1. 2. LITERATURE REVIEW.
In the context of India’s tea export, there exists vast literatures .But for this study we have included
some of the important empirical works which are matched with our objectives.
Chand and Tiwari,(1991),analyzead growth and instability of India’s export and import of agricultural
commodities. Jaganathan , (1992) , in his paper examined the instabilities of export earnings of selected groups and
selected commodities and all the commodities from the period 1974-75 to 1989-1990. Pal , (1992) , analyzed the
magnitude , causes and effects of instability of agricultural export earnings of India for the period 1979 to
1989.Subramaniam , (1995) , analyzed the impact of fluctuations in tea production and exports on international tea
trade .He articulated that India plays a significant role in world tea trade , being the world’s largest producer ,
consumer , and exporter . Therefore , fluctuations in India’s tea production , consumption and exports are enough to
disturb international tea trade . Aiello , (1999) , analyzed that the effects of export earnings instability on economic
growth of developing countries has long interested economists for several reasons . Reddy , (2001) , examined
global demand for and supply of tea by estimating semi – log trends separately using data of the recent past , 1974
to 1988 , on the area under cultivation of tea , production , export and retention of tea for domestic consumption .
Debraj , (2003) , in a column in India together news letter said that globalization has hit the Indian tea industry . He
added that its traditional market in the countries that made up the former Soviet Union have been steadily drained up
and hence results in falling demand for tea in abroad .Sathe and Deshpande , (2006) , in their paper made an attempt
to review the changes in their trends and composition of agri-trade from 1990 till 2004 . South Asian watch on
Trade (2006) analyzed that in Nepal, tea had potential to benefit large segments of rural population and lift them out
of poverty and stagnation. Shinoj and Mathur , (2008) , in their paper identified that the recent developments in the
international trade scenario and corresponding alterations in India’s foreign trade policies has depicted for reaching
implications for India’s agricultural sector and agricultural exports in particular . The study also revealed that India
had been able to maintain its comparative advantage , but several others such as tea , coffee , spices , etc., had been
negatively affected by trade openness policy . Wong ,(2006) ,proclaimed that the existence of a positive and
significant effect of trade openness on the productivity of manufacturing industries in export - oriented industries
in the years after trade reforms curve implemented, but decreasing productivity after 2000 .Yucel, (2009),
examined the causal relationship between trade openness and economic growth (GDP) for the Turkish economy .
The findings of his study showed that while trade openness has a positive effect , financial development has a
negative effect on growth. Vander and Wall (2008) examined the sustainability issue in the tea sector for six
leading tea producing countries in the world,viz ,India ,Srilanka , Vietnam , Indonesia , Kenya and Malawi .This
study is based on an extensive field study of civil society organization in these countries . A considerable number of
studies have attempted to explain empirically the relationship between trade openness and government expenditure.
Rodrik , (1998), Adsera and Boix , (2000), and Albertos , (2002), proclaimed that existence of positive linkage

2. between trade openness and government spending is due to high compensation hypothesis where as Alesina and
Spolaore ,(1997), Alesina et al (1997) , Frankel and Romer (1999) , and Bretschger and Hettich , (2002) , indicated
that government size and trade openness are interrelated with country size . Smaller countries tend to have higher
trade shares than the larger countries as the same amount of trade flows represents a different shares of GDP .
Alkan , et al .,(2009) in their paper investigated the importance of tea sector all over the world among major
producer. Nagoor (2009) examined the performance of India’s tea exports and identified the underlying
factors . The study also looked at tea exports and production response in major tea exporting countries
under WTO regime . Nagoor and kumar , (2010) in their paper investigated that with the signing of the Free
Trade Agreement with the Association of South East Asian nations , there are apprehensions that the
consequent reduction in import tariffs will adversely affect the Indian tea industry . Adhikary and Maity,
(2010) computed instability indices of various sections of export for 1966 - 1967 to 1986 - 1987 .
Keeping all these studies in mind we now return back to our main study i.e, the study of analyzing
the trend of India’s tea export in the scenario of trade openness . The next section will not only analyze the
results but also we will try to explain the reasons behind these results . Finally , on the basis of our study we
will suggest several policy prescriptions to take the advantage of trade openness for exporting tea from India.
REVIEW OF LITERATURE
2.1. Review of literature is an integral part of any research study. It palys a significant
role in shaping the purspective of researching to set the tone of the study. A huge
vollume of literature is avilable with regard to export of rice from india, particularly
rice.Here, a brief attempts is being made to explore of a little of the vast aray of
literature resources relating to export of rice from india to other countries.

