J. Hortl. Sci. Vol. 12(2) : 133-142, 2017 Fruit and vegetable exports in the post-liberalization era: The Indian experience A. Indhushree*, Anil Kuruvila, Jesy Thomas and C. Latha Bastine Department of Agricultural Economics, College of Horticulture, Kerala Agricultural University, Thrissur, Kerala. *E-mail: indhuashree@gmail.com ABSTRACT The liberalization of agricultural trade brought about by the economic reforms of 1991, the subsequent WTO agreement and the proliferating Regional Trading Agreements have opened opportunities as well as challenges for India’s horticultural trade. This paper analyses the performance of horticultural exports from the country in terms of growth, instability, dynamics, diversification and stability with respect to commodities and markets and the constraints in terms of the Non-Tariff Measures (NTMs) faced and delineates the opportunities and strategies required to be followed by the sector for a sustainable growth. The horticultural exports from the country have grown significantly in both quantity and value terms during the period from 1991 to 2016. The highest share in the exports of horticultural products from India was accounted by grapes for which the major markets were Netherlands, Russia, United Kingdom, UAE, Germany and Saudi Arabia. Among the vegetables, India accounted for about 9.4 per cent of share in world exports of onion and the main destinations were Bangladesh, Malaysia, UAE and Sri Lanka. The horticultural exports have shown increased commodity diversification as well as geographical diversification due to increased market access in developed countries. Even though the tariffs have come down there by increasing the exports, the NTMs, especially quality issues in connection with sanitary and phyto-sanitary regulations have increased in the post- liberalization era. Given the inherent potential and rising competiveness of the India’s horticultural sector, the removal of product specific constraints, especially production of commodities of international standards could definitely help in sustaining the growth of horticultural exports. Key words: Exports, growth and instability, non-tariff Measures, sanitary and phyto-Sanitary regulations INTRODUCTION India is one of the world’s largest producer and consumer of the horticultural commodities especially, fruits and vegetables. The production of horticultural crops in India was about 283.3 million tonnes in 2015- 16. Over the last five years, the contribution of vegetables (59-61 %) remain highest in the horticulture crop production followed by fruits (31-32 %). There is a wide diversification in the production of these commodities all over the country and it increased significantly in the recent decades. India is the second largest producer of fruits and vegetables in the world. It produced 91.4 million tonnes of fruits and 166.6 million tonnes of vegetables during 2015-16 (GoI, 2016). Even though India’s share in global market is only around one percent, there is increasing demand for India’s horticulture products in the global market. The liberalization of agricultural trade brought about by the economic reforms of 1991, the subsequent WTO agreement and the proliferating Regional Trading Agreements have opened opportunities as well as challenges for India’s horticultural trade internationally. These negotiations also focus more on international agricultural commodity markets in the context of improvement in market access and reduction of export subsidies (Dastagiri, 2017). At the same time this has Original Research Paper 133 134 also paved the way for increase in non-tariff barriers that restricts the international trade in horticultural commodities. Non-tariff measures are the policy measures other than ordinary customs tariffs that can potentially have an economic effect on international trade in goods, changing quantities traded, or prices or both (UNCTAD, 2013). As reported by FAO, phyto- sanitary controls imposed by importers are critical for developing countr ies exporting fr esh fr uit and vegetables. These controls are particularly stringent in the USA, Australia and Japan. India faces several constraints in the export of vegetables and