Spice Competitiveness of Indian Agriculture: An Analysis

Abstract

Competitiveness of agricultural commodities in international market is said to be favorable if the agricultural commodities from one particular nation gets quoted and traded at a prices which is considerably higher than total of the cost of production, storage, transportation and value difference created by currency exchange. If one of the agricultural commodities fetches lower price than above mentioned costs, it is not competitive for the producing country. Some of the agricultural commodities can be stored for a little longer and there the producing countries can wait for a better price and can also tag their production with a minimum value it plans to get in international market. But its not possible for any country trading into agricultural commodities to store the agricultural commodities for more than three years.