Export performance of Indian fresh onion : A Markov Chain Analysis
1C Saranya and 2K. Sita Devi
Department of Agricultural Economics, Annamalai University. Annamalai Nagar - 608002 India email: c.saranya1999@gmail.com
ABSTRACT
The Onion (Allium cepa) is the most widely consumed vegetable, which is traditionally used as a food ingredient in the Mediterranean diet. India is the second largest onion growing countries in the world and contributes over 10 per cent of global onion trade. India has exported 1.62 million Metric tonnes of onion worth of 405.99 million US Dollars in the year 2023. The trade restriction on onion export has resulted in a drastic decline in the wholesale trade. With this background, this studyhas been carried out to estimate the growth trend and instability index in the area, production, productivity and export of fresh onion from India; to analyse the components of change in export value of Indian fresh onion; and to study the export share and direction of trade in fresh onion. The studycompletely relied on secondary data collected from APEDA. The data were analysed using compound growth rate analysis, cuddy della valle index, percentage change, decomposition analysis and Markov chain analysis. The studyrevealed that Bangladesh is the largest importer of Indian fresh onion. The decomposition analysis revealed that the export unit value effect has a strong contribution for the growth of onion export in India. The direction of trade has lucidly shown that the exporting trend is stable with Bangladesh and Malaysia. Hence, the onion export has wider opportunities in the international trade.