fruits, especially to the developed countries, in the form of NTMs especially quality issues in connection with sanitary and phyto-sanitary regulations which have increased in the post- liberalization era. The non-tariff barr iers established by the importing countries combined with other factors like zero tolerance to insects and pests, and issues in certification, cause difficulties to the exporters. Rejection or additional checks at the entry points create considerable financial loss, delay in delivery to the client, loss of quality and reputation of Indian exports (Idris et al., 2015). In the above setting, this paper analyses the performance of horticultural exports from India in terms of growth, instability, dynamics, diversification and stability with respect to commodities and markets and the constraints in terms of the Non-Tariff Measures (NTMs) faced and delineates the opportunities and strategies required to be followed by the sector for a sustainable growth. MATERIAL AND METHODS The study was conducted based on the data on India’s fruits and vegetables exports from the year 1988 to 2016. The data on quantity and value of exports a nd destinations of fr uits a nd vegeta bles a nd information on the non-tariff barriers were collected. The data sources were World Integrated Trade Solution (WITS) and Agricultural Produce Export Development Authority (APEDA). The percentage share of each of the major vegetables and fruits in the total export of vegetables and fruits was estimated and based on this percentage share, top 8 vegetables and top 7 fruits were identified for which the analyses on export instability, geographic concentration and Markov chain analysis were done. Export instability To study the export instability, Coppocks instability index was used which can be expressed in the following estimable form The instability index is = (antilog V log – 1) x 100 Where, Xt is the value of exports in year or volume of exports in year t, N is number of years and M is the arithmetic mean of the difference between the logs of Xt and Xt+1 etc., V log is logarithmic variance of the series. Concentration in the Exports of Vegetables and Fruit Commodity concentration – Gini Concentration Index Diversification of export basket can reduce the vulnerability of domestic producers and consumers to external shocks and it can also reduce the volatility in export earnings. Gini Index was used to measure the concentration in the export of total vegetables and fruits from India. Gini Concentration Index= 100 2 Where, Xit is the value of exports of commodity ‘i’ from India in year ‘t’ and Xt is the values of export of all commodities from India in year t. Geographic Concentration – Hirschman Index Increased geographic concentration increases the instability and thereby the risks in export earnings. The Hirschman Index was used to measure the geographic concentration in the export of fruits and vegetables. Hirschman Index, HI = 100 2 Where, Xit is the value of exports of commodity from India in year t to the ith market, Xt is the total value of export of the commodity from India in year t and n is the number of countries importing the commodity from India. J. Hortl. Sci. Vol. 12(2) : 133-142, 2017 Indhushree et al 135 Stable Export Markets for India’s Vegetables and Fruits: Markov Chain Analysis The stable export markets for India’s vegetables and fruits were identified by estimating retention probabilities using Markov chain analysis. The model is a stochastic process which describes the finite number of possible outcomes Si (i=1,2…r) which is a discrete random variable Xt (t=1,2…T) and which assumes that (a) the probability of an outcome on the tth trial depends only on outcome of the preceding trial, and (b) this probability is constant for all time periods (Lee et al., 1970). Central to Markov chain analysis is the estimation of the transitional probability matrix P. The element Pij of this matrix indicates the probability that exports will switch from country i to country j with the passage of time. The diagonal element Pij where, i=j, measures the probability that the export sha re of a country will be r etained. Hence, an examination of the diagonal element