Trade Direction and Competitiveness of Mango Export From India
Trade Direction and Competitiveness of Mango Export From India
mango has been diversifying over the years. Mexico has lost 12.57 per cent share to Saudi Arabia and 15.67
was followed by Netherlands and Thailand having per cent share to other countries. At the same time,
share of 13.35 per cent and 9.89 per cent respectively UAE gained 46.49 per cent share of export value from
in total export of mango during the year 2017. Saudi Arabia and 30.42 per cent from others countries.
The total volume of Mango import has increased After UAE second most stable market is Kuwait and
from $404.7 million in 1995 to $2474.8 million in 2017 it retained 55.70 per cent to its original value export
(Annexure II). Major importing countries in world are to its previous share. Kuwait has lost it’s 44.30 per
USA, Netherlands, Germany, UK and UAE accounting cent share to Saudi Arabia. Results revealed that U K,
for more than half of the total global imports in 2017. Bahrain and Qatar are the unstable markets for Indian
USA stood at top position over the study period, but fresh mango as having probability zero. Study revealed
trend shows that its share has declined over the period. that, UAE is the major gainer from importing countries
The share of other countries in mango import has been as it is likely to gain 46.49 per cent from Saudi Arabia
increasing indicating the emergence of new markets. and 30.42 per cent from others. Saudi Arabia is likely
to gain from Kuwait and UAE as 44.30 per cent and
Direction of trade of mango and its product 12.57 per cent share respectively. Among the unstable
export from India markets UK is likely to gain 73.35 per cent and 68.72
per cent from Bahrain and Qatar respectively.
Fresh Mango
The table also revealed the change in direction of
The changes in the direction of fresh mango trade of fresh mango export from India during post
export from India in pre-NHM period i.e., 1995-96 to NHM period (2006-07 to 2017-18). Results showed that
2017-18 are given in Table 2. The major six partners like pre NHM period UAE again was one of the most
for Indian fresh mango were selected as UAE, Saudi stable markets among the major importers of Indian
Arabia, Kuwait, UK, Bahrain and Qatar. The rest of the fresh mango as exhibited by the highest probability of
countries were kept under ‘others’ category. The results retention at 0.7140 i.e. UAE had retained its original
revealed that UAE is most stable market for Indian export share of 71.40 per cent during the period 2006-
fresh mango during the pre-NHM period as it retains 07 to 2017-18. Kuwait had probability of retention
the probability 59.79 per cent of its previous value. It of 0.3420, retaining its original export share of 34.20
118 Journal of Agricultural Development and Policy
Table 2 .Transitional probability matrix of Indian fresh mango export, 1995-96 to 2005-06
Country UAE Saudi Arabia Kuwait UK Bahrain Qatar Others
Period (1995-96 to 2017-18)
United Arab Emirates 0.5979 0.1257 0.0471 0.0570 0.0149 0.0008 0.1567
Saudi Arabia 0.4649 0.2485 0.0113 0.1000 0.0854 0.0897 0.0000
Kuwait 0.0000 0.4430 0.5570 0.0000 0.0000 0.0000 0.0000
United Kingdom 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 1.0000
Bahrain 0.0703 0.0000 0.0000 0.7335 0.0000 0.0000 0.1961
Qatar 0.0000 0.0000 0.0000 0.6872 0.0000 0.0000 0.3128
Others 0.3042 0.0000 0.0000 0.0194 0.0280 0.0000 0.6484
Period (2006-07 to 2017-18)
United Arab Emirates 0.7140 0.0540 0.0370 0.0612 0.0087 0.0113 0.1139
Saudi Arabia 0.9422 0.0000 0.0000 0.0000 0.5776 0.0000 0.0000
Kuwait 0.0000 0.0000 0.3420 0.0000 0.0841 0.5738 0.0000
United Kingdom 0.7190 0.0633 0.0117 0.0660 0.0240 0.0215 0.0946
Bahrain 0.0000 0.0000 0.0000 0.0000 0.3516 0.0000 0.0000
Qatar 0.0000 0.0000 0.0000 1.0000 0.0000 0.0000 0.0000
Others 0.2365 0.0125 0.0000 0.2062 0.0074 0.0000 0.5373
per cent. Similarly, Bahrain had retained its original of Indian mango pulp as it gives highest probability
export share 35.16 per cent. Same can be defined in retention to its previous year’s export value i.e. 0.4537.
