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 Millennium

MARKET ACCESS ISSUES FOR INDIA’S HERBAL MALT

EXTRACTS (HS-1901) EXPORTS TO G.C.C. COUNTRIES

Journal: Millennium

Manuscript ID MJIS-2018-0124

Manuscript Type: Original Article

Keyword: Herbal Malt Extracts, GCC Countries, Market Access Issues

Research paper endeavour discuss the growing importance towards Herbal

Malt Extracts Preparations in the world market in general and in Gulf
Cooperation Council (GCC) countries, in particular. Mapping the tariff lines
which falls as herbal Malt Extracts products both in India and GCC
countries, it appraises the existing literature and secondary evidence based
on trade data accessed from various databases of World Bank,
Abstract:
International Trade Center and World Trade Organization. Paper analyse
both tariff and non-tariff barriers in accessing the GCC countries by Indian
exporters and list the various non-tariff barriers faced by Indian exporters
in GCC markets. Paper concludes that non-tariff barriers are major
obstacles in accessing Herbal Malt Extracts market of GCC countries and
suggest way forward for Indian exporters.

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Page 1 of 24 Millennium

MARKET ACCESS ISSUES FOR INDIA’S HERBAL MALT EXTRACTS (HS-1901) EXPORTS TO G.C.C.
1 COUNTRIES
2
3
4
5 ABSTRACT:
6 Research paper endeavour discuss the growing importance towards Herbal Malt Extracts Preparations in the world
7 market in general and in Gulf Cooperation Council (GCC) countries, in particular. Mapping the tariff lines which
8 falls as herbal Malt Extracts products both in India and GCC countries, it appraises the existing literature and
9 secondary evidence based on trade data accessed from various databases of World Bank, International Trade Center
10 and World Trade Organization. Paper analyse both tariff and non-tariff barriers in accessing the GCC countries by
11
Indian exporters and list the various non-tariff barriers faced by Indian exporters in GCC markets. Paper concludes
12
13
that non-tariff barriers are major obstacles in accessing Herbal Malt Extracts market of GCC countries and suggest
14 way forward for Indian exporters.
15
16 Key Words: Herbal Food Preparations, GCC countries, Tariff Barriers, Non-Tariff Barriers, Competitiveness
17
18 1. INTRODUCTION:
19
20 From ancient times, India has been a great place for production, use, research and trade of herbal products. Ayurvedic
21 medicine which is based on use of medicinal and herbal plants is one of the world’s oldest medical systems. It
22 originated in India more than 3,000 years ago and remains one of the country’s traditional health care systems. Its
23 concepts about health and disease promote the use of herbal compounds, special diets, and other unique health
24
practices. India’s government and other institutes throughout the world support clinical and laboratory research on
25
26
Ayurvedic medicine and oral use of herbal products. With increasing awareness in the world particularly in Asia and
27 Africa and of late in Western Countries about benefits of herbal products, trade and commerce of herbal products is
28 constantly rising. China has emerged as the largest supplier of herbal and medicinal products followed by India. In
29 terms of offering value-added herbal products, Chinese trade is manifold higher than that of India. With increasing
30 awareness among producers, encouraging policy support and increasing awareness for oral uses of herbal products,
31 India’s exports of herbal products is rising to world markets. Use of Herbal products is common element in
32 Ayurvedic, homeopathic, naturopathic, traditional oriental and Native American Indian medicine. The sophistication
33
of herbal remedies used around the world varies with the technological advancement of countries that produce and use
34
35 them. There is growing awareness among people for Herbal Products1 mainly due to increasing health issues and as a
36 result, customers world over are shifting towards natural care products due to a powerful “green wave”. The demand
37 is going to increase because of increased interest of consumers in natural products2 as they are considered safer and
38 more cost-effective than synthetic drugs in many cases (Joshi K. 2008). Herbal products are part of Indian culture
39 from ancient times as the prevalent health care system was based on curing the diseases by use of herbs, plants,
40 extracts and their ingredients. The fast-growing acceptance of herbal products in the whole world is the proof to the
41
quest of mankind to explore and experience Mother Nature for a healthy life. This ‘herbal’ interest of consumers is
42
43 rapidly growing, due to toxicity and various side effects of Allopathic medicines. Commercial importance of the
44 herbal industry has been greatly recognized by the Indian business community in the last some years, which is striving
45 towards becoming a global leader in this sector.
46
India, with diverse biodiversity and substantial importance for the domestic agriculture, has emerged as reliable and
47
48 cost-effective suppliers of various medicinal herbs, plants and roots. Herbals products are value added products
49 extracted from herbals, plants, roots, plant-skin, cereals etc. GCC is dependent for import of majority of food items,
50 especially herbal products as there is negligible domestic production across all GCC countries and the consumption
51 has gone up substantially in recent years. The GCC countries are shifting their agricultural policies away from the
52 nationalistic goal of food self-sufficiency towards more flexible and broad-based efforts including the reliance on
53 imports to ensure food security. The largest import within GCC Countries, UAE and India are reportedly working on
54
creating a “farm-to-port” special economic zone to meet the latter’s food security interests. The relative positions of
55
56
57 1
Martins Ekor, The growing use of herbal medicines: issues relating to adverse reactions and challenges in monitoring safety,
58
Front Pharmacol. 2013; Published online 2014 Jan 2010, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3887317/
59 2
Joshi K. Indian Herbal Sector. India, Science and Technology, 2008 http://www.nistads.res.in
60 http://mc.manuscriptcentral.com/mjis
 Millennium Page 2 of 24

the GCC Countries as net food and herbal products importer and India as herbal product exporter create avenue for
1 vibrant trade relationship. For India, emerging a reliable herbal product supplier create a win-win situation as India has
2 large portion of the population depending on production of herbs, medicinal plants and value added herbal products.
3
Rapid transformations around the world, such as demographic and socioeconomic shifts, are leading to a growing
4
5 global consumer class that is interested in health and beauty products and services that embody holistic concepts of
6 well-being3. Broadly, three factors are prompting the awakened customers globally towards greater use of herbal
7 products, first, increasing concern for health especially among urban consumers who are more prone to stress and
8 diseases due to their sedentary lifestyle. Second factor is beauty, there is increasing demand for herbal cosmetics
9 especially among women for prevention of ageing or feeling and looking younger. There is greater demand for herbal
10 formulations for fighting sign of age in skin, hair color, weight and appearance. Third factor is food where in
11
consumers are looking of natural, green and organic food. Consumers are looking for food which has lower carbon
12
13
footprints, grown naturally and enhanced product certifications aimed at ensuring quality products free from modern
14 production techniques where there is rampant use of pesticides and insecticides. Figure 1 as under illustrates the
15 factors and motivators for growing importance of herbal products in the global markets.
16
17
18 Figure 1: Factors Leading to Increased Use of Herbal Products Globally
19
20
21
22 •Prevention of aging •Getting Close to •Declaration of
23 •Health and Lifestyle “50 is the new 30” Natural Products, •Increased Trust on Ingredients, Social
24 Issues, Illness (feeling and looking Religious Literature Well-known and Media feedback,
25 prevention, Increased younger) Fighting Recommendations, trusted herbal brands, Online product
awareness for Daily signs of age in skin, Green Products Higher product reviews, Faster
26 Fitness Routine hair color, weight, Glam and certifications, product performance,
27 appearance Sustainability Convenience food
28
29
30
31 Rising income in emerging markets is fueling demand for health products, as is the increasingly mainstream focus on
32 sustainability and herbal products. Meanwhile, technological breakthroughs offer new solutions for well-being and
33 also drive customer awareness of the benefits of technology when it comes to tracking health conditions and fitness
34 goals. The increasing demand for preventive health measures and general well-being has led to a growing demand for
35 herbal products by today’s awakened customer. Going close to mother nature and trusting traditional herbs-based
36 treatment system capture the imagination of such awakened consumers, but the term “herbalism” encompasses a wider
37
range of both pharmaceutical and non-prescription consumer products aimed largely at preventive care, nutrition,
38
39
fitness, and cosmetic enhancement. India is fast emerging as reliable and authentic supplier of herbal malt extracts.
40 Table 2 as under provide insights on product-wise exports of herbal products from India with top five export
41 destinations.
42
43 Table 2: India’s Exports (Million USD) Of Herbal Products From 2002-2017 (In Thousand $) With Top Five
44 Export Destinations
45 ITC-HS 2002 2007 2012 2013 2014 2015 2016 2017 Top Five
46 Heading Export
47
Wise Product Destinations
48
49
Descriptions
50 1901: Malt 27.55 36.15 99.63 127.48 118.89 126.53 105.13 105.94 Bangladesh,
51 extract; food Nepal, Sri
52 preparations Lanka, USA,
53 of flour UAE
54 Source: UN Comtrade, 2018
55
56
57
58 3
Reinhard Vocke, Rolf Fricker, Brian S. Williams, Dr. Diana Dimitrova, The rise of wellcare: A new market at the nexus of
59 health, food, and beauty Published: July 29, 2017
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Page 3 of 24 Millennium