indicates the loyalty of an importing country to a particular country’s exports (Atkin and Blandford, 1982). The average exports to a particular country was considered to be a random variable which depends only on its past exports to that country and which can be denoted algebraically as, Where, Ejt is exports from India to j th country during the year t, Eit-1is exports to i th country during the year t-1, Pij is the probability that exports will shift from i th country to jth country, ejt is the error term which is statistically independent of Eit-1, and r is the number of importing countries. The expected export shares of each country during period t were obtained by multiplying the exports to these countries in the previous period (t-1) with the transition probability matrix. RESULTS AND DISCUSSION Share of different vegetables and fruits in total vegetables and fruits exports from India The share of individual vegetables in total vegetables export from India is given in Table 1. It could be observed from the table that during Triennium Ending (TE) 1990, onions and shallots accounted for 36.56 percent and 44 percent of the total vegetables exports in value terms and quantity terms respectively. It was followed by dried leguminous vegetables which accounted for 3 percent of value and 1 percent of quantity of vegetables exports from India. It could be observed from the table that in quantity terms onions and shallots accounted for the maximum share in all the trienniums, whereas in value terms, the only exception to this was Triennium Ending 2000. In Triennium Ending 2000, dried lentils accounted for the maximum share in total value of vegetables exports from India. Even though onion and shallots occupied the first position in Triennium Ending 2010 and Triennium Ending 2016, the other vegetables like dried onions, tomatoes, potatoes, other potatoes have increased in shares in both quantity and value terms, which is a clear indication of diversification of India’s export basket of vegetables. The share of individual fruits in total fruits export from India is given in Table 2. It could be observed that during Triennium Ending 1990, cashew nuts accounted for 76.37 percent of the total fruits exports in value terms. It was followed by gua vas, mangoes and mangosteens which accounted for 6.38 percent of value of fruits exports from India. In terms of quantum of exports, guavas, mangoes and mangosteens and fresh grapes accounted for 22.8 percent and 6.11 percent respectively. It could be observed from the table that in value terms, cashew nuts accounted for the maximum share in all the trienniums under consideration, whereas in quantity terms, the highest sha re was accounted by gua va s, ma ngoes and mangosteens in all the trienniums. While the share of cashew nuts declined in Triennium Ending 2010 and Triennium Ending 2016, the other fruits like guavas, mangoes and mangosteens, fresh grapes, bananas, dried grapes have increased in shares in both quantity and value terms, which is a clear indication of diversification of India’s export basket of fruits. The results of the instability analysis for export of fruits given in Table 4 shows that the instability in export value, quantity and unit value for bananas, dried grapes and lemon and lime declined during the period from 2000 to 2016 while it increased in case of guavas, mangoes and mangosteens, fresh grapes and walnuts. For cashew nuts the instability in value increased but in terms of quantity and unit value it declined. J. Hortl. Sci. Vol. 12(2) : 133-142, 2017 Fruit and vegetable exports in India 136 Commodities TE 1990 TE 2000 TE 2010 TE 2016 Percent share Percent share Percent share Percent share Onions and shallots Value 36.56 17.19 31.94 22.46 (fresh or chilled) Quantity 44.02 29.55 39.29 32.81 Dried onions Value 0.43 2.89 3 7.03 Quantity 0.09 0.66 0.54 1.34 Tomatoes Value 0.05 0.07 2.31 4.69 (fresh or chilled) Quantity 0.03 0.11 2.7 5.76 Potatoes Value 0.38 0.97 1.76 4.45 (fresh or chilled) Quantity 0.57 2.49 2.9 5.75 Other potatoes Value 0.33 0.81 1.61 4.4 (fresh or chilled) Quantity 0.51 2.08 2.74 5.73 Dried leguminous vegetables Value 3.04 7.39 0.32 1.13 (shelled) Quantity 1 4.2 0.12 