case of UK. This implies that Bahrain and Kuwait Second most stable market for mango pulp is UK as
were also the stable importer of Indian fresh mango. its retained 33.23 per cent of its previous export value
On the contrary, Saudi Arabia and Qatar were having share. Likewise, Netherlands and Saudi Arabia had
a probability of retention as zero indicating that both probability of retention 0.2566 and 0.1235 which can
are unstable importer of Indian fresh mango during be similarly defined as the stable markets for Indian
post-NHM period. mango pulp. One the other hand UAE and USA are the
The major gainer among importer of Indian fresh unstable markets for Indian mango pulp as both have
mango during post-NHM was UAE which is having a retained the zero probability of their previous year
transfer probability of 0.9422 from Saudi Arabia, 0.7190 export value share.
from UK and 0.2365 from others. In similar manner, Saudi Arabia is major gainer among the all importers
Bahrain gained 57.76 per cent market share from Saudi of Indian mango pulp during pre-NHM period having
Arabia and 8.41per cent and 2.40 per cent from Kuwait transfer probability of 0.4527 and 0.5463 from the
and UK respectively. UAE in addition to having high Netherlands and YAR respectively. At the same time
probability of retention is also likely to gain 11.56 per it loses 56.58 per cent share to others countries. UK is
cent market share from Kuwait. In contrary, UAE is also major gainer as it gained 59.24 per cent from UAE
also likely to lose 16.03 per cent market share to Iran and has lost also its 22.37 per cent own export value
and 1.71 per cent to Kuwait. On the other hand, Qatar, share to USA. The most stable market gained 15.71 per
which is unstable market of Indian fresh mango, is likely cent from Netherlands and 7.90 per cent from Saudi
to gain 57.38 per cent market share from Kuwait. Arabia. Contrary to this, UAE is unstable market and is
likely to gain 42.85 per cent share from UK and 13.35
Mango Pulp per cent from Netherlands. Similarly, USA is likely to
The change in direction of mango pulp export gain from UK and UAE.
from India is shown in Table 3. This table revealed that In post-NHM period, USA emerged as the most
Yamen Arab Republic was the most stable importer stable market owing to its improvement in its retention
Trade Direction and Competitiveness of Mango Export from India 119
Table 3. Transitional probability matrix of mango pulp export from India during 1995-96 to 2017-18
Country Saudi Arabia UK UAE Netherlands YAR USA Others
Period (1995-96 to 2005-06)
Saudi Arabia 0.1235 0.0000 0.0000 0.2310 0.0797 0.0000 0.5658
UK 0.0000 0.3323 0.4285 0.0155 0.0000 0.2237 0.0000
UAE 0.0000 0.5924 0.0000 0.0000 0.0000 0.3263 0.0813
Netherlands 0.4527 0.0000 0.1335 0.2566 0.1571 0.0000 0.0000
YAR 0.5463 0.0000 0.0000 0.0000 0.4537 0.0000 0.0000
USA 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 1.0000
Others 0.4211 0.0000 0.1522 0.0298 0.0000 0.0095 0.3874
Period (2006-07 to 2017-18)
Saudi Arabia 0.2041 0.0905 0.0719 0.1620 0.0000 0.0469 0.4244
UK 0.0000 0.5598 0.0000 0.0000 0.0000 0.0122 0.4279
UAE 0.7855 0.0000 0.2144 0.0000 0.0000 0.0000 0.0000
Netherlands 0.0000 0.0000 0.2272 0.4928 0.0000 0.0000 0.2799
YAR 0.4822 0.0000 0.0000 0.0846 0.2352 0.0000 0.0000
USA 0.0000 0.0000 0.0000 0.0000 0.2251 0.7748 0.1979
Others 0.2903 0.0000 0.0113 0.0156 0.1935 0.0000 0.4891
share to 77.48 per cent which were unstable in pre-NHM lost the remaining share Saudi Arabia (29.03 %), YAR
period. UK had retained 55.98 per cent share of its (19.35%), UAE (1.13 %) and Netherlands (1.56 %).
