Comparative advantage of groundnut export from India with other selected countries

Abstract

The paper analyses the comparative advantage in the export of groundnut between some selected countries. Current global integration and changing export pattern has resulted in the reduction of trade barriers. Such increment in the international trade led the countries to get productive gains and enjoy the comparative advantage over other countries for which a measure of revealed comparative advantage (RCA Balassa index) is used. Groundnut exports share in India's total exports have shown a decreasing trend over the years and it was only 0.141 per cent in 2018. Although the Indian groundnut has wide scope for exports in the international market yet the groundnut farmers are suffering from many backlogs which hinder the actual growth of groundnut exports. Groundnut farmers of India have confronted with various challenges to survive in the international market. India has an increasing growth in terms of comparative advantage in groundnut export. It has maintained stability over the years which indicates that India's groundnut export has significant potential for growth. Country has the highest comparative advantage 13.69 in the exports of groundnut in comparison with other selected countries as it holds the potential of being the world's leading groundnut producer with the ongoing research to develop technologies for rainfed groundnut farming.