0.33 Dried lentils Value 2.37 22.9 0.02 0.67 (shelled) Quantity 0.67 14.14 0.01 0.24 Garlic Value 0.78 0.53 0.67 0.62 (fresh or chilled) Quantity 0.54 0.58 0.23 0.36 Other vegetables Value 8.77 22.75 24.65 30.09 Quantity 3.45 14.48 11.6 13.83 Totalvegetables exports Value (1000 USD) 130255.3 283994.8 1326335.7 1681428.8 (actual value) Quantity (1000 Tons) 584.5 934.67 3903.1 4218.65 Source: Computed using data from wits.org Note: Per cent share denotes share in total quantity and value of vegetable exports Table 1. Dynamics in Share of Different Vegetables in Total Vegetables Exports from India Table 2. Dynamics in Share of Different Fruits in Total Fruits Exports from India Commodities TE 1990 TE 2000 TE 2010 TE 2016 Percent share Percent share Percent share Percent share Cashew nuts Value 76.37 79.5 55.55 51.8 Quantity 0.05 30.17 16.79 13.17 Guavas, mangoes and Value 6.38 2.94 19.92 12.35 mangosteens Quantity 22.8 14.35 33.65 23.02 Fresh grapes Value 1.79 1.91 8.03 12.02 Quantity 6.11 4.79 13.35 14.32 Bananas, including plantains Value 0.02 0.62 1.76 3.13 Quantity 0.62 2.77 6.04 9.95 Dried grapes Value 0 0.03 1.19 1.99 Quantity 0 0.04 1.09 2.92 Walnuts without shell Value 3.1 2.54 3.43 1.34 Quantity 3.39 1.8 0.96 0.36 Lemons and limes Value 0.01 0.17 0.67 0.63 Quantity 0.1 0.91 2.82 2.11 Other fruits Value 12.32 12.3 9.46 16.75 Quantity 66.93 45.16 25.28 34.15 Total fruits exports Value (1000 USD) 286305.63 606959.54 1085762.6 1571229.11 (actual value) Quantity (1000 Tons) 92.86 287.48 725.31 836.9 Source: Computed using data from wits.org Note: Per cent share denotes share in total quantity and value of fruit exports J. Hortl. Sci. Vol. 12(2) : 133-142, 2017 Indhushree et al 137 COMMODITY INSTABILITY INDEX (%) 1988-99 2000-16 1998-2016 Onions and shallots Values 20.6 37.1 31.3 (fresh or chilled) Quantity 34.1 35.2 34.8 Unit Value 18.7 48.6 37.6 Dried onions Values 58.3 72.9 68.6 Quantity 55.1 81.0 71.2 Unit Value 23.9 73.3 55.1 Tomatoes (fresh or chilled) Values 164.9 134.3 146.6 Quantity 136.7 187.5 164.3 Unit Value 62.3 73.1 67.5 Potatoes(fresh or chilled) Values 108.8 90.7 97.6 Quantity 100.3 84.3 90.6 Unit Value 45.4 41.9 42.6 Other potatoes (fresh or chilled) Values 104.2 96.8 98.6 Quantity 110.4 94.3 99.4 Unit Value 46.4 42.4 43.3 Dried leguminous Values 24.9 97.0 71.1 vegetables (shelled) Quantity 26.3 99.9 74.9 Unit Value 10.9 18.6 16.6 Dried lentils(shelled) Values 72.3 379.8 248.7 Quantity 72.6 459.6 292.7 Unit Value 13.8 19.5 17.8 Garlic (fresh or chilled) Values 176.3 344.3 269.0 Quantity 181.7 446.6 323.7 Unit Value 15.8 64.5 47.9 Source: Computed using data from wits.org Instability Analysis The instability indices for vegetables export from India given by Coppock’s Instability Index (Table 3) shows that the instability in value, quantity and unit value of exports for onions and shallots, dried onions, dried leguminous vegetables, dried lentils and garlic have increased in the period from 2000 to 2016 when compared to the period from 1988 to 1999. For potatoes and other potatoes, the instability in export declined. The instability in value for tomatoes declined but the instability in export quantity and unit value increased during the period from 2000 to 2016. Concentration of Exports Commodity concentration and geographic concentration of exports were considered to be the major contributing factors in the instability of export earnings. Commodity Concentration The commodity concentration in the export of vegetables and fruits from India given by the Gini Concentration Index is given in Table 5. The average value of the concentration index for the period from 1988 to 1999 was 50.61 and 78.89 for export of vegetables and fruits respectively. During the period from 2000 to 2016, the average value of the commodity concentration index for vegetables and fruits declined to 42.32 and 64.51 a nd this declining trend in commodity concentration for export of vegetables and fruits is shown in figure 1 and 2 respectively. The higher commodity concentration index for export of fruits from India indicates greater dependence on the export of only few commodities which is often thought to be the inherent cause for the fluctuations in export