The net trade balance can be an appropriate measure to assess the supply-side capabilities of India as it measures “the
1 total value of exported goods minus the total value of imported products” thus indicating the potential of country to
2 serve the global markets after having taken care of domestic needs. Sometimes, a nation may import raw material to
3
process it for value-added exportable goods which will be sold at higher prices thus having net exports. Net trade of
4
5 India’s herbal products in values and as percentage of foreign trade is provided in table 3 as under.
6
7
Table 3: Apprising the Supply-Side Capability of India for Malt Extract Exports (000’ USD)
8 Industry Exports in Imports in Net trade in Net Trade (X-
9 value in 2017 value in 2017 value in 2017 M)/(X+M) * 100
10 1901 Malt extract; food preparations of 105 935 18 582 86 353 70,0
11 flour, meal, starch or malt extract
12
13
Source: UN Comtrade, 2018
14
15 2. DEFINING AND CLASSIFYING HERBAL PRODUCTS:
16
17 National Center for Complementary and Integrative Health of United States of America defines the Herbal Products as
18 “dietary supplement which is intended to supplement the diet and contains one or more dietary ingredients (including
19 vitamins, minerals, herbs or other botanical plant or part of a plant used for its flavour, scent, or potential therapeutic
20 properties and may also include flowers, leaves, bark, fruit, seeds, stems, roots, amino acids, and certain other
21 substances or their constituents”. These products are labelled as being a dietary supplement in United States however
22
these practices of labelling may vary in other countries. United States Food and Drug Administration defines “herbal
23
24
products as ‘dietary supplement’ which is intended for ingestion that contains a dietary ingredient intended to add
25 further nutritional value to (supplement) the diet”. A “dietary ingredient” may be one, or any combination, of the
26 following substances:
27 a. A vitamin
28 b. A mineral
29 c. An herb or other botanical
30 d. An amino acid
31
e. A dietary substance for use by people to supplement the diet by increasing the total dietary intake
32
33 f. A concentrate, metabolite, constituent, or extract
34 World Health Organization defines ‘Herbal Medicine’ as herbs, herbal materials, herbal preparations and finished
35
herbal products, that contain as active ingredients parts of plants, or other plant materials, or combinations and
36
37
further elaborates on Herbal Products as “herbal preparations made from one or more herbs. If more than one herb is
38 used, the term mixture herbal product can also be used. Finished herbal products and mixture herbal products may
39 contain excipients in addition to the active ingredients. However, finished products or mixture products to which
40 chemically defined active substances have been added, including synthetic compounds and/or isolated constituents
41 from herbal materials, are not considered to be herbal”.
42
43 These herbal products don’t treat, cure or prevent diseases or ailments are generally classified under heading code
44 1901 as Malt Preparation. Table 2 as under illustrates the prominent herbal food preparations exported out of India.
45 Malt preparations are either for infant food or for boosting general immunity of adults and food preparations are
46 made-up of mixtures of plants, or parts of plants, with other ingredients, like plant extracts; these mixtures are not
47 consumed in this form, but are used to make herbal teas and infusions; they may have a particular purpose, for
48
example to be used as a laxative, purgative or diuretic, or to relieve flatulence; others claim to provide relief from
49
50 ailments or to promote general health or well-being. Herbal food or dietary supplements are based on substances like
51 plant extracts, fruit concentrates, honey or fructose and that contain added vitamins; the packaging of these
52 preparations often indicates that they’re beneficial in maintaining general health or well-being. Table 4 further enlist
53 the tariff lines falling under ITC(HS) 1902 for both India as well as For GCC countries wherein such herbal malt
54 extracts preparations products are traded with.
55
56 Table 4: List of Products Classified as Herbal Malt Extract (HS-1901) Products
57 Product Sub- Corresponding Corresponding Prominent Traded Herbal Products
58 Description Heading No. of Tariff No. of Tariff
59
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 Millennium Page 4 of 24

Code Lines from Lines from

1 India’s GCC Countries
2 Harmonized Harmonized
3
Nomenclature Nomenclature
4
5 Malt Based 1901 5 7 Malted milk (including powder), Infant milk
6 body building substitute, Mixes and dough for the preparation
7 preparations of bakers' wares of heading 1905, Malt extract
8 based on milk
9 powders and
10 whey
11
Source: World Integrated Trade Atlas & ITC (Schedule 2)- Export Policy of Director General of Foreign Trade, India
12
13
The trade in Herbal Malt Extract is constantly growing as there are areas where agro-climatic conditions does not
14
15 support the production and manufacturing of such products. There are countries which enjoys scale and scope
16 advantages in manufacturing of Herbal Malt Extract preparations and accordingly has become the leading exporters of
17 these Herbal Malt Extract preparations in world markets. The table as under illustrates the growing trends in exports of
18 herbal malt extract preparations from mere 4.56 Billion USD to 21.32 Billion USD in the year 2017. The leading
19 exporters of herbal malt preparations are Netherlands, Ireland, Germany, France and Singapore. India, even with very
20 strong agriculture sector coupled with leading production of herbal and medicinal plants, stands at 32 ranks in world
21
market. Table 5 as under provides information about increasing pattern of herbal malt extract preparations in world
22
23 markets along with top five exporters.
24
25 TABLE 5: WORLD TOTAL EXPORTS (BILLION USD) OF HERBAL PRODUCTS FROM 2002-2017
26 WITH TOP FIVE EXPORTERS
27 Exporters 2002 2007 2012 2013 2014 2015 2016 2017 Top Five
28 Exporters
29
1901: Malt extract; 4.56 9.59 16.03 18.82 20.69 18.86 19.28 21.32 Netherlands,
30
31 food preparations of Ireland,
32 flour Germany
33 France,
34 Singapore
35 Source: UN Comtrade, 2018
36
37 3. EVIDENCE FROM EXISTING LITERATURE:
38
39 The review of literature provides the some of the important insights into the work done so far in the area of herbal
40 products trade. The work of Mangal Bhausaheb Chaudhari, Vincent Giedraitis, Pankaj Kapse4(2012) in their paper
41 entitled “Barriers to Export from India to the European Union” analyse the barriers faced by Indian exporters for
42
export to the European Union. Findings are supplemented by using the empirical investigation of barriers’ perception
43
44 by Indian exporters. The study concludes that Indian exporters have a significant feeling for governmental regulations,
45 customs procedure and licensing, technical standards and health regulations, sanitary and phytosanitary measures, and
46 certification as the major barriers to export in EU. Study provides great insights on market access issues faced by
47 Indian Exporters however it is general study on some sectors and not focussed to market access issues faced by India’s
48 herbal products exporters in GCC Countries. Pinak Sarkar and Dr. (Prof.) Martin Patrick5 (2015) in their working
49 paper entitled “India’s Trade Barriers: An Analysis with Reference to Tariffs and Customs Procedures” which is
50
published with Centre for Public Policy Research, pursue detailed evaluation of the Enabling Trade Index (ETI) and
51
52 suggested that India imposes a lot of duty restrictions and undue regulations on her imports which is affecting her
53 trade with the rest of the world. To some extent, it also deprives India of her foreign market access for exports also.
54
55 4
Mangal Bhausaheb Chaudhari, Vincent Giedraitis, Pankaj Kapse, Barriers To Export From India To The European Union ISSN:
56 1392-1258. ekonomika 2012 Vol. 91(2) www.journals.vu.lt/ekonomika/article/download/898/419
57 5
Pinak Sarkar and Dr. (Prof.) Martin Patrick (2015), India’s trade barriers: an analysis with reference to tariffs and customs
58 procedures, Working Paper of Centre for Public Policy Research, URL: www.cppr.in/wp-content/uploads/2015/01/Trade-
59 Report.pdf
60 http://mc.manuscriptcentral.com/mjis
Page 5 of 24 Millennium

Not only that, imposition of high tariffs is also posing as burden for the importers and major stakeholders such as
1 domestic consumers, traders and manufacturers, as witnessed in the case of gold. What is more significant is the
2 procedure that hinders smooth and progressive imports to the country. study concludes that it is very difficult to
3
measure the level of these factors i.e. tariff and import procedures, in adversely affecting the conducive import
4
5 environment. However, this study attempts to suggest that import tariffs should be lessened and more importantly
6 import procedures should be reduced to create an atmosphere of competition in policy action. This study factor only
7 tariff issues along with only one element of non-tariff barriers that is custom procedure however market access
8 challenges can be many as classified in different categories by an expert group constituted by UNCTAD/ OECD.
9
10 A study by Rohit Bhattacharya, Reddy KRC, Mishra A.K. (2014) entitled as “Export strategy of Ayurvedic Products
11 from India6” find-out that there is need for Indian exporters to understand the varying regulatory requirements of
12 different countries for compliance purposes wherein government help is required to create a database of such
13 regulatory practices and equip and train Indian exporters to handle such regulatory approvals for exports. Study further
14
finds-out that there exist vast global opportunities for Indian Herbal Products and there is constantly increasing
15
16 demand for Indian herbal products in world markets. If scientific information on global best practices such as ‘Good
17 Laboratory Practices’ (GLP), Good Manufacturing Practices (GMP), Good Agricultural Practices (GAP), Good
18 Clinical Practices (GCP) are followed by Indian exporters, India can increase its market share in tapping increasing
19 global market opportunities. Study also suggest that there is a need to leverage ‘proper marketing strategy’ keeping in
20 mind marketing fundamentals such as four P’s of marketing i.e. Product, Price, Place and Promotion for India’s
21 herbal products for tapping opportunities in global markets.
22
23 Grant Thornton Project Report7(2013) entitled “Mapping Market Access Barriers for Food and Drink Exports” which
24 is sponsored by Department for Environment, Food & Rural Affairs of United Kingdom Report provides a detailed
25
analysis based on primary and secondary data collection to prioritizing the potential markets for UK food and drink
26
27 industry. The report provides validated insights by use of both primary and secondary sources on market access issues
28 faced by UK industry in accessing potential markets for exports. Project is exceptionally good work with scientific
29 methodology however it is specific to UK food and drink industry. Report offer great insights however lacks the
30 herbal products exports from India. Ratnakar Adhikari and Kamalesh Adhikari8 (2005) research study entitled
31 “Market Access Barriers to Select Nepalese Agricultural Exports” recommends for some portion of Nepal’s
32 negotiating capital should be spent on improving market access. The study recommends that the policy-makers and
33
trade negotiators need to strike a balance between the demand-side and supply-side of the economic equation. It finds-
34
35 out that just as it is necessary to segregate the market access barriers into tariff and non-tariff components, it is equally
36 necessary to segregate the destinations on the basis of barrier types. The study suggests the need for improved policy
37 stances by separately looking at tariff and non-tariff issues and there is no specific suggestion how that can be done by
38 policy makers of Nepal. Moreover, it does cover issues related to herbal products and cover general agricultural
39 products exported by Nepal.
40
41 IMF World Bank Publication9 (2002) with a title “Market Access for Developing Country Exports-Selected Issues”
42 which is sponsored and funded by International Monetary Fund and The World Bank investigates that market access
43 barriers in world trade remain significant for products of export interest to developing countries. This study suggests
44
that the liberalization of imports, especially for agricultural products and textiles and clothing, can generate large
45
46 benefits for developing countries in terms of incomes, exports and employment. These benefits would derive in part
47 from the elimination of access barriers to industrial country markets, but also in good part from reform of the trade
48 regimes of developing countries themselves. This study find-out the empirical evidence in challenges in market access
49 for certain agricultural products from select developing countries and did not focus on issues involved in market
50
51
52
53 6
International Journal of Ayurvedic Medicine, 2014, 5(1), 125-128, ISSN: 0976-5921
54
7
55 Department for Environment, Food & Rural Affairs, (2013) Mapping Market Access Barriers for Food and Drink Exports” by
56 Grant & Thorntan, www.randd.defra.gov.uk/Document.aspx?Document...Marketaccess16May2013DO0126...
8
57 Ratnakar Adhikari and Kamalesh Adhikari (2005 )"Working report by South Asia Watch on Trade, Economics & Environment,
(SAWTEE) for International Institute of Sustainable Development " www.sawtee.org/Research_Reports/R2005-04.pdf
58 9
Market Access for Developing Country Exports-Selected Issues, International Monetary Fund & The World Bank IMF World
59 Bank Publication https://www.imf.org/external/np/pdr/ma/2002/eng/092602.pdf
60 http://mc.manuscriptcentral.com/mjis
 Millennium Page 6 of 24

