Analysis of Wheat Export Performance in India

Abstract

Wheat is a plant which is valued highly for its kernel as an edible part and an important source of carbohydrates. India ranks second position in wheat production in the world with a contribution of roughly 13.53 per cent to global wheat output (Naga Latha et. al., 2022). The study analyses the export performance of wheat and examines the trends in the growth performance of wheat in terms of area, production and productivity, export quantity and export value during 1973-2022 which is a period of 50 years. The analysis reveals that the highest compound growth rate in terms of area was 1.16 per cent, production was 4.49 per cent and productivity was 3.29 per cent respectively. The results of the study on the compound growth rates during the study periods have shown positive and increasing value which indicates high potential for the export of wheat from India. In the analysis of instability, there exists a high positive correlation between the export quantity and value of export in the overall period. Wheat area, production and productivity exhibit higher variability and instability in the overall period. Period II shows lower variability and instability, indicating increased stability. Period I exhibits moderate variability and instability. The overall period has the highest instability, suggesting unpredictable production. Instability indices show high instability at 126.97 per cent in Period I and 138.18 per cent overall, while Period II exhibits moderate instability at 101.94 per cent. Market volatility, trade policies, economic fluctuations, weather patterns and production variability contribute to these fluctuations. As of trend analysis, there is a positive and significant increase. The NPC value of wheat during the overall period was 0.051, it indicates that the commodity is not protected. NPC<1 indicates that the commodity is exportable and possesses export competitiveness and hence the hypothesis i.e. Indian wheat has better competitiveness in the International market.