Export Competitiveness of Groundnut - Empirical Evidence from Karnataka

The degree to which the domestic market price for groundnut is deviated from world market prices due to Government regulation is examined Estimation of the nominal protection coefficients both under importable and reportable hypotheses provides insights into the competitive advantage. Groundnut has been receiving significant protection by the existing policies as indicated by coefficients greater than unity. Thus, groundnut is neither an efficient import substitttte nor an exportable commodity, which should he a cause for concern as it is widely grown in dry land areas, where alternative profitable crops are few.