access for India’s herbal products in GCC Countries. Allen Dennis and Ben Shepherd10 in their study entitled
1 “Barriers to Entry, Trade Costs, and Export Diversification in Developing Countries” which is published by World
2 Bank find-out that lower entry costs for firms, and lower internal and external trade costs, are strongly and robustly
3
associated with export diversification in developing countries specifically, a 10% reduction in internal trade costs
4
5 increases the number of products exported by 2.5%, while a similar cut in entry costs increases diversity by 1%.
6 “Linda A. Linkins and Hugh M. Arce11” in their study entitled “Estimating Tariff Equivalents of Nontariff Barriers”
7 estimates of the costs of protection, for both policy makers and economists who conduct applied commercial trade-
8 policy research, which depend on reliable estimates of the price or quantity distortions caused by trade barriers. In the
9 case of tariffs, the estimates are straight-forward and readily available; however, in the case of nontariff barriers,
10 estimates of the corresponding price or quantity distortions are difficult to construct because of the lack of good data
11
and often contain substantial methodological flaws. This paper provides a brief overview and critique of the methods
12
13
used by the governments of Canada and the United States in estimating tariff equivalents of nontariff barriers (NTBs).
14
D K Ved, G S Goraya12 (2007) in their entitled “Demand and Supply of Medicinal Plants in India” which is sponsored
15
16 by Government of India through Foundation for Revitalization of Local Health Traditions & Bangalore National
17 Medicinal Plants Board, New Delhi recommends to put-in place a system of backward linkage of the raw material
18 consumed by the herbal manufacturing units to their source of production be developed and put in place. It further
19 find-out that the existing system of coding of botanicals in foreign trade (HS codes) be critically evaluated and
20 improved to establish clear linkage of traded materials with their plant sources. It recommends for further support
21 studies for reviewing the plant identities in respect of raw drugs obtained from more than one/ controversial plant
22
sources. Study concludes with recommendation of reviewing and rationalizing current schemes for incentive-based
23
24 promotion of commercial cultivation so that the species of conservation concern and facing acute supply shortage
25 could be accorded needed focus. The study aims to find-out out only issues involved in conservation and development
26 of herbal and medicinal plants in India and lacks the focus of identifying the suitable products for exports and
27 identification of potential markets including tariff and non-tariff barriers therein. The research work of Rohit
28 Bhattacharya, Reddy KRC, Mishra A.K. (2014) investigates only one part of market access issues; understanding of
29 regulatory framework of importing countries for Exports of Herbal Products in potential markets and global best
30
practices however there can be variety of issues in tapping global markets for India’s herbal products.
31
32 “Yuan Li, John C. Beghin13” in their research publication entitled as “A Meta-Analysis of Estimates of the Impact of
33
Technical Barriers to Trade” concludes that ‘characterizing protectionism or contentious regulations can be difficult,
34
35 because this is not only the level of one instrument that should be considered, but also the choice between different
36 instruments that should be considered for fully characterizing a NTM as protectionist. The theoretical section shows
37 that a clear examination of the producers’ cost structure is also very important, since it matters for characterizing the
38 type of protectionism. The empirical section shows that an ex ante evaluation of the impact of future NTM is possible
39 and could be undertaken for controversial questions or decisions. Despite limitations, the simple model of this paper
40 suggests that it is especially imperative for governments and/or international authorities to examine risks of
41
protectionism, by comparing all possible regulatory tools when regulations are promoted. “Tim Josling & Donna
42
43 Roberts”14 in their research paper entitled “Measuring the Impact of SPS Standards on Market Access” suggests for
44 Composite Indicators of Market Access as a tool or an approach to tackle the compliance cost issue in market access.
45 This study is generic, based on secondary data and does not offer firm level evidence in accessing the global market.
46 The study also lacks focus on herbal products exports especially in context of GCC Countries. “John Beghin, Anne-
47 Célia Disdier, Stéphan Marette15” in their study entitled “Trade Restrictiveness Indices in Presence of Externalities:
48
49 10
Allen Dennis and Ben Shepherd "Barriers to Entry, Trade Costs and Export Diversification in Developing Countries" World
50 Bank URL: www.siteresources.worldbank.org/INTTRADERESEARCH/Resources/.../Dennis_paper.pdf
51 11
Linda A. Linkins and Hugh M. Arce, “Estimating Tariff Equivalents Of Nontariff Barriers", U.S. International Trade
52 Commission
53 12
D K Ved, G S Goraya, Demand and Supply of Medicinal Plants in India, Foundation for Revitalisation of Local Health
54 Traditions & Bangalore National Medicinal Plants Board, New Delhi, www.nmpb.nic.in/FRLHT/Contents.pdf
13
55 Yuan Li, John C. Beghin” A meta-analysis of estimates of the impact of technical barriers to trade, Journal of Policy Modelling,
56 accessed at ‘Elsevier’
14
57 Tim Josling & Donna Roberts, Measuring the Impact of SPS Standards on Market Access, International Food and Agricultral
Trade Policy Council, URL: www.oecd.org/tad/ntm/48632882.pdf
58 15
John Beghin, Anne-Célia Disdier, Stéphan Marette, “Trade Restrictiveness Indices in Presence of Externalities: An Application
59 to Non-Tariff Measures, CESIFO WORKING PAPER NO. 4968
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Page 7 of 24 Millennium

An Application to Non-Tariff Measures” wherein the author derives the advalorem value equivalent (AVEs) of non-
1 tariff measures (NTMs), as well as the Trade Restrictiveness Index (TRIs and MAOTRIs equivalent to all policy
2 interventions (tariffs, NTMs and production subsidies). They show that in general the impact of NTMs on import
3
demand is ambiguous depending on the relative strength of the import-facilitating effects of NTMs via a shift in
4
5 import demand, and the protective effect of the same NTMs at the border. The study offers great insights in defining
6 the proposed methodology and helps us calculating the cost of Advalorem equivalents of non-tariff measures by using
7 Trade Restrictiveness Index (TRI) and Market Access overall Trade Restrictiveness Index (MAOTRI). “Aida
8 Gonzalez Mellado, Stephan Hubertus Gay, Robert M'Barek and Emanuele Ferrari16” in their study entitled
9 “Evaluation of Non-Tariff Measures for African Agricultural Exports to the EU in a CGE framework” evaluate the
10 role of Non-Tariff Measures (NTMs) on agri-food trade between the EU and Africa. Findings presented for five
11
countries exporting fifteen agricultural products to the EU and results show different trends across countries and
12
13
commodities. First, the econometric estimations show differences for countries with different languages (English,
14 French), for 21 different types of export products (perishables, medium perishables and imperishable) and finally for
15 the different types of NTM addressed. This study provides preliminary evidence for specific case studies of the effects
16 caused in trade flows by these measures and the effects that technical standards have on trade between selected
17 African countries and the EU.
18
19 “Lina Al Halaseh, Balan Sundarakani17” in their research study entitled “Study on Quality Attributes of Halal Food
20 Supply Chain” investigate the halal food supply chain (HFSC) requirements by the Islam religion, the effect of these
21 requirements on the quality attributes of the meat through the supply chain and their alignment with non-halal meat
22
quality attributes. The research opens the door of the UAE halal food industry to position as hub in the Arabic region
23
24 and thereby to compete across the world by its enhanced performance and established quality control. This study
25 address only one aspects of non-tariff barriers that is ‘halal-certification’. “Lionel Fontagné, Mondher Mimouni &
26 Jean-Michel Pasteels”18 in their research work entitled “Estimating the Impact of Environmental SPS and TBT on
27 International Trade” proposes a systematic assessment of environmental trade barriers, using all environmental
28 related notifications to the WTO for 2001 and international trade data at the 6-digit level of the HS. The impact of
29 environmental related measures (ERM) on trade has been analysed for 161 product groups, using an econometric
30
model.
31
32 “GCC Guide for Control on Imported Foods19 (2016) states that all GCC Countries import most of its consuming food
33
and live animals from outside countries, and since these nutrients, while essential to the life of the individual and
34
35 society, also represent health challenges for humans and concerns for the environment safety. Therefore, the
36 Ministerial Committee for Food Safety of GCC acknowledged the importance of a collective coordination and
37 establishing joint laws and regulations of laws in food safety. The importance of the Guide for the control of imported
38 food comes as part of the efforts to consolidate and facilitate the import and complete inspections on consignments of
39 imported food procedures, depending on the degree of health risk and without prejudice to the obligations of Member
40 States About the WTO agreements and compatible with international best practices in this area.
41
42 “Von Witzke, Harald; Sheldon, Ian M”20 and their research work entitled “the Growing Demand for Food Quality:
43 Implications for Agricultural and Trade Policy” attempt to explain that political coalitions between consumers and
44
agricultural producers are likely to gain in importance which will add a new dimension to attempts at international
45
46 agricultural and trade policy coordination which will be vital for region like GCC countries which is net-importer of
47
48
49
50 16
Aida Gonzalez Mellado, Stephan Hubertus Gay, Robert M'Barek and Emanuele Ferrari” Evaluation of Non-Tariff Measures for
51 African Agricultural Exports to the EU in a CGE framework, URL: http://www.researchgate.net/publication/266879250
52 17
Lina Al Halaseh, Balan Sundarakani, Study on Quality Attributes of Halal Food Supply Chain, International Journal of
53 Logistics Economics and Globalisation, ISSN: 1741-5373
54 18
Lionel Fontagné, Mondher Mimouni & Jean-Michel Pasteels, Estimating the Impact of Environmental SPS and TBT on
55 International Trade, Integration and Trade Journal, 2005
19
56 GCC Guide for Control on Imported Foods (2016), The Cooperation Council for The Arab States Of The Gulf, Secretariat
57 General
20
Von Witzke, Harald; Sheldon, Ian M. The Growing Demand for Food Quality: Implications for Agricultural and Trade Policy,
58
Ohio State University, Department of Agricultural Economics and Rural Sociology. ESO (Economics and Sociology Occasional
59 Paper), No. 1771 http://hdl.handle.net/1811/66280
60 http://mc.manuscriptcentral.com/mjis
 Millennium Page 8 of 24

