Trend Analysis and Export Competitiveness of Coffee Production in India

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Nitin Goyal1, Ankita Sharma2, Subodh Agarwal3, and Darvinder Kumar4 (Department of Business Management, CCSHAU, Hisar, Haryana1,2,3 and Department of Statistics, PGDAV College, University of Delhi, Delhi4)

When people think of coffee, they usually think of its ability to provide an energy boost. Coffee contains a number of useful nutrients, including riboflavin (vitamin B2), niacin (vitamin B3), magnesium, potassium, and various phenolic compounds, or antioxidants. The two most commonly grown coffee bean types are C. arabica and C. robusta. This paper, attempts to analyze the growth, level of variability/instability in area, production and productivity for both the varieties of coffee collectively and to estimate the export competitiveness of coffee grown in India using the data for the period 2000-2001 to 2019-2020. Compound growth rate technique was used to analyze the growth rate and instability was estimated using Coppock’s instability index. Relative symmetric comparative advantage (RSCA) technique was used to analyze the export competitiveness. The study revealed that coffee reported a positive growth rate in area (1.60%) whereas yield declined slightly at the rate of 0.76 percent per annum. The positive growth in area outpaced negative growth in yield resulting thereby positive growth in production at the rate of 0.82 percent. Highest instability was recorded for production (5.83%) which is due to the higher instability in yield (5.72%) as only small instability was recorded in area (0.88%). Further, the study indicates that there was a variation in export competitiveness of coffee from India during the period under study. India had a comparative advantage in the exports of coffee during 2000-01 to 2010-11 and 2015-16 to 2018-19 as RCA values are more than one and RSCA values are positive during this period. In rest of the years it was found comparatively non-competitive. It indicates that India has potential in coffee export.