Export Competitiveness of Fresh Fruits and Vegetables under Cost Compliance

The present study has examined the export competitiveness under the cost compliance of selected horticultural commodities. The nominal protection co-efficient (NPC), effective protection co-efficient (EPC), domestic resource cost (DRC) and effective subsidy co-efficient (ESC) have been computed under cost compliance as well as without cost compliance. Except for grapes, NPC, ESC and DRCs have been found less than unity for various fresh and processed fruits and vegetables, implying that the Indian horticultural sector has a comparative advantage in the selected fruits and vegetables. The EPC continues to be more than unity for various fresh and processed fruits and vegetables. It is because the relation between domestic and international input and output prices has not remained uniform. The study has suggested that under such situations, the country needs to identify enterprises with high export advantage and high degree of competitiveness and then pursue policies for maintaining the continuity. In order to improve the comparative advantage, it is necessary to reduce the cost of production, improve productivity, perform efficient post-harvest management and processing functions, and provide infrastructural facilities and appropriate policy support.