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<strong>Tur</strong> [071390]<br />

Trend in Exports<br />

There has been a volatile trend in the exports of 071390 with a CAGR of -26% over the period<br />

2003-08. It can be seen that the growth has been really high 2004-05 region as the export figures<br />

zoomed from US$49.15 to US$66.81 mn which is a growth of 36%. However on an overall basis<br />

there has been a decreasing trend with 2008 posting as the worst year amongst all.<br />

RCA<br />

The decreasing trend is not just in the absolute values of the exports in this product category. The<br />

RCA values also reveal the decreasing comparative advantage of Indian exports vis-à-vis World<br />

exports in 071390. Over the period of 5 years the RCA for India has dropped from 23.65 to 4.39.<br />

391


Major Export Destinations for 071390<br />

The top five destinations for product 071390 are as follows:<br />

• United Arab Emirates<br />

• United States<br />

• Sri Lanka<br />

• United Kingdom<br />

These are the top 4 destinations according to the export figures of 2008 with exports to UAE<br />

leading the pack with US$1.29 mn followed by exports to US at US$1.11 mn. It must be noted<br />

that over five years the CAGR of all the countries are in negatives. The largest fall being seen in<br />

United States and United Kingdom while the Sri Lanka having a smaller decrease comparatively.<br />

It must be noted that the exports of 071390 have dipped drastically after 2006 as we see that the<br />

total export values to these four major destinations dropped by more than seven times and hence<br />

the negative CAGR for all the destinations.<br />

392


Market Fluctuations of Major Export Markets<br />

The following table displays how over the years the major export destinations have switched<br />

places.<br />

• Over the last three years, UAE and U.S have remained as the more preferred nations for<br />

exports of 071390 only to switch places in 2005.<br />

• It is also seen that Saudi Arabia has gradually become an important market for exports of<br />

071390 from India.<br />

• Such is also the case with Sri Lanka and United Kingdom which have seen more stable<br />

growth in exports from India as in comparison to Pakistan and Kuwait in these product<br />

category.<br />

2003 2004 2005 2006 2007 2008<br />

United States<br />

United Arab<br />

Emirates<br />

Nepal<br />

United States<br />

United Arab<br />

Emirates Nepal Nepal<br />

United States<br />

United Arab<br />

Emirates<br />

United Arab<br />

Emirates<br />

United Arab<br />

Emirates<br />

United Arab<br />

Emirates United States Saudi Arabia United States<br />

United<br />

Kingdom Sri Lanka Sri Lanka<br />

United<br />

Saudi Arabia Kingdom Pakistan<br />

United<br />

United<br />

Kingdom Sri Lanka Kingdom<br />

Saudi Arabia Saudi Arabia Sri Lanka Kuwait United States Kuwait<br />

Trade Intensity Index for 071390 with respect to Major Export Markets<br />

United Arab Emirates<br />

The trade intensity index with United Arab Emirates has been fairly volatile stable over the years<br />

meeting an average of 3.49. Year 2008 saw the TII being 3.64, up from the low of 1.55 that was<br />

attained in the year 2007.<br />

393


Sri Lanka<br />

The trade intensity index with Sri Lanka has been on a decreasing trend from the all time high of<br />

2.66 in 2003 to 0.76 in 2008. And hence coupled with the decreasing trade to this nation which<br />

has seen a CAGR of -3% over the period of five years from 2003-08.<br />

United States of America<br />

The trade intensity index with US has been decreasing over the years touching a high of 196 in<br />

the year 2005 and reaching as low as 0.97 in 2007. As can be seen from the figure below the trend<br />

has been fairly decreasing over the last few years.<br />

394


United Kingdom<br />

The trade intensity index with UK has been decreasing over the past 4 years with 2008 having a<br />

higher TII of 54.38 vis-à-vis 2007 which is the lowest TII value that India has in this product<br />

category with any UK as the destination. As can be seen from the figure below the trend has<br />

been fairly decreasing over the last four years.<br />

Competitor Analysis<br />

The following table lists down the five major competitors considered for each of the markets. The<br />

competitors have been chosen according to their vicinity to the Indian export figures to these<br />

markets as we consider these countries more intense rivals to the position of India.<br />

