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International Business

Assignment - I

EXPORT & IMPORT OF COMMODITY FROM INDIA TO


SAARC NATIONS

By

Santhosh Jaini
0911pgdm078
CHAPTER 1 INTRODUCTION

1.1. Introduction to SAARC1


The South Asian Association for Regional Cooperation(SAARC) comprises
the eight countries of South Asia, i.e. Bangladesh, Bhutan, India, the
Maldives, Nepal, Pakistan, Afghanistan and Sri Lanka.
It is an Association based on the consciousness that in an increasingly
interdependent world, the objectives of peace, freedom, social justice and
economic prosperity are best achieved in the South Asian region by
fostering mutual understanding, good neighbourly relations and meaning
full cooperation among the Member States which are bound by ties of
history and culture.

1.2. Objectives of SAARC

The main objectives of SAARC countries are listed as follows

1. To promote the welfare of the peoples of South Asia and to improve


their quality of life;
2. To accelerate economic growth, social progress and cultural
development in the region and to provide all Individuals the
opportunity to live in dignity and to realise their full potential;
3. To promote and strengthen collective self-reliance among the
countries of South Asia;
4. To contribute to mutual trust, understanding and appreciation of one
another’s problems;
5. To promote active collaboration and mutual assistance in the
economic, social, cultural, technical and scientific fields;
6. To strengthen cooperation with other developing countries;
7. To strengthen cooperation among themselves in international forums
on matters of common interests; to cooperate with international and
regional organisations with similar aims and purposes.
CHAPTER 2 COMMODITY
1
http://www.saarctourism.org/saarc.pdf
2.1. Introduction to Spice Commodity

India is known as the 'The home of spices'. There is no other country


in the world that produces as many kinds of spices as India. The climate of
the country is suitable for almost all spices. Spices constitute an important
group of agricultural commodities which are virtually indispensable in the
culinary art. In India, spices are important commercial crops from the
point of view of both domestic consumption and export. Besides, huge
quantities of spices are also being consumed within the country for
flavoring foods and are also used in medicine, pharmaceutical, perfumery,
cosmetics and several other industries

2.1.1. Import details of Spice commodity to SAARC Countries2

Given Below is the graph showing the Import of Spices by India from
SAARC Countries in terms of Values over a period of 10 Yrs.

Import of Spice from SAARC Countries


1999- 2000 2001- 2002- 2003 2004- 2005- 2006- 2007- 2008-
2000 -01 02 03 -04 05 06 07 08 09
Srilanka 6,023.49 5,284 13,43 14,21 7,447 15,63 15,05 12,99 18,55 18,51
.71 4.62 8.60 .10 4.71 7.37 6.76 5.21 4.16
Trend Analysis -- - 154.2 5.84 - 109.9 -3.69 -13.69 42.77 -0.22
% Change ----- 12.26 2 47.62 4

2
CMIE Data base
Import of Spice from SAARC Countries
1999- 2000 2001 2002 2003- 2004 2005- 2006- 2007 2008-
2000 -01 -02 -03 04 -05 06 07 -08 09
Afghanistan 375.63 242.2 17.6 349.7 1,046. 795.5 1,333. 1,475. 922.6 817.2
1 4 95 1 94 77 1 6
Trend Analysis % -- - - 1887. 199.3 - 67.68 10.63 - -11.42
Change ----- 35.72 92.74 7 5 24.02 37.48

Import of Spice from SAARC Countries


1999- 2000 2001 2002 2003 2004 2005 2006 2007 2008-
2000 -01 -02 -03 -04 -05 -06 -07 -08 09
Bangladesh 391.81 673.5 14.15 130.5 81.91 340.0 0.76 18.22 367.7 906.4
7 6 6 2 2
Trend Analysis % --- 71.91 -97.9 822.8 - 315.1 - 2286. 1918. 146.4
Change ---- 2 37.26 6 99.78 11 72 9

Import of Spice from SAARC Countries


1999- 2000 2001 2002 2003 2004 2005 2006 2007 2008-
2000 -01 -02 -03 -04 -05 -06 -07 -08 09
Bhutan 24.67 47.09 111.8 71.77 151.2 44.78 13.39 12.64 0.00 0.00
9 2
Trend Analysis % --- 90.85 137.6 - 110.6 - -70.1 -5.58 0 0
Change ---- 1 35.85 9 70.39

Import of Spice from SAARC Countries


1999- 2000 2001 2002 2003 2004 2005 2006 2007- 2008-
2000 -01 -02 -03 -04 -05 -06 -07 08 09
Nepal 1,938.93 4,575 4,998 6,734 7,862 7,127 8,461 5,342 15,283 18,089
.09 .21 .97 .26 .28 .59 .77 .06 .47
Trend Analysis % -- 135.9 9.25 34.75 16.74 -9.35 18.72 - 186.05 18.36
Change ----- 6 36.86

Import of Spice from SAARC Countries


1999- 2000 2001- 2002 2003 2004 2005 2006 2007 2008-
2000 -01 02 -03 -04 -05 -06 -07 -08 09
Pakistan 294.84 233.5 1,121. 441.3 265.4 879.3 409.7 369.7 741.9 452.4
2 49 2 3 1 7 1 6 1
Trend Analysis % --- -20.8 380.2 - - 231.2 -53.4 -9.78 100.6 -39.02
Change ---- 5 60.65 39.86 8 9

Observations:

1. From the above tables and graphs, the study suggests that India
has major imports of spices from Srilanka and Nepal.

2. The study suggests that India imports spices from all the SAARC

Countries except from Maldives.