3. 2.2. Maizels ,(1968) tested the hypothesis relation between exports and saving. He
took annual data from 11 member nation of the overseas sterling area for the period
1950 to 1960 and found a significant degree of correlation between savings and
exports.
Kelker and sharma (1976) examined the trend and determinants of india’s export
performance for the period 1961 to 1974. He concluded that reason for loss of india’s
export share in world maekt lies on supply as well as on demand side.
Kannan, (1986) analysed the export performance of agricultural commoditis from
1968-69 to 1881-82. In case of almost all the commodities, incresed unit value was
primarily an important factor in the achievement of higher export earnings. In case of
rice, marine products, quantum increse was reinforcing factor.The export of rice sugar
and raw cotton were subject to considerable instability.
Pahariya and Ahuja, (1986) applied the Heckscher-Ohilin Sumuleson model to indian
economy to explain the commodity pattern of her trade. They concluded that physical
capital intensity was not good predictor of india;s tarde pattern as a single explanatory
variable the human capital did better job than any other variable.
Mukherjee, (1987) empirically investigated the relationship between exports and
economic growth in India for the period 1950-51 to 1980-81.she observed the
negative regression coefficients between GNP growth and export growth showing that
‘a 1 percent increase of bringing about any increase in income, was seen to be
accompanied by decrease in income’.
Nayyar, (1987) studied india’s export performance for the period 1970-85 as well as
for two sub-periods 1970-78 and 1978-85.He argued that during 1970-78 ,various
internal factors like decrease in agricultural production increased domestic demand
for manufactured goods contributed to slowing down of export growth but after 1978
external factors were responsible for slow growth.
Tyagi, D.S. (1990) in his article analyzed the problems and alternatives related to
Indian food economy. In his article he suggested that although a very well developed
Statistical system exist in India, neither the degree of reliability is very high nor the
statistic are available on time. so, immediate steps should have to be taken to improve
the reliability and timeliness of basic information required for managing the food
economy,
Nandi and Biswas, (1991) tested two way causality between export growth and
growth of income in India for the period 1960-1985.The econometric results showed

4. that in Indian context, causality ran one way only i.e. export growth-led growth of
national income but growth of income had no impact on growth of export.
Dutta, (1996), mentioned that a major problem of Indian rice milling industry is that,
due to large varities in grades and grain sizes, machinary adjustment become
different. De- husking paddy, seperation and polishing equipments require
improvement in designs by incropting hydraulic and electronic controls. This is
needed if Indian rice is to cater to the needs of the premium markets both at home and
abroad.
Patnaik, U. (1997) observed falling total area under foodgrains and decelerating
growth of foodgrains outfood below the population growth rate during the period of
structural adjustment.
Durga, P.K. (1997) in his article also discussed the world rice market with properly of
India’s rice export.
Childs, N. & Burdett, A. (2000) in there article analyzed the U.S rice export market.
This article breaks up the us rice export market by type of rice exported and describes
recent trends within each market. In their article, they found that U.S share of global
rice exports have declined since 1989.The U.S exports raise in all three form: paddy,
brown and rough. However since the mid 1990s only rough rice has shown any
sustained growth.
Dorosh, P.A , (2001) in his article analyzed the issue of trade liberalization and food
security with giving emphasis or focus on the rice trade between Bangladesh and
India .From his study he found that the trade liberalization offers potential benefits
for national food security by enabling a rapid increase of food supplier following
domestic production short falls.
Khan, A.U, (2004) in his article discussed growth and farmer related issues related to
the Indian agriculture. In his analysis , he also included the impact of GREEN
REVOLUTION on agriculture.
Gruere, G. et al. (2004) In there article analyzed the potential effects of introducing
GM rice in India with or without China.They also focused on 4 types of GM rice
resistance to biotic and a biotic stresses, such as drought resistant rice and use a multi
country , CGE model to stimulate their introduction in India.
Wailes, E .T.,(2004) in his article discussed the various implication of the WTO
DOHA ROUND for the rice sector, In other words he analyzed the impact of WTO
DOHA ROUND on the rice sector.At the end of his study ,he found that the benefits

