The Hindu Business Line : Hurdles before Indian agriculture exports

Do you know that India has a strong agricultural front to boast of in the international front? As per RCA (Revealed Competitive Advantage) index presented in a 2005 World Bank study, India's RCA is twice that of the world average. RCA is high for India's exports of flowers and plants, notes, India & the Doha Work Programme: Opportunities and Challenges, edited by Veena Jha, from Macmillan (www.macmillanindia.com).

The RCA index of a country for a product is often measured by the product's share in the country's exports in relation to its share in world trade, explains http://web.worldbank.org. But RCA is of little value because of the many distortions, notes Jha. For instance, `trade logistics costs' are so high that these are called `logistical tax'. High delivery costs erode production cost advantage.

Another problem is that of "the gap between the high standards required by governments and buyers in richer countries, and the low standards and weak conformity assessment mechanisms in India." Tariffs also pose a major hurdle. "In the case of dairy as well as fruits and vegetables, developed countries impose peak tariffs that are on average more than three times the peak tariff applied India." How appalling! The book has informative chapters on non-agricultural market access, problems of exporters, TRIPS and subsidies. Essential read for professionals is the chapter on services liberalisation.

Lest you run aground

Delve within to create your destiny, urge Bobby and Jyothi Menon in, ME, a Winner, from EastWest (ewb@touchtelindia.net). The book narrates the story of David who meets Prakash Vathsav in Kottayam to learn lessons of life. "I am like a ship without a destination which stays adrift, sometimes going in circles, before it finally runs aground," rues David. But Vathsav says, "I am not a guru... I am the little guy who'll hold the mirror up to your face and then suggest what you can do with that image." Yet, at the end of the stay in Kerala, David learns a lot. Such as: "You, your position, your credibility, and your social status depend on a few important deliverables... "

A book for the inner journey!

Tailpiece

"Their election manifesto promises free motorcycle for every household!"

"How do we respond?"

"We'll give free petrol!"

ReadingRoom@TheHindu.co.in

D. Murali

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