food and agricultural products. “N. Islam, Subramanian21” Agricultural Exports of Developing Countries: Estimates of
1 Income and Price Elasticities of Demand and Supply” provides new evidence on income and price elasticities of
2 demand and supply of agricultural exports from developing countries, on the basis of (a) a consistent and fully
3
specified supply and demand model, and (b) statistical estimation procedures not frequently used in the estimation of
4
5 agricultural export functions. Estimates of price and income elasticities of demand for aggregate agricultural exports
6 for all developing countries taken together, as distinct from individual exporting countries, are found to be low;
7 moreover, export price as distinguished from non-price factors plays a relatively insignificant role in increasing export
8 supply. Hence, an attempt by all developing countries to expand traditional agricultural exports with low price
9 elasticity of demand may not yield rising earnings for all; but in-fact may result in falling export revenues. Insofar as
10 individual exports of all developing countries (not individual countries) are concerned, income and price elasticities of
11
demand for such tropical commodities as tea, coffee, cocoa and bananas are also found to be low, except for new, non-
12
13
traditional exports like pineapples. This indicates the importance of diversification of agricultural exports as a vehicle
14 for their future growth.
15
16 Article 56 of Common Custom Law22 (2015) of Gulf Cooperation Council states the rules for for clearance procedures
17 of imported food items including herbal products. It states that the customs office may have the goods analyzed by
18 specialized agencies to verify the kind and specifications of the goods or their conformity to the regulations and laws.
19 Goods requiring the availability of certain conditions and specifications to be released shall be subject to analysis
20 (testing) and inspection; however, the director may release them against an appropriate undertaking ensuring that they
21 are not to be disposed of until the analysis result has come out. The director general may order that the goods, proved
22
through inspection or analysis to be harmful or not conforming to the approved specifications, be destroyed at the
23
24 expense and in presence of their owners or their representatives. When necessary, such goods shall be re-exported to
25 the source country in which case a report of the same shall be made.
26
27 4. INDIA’S MALT EXTRACTS PREPARATIONS (HS-1901) EXPORTS TO GCC COUNTRIES:
28 AN EVIDENCE FROM SECONDARY DATA
29
30 Malt Extract is a concentrated solution from water-macerated malt, which is used in infant and dietetic foods and in
23
31 bread baking . Malt extract, also known as extract of malt, is a sweet substance used as a food (and beverage)
32 ingredient. Malt is produced through the germination of barley (or other cereals) seeds24. With growing population and
33 absence of local production of raw material required for malt extracts, GCC countries are complexly import dependent
34 and fulfils the requirements of domestic consumption through mainly imports only. Malt is extract from different
35
cereals for different purposes, for example, from barley for making the beer, from barley and wheat for make food
36
37
supplements for children. Malt extracts are used as mixes and doughs of flour, groats, meal and starch and for
38 preparation of food such as bread, bakery etc. Malted grain is used to make beer, whisky, malted shakes, malt vinegar,
39 confections such as Maltesers and Whoppers, flavoured drinks such as Horlicks, Ovaltine, and Milo, Cho-chos
40 (chocolate malted ice cream cup), and some baked goods, such as malt loaf, bagels, and rich tea biscuits. Malted grain
41 that has been ground into a coarse meal is known as ‘sweet meal25’. Various cereals are malted, though barley is the
42 most common. A high-protein form of malted barley is often a label-listed ingredient in blended flours typically used
43 in the manufacture of yeast breads and other baked goods26. India's exports of Malt Extract (HS 1901) represent 0.4%
44
of world exports for this product and its ranking in world exports is 32. In terms of quantity exports, India’s exports to
45
46 World Market was 27,232 Tons out of which 2,826 tons is exported to GCC Countries in the year 2017 which
47 constitute around 10.37 % of total quantity exported of Malt Extract (HS-1901). Analysis as under in Figure 6
48 provides insights and the present state of India’s ‘supply-side capabilities’ in exports of Herbal products especially to
49
50 21
N. Islam, Subramanian, Agricultural Exports of Developing Countries: Estimates of Income and Price Elasticities of Demand
51 and Supply, Journal of Agricultural Economics, Volume 40, Issue 2, pages 221–231, May 1989,
52 http://onlinelibrary.wiley.com/doi/10.1111/j.1477-9552.1989.tb01101.x/abstract
22
53 Common Customs Law-(2015), (Rules of Implementation and Explanatory Notes), Gulf Cooperation Council
23
54 As defined by Food and Agricultural Organization under FAO-Food Code 0050 and can be accessed at
http://www.fao.org/es/faodef/fdef01e.htm
55 24
https://diamalteria.com/four-kinds-of-ingredients/what-are-malt-extracts/
56 25
Mills, Margaret H.; Claus, Peter J.; Diamond, Sarah (2003). South Asian folklore: an encyclopedia: Afghanistan, Bangladesh,
57
India, Nepal, Pakistan, Sri Lanka. New York: Routledge. p. 5. ISBN 0-415-93919-4.
58 26
Evers, A. D.; Kent, N. (1994). Technology of cereals: an introduction for students of food science and agriculture. New York:
59 Pergamon Press. p. 181. ISBN 0-08-040834-6. Retrieved 7 July 2010.
60 http://mc.manuscriptcentral.com/mjis
Page 9 of 24 Millennium

GCC countries. India’s exports of Malt extract (ITC-HS Heading 1901) to GCC countries and world market is
1 depicted as under in Figure 6.
2
3
4 Figure 6: India's Exports of Malt Extract (HS- 1901) to GCC Countries and World (000'USD)
5 140000
6 120000
7
8 100000
000' USD

9 80000
10
60000
11
12 40000
13 20000
14
0
15
2002 2007 2012 2013 2014 2015 2016 2017
16
17 World Gulf Cooperation Council (GCC)
18
19 Source: UN Comtrade, 2018
20
21 It is clear from the table above that India exported around 105 million USD of herbal products to world market out of
22 which around 14%, valuing around 15.04 million USD has gone to GCC Countries. India’s exports to world market
23 was around 27.55 million USD and around 3.84 million USD was exported to GCC countries. Analysis of export data
24
of malt extract exports indicates that India’s exports have been growing to GCC countries, almost in line with growth
25
26 in exports to world market. Figure 7 as under illustrates India’s export of malt extract as percentage of world exports
27 for the period 2002-2017.
28
29
30
31 Figure 7: Percentage of Malt Extract Export to GCC Coutnries in India's Total Exports of Malt
32 Extract
33 18
34 16
Percentage Share

35 14
36 12
37 10
8
38
6
39
4
40
2
41 0
42 2002 2007 2012 2013 2014 2015 2016 2017
43
44 Source: UN Comtrade, 2018
45
46
Key market for exports of Malt Extracts falling under ITC-HS Heading 1901: Malt Extracts to GCC countries are
47
48
United Arab Emirates, Saudi Arabia, Oman, Qatar, Kuwait and Bahrain. The largest export destination in GCC
49 countries is UAE where India has exported mere 1.69 million USD of Malt Extracts (HS 1901) in 2002 and it has
50 grown to 6.72 million USD in the year 2017. Export of malt extracts has witnessed a declining trend as exports in the
51 year were 7.58 million USD in 2012 which came down to 6.60 million USD in 2013 and again has shown the up-
52 down and down trends in the period 2014-2016. Exports to Saudi Arabia were 1.25 million USD in 2002, growing to
53 3.59 million USD in 2012, then touching a highest level of 5.46 million USD and finally performing sub-optimally in
54 the period 2014-17. Oman is the third largest export destination for India’s herbal products where exports of 1.80
55
million USD have recorded in the year 2017 followed by Qatar (1.73 million USD), Kuwait (1.29 million USD) and
56
57 987 thousand USD in Bahrain also in the year 2017. India’s Malt Extract exports suffered very low import duty of
58 mere 1.3% in GCC Countries. Figure 8 as under provides the country wise details of India’s herbal exports to GCC
59 Countries for the period 2002-2017.
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 Millennium Page 10 of 24

Figure 8 : India's Exports (000' USD) of Malt Extracts (1901) to Different Markets of GCC
1
Countries
2
3 9000
4 8000
5 7000
6 6000
000' USD