5. of such policy reform on a global basic will benefits Japan, China the Europe union
and Australia by large measure and the policy reform one rarely zero sum as is
suggested by the estimate given in his study .
Barah,B.C,(2005) article analyzed the dynamics of rice economy in India a and he
also discussed the emerging scenario &policy option related to the Indian rice
economy .He also used spatio temporal rice related data from secondary sources
pertaining to rice growing the areas to study the trends and growth pattern over the
decades (1950-51 to 2001-02) He also discussed the poor performance of agriculture
sector in eastern India & thus it requires the enhancement of rice productivity and
rice based system by focusing & prioritizing the rise research in eastern India.
Warr, P.G & Wollmer, F.T,(2005) in his article examined the long demand
relationship of Thailand exports of rice drowning upon recent developments in the
statistical analysis of economy time series and the inside of airsing from a recent
debate on the elasticity of demand for manufactured exports from LDC’s. A
relatively robust long run price elasticity of demand for rice is obtain to between -1.2
ands 1.9.The “small country “hypothesis is rejected using the specification of the
price normalized demand equation .They also found that the result of there analysis
are relevant for current agriculture policy debate in Thailand.
Boriss, H.(2006) in his article analyzed the various aspects of US, Rice market. In his
article, he also analyzed the various industry characteristics & production related to
rice in US.US rice policy & govt. programmes are also a part of his analysis He
discussed various issues such as export import etc. related to US rice sector.
Banik, N.(2007) in his article identified a set of factors that appear to be responsible
for an increase in India’s export growth during recent years .He also examined the
possible impediments to high export growth in a sustained manner .He found that
increase in India export‘s during the year following 2000 is predominantly services
driven and is attributed to increase in factor productivity , growth in world trade, an
increase intra –industry trade and external sector reform .He suggested that India
should be willing to take a more constructive approach ,along with other developing
countries, at multilateral forms such as WTO.
Slaton, T.& Timmer ,P(2008) in his article analyses the crisis. in the world rice
market .in this article ,they analyses that under the leadership of U.S, the countries
like Japan ,China & Thailand can solve the problem of world rice crisis
Pandian, B.J.,(2009) in his article discussed about the System of Rice Intensification
(SRI) in Tamil Nadu. In his article, he has mentioned that the System of Rice

6. Intensification is a holistic agro-ecological crop management technique seeking
alternatives to the conventional high input oriented agriculture through effective
integration of crop, soil, water and nutrient management. He further stated that SRI
grown rice is introduced to the US food trade & consumers also. He also discussed
the Chinese experience related to the SRI.
Mitra, S & Jasling T (2009) In their article analyzed export restrictions from two
different but related angles. In their analysis, they dicussed the welfare implications of
export restrictions both for the country imposing such measures as well as for the rest
of the world. They further tried to explore an overview of how export restrictions
have been addressed in trade negotiations and agreements and other such efforts to
achieve greater market stability. They also stated the global and domestic impact of
export restrictions and tried to estimate the change in world welfare due to export
restrictions.
Kulkarni, K. G (2009) in their article analyzed the effects of India’s trade policy on
rice production and exports. They analyzed the economic effects of such trade policy
in the framework of Comparative Static Model that explains the costs and benefits of
tariffs and subsidies. They found that the protectionists trade policy actions
undertaken in 2008 resulted in an estimated $ 260 million increase to national welfare
consumers benefited from lower prices and the loss to producers was offsets the govt.
aid, including debt reduction. While it’s policies appeared to limit the transmission of
higher world prices to Indian consumers, India’s monopoly power in the production
of rice could have limited the full effect of price decrease.
Iqbal,B.A,&Merwe,T.V.D(2010)in their article discussed the issues of Indian food
crisis. They also analyzed the issue of Indian food crisis by examining the reasons for
food crisis, existing trends in production of food crops, state wise procurement of
wheat, and rice, per-capita availability of food grains, trends in price rice, genesis of
crises and fear that Indian planners are having in mind. They also discussed the
currents trends and economic impacts of food grains and at the end, they found that
slow agricultural growth has been a cause of food crisis.
Sharma , A , (2011) in his article analysis about the Rosola basmati rice .com , an
agro-product export comp. that intoduces high quality of Basmati rice and the various
issues related to its export from India. In his article he also talked about royal basmati
rice which is also another variety of Indian rice that the rosola BASMATI RICE com.
company also supplies to many foreign markets.
2.3. Hence, this attempt to review a few of the studies that had been conducted in
this field not only brought certain trends and charecteristics of rice trade in india but

7. also can serve the purpose of forming hypothesis of this study. So, kepping all these
studies in mind, we came back to our main study, i.e. ‘Export of rice from India to
abroad.’
Radha Charan Rabidas
Roll No.: 15 (4th Sem)
Email ID: radhacharanr.aus@gmail.com
REVIEW OF LITERATURE:
2.1. There are vast literature to review regarding the pattern and
trend of rice production in India. Regarding this concept many
researchers and scholars contributed by their empirical works. In

