Agreement on Agriculture under WTO purview is said to bring an equitable reform programme for trade in agriculture among member countries. Trade liberalization can benefit Indian agriculture by opening to global markets. Indian farmers will benefit by commanding higher prices for their produce with rise in global prices following to removal of subsidies by developed nations. This paper examines impact of trade liberalisation on export growth on a sample of crops using Constant Elasticity of Transformation (CET) Function. Supply side response to prices has been found to be very low or negative for the specific crops studied. Even if the response is positive for some crops, there are constraints on supply for exports following increased domestic consumption, stagnant production, low average yields, poor infrastructure and high non-farm costs like market handling, local transport charges, transshipment charges, insurance costs, etc.
Trade liberalization, constant elasticity of transformation, international prices