earnings. The lesser concentration index for vegetables export tha n fr uits implies compa ra tively mor e diversification in the export basket of vegetables. Table 3. Instability in Export of Vegetables from India (Coppocks Instability Index) J. Hortl. Sci. Vol. 12(2) : 133-142, 2017 Fruit and vegetable exports in India 138 COMMODITY INSTABILITY INDEX (%) 1988-99 2000-16 1998-2016 Cashew nuts (fresh or dried) Values 13.7 21.0 19.6 Quantity 604.6 17.1 259.7 Unit Value 631.9 15.6 263.5 Guavas, mangoes and Values 23.5 40.5 35.1 mangosteens, (fresh or dried) Quantity 23.7 44.2 36.0 Unit Value 12.7 18.9 17.8 Fresh grapes Values 37.5 44.2 41.1 Quantity 44.2 46.1 44.4 Unit Value 12.7 31.4 24.8 Bananas, including plantains Values 291.1 38.4 143.8 (fresh or dried) Quantity 357.1 43.5 169.7 Unit Value 81.0 25.6 51.4 Dried grapes Values 377.1 342.6 345.7 Quantity 442.6 299.9 344.4 Unit Value 67.4 32.6 49.2 Walnuts without shell Values 23.6 35.8 32.4 (fresh or dried) Quantity 24.0 25.7 26.3 Unit Value 14.8 29.4 23.8 Lemons and limes Values 47.0 29.7 38.4 (fresh or dried) Quantity 54.3 49.8 52.8 Unit Value 50.3 38.2 42.7 Source: Computed using data from wits.org Table 4. Instability in Export of Fruits from India (Coppocks Instability Index) J. Hortl. Sci. Vol. 12(2) : 133-142, 2017 Indhushree et al Fig. 1. Commodity Concentration of Vegetables Export from India Fig. 2. Commodity Concentration of Fruits Export from IndiaStable Export Markets for India’s Vegetables and Fruits: Markov Chain Analysis Geographic Concentration The average value of geographic concentration index for vegetables export (Table 6) declined for all the major vegetables during the period from 2000 to 2016, with the only exception of tomatoes for which it increased from 73.93 (1988 to 1999) to 76.21 (2000 to 2016) which indicates the diversification of the vegetables export from India to different countries, except in case of tomatoes. The concentration index value of 40 and above is considered to indicate higher degree of concentration. The overall concentration 139 index for onions and shallots, tomatoes, potatoes, other potatoes and dried leguminous vegetables was more than 40 and this indicate the greater dependence of these commodities in the economic conditions of few countries. The overall concentration index for dried onions export was less than 40 (35.38) which imply its higher diversification in terms of geographic coverage and thus limiting the possibility of risk from price variability of exports. Table 7 shows the geographic concentration index for fruits export from India. The average value of geographic concentration index declined for cashew nuts, guavas, mangoes and mangosteen, fresh grapes, bananas, dried grapes and shelled walnuts in the period from 2000-2016, with the only exception of lemons and limes for which it increased significantly from 63.64 (1988-1999) to 75.47 (2000-2016) and which indicate the increased diversification in the export of fruits from India to different countries, with the exception of lemons and limes, for which the export was increasingly concentrated in few countries. The overall concentration index for cashew nuts, fresh grapes, guavas, mangoes and mangosteen, bananas, dried grapes and lemons and limes was more than 40 and this indicate their greater dependence on economic conditions in few countries. The overall concentration index for shelled walnuts export was les s t ha n 4 0 (3 5 . 3 8) whic h imp ly it s higher diversification in terms of geographical coverage and thus limiting the possibility of risk from export price volatility. J. Hortl. Sci. Vol. 12(2) : 133-142, 2017 Fruit and vegetable exports in India Table 5. Commodity Concentration of Vegetables and Fruits Exports from India (Gini Concentration Index) Mean Value Concentration Index (%) Vegetables Fruits 1988-1999 50.61 78.89 2000-2016 42.32 64.51 Overall (1988-2016) 45.75 70.46 Source: Computed using data from wits.org Table 6. Geographic Concentration of Vegetables Export from India (Hirschman Concentration Index in %) Mean Value Onions and Dried Tomatoes Potatoes Other Dried shallots onions (fresh or (fresh or potatoes leguminous (fresh or chilled) chilled) (fresh or vegetables