United Arab Emirates Sri lanka United States United Kingdom<br />

Ethiopia(excludes<br />

Eritrea)<br />

Australia<br />

United Arab<br />

Emirates<br />

United Arab Emirates<br />

Australia Thailand Malaysia Malawi<br />

Madagascar Thailand China<br />

United States Canada <strong>Tur</strong>key<br />

Egypt, Arab Rep. China Thailand<br />

We further saw as to what is the current market share of Indian exports in each of these<br />

destinations (as can be seen from the table below). It can be seen that Indian exports command<br />

highest market share in the UAE market at 67% approximately followed by 35% in UK. It is<br />

395


however in the Sri Lanka<br />

markets that it commands a small market share showing an<br />

substantial potential that lies in these Sri Lankan markets which Indian exports can tap.<br />

United Arab<br />

Emirates Sri lanka United States<br />

United<br />

Kingdom<br />

67.15% 19.80% 22.26% 34.56%<br />

Trade Intensity Index of Competitors<br />

United Arab Emirates<br />

Madagascar exports to UAE in the 071390 category occur are one third of the 07 category and<br />

hence this results in Madagascar having a very high TII of 83. However the value of these<br />

exports (US$ 0.05mn) is very small when compared to what India exports (US$1.29 mn)<br />

Sri Lanka<br />

The two major competitors on the Sri Lankan turf are Australia and Thailand. Australia exports<br />

are approximately 4 times the value that India exports to Sri Lanka. However, this is not the case<br />

with Thailand which exports ($US 0.04 mn) much lesser that what India exports ($US 1.04 mn).<br />

396


United States<br />

UAE’s value of exports to US exceeds what India exports to US under this product category.<br />

UAE’s substantial exports in the 07 category to US go through 071390 and hence a very high<br />

value of TII that UAE holds vis-à-vis the US. Thailand also holds a high TII of 14.53 in this case.<br />

United Kingdom<br />

Malawi and UAE have substantially high values of TII. On the other hand India’s TII value<br />

exceeds that of China, <strong>Tur</strong>key and Thailand.<br />

397


Relative Competitive Advantage for 071390 vis-à-vis other Suppliers in Major Markets in 2008<br />

United Arab Emirates<br />

India lags behind Madagascar in the RCE value of 2.35 when compared to 53.62 that Madagascar<br />

holds. All the other competing nations have an RCE value lesser than that of India. And hence<br />

the only major threat in this market that India faces is that from Madagascar which too does not<br />

have substantial value when compared to the value of exports that goes from India to UAE.<br />

Sri Lanka<br />

India has an RCE value of 0.44 and stands third in the overall ranking behind Australia and<br />

Thailand. It is here that Australia can be seen as the major competitor both in terms of the RCE<br />

value as well as the value of exports in this 071390 category.<br />

398


United States<br />

India falls third in this category having a high RCE value of 17.01 which however is not as high<br />

as the competing nations UAE and Malaysia hold as 233.48 and 63.42 respectively.<br />

United Kingdom<br />

India has a very low RCE value as compared to the other competitors in the case of UK being the<br />

export destination. The highest RCE value being that of Malawi (32.58) followed by UAE (12.22).<br />

Tariff and Non Tariff barriers for 071390 in Identified Markets<br />

Amongst the four destination markets namely, UAE, Sri Lanka, US and UK it was seen that the<br />

only country which have import tariffs applicable was Sri Lanka. Sri Lanka has a 25% customs<br />

duty. However it does not have any non tariff mechanism. On the other hand, US has a 100%<br />

non tariff barrier under the category of “Authorization to protect plant health”<br />

and “Testing inspection or quarantine requirement”.<br />

FTA/PTA<br />

Amongst the four destination markets namely Pakistan UAE, Sri Lanka, US and UK, India does<br />

hold a Free Trade Agreement with Sri Lanka.<br />

Country FTA/PTA Rate<br />

United Arab<br />

Emirates None -<br />

Sri lanka ASEAN 2003 -<br />

United States None -<br />

United Kingdom None -<br />

Tariff Rate Quota Structure in major export destinations<br />

Tariff Rate Quota Structure of 071390 in major export destinations<br />

Markets<br />

TRQ Quantity (METRIC TONS)<br />

In quota -<br />

Duty<br />

Out Quota -<br />

Duty<br />

United Arab<br />

Emirates No No No<br />

Sri lanka No No No<br />

United States No No No<br />

United Kingdom No No No<br />

No tariff quotas are applied in any of the export destinations for product 071390.<br />

399


Presence of Special Safeguard Duty<br />

No Special safeguard duty is present in any of the export destinations for tur.<br />

