Barriers to Trade and Their Impact on Production and Export of Red Chilli in India

Objectives: Red Chilli is the principal spice exported to different nations from India. Even though the production and export of Red Chilli is on the increasing side, there are certain barriers which actually hinder the trade and hence the study has focused on identifying the Non-Tariff Barriers and its impact on Production and Export of Red Chilli in Tamil Nadu.

Methods/Statistical Analysis: The researcher has chosen Ramanathapuram, Sivagangai and Thoothukkudi Districts as study area among the 32 districts in Tamil Nadu owing to higher area under Chilli cultivation. For the study, 120 sample farms have been chosen following a Three-Stage Random Sampling Technique. Using the time series data, the production and export performance were assessed following a Compound Growth Rate Analysis and Cop-pock’s Instability Index was also used to test the instability if any in the export trade.

Findings: Remarkable achievement in productivity of Chilli is visible only during the period of 2016-17. It might be due to the practice of adoption of precision technologies at field. The steady growth in productivity is visible from 2005-06 because of the intervention of National Horticulture Mission focusing area expansion and productivity enhancement. One of the foremost restrictions in the Consignment of Red Chilli is prevention of Pesticide Residues and the Aflatoxin toxicity. The standards set by the various importing countries for different forms of the Chilli produce varies from country to country. In this context, different export norms have to be followed by the exporters. Another issue is, the export of Red Chilli has faced some instability. The export of Chilli found to be on the higher value in terms of both Indian Rupees and US dollars during pre-globalization period and however it could be found decreasing during the post globalization era. Post Globalization period has faced decreasing trend in the export of Chilli Spice when compared to the Pre-implementation of globalization.

Applications: Findings of the study will be a guiding force to the exporters of Red Chilli in learning the regulations in vogue, product standards prescribed by different nations for follow up. Strict adherence of regulations, and the export trade has grown. Considering the performance of trade, National Horticulture Mission is taking effort to establish Spice Parks on need basis to boost the production and export to facilitate supply.