7 5000
8
4000
9
10 3000
11 2000
12 1000
13 0
14 2002 2007 2012 2013 2014 2015 2016 2017
15
United Arab Emirates Saudi Arabia Oman Qatar Kuwait Bahrain
16
17 Source: World Integrated Trade Atlas
18
19 Key Malt Extract products exported from India to GCC countries are provided in figure 9 as under. The most exported
20 mal extract falls under ITC-HS Sub Heading 190190: Malt Extract: Food preparations of flour, groats, meal valuing
21 13.31 million USD in 2017. The other two exported malt extracts are ITC-HS Sub Heading 190110- Malt Extract:
22
Food preparations for infant use and ITC-HS Sub Heading 190120-Malt Extract: Mixes and doughs of flour. Export of
23
24 Malt Extract has witnessed a declining trend from year 2013.
25
26 Figure 9: Key Malt Extract Herbal Products Exported from India to GCC Countries
27
28
29 20000
30 15000
31
32 10000
33 5000
34 0
35 2002
36 2007
2012
2013
37 2014
2015
38 2016
39 2017
40
41 190120-Malt Extract: Mixes and doughs of flour, 190110- Malt Extract: Food preparations for infant use
42
43 190190- Malt Extract: Food preparations of flour, groats, meal,
44
45 Source: World Integrated Trade Solution, World Bank
46
47 India has favourable trade balance in exports of Malt Extracts (HS 1901) to both world market as well as to GCC
48 countries. India’s exports to GCC countries constitute around 14.79% of India’s total Malt Extract exports and in
49 terms of quantity, it is around 10.37% for GCC countries of India’s total exports to World Market. Table 10 as under
50 illustrates the position of trade balance, exports in values and exported quantity of Malt Extract (HS 1901) to both
51 world market and GCC countries.
52
53 Table 10: India’s Position of Trade Balance, Exports in Values and Exported Quantity of Malt Extract (HS
54 1901)
55
India’s Exports of Malt India’s Trade Balance in Quantity
56
57 Extract (HS-1901) in 2017 Malt Extract (HS 1901) in Exported from
58 (000’USD) 2017 (000’USD) India in 2017
59 World 80607 64705 27232
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Page 11 of 24 Millennium

Gulf Cooperation Council 11856 11636 2826

1 Percentage Share of GCC countries 14.70 17.98 10.37
2 in India's Malt Extract (HS-1901)
3
4
Source: UN Comtrade, 2018
5
In terms of unit value per ton analysis, it is clear that India has an advantage in supplying Malt Extract Products of
6
7 GCC countries where the price realisations per tons are higher than world market. Linear trend line of Unit Value
8 Realisations per Ton (USD/Ton) for both World Market and GCC Countries is illustrated as under in Figure 11:
9
10 Figure 11: Unit Value Per Tons (USD) of India's Malt Extract Exports (HS 1901) to World
11 Market and GCC Countries
12
4500
13
14 4000
15 3500
16 3000
17
2500
18
19 2000
20 1500
21 1000
22
500
23
24 0
25 2002 2007 2012 2017
26 World Gulf Cooperation Council Linear (World ) Linear (Gulf Cooperation Council )
27
28
29 Source: UN Comtrade, 2018
30
31 Quantifying the Competitiveness of India’s Herbal Products in GCC Countries: In order to understand the
32 Supply-Side capabilities of Indian Herbal exporters ‘Revealed Comparative Advantage’ of each Herbal product
33 exported from India shall be calculated for each of GCC countries. “The revealed comparative advantage is an index
34 used in international economics for calculating the relative advantage or disadvantage of a certain country in a
35 certain class of goods or services as evidenced by trade flows”. The revealed comparative advantage is a widely
36 accepted research tool for calculating the relative advantage or disadvantage of a certain country in a certain class of
37
goods.
38
39
RCA = (Eij / Eit) / (Enj / Ent)
40
41 WHERE:
42 E Exports
43 i Country index
44 n Set of countries
45 j Commodity index
46 t Set of commodities
47
48 That is, the RCA is equal to the proportion of the country's exports that are of the class under consideration (Eij / Eit)
49 divided by the proportion of world exports that are of that class (Enj / Ent). A comparative advantage is “revealed” if
50 RCA>1. If RCA is less than unity, the country is said to have a comparative disadvantage in the commodity or
51 industry. The same can simply be also understood as.
52
53
54
55 Product RCA for= India’s Exports of Malt Extract (1901) to GCC Countries
56 India’s Export of Chapter 19 to GCC Countries
57 World Export of Malt Extract (1901)
58 World Exports of Chapter 19
59
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 Millennium Page 12 of 24

1 Further to understand the intensity of India’s exports of Herbal Products, Export Intensity Index is calculated which is
2 “ratio of a trading partner’s share to a country/region’s total exports and the share of world exports going to the
3
same trading partner”. It is calculated as:
4
5 Export Intensity Index (XIIij) = xij/Xiw
6 xwj/Xww
7 where
8
9 a. xij is the dollar value of exports of country/region i to country/region j,
10 b. Xiw is the dollar value of the exports of country/region i to the world,
11
c. xwj is the dollar value of world exports to country/region j, and
12
13 d. Xww is the dollar value of world exports.
14
15 An index of more than one indicates that trade flow between countries/regions is larger than expected given their
16 importance in world trade. For Herbal Malt Preparations (HS-1901); it can also be understood as. Export Intensity
17 Index for India’s Herbal Malt Preparations (HS-1901):
18
19
20
21 India’s Exports of Herbal Malt Preparations (HS-1901) to GCC /
22 India’s Total Exports of Herbal Malt Preparations (HS-1901) to World
23
24 World Exports of Herbal Malt Preparations (HS-1901) to GCC /
25 World Total Exports of Herbal Malt Preparations (HS-1901)
26
27
28 The results of Revealed Comparative Advantages of India’s Herbal Malt Extract Products to GCC Countries is
29 illustrated as under wherein it is clear the India has constantly same level of competitive in supply-side capability
30
when compared with a decade old scenario of year 2002. India’s supply-side capability has reduced to half from 1.08
31
32
in the year 2002 to 1.09 in the year 2017. Any value more than 1 indicates that product is competitive in a market i.e.
33 GCC countries. The findings of herbal malt extract preparations competitiveness by using econometric tool “Export
34 Intensity Index’ is provided as under which is clearly indicates that India’s herbal malt food preparations are losing
35 competitively in the last 15 years. The EII was 5.43 in the year 2002 which has declines to 2.67 in the year 2017, thus
36 clearly illustrating the declining competitiveness of India’s herbal malt extract preparations exports to GCC Countries.
37 Figure 12 as under provides the results of RCA as well as that of EII analysis of Herbal Malt Extracts Preparations
38 exports to GCC Countries from India.
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
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Page 13 of 24 Millennium

Figure 12: Results of India's Revealed Comprative Advantages & Export Intensity
1 Index for Exports of Malt Extracts (HS-1901) to GCC Countries
2 6.00
3
4 5.43
5 5.00
6
7 4.00
8 3.73
9
10 3.00
11 2.49
2.67
12 2.35
2.08 2.17
2.00
13 1.81
14 1.37
1.27 1.23
15 1.00 1.08 1.10 0.98 1.08 1.09
16
17
18 0.00
2002 2007 2012 2013 2014 2015 2016 2017
19
20
Export Intensity Index of India's Malt Extract (HS-1901) to GCC Countries from 2002-
21 2017
22 India's RCA for Export of Malt extract (HS-1901) to GCC Countries
23
24 Source: Author’s Calculation based on UN Comtrade data
25
26 5. MARKET ACCESS ISSUES ON EXPORTS OF MALT EXTRACTS (HS-1901) TO GCC
27
COUNTRIES: EVIDENCE ON MARKETS ACCESS BARRIERS
28
29 Market access27 refers to the ability of providers of foreign goods and services to sell in a given country. For the
30
purposes of market access negotiations in the WTO context, tradable items are subdivided into four groups-
31
32 agricultural goods, textiles and clothing, industrial goods, and services28. As different multilaterally agreed rules apply
33 to each group, analytical and monitoring work usually follows the same pattern. Main market access barriers are
34 ‘Import Tariffs’ and other ‘Price-Based Border Measures’. Government policies usually target at restricting market
35 access in a particular commodity and raising budget revenue29. The tariff and price-based measures include first
36 import duties, tariff quotas, and other border duties, levies, and charges. Nontariff border measures, on the other hand,
37 are government policies that may restrict market access through ‘non-price instruments30’. Such measures include,
38
quantitative restrictions (import quotas, direct prohibitions, domestic content requirements, licensing); contingency
39
40 measures (antidumping, countervailing, and safeguard measures); technical barriers to trade (TBT) (regulations,
41 standards, testing and certification procedures); sanitary and phytosanitary measures (SPS) (food, animal and plant
42 health and safety). Domestic policy measures are government policies, which may restrict market access if not applied
43 uniformly to domestic and imported goods and services. These are: tax, competition, credit, and investment policies;
44 price controls; and fiscal incentives trade-distorting export subsidies and domestic support. Each types of market
45 access barriers have different level of restrictions for exporters to access a particular market. With reduction in tariff
46
duties under different rounds of trade negotiations, non-tariff barriers and domestic policy measures has emerged as
47
48 major hindrance in accessing overseas markets for exporters around the world.
49
50
51
52 27
53 Market Access for Developing Country Exports—Selected Issues, Prepared by the Staffs of the IMF and the World Bank,
54 Approved by Timothy Geithner and Gobind Nankani, September 26, 2002
28
Introduction to Market Access in Trade in Goods in the WTO, WTO E-Learning Campus, Chapter 12, and can be accessed at
55
https://ecampus.wto.org/admin/files/Course_385/Module_1578/ModuleDocuments/MA-L1-R1-E.pdf
56 29
Non-Tariff Measures and the World Trading System, Josh Ederington & Michele Ruta, Policy Research Working Paper 7661,
57
World Bank Group and accessed at http://documents.worldbank.org/curated/en/882991467989523068/pdf/WPS7661.pdf
58 30
Non-Tariff Measures – A Fresh Look at Trade Policy’s New Frontier, edited by Olivier Cadot and Mariem Malouche, The World
59 Bank, 2012
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 Millennium Page 14 of 24