Presence of Special Safeguard Duty<br />

Country<br />

Volume<br />

Trigger<br />

Price<br />

Trigger<br />

United Arab<br />

Emirates NO NO<br />

Sri lanka NO NO<br />

United States NO NO<br />

United Kingdom NO NO<br />

Subsidy Structure<br />

While none of the markets have product specific subsidies applicable. It must be noted that US<br />

and UK have Non Product Specific subsidies existing. In the case of UK the NPS subsidies have<br />

been taken as applicable to the notifications sent by the EEC.<br />

Markets<br />

Non<br />

Product<br />

Specific<br />

Green Box Special and Differential Treatment –<br />

“Development Programmes”<br />

Currency<br />

UAE 0 3400000 9.000,000 (Dh)<br />

Sri lanka 4132.71 1525.86<br />

Million SL<br />

Rupees<br />

Million<br />

United States 6828.154 50672 NA<br />

Dollars<br />

UK 728.4 22130.3 21520.8 Mio ECU<br />

Green Box subsidies are applicable in all the four destinations under study.<br />

400


Appendix<br />

Table 1<br />

Trend in Exports for 071390 (US$ mn)<br />

Code 2003 2004 2005 2006 2007 2008 CAGR<br />

071390 30.00 49.15 66.81 50.36 7.77 6.87 -26%<br />

Table 2<br />

Comparative Advantage of 071390<br />

Yea<br />

r<br />

India’s<br />

exports India’s total exports World’s exports World’s total exports RCA<br />

23.6<br />

2003 30.00 324.57 104.21 26665.51<br />

5<br />

2004 49.15 360.68 117.78 30182.20<br />

34.9<br />

2<br />

2005 66.81 570.05 173.25 32319.23<br />

21.8<br />

6<br />

2006 50.36 622.35 110.95 37185.49<br />

27.1<br />

2<br />

2007 7.77 632.88 92.46 42938.02 5.70<br />

2007 6.87 683.74 91.32 39926.02 4.39<br />

Table 3<br />

Major Export Destinations for <strong>Tur</strong><br />

Partner Name 2003 2004 2005 2006 2007 2008<br />

United Arab<br />

Emirates 3.67 7.13 8.33 13.69 2.16 1.29<br />

United States 5.85 6.42 10.98 11.50 0.53 1.11<br />

Sri Lanka 1.26 5.61 4.13 2.04 1.00 1.04<br />

UK 2.80 3.22 4.39 4.30 0.66 0.51<br />

Table 4<br />

Trade Intensity Index for <strong>Tur</strong> with respect to Major Export Markets<br />

