Sources of growth to seed spices in India: A decomposition analysis
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Keywords:
Seed spices, Value of produce, Decomposition analysis, Area effect, Price effect, Interaction effect, IndiaAbstract
The present study analyzes the sources of growth in the Value of Produce (VOP) of major seed spices in India including, coriander, cumin, fennel, and fenugreek, over the period 2004–05 to 2023–24, using decomposition analysis. The results indicates that the combined influence of changes in area, yield, and real prices played over 90% role in enhancing the total VOP value change as interaction effect overwhelmingly dominated growth across all crops. Coriander and cumin exhibited the highest growth in VOP, driven largely by area expansion and favorable price interactions, while fennel and fenugreek showed moderate growth primarily influenced by interaction and diversification effects. The area effect contributed modestly to growth, signifying limited land expansion, whereas the price effect showed mixed trends, positive for coriander and cumin but negative for fennel and fenugreek which highlights the impact of market volatility and price instability in seed spices. Overall, the study concludes that the growth in spice value during the two decades was largely driven by multi-factor interactions rather than isolated productivity gains or area expansion. This emphasizes the need for integrated policy interventions focusing on yield enhancement, price stabilization, and market diversification to sustain value growth in India’s seed spice sector.
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