previous export value. It is revealed that USA and UK
are the most stable and loyal markets for Indian mango Mango dried slice
pulp during the post-NHM period. Noteworthy point During the study period USA and Netherlands were
is that UAE was unstable market in pre-NHM market major stable markets for Indian mango dried slices as
and it has retained 21.44 per cent of its previous share they exhibited higher retention capacity of 0.9267 and
in post-NHM period. Netherland also increased its 0.8091, which means they have retained 92.67 and
retention ability to 49.28 per cent from 25.66 per cent 80.91 per cent of their previous export value share
which in pre-NHM period. Similarly, Saudi Arabia and (Table 4). Contrary to this, Japan, UK and Saudi Arabia
YAR have shown stability in their share with 20.41per are the unstable markets as these importers exhibit zero
cent and 23.52 per cent respectively. retention share of previous year of export value.
In post-NHM period the major gainer among all During this period USA was the major gainer among
the importing countries was Saudi Arabia as it grabbed the top importers as it gained 34.02 per cent from UK
78.55 per cent and 48.22 per cent and 29 per cent from and 19.09 per cent from Netherlands. At the same time
UAE, YAR and others. On the other hand it has given it has given up its remaining share to Japan (3.98%),
up its has remaining share to UK (9.05 %), UAE (7.19 Netherlands (1.13%0 and others (2.21 %). Netherlands
%), Netherland (16.20 %) and other (42.44%). UK grabbed 6.42 per cent share from UK, 11 per cent from
grabbed 9.05 per cent share from Saudi Arabia and Saudi Arabia and 1.13 per cent from USA. It has lost
sacrificed its share to USA (1.22 %) and others (42.79 19.09 per cent of remaining share to USA also. In case
%). In case of Netherland it has given up 22.72 per cent of unstable markets, Japan has lost its 100 per cent
share to UAE and 27.99 per cent to other countries. It is share to Saudi Arabia (25.08 %) and others (74.92 %).
clearly noted that USA is most stable market retaining Similarly, Saudi Arabia transferred its whole share to
77.48 per cent but it looses its remaining share to YAR Netherlands (11%), UK (1.77%) and others (87.22 %).
i.e., 22.51 per cent. In case of other countries India Finally, UK has lost it its total share to USA (34.02%),
had held 48.91 per cent of its previous share and has Japan (7.18 %), Netherlands (6.42 %) and others (52.38
120 Journal of Agricultural Development and Policy
Table 4. Transitional probability matrix of mango dried sliced export from India during 2004-05 to 2017-18
Country USA Japan UK Saudi Netherlands Others
Arabia
USA 0.9267 0.0398 0.0000 0.0000 0.0113 0.0221
Japan 0.0000 0.0000 0.0000 0.2508 0.0000 0.7492
UK 0.3402 0.0718 0.0000 0.0000 0.0642 0.5238
Saudi Arabia 0.0000 0.0000 0.0177 0.0000 0.1100 0.8722
Netherlands 0.1909 0.0000 0.0000 0.0000 0.8091 0.0000
Others 0.0000 0.1479 0.1498 0.3050 0.0000 0.3974
%). In case of other countries India had held 39.74 (87.22 %). Finally, UK has lost it its total share to UAE
per cent of its previous share and the remaining share (62.85%), UK (31.53%), and Nepal (5.63%). In case
was lost to Japan (14.79 %), UK (14.98 %) and Saudi of other countries India had held 40.96 per cent of its
Arabia (30.50 %). previous share and the remaining share was lost to UAE
(10.82%), UK (24.74%), Canada (20.25%) and Nepal
Mango flour (3.24%).