8. the following sections an attempt has been made to review some of
the available literature on the pattern and trend of rice production
in India.
2.2. SOME MAJOR EMPERICAL WORKS:
Blyn, (1966), in his article he found that as every foodgrains
plays an important role in Indian food economy. There is no
separate government policies for boosting rice production. He also
mentioned that performance of Indian agriculture after
independence was much better than before independence. Sen,
A.K. (1967), in his article analysis that the production related
issues of rice. In his article he also discussed that the high rates of
increase in production, the instability or year to year fluctuations in
rice output increased during the post-green revolution period
particularly in the second decade. Many explanations are offered
for this phenomenon. Bhuian,(1992), mentioned that there is a
need to study the input use pattern and the practices followed by
the farmers in paddy growing regions. Since water is also very
important input in rice production, so nearly half of irrigation
water is used for rice production. Tiwari, K.N. (2002), according to
him to achieve rice production target by 2012, balanced and
adequate phosphorous and potassium fertilizer as well as nitrogen,
sulphur and zinc is essential. To improved rice production and
productivity in rainfed areas may not only help the resources. For
farmers, but also substantially increased food production. He also
mentioned that there is urgent need to educate farmers about the
importance of balanced used of fertilizers in increasing yields and
profits in rainfed rice ecology. Uphoff and Randriamiharisoa,
(2002), in their study they found that more rice can be produced by
using less water, provided that concurrent changes are made in the

9. way that plants, soil nutrients are managed. Ramasamy, (2003),
mentioned the production elasticity estimated by the studies
conducted in different states over the period indicates that either
there is no production response to various factors inputs or the
response is declining. The total factor productivity which grew at
an average rate of 1.37 percent per annum in the 1970s and 1.33 %
in 1980s.Kapur, B.N.(2003), showed that the status of rice
production in the state of Haryana has also been remarkable with
the production of 2.68 million tones in the year 2000-2001 over an
area of 10.5 million hectare contributing to 3.16% of total
production in the country. Vittal, K.P.R. et al. (2004), in their
article, they discussed the two main seasons related to rice
production in India. They also analysed the method of rice
production in India. They also calculated the area and yield growth
rate of each district in India. Although the rate are treated as
stagnant and others were decided based on the sign positive or
negative. Ravichandran, S and Singh, (2005), in their article they
found that during the year 2002-2003, the production of rice was
declined due to the draught. The stock of rice reduced from
25.62million tones in 2001-2002 to 19.37million tones in
2002-2003. From their article we can say that the intensity of
draught experienced in year2002-2003 and the decline in rice
reserve. Barah, B.C. (2005), state that the rice sector has witnessed
rapid dynamism in production processes. After climbing a height
of fourfold increase in production during past four decades, the
production curves have started showing downward trend and
productivity decelerating since the later half of the 1990s. Leip, A.
and Bocchi, S. (2OO7), in their article they state that rice
cultivation and production is both an important sequester of carbon
dioxide from the atmosphere an important source of green house

10. gasses. In this context they given example as, in 2004 the global
paddy rice output was 607.3million tones at 14% moisture content.
At the gain/straw ratio of 0.9 for most currently planted rice
varieties, the global rice straw output in 2004 was about 676
million tones at 14% moisture content. This means that in 2004,
rice sequestered about 1.74 billion tones of carbondioxide from the
atmosphere to produce about 1.16million tones of biomass at 0%
moisture content. Sanjay. K. Srivastava, et al. (2009), in this paper
they concern the impact of climate change on agricultural
production as well as rice production. Increase in temperature,
higher carbon-di-oxide concentrations and abnormal patterns of
precipitations coupled with higher frequency and intensity of
drought and floods are likely to enhance considerably the climate
risk to the major agricultural ecosystems. Towards this, the study
on climate risk assessment to rice based agro ecosystems, which
support the livelihood security for very large number of poor and
marginalize in India has been reported this paper.
2.3. In the next section ie.section 3 we will study the pattern and
trend of rice production in India. We will also analyse the research
result explaining the reason behind these result. Finally, like any
other research work we will also indicate the line of our future
research.
Rupak Kumar Doley
Roll No.: 44 (4th Sem)