chilled) chilled) (shelled) 1988-99 43.59 44.97 73.93 59.63 61.35 47.33 2000-16 44.15 30.1 76.21 56.91 58.61 38.17 Overall (1988-2016) 43.85 35.38 75.31 58.38 59.98 41.26 Source: Computed using data from wits.org Mean Value Cashew Guavas, Fresh Bananas, Dried Walnuts Lemons and nuts mangoes and grapes including grapes without limes mangosteens plantains shell 1988-99 45.29 49.63 58.92 50.41 66.23 35.33 63.64 2000-16 42.01 35.01 46.02 44.67 46.28 31.22 75.47 Overall (1988-2016) 43.73 40.15 50.85 46.36 53.54 32.26 72.24 Source: Computed using data from wits.org Table 7. Geographic Concentration of Fruits Export from India (Hirschman Concentration Index in %) 140 J. Hortl. Sci. Vol. 12(2) : 133-142, 2017 Indhushree et al Stable Export Markets for India’s Vegetables and Fruits: Markov Chain Analysis The major and consistent export markets of vegetables and fruits were identified using Markov Chain Analysis and the results are given in Table 8. The retention probability value of 0.5 and above is considered to represent the stable market for exports indica ting the loyalty of the importing country to India’s exports. T he most stable ma rkets for onions and shallots, dried onions, tomatoes, potatoes, other potatoes, dried leguminous vegetables, dried lentils a nd ga rlic wer e identified a s Nepa l, Belgium, Pakistan, Mauritius, Oman, UAE, Sri Lanka and Bangladesh respectively. The probability that the countries Nepal, Belgium, Pakistan, Mauritius, Oman, UAE, Sri Lanka and Bangladesh retained their export share from one year to the next year were 79 percent for onions and shallots, 60 percent for dried onions, 80 percent for tomatoes, 97 percent for pota toes, 92 percent for other pota toes, 81 percent for dried leguminous vegetables, 81 percent f or dr ied l ent ils a nd 8 6 p er c ent f or ga r lic respectively. The UAE was the most stable export market for India n ca shew nuts, gua vas, ma ngoes and mangosteen and lemons and lime. The probability that the UAE retained its export share wa s 94 percent for cashew nuts, 85 percent for guavas, mangos and mangosteen and 97 percent for lemons and lime. Netherlands and the United Kingdom were the most stable export markets for fresh grapes as the probability that both the countries retained their export share was 88 percent. Oman (90 percent), Saudi Arabia (60 percent) and Spain (68 percent) were identified as the most sta ble markets for Table 8. Stable Export Markets for India’s Vegetables and Fruits Identified based on Markov Chain Analysis Vegetables Onions and shallots Nepal Singapore Kuwait Bangladesh UAE (fresh or chilled) (0.7898) (0.6364) (0.6350) (0.6188) (0.5611) Dried onions Belgium (0.6037) Tomatoes (fresh or chilled) Pakistan Bangladesh (0.8002) (0.6302) Potatoes (fresh or chilled) Mauritius Nepal Sri Lanka UAE (0.972) (0.9015) (0.8460) (0.6817) Other potatoes Oman Nepal Sri Lanka Hong Kong, China UAE (fresh or chilled) (0.9192) (0.8193) (0.7797) (0.6870) (0.681) Dried leguminous vegetables UAE Sri Lanka Nepal US (shelled) (0.8109) (0.7412) (0.6907) (0.6385) Dried lentils Sri Lanka UAE Bangladesh Kuwait (shelled) (0.8104) (0.7848) (0.7523) (0.5325) Garlic (fresh or chilled) Bangladesh Pakistan Philippines Thailand (0.8556) (0.5452) (0.5238) (0.5233) Fruits Cashew nuts fresh or dried) UAE US Korea, Rep. Japan Kuwait Germany (0.9378) (0.8094) (0.6990) (0.6088) (0.6002) (0.5212) Guavas, mangoes and UAE Saudi Arabia Qatar Yemen China mangosteens (fresh or dried) (0.84483) (0.7348) (0.7022) (0.6101) (0.5901) Fresh grapes Netherlands U K Switzerland UAE Saudi Arabia (0.8813) (0.8784) (0.8415) (0.8222) (0.7563) Russian Federation Bangladesh Norway (0.6762) (0.6362) (0.5129) Bananas, including Sultanate of Oman UAE Nepal Malaysia plantains (fresh or dried) (0.9041) (0.7665) (0.6340) (0.5945) Dried grapes Saudi Arabia UAE (0.6005) (0.5218) Walnuts without shell Spain Other Asia, nes Belgium (fresh or dried) (0.6807) (0.6488) (0.5599) Lemons and limes UAE Bangladesh Maldives Nepal (fresh or dried) (0.9710) (0.7240) (0.6218) (0.5823) Source: Computed using data from wits.org Note: Figures in parentheses indicate the retention probabilities of the respective countries 141 J. Hortl. Sci. Vol. 12(2) : 