Trade potential in livestock sector: Evidences from domestic and global level

Abstract

Livestock being a supplementing source of farm income plays a multi-face role in socio-economic development of rural households. Inspite of two consecutive drought years (2013–14 and 2014–15) which lead to decline in the share of crop, the share of livestock was increased to 4.4per cent as compared to previous year (4.1per cent). This may lead us to think about the latent opportunities of this sector. Present study was conducted with an aim to capture the dynamics of livestock sector at international level. The study is based on time series data i.e. obtained from FAOSTAT database for 1993–2013. Data was analysed using Simpson diversification index and export performance ratio. The results revealed that there is decline in the share of agriculture and livestock in total merchandise import however their contribution in export is increasing. Wool, Silk and Milk equivalent formed the major share of livestock imported to India, while Meat and meat preparation constituted major part in export. India remained net exporter of Eggs (in Shell and Liquid, dried), Meat and meat preparation, Offal, Honey and Live animals and net importer of Silk, Hair (fine), Skins (sheep, with wool) and Wool. Maximum variability in import was exhibited by Egg (liquid, dried) and for export was exhibited by offal. There is relatively more trade diversification in world than India except for T.E. 2008–10 and 2011–13. Import diversification in India is more than export diversification. India has comparative advantage in Eggs (Liquid, Dried), Meat and meat preparation, Silk, Offal and Honey. However India never had comparative advantage for Animal fat, Milk equivalent, Hair (fine), wool, Skins (sheep with wool) and Live animals.