India's export<br />

World Export<br />

Year 071390 07 071390 07 TII<br />

2003 3.67 33.01 5.41 178.11 3.66<br />

2004 7.13 37.20 8.43 176.16 4.01<br />

2005 8.33 44.74 10.44 260.58 4.65<br />

2006 13.69 97.45 15.51 378.46 3.43<br />

United Arab 2007 2.16 91.31 6.52 426.33 1.55<br />

Emirates 2008 1.29 84.93 1.92 460.41 3.64<br />

401


India's export<br />

World Export<br />

Year 071390 07 071390 07 TII<br />

2003 1.26 22.18 1.41 66.40 2.66<br />

2004 5.61 34.77 6.17 74.91 1.96<br />

2005 4.13 55.27 4.65 101.87 1.63<br />

2006 2.04 46.35 2.51 123.05 2.16<br />

2007 1.00 46.33 2.34 159.54 1.47<br />

Sri Lanka 2008 1.04 51.38 5.27 198.29 0.76<br />

India's export<br />

World Export<br />

Year 071390 07 071390 07 TII<br />

2003 5.85 20.89 6.58 4012.19 170.76<br />

2004 6.42 20.30 7.46 4594.66 195.04<br />

2005 10.98 33.20 12.82 4876.73 125.80<br />

2006 11.50 35.34 13.43 5462.46 132.30<br />

2007 0.53 20.08 3.26 5811.50 47.10<br />

United States 2008 1.11 23.57 4.98 6400.18 60.47<br />

India's export<br />

World Export<br />

Year 071390 07 071390 07 TII<br />

2003 2.80 10.79 3.71 2481.69 173.94<br />

2004 3.22 13.84 4.48 2811.19 145.86<br />

2005 4.39 14.17 6.06 3076.26 157.10<br />

2006 4.30 26.90 4.91 3468.52 112.80<br />

TII United 2007 0.66 23.47 2.27 3885.75 47.79<br />

Kingdom 2008 0.51 18.94 1.47 2979.97 54.38<br />

Table 5<br />

United<br />

Arab<br />

Emirates<br />

Competitor 's<br />

export of 071390<br />

Competitor’s<br />

Total Export of<br />

07<br />

World 's export of<br />

071390<br />

Total imp of<br />

07 into UAE<br />

Ethiopia 0.27 23.44 1.92 457.70 2.76<br />

Australia 0.22 29.56 1.92 457.70 1.81<br />

Madagascar 0.05 0.15 1.92 457.70 82.68<br />

United 0.03 15.93 1.92 457.70 0.45<br />

States<br />

Egypt, 0.02 23.85 1.92 457.70 0.23<br />

Arab Rep.<br />

Sri lanka<br />

TII<br />

Australia 4.18 60.58 5.27 198.29 2.60<br />

Thailand 0.04 1.67 5.27 198.29 1.00<br />

TII<br />

402


United<br />

States<br />

Competitor 's<br />

export of 071390<br />

Competitor’s<br />

Total Export of<br />

07<br />

World 's export of<br />

071390<br />

Total imp of<br />

07 into USA<br />

United 2.12 3.28 4.98 6400.18 829.85<br />

Arab<br />

Emirates<br />

Malaysia 0.71 4.06 4.98 6400.18 225.42<br />

Thailand 0.25 22.20 4.98 6400.18 14.57<br />

Canada 0.22 1259.22 4.98 6400.18 0.23<br />

China 0.17 344.73 4.98 6400.18 0.63<br />

United Kingdom<br />

TII<br />

United 0.39 2.93 1.47 2979.97 267.45<br />

Arab<br />

Emirates<br />

Malawi 0.19 0.54 1.47 2979.97 713.27<br />

China 0.13 45.76 1.47 2979.97 5.53<br />

<strong>Tur</strong>key 0.06 30.03 1.47 2979.97 3.89<br />

Thailand 0.05 23.84 1.47 2979.97 4.19<br />

Relative Competitive Advantage for 071390 vis-à-vis other Suppliers in Major Markets in 2008<br />

TII<br />

UAE<br />

Competitor 's<br />

export of<br />

071390<br />

Competitor’s<br />

Total Export of<br />

07<br />

All Competitor 's<br />

Export of 071390<br />

All Competitor<br />

's Export of 07<br />

India 1.29 84.93 0.60 92.93 2.35<br />

Ethiopia(excludes 0.27 23.44 0.60 92.93 1.79<br />

Eritrea)<br />

Australia 0.22 29.56 0.60 92.93 1.17<br />

Madagascar 0.05 0.15 0.60 92.93 53.62<br />

United States 0.03 15.93 0.60 92.93 0.29<br />

Egypt, Arab Rep. 0.02 23.85 0.60 92.93 0.15<br />

Sri lanka<br />

Australia 4.18 60.58 5.26 113.63 1.49<br />

India 1.04 51.38 5.26 113.63 0.44<br />

Thailand 0.04 1.67 5.26 113.63 0.57<br />

United States<br />

United Arab 2.12 3.28 4.58 1657.06 233.48<br />

Emirates<br />

India 1.11 23.57 4.58 1657.06 17.01<br />

Malaysia 0.71 4.06 4.58 1657.06 63.42<br />

Thailand 0.25 22.20 4.58 1657.06 4.10<br />

Canada 0.22 1259.22 4.58 1657.06 0.06<br />

China 0.17 344.73 4.58 1657.06 0.18<br />

RCE<br />

RCE<br />

RCE<br />

403


United Kingdom<br />

RCE<br />

India 0.51 18.94 1.32 122.04 2.48<br />

UAE 0.39 2.93 1.32 122.04 12.22<br />

Malawi 0.19 0.54 1.32 122.04 32.58<br />

China 0.13 45.76 1.32 122.04 0.25<br />

<strong>Tur</strong>key 0.06 30.03 1.32 122.04 0.18<br />

Thailand 0.05 23.84 1.32 122.04 0.19<br />

Table 7<br />

Tariff and Non Tariff barriers for 071390 in Identified Markets<br />

Major Markets Import Other Tariff where ever NTM NTM<br />

tariff applicable<br />

%<br />

Tariff<br />

description<br />

Tariff<br />

rate<br />

United Arab<br />

NA NA NA NA<br />

Emirates<br />

Sri lanka Custom Duty 25.0% NA NA<br />

United States MFN Rates 0% 100% Authorization to protect plant<br />

health<br />

Testing inspection or quarantine<br />

req<br />

United Kingdom NA NA NA NA<br />

404

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