MSc

The present study on the "Market behaviour of important spices of Kerala" was
aimed to examine the trends in production and export of major spices, analyze the price
behaviour and to measure trade competitiveness of major spice crops in Kerala viz.
pepper, cardamom, ginger and turmeric in the context of liberalized trade regime. Both
primary and secondary data had been used for the study.
Growth rate analysis during the entire period (1971-2000) using different growth
model revealed significant and positive growth in area, production and productivity of
pepper and ginger. But in the case of cardamom and turmeric growth in production and
productivity was significant and positive while in area it was negative though
insignificant. Variability measurement using Coppock's instability index and coefficient
of variation exhibited higher variation in production compared to area and productivity in
all the crops studied except cardamom where productivity variation was high.
A significant positive growth was shown in export quantity and value of pepper,
ginger and turmeric during the entire period. In cardamom, growth was negative in both
export quantity and value. Coefficient of variation exhibited a higher variation in export
value compared to export quantity in all the spices. Comparison of growth in export
performance during pre and post liberalization periods indicated a higher growth 111
export quantity and value during post liberalization period except for pepper.
The comparison of item wise export and import during pre \VTO (1989-1995) and
post WTO period (1996-2002) in value terms indicated that pepper was the major foreign
exchange earner in both the periods followed by turmeric, ginger and cardamom. In
pepper products, black pepper garbled was the major exporting item with a share of 65
per cent. Export earning from spices has increased three folds during post WTO period as
that of pre WTO. The item wise import of all the spices increased in post WTO period
and pepper contributed major value of import whereas it was cardamom during the pre
WTO period. Since India contributed 80 per cent of world trade of turmeric its import to
India is very less.

Price behaviour of spices was analyzed by fitting linear trend for both domestic
and international prices. Variability in prices were measured using coefficient of variation
by splitting the time period as pre WTO (1988-1995) and post WTO (1996-2003) period.
The results showed a higher growth in international prices compared to domestic prices
in cardamom, ginger and turmeric. Comparison of coefficient of variation exhibited a
lower variation in prices in post WTO period except for pepper.
The measurement of trade competitiveness using Nominal Protection Coefficient
during pre WTO (1988-1995) and post WTO (1996-2003) periods exhibited a value of
less than one during the two periods and NPC was lesser in post WTO period indicating
high competitiveness in cardamom, ginger and turmeric. In the case of pepper NPC
remained the same in both the periods.
The study on marketing aspects of the above spices among respondent farmers in
Kattappana panchayat of Idukki district revealed that most of the farmers were depending
on village merchant to sell their produce even though co-operative marketing societies
and auction centres were there. The immediate need for money forced the farmers to sell
their produce to village merchant. The farmers did not face much difficulty in marketing
their produce and the major constraint faced by them was price fluctuation. Most of the
farmers were aware of the quality standards stipulated for exporting of spices and were
trying to reduce the level of chemicals used. The emphasis on value addition for export
promotion as well as use of organic cultivation of spices appears to be a green signal for
the bright future of spice trade in India.