11. Email ID:
rupakdoley@gmail.com
Review Of Literature:

12. 2.1. Review of literature is an indespensible part of any research
works that provides an important and usefull track to frame their
research works. There are sufficient literature regarding the current
export situation of coffee from India, contributed by many
different researchers and scholars. Now we will try to review those
literature that match with the concept of coffee export from India.
2.2. Dudeja, (1989), in his article, ‘India hopes to export surplus
coffee’ publish in Tea and Coffee Trade Journal, mentioned
various demands of the coffee exporters and coffee growers in
order to increase the internal as well as external demand. Mehta,
(1996), in his article, ‘Indian coffee exporters aims for US market’
mentioned different steps, which are taken to increase the export of
coffee in US market. Gahiro, L. (2000), assessed the fluctuations in
Burundi’s coffee production in different years and also the results
of the slight change in coffee marketing structure in 1991 due to
the partial liberalisation initiated by the World Bank. Lewin, B.
and Giovannucci, D. (2002), in their article, Global Supply and
Demand: New Paradigms in the Coffee Markets, assessed the
larger global situation in terms of both the dominant supplying
countries and the evolution of demand. Achoth, L. (2005),
mentioned the status of the Indian coffee industries as an export
industries with 70% of the total production being exported. He also
mentioned the various research activities of the Coffee Board of
India to find out the comprehensive problem of the mould
contamination in coffee after the country received its first report of
rejection of coffee from Africa during 1994, which left the coffee
producing countries with no alternative but to fall in line with
international standards. Bhat, R. V. (2005), described the
organisation and the activities of different research institutions and
training centres by the Coffee Board of India in order to maintain

13. the coffee quality and safety management and control in India with
positive effect. Potts et al. (2007) assessed the need for economic
stability of coffee producers, its stratigies for development and put
forwarded some specific recommendations for actions. Mercereau
and Vignault, (2008), identified the status of the quality of coffee
and coffee industries in India with Italy and ex-communist block as
the major export destination. They also mentioned that the
sustainable standards have low penetration in the Indian coffee
intustries. Giovannucci,D. and Potts, J. (2008), mentioned that
among the certified commodities, the certified coffee has been
growing at a much faster pace than any other segment of the coffee
industry after its first trade in 1967 through fair trade.
Mohan, S. and Russel, B. (2008), in their paper modeled
the relationship between the producers and the world price of
coffee in three different countries, viz., Brazil, Guatemala and
India allowing for the effects of changes in market structures. They
also found that liberalization has benefited producers substantially
in terms of higher real coffee prices and a higher share of the world
price of coffee. Mutandwa et al. (2009), using the Boston
consulting group (BCG) matrix for analyzing the market for coffee
export in Rwanda, recommendate that, if the role of coffee export
to the country economic vistas is to be consolidated, there is a need
of understanding the social, economic, cultural, institutional and
technological factors affecting sub population in the importing
countries. They also discussed appropriate strategies for their
destination. Smith, E.S. (2010), in his thesis, he found the Fair
Trade to be the key contributor to sustainable income- generating
strategies and socio- economic stability among rural and small
scale coffee farmers. Mohapatra,(2010), mentioned that India’s
coffee exports may be hit due to the higher prices that received by

14. the domestic producers in the domestic spot market. In the paper,
he also mentioned that theb domestic player can expect much
better result from high international future price. Jonsson, L.
(2010), in his paper focused the attention on describing political
rent seeking on the Rwandan coffee sectors institutional structure.
In the paper, it is also mentioned that , the institutional changed
with the liberalisation of the coffee sector and this change, in turn,
provided an opportunity to analyse how and why political actions
taken that changed the institutional structures and thereby curbed
corruption. Govindan, A. (2010), identified the decline in the
production and the increase in the consumption of coffee in India.
He represented the imposition of production subsidy in order to
increase and improve the quality of coffe and also mentioned the
imposition of export susidy in order to export Indian branded value
added coffees and high value coffees to the far off markets, such as
United States, Canada and Japan. Daumal, M. (2010), in the paper
determined through time series regression whether the regional
disperities are linked to countries’ (India and Brazil) trade
openness with the result that Brazil’s trade openness has
contrbuted in reducing the regional inequalities, while, the opposite
result has been found in case of India.
2.3. After reviewing and keeping all those study in mind now we
are back to our main study, ‘Current Export Situation Of Coffee
From India’, corresponding to the future analysis of the research
results along with the explanation of the reason behind these
results.

15. Danswrang Basumatary
Roll No.: 01 (4th Sem)
Email ID:
o.danzz@yahoo.in