The study revealed that USA and UK were the
major stable markets for Indian mango flour as they Mango squash
exhibited higher retention capacity of 0.8663 and 0.6407 Mango squash is one of the major processed
which means that they retained 86.63 and 64.07 per products of mango in India. The change in trade pattern
cent of their previous export value shares (Table 5). of mango squash exported is represented in Table 6
Contrary to this, UAE and Canada are the unstable using transitional probability matrices during the study
markets exhibiting zero retention share of previous period of 2004-05 to 2017-18. The major markets
year of export value. selected for study were Netherlands, UAE, UK, USA
During the study period USA was the major gainer and Nepal. The remaining countries were kept under
among the top importers as it gained 39.87 per cent other category.
from UAE, 24.46 per cent from UK and 12.93 per This study revealed that Nepal was the most
cent from Nepal, at the same time it has given up its stable market as it has recognised the highest retention
remaining share to UAE (2.35%), Canada (2.11% and probability as 0.5447. It showed that Nepal had retained
others (8.911 %). UK grabbed 31.53 per cent share 54.47 per cent export value share of its previous value.
from Canada and 24.74 per cent from others. It has lost Study revealed that UK is second most stable market for
11.48 per cent of remaining share to UAE and 24.46 Indian mango squash as it had retained 29.50 per cent
per cent USA. In case of unstable markets, UAE has share of its previous export value. Similarly, Netherland
lost its 100 per cent share to USA (39.87 %) and others and UAE both have retained 27.11 per cent and 3.89
(60.13 %). Similarly, Canada has transferred its whole per cent share respectively. Contrary to this, USA had
share to Netherlands (11%), UK (1.77%) and others showed zero retention probability making it clear that
Table 5. Transitional probability matrix of mango flour export from India during 2004-05 to 2017-18
Country UAE UK USA Canada Nepal Others
UAE 0.0000 0.0000 0.3987 0.0000 0.0000 0.6013
UK 0.1148 0.6407 0.2446 0.0000 0.0000 0.0000
USA 0.0235 0.0000 0.8663 0.0211 0.0000 0.0891
Canada 0.6285 0.3153 0.0000 0.0000 0.0563 0.0000
Nepal 0.0000 0.0000 0.1293 0.7927 0.0781 0.0000
Others 0.1082 0.2474 0.0000 0.2025 0.0324 0.4096
Trade Direction and Competitiveness of Mango Export from India 121
Table 6. Transitional probability matrix of mango squash export from India, 2004-05 to 2017-18
Country Netherland UAE UK USA Nepal Others
Netherland 0.2711 0.0000 0.0000 0.0000 0.2738 0.4550
UAE 0.0000 0.0389 0.0000 0.0000 0.0000 0.9611
UK 0.6150 0.0000 0.2950 0.0000 0.0622 0.0271
USA 0.0000 0.0000 0.0000 0.0000 0.0000 1.0000
Nepal 0.0000 0.0000 0.1978 0.1771 0.5447 0.0805
Others 0.2573 0.1304 0.0198 0.0488 0.0000 0.5437
USA is unstable market among the all major importers showed the weakening comparative advantage of India
of Indian mango squash. and during 2007 it tends to have negative which exposed
the comparative advantage over India. As a special
Competitiveness of Indian mango case to China, India tries to overcome the comparative
Principle of comparative advantage is one of disadvantage with declining negative ratio at the end
the best tools to determine production and export of of period (-1.86) from the starting (-8.17) which were
commodity of any a nation. The comparative advantage higher comparative advantage of china over the India.
tells about the capability of a nation to export a particular Pakistan and Indonesia have increasing comparative
commodity in the international market. Comparative advantage over India in Asian market. Up to period
advantages of top mango exporting countries were 2011 Thailand had comparative advantage over India in
computed by revealed comparative advantage (RCA) Asian Market but afterwards India builds up advantage
and comparative export performance (CEP). against Thailand.
