In the recent past, agricultural exports, especially plantation crops, which are the backbone of India, have been subjected to many nontariff measures. Since the liberalisation of trade has led to the integration of global commodity markets, developing countries are significantly affected by these trade barriers, which indirectly hurt millions of plantation community. Traditionally, India is well known for its exports of beverages and stringent maximum residual limits, traceability issues, and food safety standards are complex issues surmounting trade in the plantation sector around the world. Hence, the present research study attempts to find the shock of nontariff measures on the prices of both export and domestic beverages and the hammering in returns to the Indian beverage industry by the partial equilibrium method. This model directly measures the simulation effect of nontariff measures by imposing NTM on tea and coffee sector. It is obvious that as the NTM percent increases from 10 percent to 25 percent on tea sector, the loss in export quantity was more from 22.24 million kg to 55.61 million kg and loss of revenue was from Rs. 2997 million to Rs. 7492 million for the corresponding NTMs. Likewise the loss in export quantity (62.85 million kg) and loss in revenue (Rs. 9412 million) were high in 25 per cent of NTM. The present study shows how to allow for market imperfections and trade facilitating effects of nontariff measures in the beverage sector.
Beverage, Exports, Export restrictions, Nontariff measures, Trade policy
Arita, S., Beckman, J. & Mitchell, L. (2017). Reducing transatlantic barriers on US-EU agri-food trade: what are the possible gains?. Food Policy, 68, 233-247. DOI:http://dx.doi.org/10.1016/j.foodpol.2016.12.006
Beckman, J. & Arita, S. (2016). Modeling the interplay between sanitary and phytosanitary measures and tariff-rate quotas under partial trade liberalization, American Journal of Agricultural Economics, 99(4), 1078–1095.
Beghin, J.C., Maertens, M. & Swinnen, J. (2015). Nontariff measures and standards in trade and Global value chains, Annual Review of Resource Economics, 7(1), 425-450.
Chawla, S., Roadb, D.Z. & Highlands. (2016). Sustainability in Indian Tea Industry, American Scientific Research Journal for Engineering, Technology, and Science, 20(1), 179-189.
Coffee Board (2019) Ministry of Commerce and Industry, Government of India, Bangalore
Dal Bianco, A., Boatto, V.L., Caracciolo, F. & Santeramo, F.G. (2016). Tariffs and nontariff restrictions in the World wine trade, European Review of Agricultural Economics, 3(1), 31-57.
Dastagiri, M. B. (2017). India’s horticultural export markets: Growth rates, elasticities, global supply chains and policies, Modern Economy, 84(7), 847-864. https://doi.org/10.4236/me.2017.87059
Deepika, M.G. (2017). Export performance and factors affecting competitiveness of plantation commodities in India, Indian Journal of Agricultural Economics, 72(4), 587-604.
Goldar, B. (2005). Impact on India of tariff and quantitative restrictions under WTO. Working Paper, 172, ICRIER, New Delhi.
Goldar, B., Pratap, D. & Yashobanta, P. (2010). Impact of tariff reduction according to Doha modalities on India’s trade of agriculture products, Institute of Economic Growth, New Delhi.
Kazunbo, H. (2011). Bilateral tariff rates in international trade: Finished goods versus intermediate goods, IDE Discussion Paper 304, Institute of Developing Economies, JETRO.
Melo (de), J. & Shepherd B. (2018). The economics of nontariff measures: A primer. Working Paper 212, FERDI, South Africa.
Shubha & Rich, M. (2017). Coffee certification in India: Awareness, practices, and sustainability perception of growers, Agroecology and Sustainable Food Systems, 42(4), 448-474. https://doi.org/10.1080/21683565.20 17.136 1497
Swinnen, J. (2017). Some dynamic aspects of food standards, American Journal of Agricultural Economics, 99(2), 321-338. https://dx.doi.org/10.1093/ajae/aax022
Tea Board (2019). Ministry of Commerce and Industry, Government of India, Kolkatta
UNCTAD (2020).The global database for nontariff measures collection. United Nations Conference Trade and Development.
Veeramani, C. & Gordhan K. Saini. (2010). Impact of ASEAN-India FTA on India’s plantation commodities: A simulation analysis. Working Paper 2010-004, Indira Gandhi Institute of Development Research, Mumbai.
Weerahewa, J. (2003). Estimating market power of tea processing sector, Sri Lankan Journal of Agricultural Economics, 5(1), 69-82. http://dx.doi.org/10.4038/sjae.v5i 0.3477
World Trade Organisation (2020). Integrated Trade Intelligence Portal. Available: https://i-tip.wto.org/ goods.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
This work is licensed under Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) © Author (s)