Export competitiveness of organic food commodities with special reference to Organic Naga King chilli — A revealed comparative advantage approach

Abstract

This paper estimates the competitiveness of India’s organic food export in the world markets. Using Compound Annual Growth Rate (CAGR), instability index, trend analysis, Revealed Comparative Advantage (RCA) and forecasting methods, the study has revealed growth in the export of organic wheat, cardamom and Naga king chilli to be positive with an increasing trend, whereas export of organic basmati rice was very low and has shown a declining trend maybe due to the substandard quality of the commodity. Accordingly, the instability in export of organic wheat and organic cardamom has been found to be high due to a rise in their demand in the overseas markets. The study has revealed comparative advantage (RCA) in Naga king chilli export from India with a value of less than unity, which indicated that the share of the Naga king chilli export in the total country’s export was negligible. The study suggests that the Export Inspection Council (EIC) of India should strictly monitor the quality testing of the product before it is exported in the global markets so that the price of the product in the international markets becomes highly competitive.