Table 7. Revealed comparative advantage (RCA) of mango in India against top exporter in Asia market from
2001 to 2017
Year Mexico China Pakistan Indonesia Brazil Thailand
2001 3.22 -8.17 - -4.37 0.00 -3.13
2003 1.98 -5.88 -0.66 -2.14 0.01 -2.11
2005 0.07 -5.43 -0.72 -2.64 0.02 -1.76
2007 -0.13 -6.01 -0.52 -2.96 0.02 -1.48
2009 0.01 -6.11 -0.52 -2.81 0.02 -0.81
2011 0.41 -5.80 -1.12 -2.40 0.02 -0.40
2013 1.71 -5.07 -1.28 -2.71 0.02 0.36
2015 1.92 -3.66 -1.23 -1.64 0.02 0.29
2017 1.23 -1.86 -2.30 -2.43 0.05 1.47
122 Journal of Agricultural Development and Policy
Table 8. Comparative export performance of mango in top exporting countries in the world from 2001 to 2017
Year India Mexico China Pakistan Indonesia Thailand Brazil
2001 1.16 2.72 -3.85 - -0.18 0.51 1.00
2003 2.35 2.55 -2.81 2.80 0.22 0.03 1.16
2005 2.54 2.08 -2.10 2.75 -0.47 0.57 0.80
2007 2.20 2.04 -2.72 2.60 -1.17 0.52 0.63
2009 2.47 2.05 -2.89 2.29 -1.16 1.07 0.45
2011 1.85 2.12 -2.80 2.07 -1.35 0.82 0.43
2013 1.36 2.27 -2.36 2.13 -1.87 1.43 0.26
2015 1.48 2.07 -1.24 1.36 -1.06 1.11 0.40
2017 0.94 1.97 -0.65 1.47 -2.76 1.24 0.21
It was concluded from the analysis that Mexico, Gillet B E 1976. Introduction of operation research - A
computer oriented algorithmic approach, MaGraw -
Netherlands, Brazil, Peru and India are the top most
Hill Inc, New York, USA.
exporters of mango. USA, Netherlands, Germany, UAE,
and UK are the major mango importing countries of GOI 2018a. Horticulture Statistics at Glance. Horticulture
the world accounting for more than half of the total Statistics Division, Department of Agriculture and
world imports of mango. For Indian fresh mango UAE Farmers’ Welfare, Ministry of Agriculture and farmers
was the most loyal market both in pre-NHM and post- Welfare, Government of India.
NHM as it retained 59.79 per cent and 71.40 per cent GOI 2018b. Agricultural and Processed Food Products
of its previous value respectively. For mango pulp Export Development Authority (APEDA). Ministry
stability was changes from YAR (45.37 %) to USA of Commerce and Industry, New Delhi.
(77.48%) in later period. In case of mango dried slices Kshirsagar PJ, Phuge SC, Anapandj VN and Yadav M
and mango flour the most favorable market was USA; 2018. Performance and Determinants of Mango export
and Nepal was the loyal market for mango squash. India from India. Bulletin of Environment, Pharmacology
has enjoyed comparative advantage in mango exports and Life Sciences. 8: 149-53
in the world market over Brazil, China and Indonesia
Lee TC, Judge GG and Zeellenner A 1970. Estimating the
during the study period. Study revealed that India still
parameters of the probability Model from aggregate
has scope to expand mango export. Production strategy
time series data, North-Holland publishing company,
should target not only meeting the domestic and export Amsterdam.
demand of fresh product but also of the processed
products. Patil RS, Deshmukh RG, Bhaskar K R and Jahagirdar
SW 2018. Growth and Export Performance of
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Received: January 3, 2020 Accepted: March 15, 2020
Annexures
Major exporter countries of mango in the world (Million Dollar)
Country 1995 2000 2005 2010 2015 2017
Mexico 104.8 111.10 86.60 163.40 328.40 454.90
(35.96) (28.81) (13.93) (14.13) (16.89) (16.33)
Thailand 1.7 4.10 4.30 80.10 173.10 275.50
(0.58) (1.06) (0.69) (6.93) (8.90) (9.89)
India 12.3 16.50 122.70 228.60 183.60 182.90
(4.22) (4.28) (19.73) (19.78) (9.44) (6.57)
Brazil 22.1 35.70 72.60 119.60 184.90 205.40
(7.58) (9.26) (11.68) (10.35) (9.51) (7.37)
Netherlands 26.3 36.30 83.60 158.90 236.30 371.90
(9.03) (9.41) (13.44) (13.75) (12.15) (13.35)
Peru 6.93 23.30 38.30 89.30 194.10 191.70
(2.38) (6.04) (6.16) (7.72) (9.98) (6.88)
Other 117.27 158.60 213.70 316.10 644.00 1103.30
(40.24) (41.13) (34.37) (27.34) (33.12) (39.61)
World total 291.4 513.10 784.40 1172.80 2036.90 2474.80
(100.00) (100.00) (100.00) (100.00) (100.00) (100.00)
Source: Data compiled from faostat.org
Note: Figures in parenthesis indicate percentage share to total.