133-142, 2017 Fruit and vegetable exports in India bananas, dried grapes and shelled walnuts exports respectively. Constraints: Non Tariff Measures The figure 3 shows the incr ea se in SPS measures that were in force and those initiated by the members of World Trade Organization (WTO) from the period 2005 to 2016. There was constantly increasing trend in the SPS measures. Fig. 3. Sanitary and Phyto Sanitary (SPS) measures initiated and in force Source: Computed using data from WTO market access including a number of agreements and protocols and also the cost involved in irradiation process. USA also imposed a ban on the import of fresh grapes for using sulphur pads in package boxes. But this need not be a concern for the US as the US producers of grapes were also understood to be using these procedures. Australia and New Zealand imposed ban on Indian mangoes and others fruits due to presence of fruit flies and stone weevils. China delayed the finalization of protocol on phyto-sanitary measures and certification procedures that affected the Indian fruits such a s ma ngo, gua va , gr a pes, wa ter melons, muskmelon, papayas and other fruits and the vegetables such a s cucumber, gher kins, bea ns a nd other leguminous vegetables, aubergines, capsicum and others. The default MRL (Maximum Residue Levels) set by the European Communities was very high and the risk assessment of this level do not have scientific justification and also the member states like UK, Netherlands and Germany have set up MRLs for some compounds which were not harmonized by the EC. Even though the tariffs have come down there by increasing the exports, the NTMs, especially quality issues in connection with sanitary and phyto-sanitary regulations have increased in the post- liberalization era, especially for fruits and vegetables. CONCLUSION The purpose of the study was to analyze the performance of horticultural exports that includes the vegetables and fruits from India. The study reveals that the highest share in the vegetables export from India was accounted by onions and shallots both in value (22.46 %) and quantity terms (32.81 %) followed by dried onions and tomatoes in value terms. The highest share in the fruits export was accounted by cashew nuts (51.8 %) followed by guavas, mangoes and mangosteens together and Countries Non Tariff Barriers Japan Ban on the import of fresh grapes from India on the basis of report of the incidence of oriental fruit fly on grapes in Pakistan and vapor heat treatment (VHT) for mango fruit flies USA Mangoes – High Cost of Certification and irradiation for stone weevil infection Grapes – Use of Sulphur Pads Australia Ban on import of Indian mangoes and other fruits due to presence of fruit flies and weevil China Delay in finalization of protocol on phyto sanitary measures and certification procedures New Zealand Ban on import of Indian mangoes and other fruits due to presence of fruit flies and weevil European Communities Different MRLs by the member countries for pesticides, drugs and other contaminants Source: APEDA Table 9. Non Tariff Barriers Affecting India’s Export The important non-tariff barriers as identified by Agricultural Products Export Development Authority (APEDA) that adversely affected the export of Indian horticultural commodities are given in Table 9. Japan imposed a ban on import of fresh grapes from India by quoting the reason that there was threat of infestation of oriental fruit fly in Pakistan while importing fresh grapes. But the data collected from survey which was conducted for three years revealed that there was no such infestation on Indian grapes. The export of ma ngoes to the USA involved higher cost of certification that involves the complex process of 142 J. Hortl. Sci. Vol. 12(2) : 133-142, 2017 Indhushree et al fresh grapes in value terms. In terms of quantity, t he highes t sha r e wa s a cc ounted b y gu a va s , mangoes and mangosteens (23.02 %) followed by fr esh gr a pes a nd ca shew nuts. T he sha r es of different vegetables and fruits in the total vegetables and fruits exports from India in Triennium Ending 2010 and Triennium Ending 2016 indicate increasing diversification of India’s export basket of