Export performance and direction of trade of organic products from India

Abstract

Organic products are produced using an ecologically and socially conscious agricultural system that does not utilise chemical pesticides or fertilisers. India produced around 2.9 million metric tonnes (MT) of certified organic products between 2022 and 2023. The volume produced included various types of food items, such as tea, coffee, oil seeds, fibre, sugar cane, cereals and millets, cotton, pulses, aromatic and medicinal plants, dry fruits, vegetables, processed meals, and so on. The goal of the current study was to determine the patterns of organic product export and trade direction in India between 2012-13 and 2021-22. Secondary data regarding export of organic products and data on country wise exports was obtained from APEDA. The Compound Annual Growth Rate model is used to predict the export trend. During the first sexennial period, organic product exports had a higher CAGR of 18.67%, whereas during the second sexennial period, exports decreased and the CAGR was around 0.99%. For the overall period, it was reported to be 16.68 per cent. Cuddy & Della Valle's instability index was used to measure the export of organic products instability index. The CDVI for the whole period of record was 20.76 percent, indicating somewhat unstable exports throughout that period of time. The dynamic nature of trade pattern of the organic products was analysed by employing first order Markov process. By TPM it was noticed that most loyal country which imports organic products was USA and Canada.