Import Tariff is defined as “a tax that is imposed on foreign goods as they enter into country or country goods moving
1 outside the country31”. Non-Tariff Barriers, on the other hand, are non-tax measures which are taken by governments
2 so as to favour domestic firms against the foreign suppliers32. In an era of economic globalization; Non-Tariff Barriers
3
are imposed for different purposes and encompass a wide range of trade restricting measures33. Some of the non-tariff
4
5 measures are genuine requirements of a country while others may have retaliatory effect for example; Gulf Countries
6 restrict the import of pork meat so as to address people religious sensitivities and comply with Islamic law34.
7 Similarly; some countries have specific packaging and labelling requirements which can impede trade but only
8 marginally. For example, there are strict norms for packing, labelling and marking of food products in GCC
9 countries35. While some other Non-Tariff Measures such as Quantitative Restrictions / Quotas, Standard Disparities,
10 Voluntary Export Restraints, Import Licensing Requirements, Local Content Requirements, Minimum Import Price
11
Limits, Specific Documentation Requirements, Embargoes, Non-Automatic Import Authorizations etc have much
12
13
more significant effects on international trade. In nutshell; both tariff and non-tariff measures hurt the growth and
14 development of herbal products trade as the purpose of both tariff and non-tariff barriers is same that is to impose
15 restrictions on import, but they differ in approach and manner. Main differences between Tariff and Non-Tariff
16 Measures are explained as under in Figure 13:
17
18 Figure 13: Differences in Tariff & Non-Tariff Barriers
19
20
21
22
23 Tariff Non Tariff
Measures Tariff Barriers ensure Measures Non Tariff Barriers do not
24 revenue for a government. bring any revenue.
25
26 Non Tariff Barriers are
country specific and are
27 Tariff Barriers are more
often based upon flimsy
28 transparent in nature.
grounds
29
30 Tariff Barriers makes Non Tariff Barriers aim at
goods expensive thus not allowing the import of
31 unatrrative to lcoal buyers. goods into country.
32
33
34
35 Tariff Barriers for India’s Malt Extracts Exports in GCC Countries: The GCC countries have applied Common
36 External Tariffs on imports since 2003. The tariff structure comprises four ad valorem tariff rates, which are 0%, 5%,
37
which is the general tariff rate, and 50% and 100%, applied on alcohol and tobacco, respectively. Some 97% of all
38
39 tariff lines are ad valorem; duties are levied on the c.i.f. value of imports. Alternate or specific duties apply to 0.3% of
40 all tariff lines. The GCC countries, being member to WTO borderless regime has ‘bound-rates’ all tariff lines. Bound
41 rates are in general considerably higher than applied rates, ranging from zero to 200%, giving scope for reduction.
42 Applicable rates of ad-valorem tariffs for herbal products imports in GCC countries are provided in the table 14 as
43 under:
44
45 Table 14: Applicable Rates of Ad-valorem Tariffs for Herbal Products Imports in GCC Countries
46
47 Produc Product description No. of Total
48 t code correspo ad
49
50 31
51 First Principles of Economics, By Richard G. Lipsey, Colin Harbury,page No. 215, Chapter 20, Oxford University Press
32
52 Streamlining Non-Tariff Measures: A Toolkit for Policy Makers, By Olivier Cadot, Mariem Malouche, Sebastian Saez, World
53 Bank Publications
33
54 International Trade After the Economic Crisis: Challenges and New Opportunities, UNCTAD/DITC/TAB/2010/2, UNITED
NATIONS PUBLICATION, 2010
55 34
Diversity within Unity: Import Laws of Islamic Countries on Haraam (Forbidden) Products, Raj Bhala and Shannon B.
56
Keating,https://kuscholarworks.ku.edu/bitstream/handle/1808/14784/INL302.pdf;sequence=1
57 35
Emirates Authority for Standardisation and Metrology (ESMA) mandates strict compliance of packing, labelling and marking of
58 Imported Herbal Food Products. Other country like Saudi Standards, Metrology and Quality Organization (SASO) and Oman’s
59 Directorate General for Specifications and Measurements (DGSM) also mandates similar standards.
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Page 15 of 24 Millennium

nding valore
1 national m
2 tariff equiva
3
lines lent
4
5 tariff
6 190110 Prep of cereals, flour, starch/milk f infant use, put up f retail sale 3 0%
7 190120 Mixes and doughs of flour, meal, starch or malt extract, not 3 5.00%
8 containing cocoa or containing < 40% by weight of cocoa
9 calculated on a totally defatted basis, n.e.s. and of mixes and
10
doughs of milk, cream, butter milk, sour milk, sour cream, whey,
11
12
yoghourt, kefir or similar goods of headings 0401 to 0404, not
13 containing cocoa or containing < 5% by weight of cocoa
14 calculated on a totally defatted basis, n.e.s., for the preparation of
15 bakers' wares of heading 1905
16 190190 Malt extract; food preparations of flour, meal, starch or malt 4 5.00%
17 extract, not containing cocoa or containing < 40% by weight of
18
cocoa calculated on a totally defatted basis, n.e.s. and food
19
20 preparations of milk, cream, butter milk, sour milk, sour cream,
21 whey, yoghourt, kefir or similar goods of headings 0401 to 0404,
22 not containing cocoa or containing < 5% by weight of cocoa
23 calculated on a totally defatted basis, n.e.s. (excl. for infant use,
24 put up for retail sale, and mixes and doughs for the preparation
25 of bakers' wares of heading 1905)
26
Source: Macmap, International Trade Center, Geneva
27
28
29 In trade policy analysis, econometric models are often used to create forward-looking projections of the economic
30 effects of policy changes that have not yet occurred. For understanding how tariff-cuts in GCC countries will improve
31 the scope for greater market access of India’s herbal exports to GCC, Partial Equilibrium Modelling as framed in
32 WITS-SMART tool, is used as model-based simulations are well suited for understanding the prospective scenario of
33 trade creation and trade diversion. Accordingly; SMART simulation method of the World Integrated Trade Solution
34
(WITS) are employed with different tariff cuts. SMART Tool of WITS package allows the researcher to investigate
35
36 the impact of unilateral/preferential/multilateral trade reforms at home or abroad on various variables including:
37
38 • Trade flows (import, exports, trade creation, trade diversion),
39 • world prices,
40 • tariff revenue, and
41
• economic welfare
42
43
our investigation is limited to impact of tariff-cuts on trade flows i.e. imports, exports, trade creation, trade diversion
44
45 by applying the tariff-cuts, country-wise on GCC countries. Three alternate scenarios of tariff reduction namely 5
46 percent and 10 percent cut are employed in the simulation to get the requisite results. The effects of tariff cuts in terms
47 of ‘trade-creation’ and ‘trade-diversion’ are provided in table 15 as under:
48
49 Table 15: Impact of Five Percent Reduction in Tariff by Bahrain
50 Exporter Importer HS Export in 2016 (1000 USD) Effect in 1000 USD Simple Duty Rate
51 Code Pre- Post Trade Trade Old New
52
reduction reduction Creation Diversion
53
54 India Bahrain 1901 861.195 864.236 0.988 2.053 3.33 3.17
55 India Kuwait 1901 1309.777 1316.464 2.16 4.527 5 4.75
56 India Oman 1901 557.772 560.185 0.587 1.826 3.33 3.17
57 India Qatar 1901 1366.493 1372.783 2.268 4.022 3.33 3.17
58
India Saudi 1901 2484.27 2502.731 4.806 13.655 8.33 7.92
59
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Arabia
1 India UAE 1901 15880.84 15954.44 22.626 50.969 3.33 3.17
2
Source: Author’s Simulations Based on WITS Trade data
3
4
5 If tariff cut is applied at the rate 10 percent, the results in terms of trade creation and trade diversion for different
6 markets of GCC countries shall be as provided in table 16 as under.
7
8 Table 16: Impact of Ten Percent Reduction in Tariff by Bahrain
9 Exporter Importer HS Code Export in 2016 (1000 USD) Effect in 1000 USD Simple Duty
10 Rate
11
Pre- Post Trade Trade Old New
12
13
Reduction Reduction Creation Diversion
14 India Bahrain 1901 861.195 867.277 1.976 4.106 3.33 3
15 India Kuwait 1901 1309.777 1323.151 4.32 9.054 5 4.5
16 India Oman 1901 557.772 562.597 1.174 3.651 3.33 3
17
India Qatar 1901 1366.493 1379.074 4.536 8.045 3.33 3
18
19 India Saudi Arabia 1901 2484.27 2521.193 9.612 27.311 8.33 7.5
20 India UAE 1901 15880.84 16028.03 45.252 101.94 3.33 3
21 Source: Author’s Simulations Based on WITS Trade data
22
23
24
NTB Barriers in Accessing GCC Countries: A standardized classification36 of the Non-Tariff Measures (NTM) was
25
26 discussed and agreed upon by several International Organizations in the context of the Multi-Agency Support Team
27 (MAST) appointed by The Secretary general of UNCTAD. Multi-Agency Support Team, involving the group of
28 eminent scholars, in consultation with various international trade organizations and other associated stakeholders in
29 exim-value chain drafted a list of various trade measures that can act as barrier to international trade. The group of
30 experts draw the scholars and technical experts from eight international organizations, including FAO, IMF, ITC,
31 OECD, UNCTAD, UNIDO, World Bank and WTO. From 2012, this classification is used as a basis to collect,
32
classify and disseminate information on then on-tariff regulations applied by a country. NTMs include a wide category
33
34 of instruments such as sanitary and phytosanitary measures(SPS), technical barriers of trade (TBT), quotas, anti-
35 competitive measures, import or export licenses, export restrictions, custom surcharges, financial measures,
36 antidumping measures, etc. The standardized and harmonized classification of Non-Tariff Measures in provided in
37 Table 17. The structure of NTBs is broadly categorised as under:
38
39 TABLE 17: THE STRUCTURE OF THE NTM CLASSIFICATION
40
41
TECHNI
BARRIE
TARIFF

MEASU
NON-

A: Sanitary and phytosanitary measures

CAL

42
RES
RS

43 B: Technical barriers to trade

44 C: Pre-shipment inspection and other formalities
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59 36
UNCTAD, 2012 is first standardized and harmonized Nomenclature of Non-Tariff barriers.
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D: Contingent trade-protective measures

NON-TECHNICAL MEASURES
1 E: Non-automatic licenses, quotas, prohibitions, Quantity-control measures
2 F: Price-control measures, taxes and charges
3
G: Financial measures
4
5 H: Measures affecting competition
6 I: Trade-related Investment measures
7 J: Distribution Restrictions
8 K: Restrictions on Post-Sales Services
9 L: Subsidies
10 M: Government Procurement restrictions
11
N: Intellectual Property
12
13 O: Rules of Origin
14
MEASURES
AFFECTIN

