major market share in the Export destinations but it has very low TII value with respect to its competitors. This shows that India is not performing very well in these markets at HS code 10. Sri Lanka TII Egypt TII Yemen TII India 8.23 India India China 1.89 Figure 0-2 Trade Intensity Index Part 2 429

8 Relative competitive advantage UAE RCE Saudi Arabia RCE India 2.02 India 0.94 Saudi Arabia Yemen 5.99 United States 0.17 United Arab Emirates Pakistan 0.01 Figure 0-1 Relative competitive advantage part 1 please refer to Table10 and 11 Sri Lanka RCE Egypt, Arab Rep. RCE Yemen RCE India 1.11 India India 1.00 China 0.25 Figure 0-2 Relative competitive advantage part 2 please refer to Table 10 and 11 India has low RCE value in UAE and Saudi Arabia which shows That India is exporting other products in the HS code 10 intensively too. Other countries have low market share and high RCE values which show that these countries are not exporting much of other products in HS Code 10. India has RCE value of more than 1 in majority of export destination. In Yemen, the RCE value is 132 which shows that millets export in that country are very competitive. 430

9 Tariff and Non Tariff measures Tariff and Non Tariff barriers for in Identified Markets Major Markets Import tariff Other Tariffs NTM % NTM Tariff description Tariff rate Sri Lanka Saudi Arabia UAE N/A Yemen N/A Egypt 5 Custom clearance 10 0 Sales Tax 2 Figure 0-1 Tariffs and NTMs It can be observed from above table that Import tariff in Sri Lanka is highest followed by Yemen and Egypt. An exporter must put into consideration Import tariff while choosing an export destination as price play a very important role in international trade. No non tariff measures have been imposed on which will allow smooth flow of exports. Other tariff totaling to 12% are also applicable in Egypt. Tariff Rate Quota Free Tariff Trade quotas Agreement were not and invoked Preferential by any Trade countries Agreement during the years 2003 to 2007 on Tariff Escalation Country FTA/PTA Rate Tariff escalation is not applicable to this product as it is a primary product. Sri Lanka ASEAN FTA 2003 rate 0% Special Safeguard Duty Saudi No Special Arabia Safeguard Duty was imposed None by any country during the years on United Arab Emirates None Yemen None Egypt, Arab Rep. None Figure 0-2 FTA and PTA The product is covered under no FTA /PTA in all export destinations except in Sri Lanka where it carries 0% tariff as compared to 28 % in normal circumstances. An exporter should not worry as no major competitor is covered under this FTA otherwise that exporter would have a major advantage over India. 431

10 Subsidies Structure in major export markets on Markets Subsidy Structure on in identified markets Product Specific Non Product Specific Green Box S &D Currency Year Sri Lanka none none (Mn Sri Lankan Rs.) 1997 Saudi Arabia none (million SRls) 2006 UAE none (Dh) 2001 Yemen none none none none Egypt none (US$ '000) 1998 Figure 0-1 Subsidy Structure No product specific subsidy was given in these markets to So an exporter need not worry exporting to these countries. The exporter should keep an eye over Non Product Specific support, Green Box support and Special Treatment given by the countries to agricultural sector as to have an overall idea of support given by national governments to agricultural sector. A very high support can affect the exporter adversely as his product may not remain competitive in that country. Summary Major Destinations Export CAGR Market Share TII RCE Tariff % Yemen % United Arab Emirates % Saudi Arabia % Egypt, Arab Rep % Sri Lanka %

11 Annexure Table 0-1 Trend in Exports for (US$ Mn) Code CAGR Revealed Comparative Advantage of Year India's exports India's total exports World's exports World's total exports RCA Table 0-2 Revealed Comparative Advantage of Major Export Destinations for Partner Name CAGR Yemen United Arab Emirates Saudi Arabia Egypt, Arab Rep Sri Lanka Table 0-3 Major Export Destinations for Competitors Analysis in Destination countries Egypt, Arab Rep. Export % Share World India % Saudi Arabia Export % Share World India % Yemen % United Arab Emirates % Sri Lanka Export % Share 433

12 World India % China % United Arab Emirates Export % Share World India % Saudi Arabia % United States % Pakistan % Yemen Export % Share World India % Table 0-4 Competitors Analysis in Destination countries Trade Intensity Index for with respect to Major Export Markets India's export World Export Year TII Egypt, Arab Rep Table 0-5 Trade Intensity Index for with respect to Major Export Markets Part 1 Trade Intensity Index for with respect to Major Export Markets India's export World Export Year TII Saudi Arabia India's export World Export Year TII Sri Lanka

13 India's export World Export Year TII United Arab Emirates India's export World Export Year TII Yemen Table 0-6 Trade Intensity Index for with respect to Major Export Markets Part 2 TII: Competitors Analysis UAE TII Saudi Arabia TII India 2.78 India 6.01 Saudi Arabia Yemen USA 0.24 UAE Pakistan 0.02 Table 0-7 TII: Competitors Analysis Part 1 TII: Competitors Analysis Sri Lanka TII Egypt TII Yemen TII India 8.23 India India China 1.89 Table 0-8 TII: Competitors Analysis Part 2 435

14 TII: Competitors Analysis Competitor 's Competitor s Total Export Total export of export of Total Export of of to Saudi 10 to Saudi Egypt Arabia Arabia TII India Competitor 's Competitor s Total Export Total export of export of Total Export of of to Saudi 10 to Saudi Saudi Arabia Arabia Arabia TII India Yemen United Arab Emirates Sri Lanka Competitor 's export of Competitor s Total Export of 10 Total Export of to Saudi Arabia Total export of 10 to Saudi Arabia India China TII Table 0-9 Relative Competitive Advantage Part 1 TII: Competitors Analysis Competitor 's export of UAE Competitor s Total Export of 10 Total Export of to Saudi Arabia Total export of 10 to Saudi Arabia India Saudi Arabia United States Pakistan Competitor 's Competitor s Total Export Total export of export of Total Export of of to Saudi 10 to Saudi Yemen Arabia Arabia TII India Table 0-10 Relative Competitive Advantage Part 2 TII 436

15 Relative Competitive Advantage Egypt Competitor export of 's Competitor s Total Export of 10 Export of Export of 10 India Saudi Arabia Competitor export of 's Competitor s Total Export of 10 Export of Export of 10 India Yemen UAE Sri Lanka Competitor export of 's Competitor s Total Export of 10 Export of Export of 10 India China UAE Competitor export of 's Competitor s Total Export of 10 Export of Export of 10 India Saudi Arabia USA Pakistan RCE RCE RCE RCE Yemen Competitor export of 's Competitor s Total Export of 10 Export of Export of 10 India Table 0-11 Relative Competitive Advantage RCE 437