2.2. Introduction to Coconut Commodity


Coconut is the one of the fruits that has a high economic value.
This is because of the fact that the fruit as well as the tree both have a
numerous uses. Coconut is the large hard fruit of the coconut palm tree,
brown in colour, which has husk like fibre surrounding a large seed. The
fruit is known by the name of Cocos nucifera botanically. Unlike the name
suggests, coconut is actually a fibrous drupe and not a nut. The inner seed
has coconut meat inside it that is consumed as an important ingredient in
various cuisines of the world. The fluid in the seed is drunk throughout the
world as it is considered to be a healthy drink. As a matter of fact, coconut
is the largest seed known.
Coconut has been a part of the Indian culture and has been
produced in India since a very long time. Currently India stands third
in the list of the maximum coconut producing countries of the
world. The coconut produce in India was. 14811.1 million nuts in the year
2006. The area under the plantation cultivation sums up to around 1.78
million hectares in the country. Kerala is the largest producer of
coconuts in India contributing to around 45% share in the
country’s produce. Coconut oil is obtained from the copra with 65 to
70% recovery rate. Regarding the area covered under the production of
coconut, Kerala again stands first among the other major states indulging
in the production.

2.2.1. Export details of Coconut commodity to SAARC countries3


Given Below is the graph showing the Export of Coconut by India to
SAARC Countries in terms of Values over a period of 10 Yrs.

Export of Coconut to SAARC Countries


1999- 2000 2001 2002 2003 2004 2005 2006 2007 2008-
2000 -01 -02 -03 -04 -05 -06 -07 -08 09
Srilanka 19.33 23.53 36.73 48.19 86.5 22.13 134.2 103.0 0.00 357.6
5 3 6
Trend Analysis % --- 21.74 56.08 31.19 79.5 - 506.5 - 0
Change ---- 74.41 6 23.26

3
Ministry of Commerce, Export & Import database
Export of Coconut to SAARC Countries
1999- 2000 2001 2002 2003 2004 2005 2006 2007 2008-
2000 -01 -02 -03 -04 -05 -06 -07 -08 09
Maldives 0.76 3.12 2.05 13.74 11.06 11.68 17.68 11.97 14.47 22.75
Trend Analysis % --- 311.3 - 570.0 - 5.65 51.32 - 20.92 57.21
Change ---- 2 34.17 4 19.54 32.31

Export of Coconut to SAARC Countries


1999- 2000 2001 2002 2003 2004 2005 2006 2007 2008-
2000 -01 -02 -03 -04 -05 -06 -07 -08 09
Nepal 0.22 0.00 15.25 181.6 410.4 491 401.4 483.5 665.3 1,225.
2 7 8 2 4 73
Trend Analysis % --- 1090. 126 19.62 - 20.43 37.6 84.23
Change ---- 74 18.23
Export of Coconut to SAARC Countries
1999- 2000 2001 2002 2003 2004 2005 2006 2007 2008-
2000 -01 -02 -03 -04 -05 -06 -07 -08 09
Bangladesh 0.24 0 6.45 0.57 0.95 0.00 4.45 1.75 17.84 41.06
Trend Analysis % --- 0 - 68.58 0 - 919.5 130.1
Change ---- 91.23 60.66 6 3

Export of Coconut to SAARC Countries


1999- 2000 2001 2002 2003 2004 2005 2006 2007 2008-
2000 -01 -02 -03 -04 -05 -06 -07 -08 09
Afghanistan 0.00 0.00 0.00 7.06 0.00 0.00 17.34 25.92 0.00 46.17
Trend Analysis % --- 49.51
Change ----
Export of Coconut to SAARC Countries
1999- 2000 2001 2002 2003 2004 2005 2006 2007 2008-
2000 -01 -02 -03 -04 -05 -06 -07 -08 09
Pakistan 0.00 0.00 0.00 0.00 74.61 24.06 233.8 108.5 263.9 113.2
2 6 5
Trend Analysis % --- - 871.5 - 143.2 -57.09
Change ---- 67.75 8 53.58 3

Export of Coconut to SAARC Countries


1999- 2000 2001 2002 2003 2004 2005 2006 2007 2008-
2000 -01 -02 -03 -04 -05 -06 -07 -08 09
Bhutan 0.00 0.00 0.00 0.00 0.00 0.37 0.00 0.00 0.00 0.00
Trend Analysis % ---
Change ----

Observations:
1. The study suggests that from the SAARC Countries,
Srilanka and Nepal are the major exporters of Coconut
from India.

2. India stands in third in exporting the coconut commodity


in the world.

3. Bhutan is not exporting the coconut commodity from the


past four years. It has a minor contribution of exporting
coconut commodity in year 2004-05.

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