Working Papers

The study examines major markets, trade direction, and competitiveness of Indian dairy products. Data shows that India became a net exporter of dairy products after 2000. Yet it remains a minor player in the context of exporting dairy products in spite of being the largest milk producer in the world. South Asia, the Middle East, and South East Asia are the major destinations for India???s dairy products. The Nominal Protection Coefficient (NPC) shows that the Indian dairy industry, as a whole, lacks export competitiveness because the export prices of dairy products in India exceed the world export price. The product-wise NPC estimates show that India is relatively more competitive in the area of exporting cheese and curd products. Additionally, the Revealed Comparative Advantage (RCA) coefficient confirms that India hardly enjoys any comparative advantage for exporting its dairy products. The econometric results suggest that the world per capita income and exchange rates may influence the export of dairy products as a whole, while trade liberalisation exerts a positive impact on dairy exports to an extent.