EXPORTS
EXPORT

15
NTBs

16 P: Export-related Measures
G

17
18
19
Source: UNCTAD-Multi Agency Study Team 2011
20
21
22
23 An exporting country can impose restrictions for the quantity of goods to be exported to a specific country (Quantity
24 Quota or Restrictions) or countries for reasons such as; shortage of goods in the domestic market; regulating domestic
25 prices; avoiding antidumping measures; or for political reasons37. There are 5 export licensing or permit requirements
26 notification by Government of India mandating India’s herbal exporters to comply with.
27
28 Table 18: Applicable Non-Tariff Barriers for Malt Extract Food in GCC countries
29 Name of Herbal HS Code (India’s No. of Additional Additional Comment
30 Product National Tariff Tariff Comment on NTB
31 Line) Affected by Lines on
32
NTBs Product
33
34 Licensing or Permit 1901: Malt extract; 19011090, 19012000, 5 Applies to
35 Requirements for food preparations of 19011010, 19019090, genetically
36 Export (NTBC-P 130) flour 19019010 modified
37 foods
38 Export Related Market 1901: Malt extract; 19011010, 19011090, 5 A product may be
39 Access Issues-Export food preparations of 19012000, 19019010, exported as “Organic
40
Technical Measures, flour 19019090 Product” only when
41
42 n.e.s (NTBC-P690): accompanied by a
43 Transaction Certificate
44 Export Related Market 1901: Malt extract; 19011010, 19011090, 5 Export subsidies under
45 Access Issues-Export food preparations of 19012000, 19019010, the Merchandise
46 Subsidies (NTBC- flour 19019090 Exports for India
47 P700) Scheme (MEIS)
48
Source: Macmap, International Trade Center, Geneva
49
50
Broadly, there are three types of licensing or permit requirement for export of herbal products exports from India to
51
52 any of the country in the world including GCC countries, first, export of Malt Products (HS 1901) require export
53 permit if there is use of ‘genetically modified foods’ in the preparation and manufacture38 of any of these herbal
54 products. The Manufacture, Use, Import, Export and Storage of Hazardous Micro Organisms Genetically Engineered
55 Organisms or Cells Rules, 1989 mandates that No person shall import, export, transport, manufacture or sell any
56
57 37
All of these measures are formally prohibited by the GATT 1994, but may be applied under specific situations identified in
58 Article XI of GATT 1994
59 38
Ministry of Environment, Forest and Climate Change Order, April 2014
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hazardous microorganisms of genetically engineered organisms except with the approval of the Genetic Engineering
1 Approval Committee. Food stuffs, ingredients in food stuffs and additives containing genetically engineered
2 organisms or cells, shall not be produced, sold, imported or used except with the approval of the Genetic Engineering
3
Approval Committee39.
4
5 Export technical measures n.e.s. ( NTB Classification Code 690) is most prevalent export related non-tariff measures
6
imposed by Government of India where there are specifications for the kind of packaging to be used on herbal drugs
7
8 falling under the HS code 1901 which mandates that Indian herbal malt extract manufacturer must comply with
9 labelling of one dimensional barcode encoding unique and universal global product identification code in the format
10 of 14 digits Global Trade Item Number (GTIN) along with batch number, expiry date and a unique Serial Shipping
11 Container Code (SSCC) for the packaging of such herbal drugs. Export subsidies (NTBC-P700) are “financial
12 contribution by a government or government body to export firm or company, being a particular industry or company,
13 such as direct or potential transfer of funds (e.g. grants, loans, equity infusions), payments to a funding mechanism
14
and income or price support”. Government of India help to Indian exporters, generally in two forms, first by offering
15
16 them ‘Service Subsidy’ such as trade information services, assistance for participation in trade shows, feasibility
17 studies aimed at identification of export prospects and potential and assistance in foreign representation and legal
18 representation etc. Secondly; in the form of ‘Cash Subsidy’ which can be in the form of rebate on imported raw
19 materials and ‘duty-free import’ of manufacturing equipment (called indirect cash subsidy); or drawback as a
20 percentage of the value of exports (called direct cash subsidy or as duty credit scrip such as Merchandize Export from
21 India Scheme (MEIS Scheme). Although World Trade Organization (WTO) recognizes that subsidies hinder fair
22
competition and distort trade practices, it has not been able to define precisely what kind of assistance constitutes a
23
24 subsidy.
25
Restricting market access through export trade regime40, export tariffs41 and lack of suitable logistical infrastructure42
26
27 has been a challenge for exporters across the globe. Export related measures have been a topic of discussion several
28 times, including in the WTO Doha Round negotiations especially in the fields of Non-Agricultural Market Access
29 (NAMA) and agriculture. Quantitative restrictions have conventionally focused on imports, but in this section, an
30 effort has been made to consider export related measures affecting the market access of India’s Herbal Exports to
31 GCC countries. Table 19 as under provides insights of recent regulatory measures taken by Government of India that
32 affect the market access of India’s herbal products to world market including that of GCC countries.
33
34 Table 19: Regulatory Measures Affecting Export Market of India’s Herbal Malt Products Export
35
1 DGFT Public "A product will only be allowed to be exported as “Organic” May Ministry of
36
37 Notice No. when accompanied by a Transaction Certificate issued by a 2015 Commerce &
38 10/2015-2020: Certification Body accredited by the National Accreditation Industry,
39 Implementation of Body for Organic Products. “Organic Products” for export Department of
40 the procedure for will be so certified only if produced, processed and packed Commerce
41 export of certified as per the standards laid down in the document “National
42 organic products Programme for Organic Production""."
43
2 Export of Feed Feed additives and premixtures shall be subject to quality Nov. Ministry of
44
45 additives and control or inspection prior to export. Exports must be 2013 Commerce &
46 Premixtures accompanied by a certificate issued by the Export Inspection Industry,
47 (Quality Control, Agency. A manufacturer intending to export shall apply for Department of
48 Inspection and registration or approval of the manufacturing establishment. Commerce
49 Monitoring) Rules, The product has to favorably affect the characteristics of
50 2013 animal feed and shall meet requirements regarding labelling
51
and packaging. An inspection fee shall be paid to the
52
53 Competent Authority.
54
55 39
Ministry of Environment and Forests Order of December, 1989
56 40
ITC (HS) Schedule 2 as promulgated under Foreign Trade ( Development & Regulation) Act 1992 by Director General of Foreign
57
Trade, Government of India
58 41
As promulgated under Indian Custom Tariff Act 1975, Schedule 2 of the Act, read with Finance Bill 2018.
59 42
Logistics Performance Index, World Bank
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3 The Manufacture, No person shall import, export, transport, manufacture or Dec. Ministry of
1 Use, Import, sell any hazardous microorganisms of genetically 1989 Environment
2 Export And engineered organisms except with the approval of the and Forests
3
Storage Of Genetic Engineering Approval Committee. Food stuffs,
4
5 Hazardous Micro ingredients in food stuffs and additives containing
6 Organisms genetically engineered organisms or cells, shall not be
7 Genetically produced, sold, imported or used except with the approval
8 Engineered of the Genetic Engineering Approval Committee.
9 Organisms Or Cells
10 Rules, 1989
11
4 Public Notice No. 2 This regulation under the Merchandise Exports from India April Ministry of
12
13 /2015-20 Scheme (MEIS) provides a schedule of country groups and 2015 Commerce &
14 products listed according to their ITC (HS) code with Industry,
15 corresponding reward rates under Appendix 3B. The Department of
16 document implements the provisions of the 2015-2020 Commerce
17 Foreign Trade Policy.
18 5 Foreign Trade The five-yearly Foreign Trade Policy (FTP) provides an April Ministry of
19
Policy 2015-2020 overview of Indian import and export regulations that will 2015 Commerce &
20
21 be in effect until March 2020. The FTP outlines regulations Industry,
22 concerning customs procedures, registration requirements, Department of
23 quantitative restrictions, state trading enterprises, price Commerce
24 controls, duty exemptions and financing rules.
25 6 Spices Board Act, No person shall export any spice except under and in Febr. Ministry of
26 1986 accordance with a certificate. An application for grant of 1987 Commerce &
27
certificate shall be made to the Board in such form as may Industry,
28
29 be prescribed and shall be accompanied by a receipt Spices Board
30 evidencing the payment of the prescribed fee. India
31 Source: International Trade Center, Geneva
32
33 Before delving into specifics of issues, it is significant to understand the context under which export related measures
34 are applied by exporting countries for restricting market access for a product. The key reasons for applying export-
35 related measures are:
36
37 First, any country can fix the export limits so as to make the goods available for domestic supplies. This may happen
38 when domestic prices of a products are increasing, resulting in inflation and public pressures thus creating
39 unfavourable political environment. Second Schedule of ITC (HS), 2012 (Export Policy) regulates the exports of
40
merchandize from India. DGFT is apex regulatory body for development and regulation of foreign trade in India, has
41
42 power to amend the export trade regime for any product exported from India. Broadly, there exist four categories of
43 regulation of export regime. However there exists other ways of regulation of exports. If the goods are listed as ‘Free’
44 in the Export Licensing Schedule, they may be freely exported subject to other regulatory conditions as laid out
45 against the respective entry of ITC(HS) Schedule 2. The item may be ‘Restricted’ for exports, meaning it cannot be
46 exported unless a ‘Special Export License’ as mandated under Ayat-Niryat Form is not issued by Director General of
47 Foreign Trade. Canalized items, also referred as ‘State Trading Enterprise” can only be issued by nominated agency
48
against the entry in Export Policy Schedule. The ‘Prohibited’ items are not permitted to be exported. An export
49
50 licence is not granted to any exporter in the normal course for goods in the prohibited category. Indian government
51 resort to such measures, in fact, most debatable subject before policy makers is to ensure unwavering export policy
52 regime so as encourage exports of agricultural products from India which has been subject to sudden, prompt and
53 unpredicted policy changes in recent past thus confusing producers as well as exporters. Second, a country can impose
54 ‘Export tariffs’ (taxes) designed to generate fiscal revenue. One type of measures, as seen in developing countries
55
56
57
58
59
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where domestic tax collection mechanism43 is insufficiently developed, involves restricting exports in order to
1 generate fiscal revenue. This usually takes the form of an export tax (export tariffs), which can be effectively levied at
2 borders. Export tariff, sometimes, are used not only to generate fiscal revenue from exports, but also to maintain the