vegetables and fruits. Varying trend in the instability of different vegetables and fruits were identified and it was also revealed that the instability declined for majority of the commodities. There was declining trend in the commodity concentration for both vegetables and fruits indicating the diversification in the export b a s ket of v eget a b les a nd f r u it s a nd les s er dependence on the export of few commodities and thus reducing the risk of export fluctuations. The lesser geographic concentration was identified for dried onions and shelled walnuts exports indicating their higher diversification in terms of geographical coverage and thus limiting the possibility of risk from price variability of exports. The most stable markets for the India’s export of onions and shallots, dried onions, tomatoes, potatoes, other potatoes, dried leguminous vegetables, dried lentils and garlic were identified as Nepal, Belgium, Pakistan, Mauritius, Oman, UAE, Sri Lanka and Bangladesh respectively.The most stable export markets for fruits were UAE for cashew nuts, guavas, mangoes and mangosteen and lemons and lime, Netherlands and the United Kingdom for fresh grapes and Oman, Saudi Arabia and Spain for bananas, dried grapes and shelled walnuts respectively. The important cases of non-tariff barriers that affected Indian fruits and vegetables export were ban on the import of fresh grapes from India on the basis of report of the incidence of oriental fruit fly on grapes in Pakistan by Japan, high cost of certification for mangoes and ban on grapes for using sulphur pads by USA, ban on import of Indian mangoes and other fruits due to presence of fruit flies and weevil by Australia and New Zealand, delay in finalization of protocol on phyto sanitary measures and certification procedures in China and different MRLs by the member countries of European Communities for pesticides, drugs and other contaminants. Given the inher ent potentia l a nd r ising competiveness of the India’s horticultural sector, the stra tegies such as r emoval of product specific constraints, especially production of commodities of inter na tiona l sta nda r ds, r esea r ch suppor t for improvement in the productivity and shelf life of fruits and vegetables which make their availability longer in international market, providing training and technical assistance for the producers with regard to export, improvement in the infrastructure facilities such as cold storage facilities and regulations in the non-tariff barriers could definitely help in sustaining the growth of horticultural exports. REFERENCES APEDA. Non-Tariff Barriers Faced by Indian Agricultural Products. Available at: http://www.apeda.gov.in Atkin, M. and Blandford, D. 1982. Structural changes in import-shares for apple and in the UK. European Journal Agricultural Economics, 9(1): 313-326. Dastagiri, M.B. 2017. India’s Horticultural export markets: Growth rates, elasticities, global supply chains, and policies. Modern Economy, 8: 847-864. GoI (Government of India). 2016. Horticultural Statistics at a Glance 2016. Ministry of Agriculture and Farmers Welfare, New Delhi. FAO (Food and Agricultural Organization). Important Commodities in Agricultural Trade: Fruits and Vegetables. Available at: http://www.fao.org/3/a- y4852e/y4852e13.htm Idris, S., Singh, A. and Praveen, K.V. 2015. Trade com peti t i ven ess a nd i mpa ct of food sa fet y regulations on market access of India’s horticultural trade. Agricultural Economics Research Review, 28(2): 301-309 Lee, T.C., Judge, G.G. and Zellener, A. 1970. Estimating the Parameters of the Probability Model from Aggregate Time Series Data. North Holland Publishing Company. UNCTAD (United Nations Conference on Trade and Development). 2013. Non-Tariff Measures to Trade: Economic and Policy Issues for Developing Countries. United Nations Publication. Available at: h t t p : / / u n c t a d . or g / e n / P u bl i c a t i on s L i br a r y/ ditctab20121_en.pdf www.wits.org WTO (World Trade Organization). Integrated Trade Intelligence Portal. Available at: https://i-tip.wto.org/ goods/default.aspx?language=en (MS Received 13 September 2017, Revised 16 October 2017, Accepted 26 November 2017)