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Instability in Export of Onion in India

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P. Divakar Reddy, N Vijaykumar, G.B. Ramesh, D.A. Rajani Devi, T.M. Dinesh

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Indian Journal of Economics and Development
Year : 2016, Volume : 12, Issue : 1a
First page : ( 165) Last page : ( 168)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2016.00057.3

Instability in Export of Onion in India

Reddy P. Divakar1,*, Vijaykumar N2, Ramesh G.B.2, Devi D.A. Rajani1, Dinesh T.M.1
1Department of Agricultural Economics, College of Agriculture, PJTSAU, Hyderabad

2Department of Agricultural Economics, College of Agriculture, UAS, Raichur

*Corresponding author’s email: divakarreddy652@gmail.com

JEL Codes C62, F42, F65, Q13

Online published on 26 April, 2016.

Abstract
Onion is an important vegetable and has been grown in almost all the parts of India for thousands of years. The onion is regarded as a highly export oriented crop and earns valuable foreign exchange for the country. The study was taken up to know the instability of the onion markets in India during 1995–2013, for this the secondary data was collected and to know about the stability in export, Instability index. This index was used to assess the instability associated with the export of onion to different countries. The instability index of export in terms of quantity during pre removal period was 23.6 per cent, while in the post removal period it has reduced to 16.89 per cent signaling stability in terms of export. This can be attributed to increased production (area led). In terms of value much difference was not observed between the two time periods. United Arab Emirates was the most loyal importer of Indian fresh onions with retention probabilities of 0.65. This was reinforced by the transfers from Indonesia to the extent of 0.11 probabilities, and 0.33 probabilities from other country share. But it had tendency to lose its share to Malaysia to the extent of 0.12 probabilities. Malaysia with a retention probability of 0.44 was the third loyal importer of Indian onions. It had absorbed 0.12 probability shares from UAE, 0.37 shares from Bangladesh and 0.11 share probabilities from Indonesia. But it had lost 0.2633 probability share of its previous year’s share Bangladesh and 0.29 probability share to the others countries. Indonesia was the second loyal importer of Indian onion with a retention probability of 0.77. It had lost its share to Malaysia and UAE at 0.11 probability share.

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