3
competitiveness of a country’s industry. For example, restricting the export of a rare resource44 material and allocating
4
5 it preferentially for domestic industry allows country to maintain the competitiveness of their domestic industry. Such
6 export related measures restricting market access may also be applied on exports of raw-material45 so as make them
7 available for domestic industry. Indian government resort to such measures so as to make certain goods unattractive
8 for international markets thus increasing their supply for domestic consumption and generating welfare. Third types of
9 export related measures restricting market access can be in form of diplomatic measures and trade security
10 management, etc. Such export restrictions are used as a diplomatic tool. For example, government of India apply the
11
economic sanction measure based on United Nations Security Council Resolution for prohibition on any kind of trade
12
13
with Islamic State of Iraq:
14
“In compliance with United Nations Security Council Resolution No. 2199 [2015] (full text of the
15
16 Resolution is available at http://www.un.org/press/en/2015/ sc11775.doc.htm), trade in oil and
17 refined oil products, modular refineries and related materials, besides items of cultural (including
18 antiquities), scientific and religious importance is prohibited with the Islamic State in Iraq and the
19 Levant [ISIL], Al Nusrah Front [ANF] and other individuals, groups, undertakings and entities
20 associated, directly or indirectly, with Al Qaida”.
21
22
23
24 6. CONCLUSION:
25
26 The paper rightly discusses the growing importance of herbal malt extract preparations which is due to rising per
27 capita income, increasing awareness about herbal products, easy to use and changing life style has prompted the
28 greater demand for herbs and plants across the world. An increasingly sedentary lifestyle thus far is pushing
29 consumers to lead a healthy life. The number of mental and health disorders are multiplying. More and more
30
individuals are now looking at alternatives that are safer, healthier, and economical. Herbal supplements are gaining
31
32 prominence due to increased awareness among consumers. India's exports of Malt Extract (HS 1901) represent 0.4%
33 of world exports for this product and its ranking in world exports is 32. India exported around 105 million USD of
34 herbal products to world market out of which around 14%, valuing around 15.04 million USD has gone to GCC
35 Countries. India’s exports to world market was around 27.55 million USD and around 3.84 million USD was exported
36 to GCC countries. Analysis of export data of malt extract exports indicates that India’s exports have been growing to
37 GCC countries, almost in line with growth in exports to world market. In terms of quantity exports, India’s exports to
38
World Market was 27,232 Tons out of which 2,826 tons is exported to GCC Countries in the year 2017 which
39
40 constitute around 10.37 % of total quantity exported of Malt Extract (HS-1901). Key market for exports of Malt
41 Extracts falling under ITC-HS Heading 1901: Malt Extracts to GCC countries are United Arab Emirates, Saudi
42 Arabia, Oman, Qatar, Kuwait and Bahrain. The largest export destination in GCC countries is UAE where India has
43 exported mere 1.69 million USD of Malt Extracts (HS 1901) in 2002 and it has grown to 6.72 million USD in the year
44 2017. Export of malt extracts has witnessed a declining trend as exports in the year were 7.58 million USD in 2012
45 which came down to 6.60 million USD in 2013 and again has shown the up-down and down trends in the period 2014-
46
2016. Exports to Saudi Arabia were 1.25 million USD in 2002, growing to 3.59 million USD in 2012, then touching a
47
48 highest level of 5.46 million USD and finally performing sub-optimally in the period 2014-17. Revealed Comparative
49 Advantages of India’s Herbal Malt Extract Products to GCC Countries is illustrated as under wherein it is clear the
50 India has constantly same level of competitive in supply-side capability when compared with a decade old scenario of
51 year 2002. India’s supply-side capability has reduced to half from 1.08 in the year 2002 to 1.09 in the year 2017. The
52
53 43
54 http://www.wto.org/english/tratop_e/markacc_e/markacc_chair_texts07_e.htm. The proposal allows least developed
countries to maintain their export taxes unbound and certain other developing countries can keep export taxes on a negotiated
55
number of tariff lines unbound. Export taxes are not prohibited by the WTO (Piermartini, 2004: 2).
56 44
Zee, Howell H. “Export Taxes in Times of Trade Surpluses” J. Int. Trade & Economic Development, Vol. 16, no. 2 (June 2007):
57
137-157.
58 45
European Commission. "State of play of work on trade restrictions affecting access to raw materials." Trade. Available from
59 http://trade.ec.europa.eu/doclib/docs/2008/february/tradoc_137761.pdf. December 17, 2007.
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EII was 5.43 in the year 2002 which has declines to 2.67 in the year 2017, thus clearly illustrating the declining
1 competitiveness of India’s herbal malt extract preparations exports to GCC Countries. With the membership of WTO
2 and subsequent trade reforms ensuring the easy, cost effective and advantageous availability of food products, GCC
3
countries as drastically reduced the imports tariffs on food products. The tariffs are as low as 5%, almost in line with
4
5 developed countries of Europe and North America. Further, the results of SMART simulation, wherein a tariff-cut of
6 5% was applied to existing tariffs of GCC Countries, indicates that tariffs are not some important barriers affecting the
7 export access of India’s Herbal malt food preparations exports to GCC Countries. With almost zero production of
8 herbal malt food preparations domestically and India’s geographical proximity, India can be reliable supplier of food
9 products to GCC Countries. Even, there are limited no of non-tariff barriers which are applied to imports of herbal
10 malt extract preparations by GCC countries. On the other hand, investigation reveals that there are sizable number of
11
export related market access issues which the policy makers in India need to look into. Accordingly, it is concluded
12
13
that policy-makers in India should take appropriate steps for further improving the export competitiveness of India’s
14 malt food preparations to GCC countries.
15
16 7. REFERENCES:
17 1. Rohit Bhattacharya, Reddy KRC, Mishra AK: “Export strategy of Ayurvedic Products from India”,
18 International Journal of Ayurvedic Medicine, 2014, 5(1), 125-128 ISSN: 0976-5921 www.ijam.co.in/5-
19 1/final%20krc%20reddy.pdf
20 2. V. P. Kamboj, Herbal Medicine, Current Science, Vol. 78, No. 1, 10 January 2000, Central Drug Research
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37 European Union” ISSN 1392-1258. ekonomika 2012 Vol. 91(2)
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14. Salvador V. Garibay and Katki Jyoti, “Market Access Opportunities and Challenges for Indian Organic
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15. Allen Dennis and Ben Shepherd, : Barriers to Entry, Trade Costs, and Export Diversification in Developing
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54 30. A. Goswamin, P K Baruah, J S Sandhu : “Prospect Of Herbal Drugs In The Age Of Globalization-Indian
55 Scenario” Journal of Scientific and Industrial Research
56 31. Lina Al Halaseh, Balan Sundarakani: “Study On Quality Attributes Of Halal Food Supply Chain”
57 International Journal of Logistics Economics and Globalization, Print ISSN: 1741-5373 Online ISSN: 1741-
58 5381
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32. Von Witzke, Harald; Sheldon, Ian M.: “The Growing Demand for Food Quality: Implications for Agricultural
1 and Trade Policy” , Ohio State University. Department of Agricultural Economics and Rural Sociology. ESO
2 (Economics and Sociology Occasional Paper). No. 1771 http://hdl.handle.net/1811/66280
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33. Julie A. Caswell: “Valuing The Benefits And Costs Of Improved Food Safety And Nutrition” Australian
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5 Journal of Agricultural and Resource Economics, Volume 42, Issue 4, pages 409–424, December 1998,
6 http://onlinelibrary.wiley.com/doi/10.1111/1467-8489.00060/full
7 34. Lionel Fontagné, Mondher Mimouni & Jean-Michel Pasteels: “Estimating the Impact of Environmental SPS
8 and TBT on International Trade”, Integration and Trade Journal, 2005
9 35. Klaus G. Grunert: Food Quality and Safety: Consumer Perception and Demand, European Review of
10 Agricultural Economics, Vol 32 (3) (2005) pp. 369–391, www.doi:10.1093/eurrag/jbi011
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36. N Islam, Subramanian: Agricultural Exports Of Developing Countries: Estimates Of Income And Price
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Elasticities Of Demand And Supply, Journal of Agricultural Economics, Volume 40, Issue 2, pages 221–231,
14 May 1989, http://onlinelibrary.wiley.com/doi/10.1111/j.1477-9552.1989.tb01101.x/abstract
15 37. Dennis R. Henderson, Ian M. Sheldon, and Daniel H. Pick: “International Commerce In Processed Foods:
16 Patterns And Curiosities”, International Agricultural Trade Research Consortium
17 http://ageconsearch.umn.edu/bitstream/51211/2/96-3.pdf
18 38. John C Beghin, Miet Maertens, and Johan Swinnen: “Non-Tariff Measures and Standards in Trade and Global
19 Value Chains”, Faculty of Economics and Business, Belgium, http://www.econ.kuleuven.be/licos
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39. Laurian J Unnevehr: Food Safety Issues and Fresh Food Product Exports from LDCs, Agricultural
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12 Profile of Dr. Ram Singh:
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15 Dr. Ram Singh is Associate Professor at Indian Institute of Foreign Trade with over 16 years of
16 teaching experience. His academic qualification is B.Com; MBA, Ph. D, UGC- NET Qualified;
17 PGDIBO; MGG (Germany). He specializes; both in training & research; in areas such as Export
18 Import Procedure; Trade Policy & Trade Logistics. He has authored two text books, first on
19 “International Trade Operations” with Excel Publications, another on “International Trade
20 Logistics” with Oxford University Press. His third text book entitled “Export Management” with
21 Oxford University Press is soon to hit the market. He has also co-authored a book on “Exim
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Finance” with Vikas Publications. He has authored 33 research publications and has done 9
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Structured Contents Module for trade courses for universities like Jamia Milia Islamia; New
25 Delhi / Sikkim Manipal University; Bangalore / Pondicherry University Pondicherry / MD
26 Rohtak University / Indira Gandhi National Open University New Delhi.
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31 Profile of Hemant Kr. Singh:
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33 HEMANT KUMAR SINGH is an Industrial Engineer from IIT Roorkee, Masters in International Business
34 and a PhD researcher at the Indian Institute of Foreign Trade, Delhi having 20+ years work experience in
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various multinational manufacturing and International Business organisations in India, GCC and Europe.
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37 He is presently heading a manufacturing & trading group in the Sultanate of Oman with business
38 functions in Organic & Herbal food products from India for distribution in Middle East & North Africa.
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