India - Export performance, problems, policies and prospects (Vol. 2 of 2) : Major commodities and categories

Report No. 1352-IN FILE COPY India: Export Performance, Problems, Policies and Prospects (In Two Volumes) Volume II: Major Commodities and Categories May 18, 1977 South Asia Programs FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (as of September 1976) US$1.00 = Rupees (Rs 8.77) Rs 1.00 = US$0.114 Rs 1 million = US$114,000 All years to 1965/66 US$ = 4.7619 Rupees 1966/67 = 7.0 1967/68-1970/71 = 7.5 1971/72 = 7.444 1972/73 = 7.706 1973/74 = 7.791 1974/75 = 7.976 1975/76 = 8.653 1976/77 = 9.000 Source: IMF, International Financial Statistics WEIGHTS AND MEASURES (Metric System) 1 kilogram (kg) = 2.20 pounds 1,000 kg = 1 metric ton 0.98 long ton 1 meter (m) 1.09 yards = 3.28 feet 1 kilometer (km) = 0.62 mile 1 hectare (ha) 2 2.47 acres 1 square kilometer (km ) = = 100 ha 3 0.38 square mile 1 cubic meter (m ) = 35.39 cubic feet Unless otherwise specified all measures are metric. FISCAL YEAR The Indian fiscal year runs from April 1 through March 31.  FOR OFFICIAL USE ONLY ABBREVIATIONS AIEI - Association of Indian Engineering Industries DCIS - Department of Commercial Intelligence and Statistics DGTD - Directorate General for Technical Development DRC - Domestic Resource Cost Ratio DTC - Diamond Trading Company ECGC - Export Credit and Guarantee Corporation EEC - European Economic Community EEPC - Engineering Export Promotion Council EES - Effective Export Subsidization EPNS - Electro Plated Nickel Silver ERP - Effective Rate of Protection FCV - Flue-cured Virginia Tobacco GATT - General Agreement on Tariff and Trade GOI - Government of India GSP - Generalized System of Preferences HPS - Hand Picked Selected HSL - Hindustan Steel Limited IDBI - Industrial Development Bank of India LDC - Less Developed Countries MFA - Multi-Fiber Agreement MMTC - Minerals and Metals Trading Corporation MOC - Ministry of Commerce, Government of India NCAER - National Council for Applied Economic Research PEC - Projects and Equipment Corporation RBI - Reserve Bank of India REP - Import Replenishment License SAIL - Steel Authority of India Limited STC - State Trading Corporation of India, Limited TISCO - Tata Iron and Steel Company TSB - Textile Surveillance Board This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be discioed without World Bank authorization.   PREFACE i. The reports in this volume were prepared under the general direction of M. Wolf (India Division). Those contributing were M. Baird, W. Dellalfar, R. Grawe, and C. Taylor (India Division), and J. Harrison (New Delhi Office). Ms. S. Sengupta (New Delhi Office) and Ms. J. Voigt (India Division) acted as research assistants. Ms. K. J. Hong (India Division) advised on prepara- tion of the leather paper. A. Hone and Industrial Development Services of New Delhi served as consultants, with the latter providing most of the analysis of iron ore. ii. The data underlying the reports were collected on Bank missions in October/November, 1975 and January/February, 1976. The reports have been updated to reflect actual figures for 1975/76 and policy changes made in 1976/77. However, it has not proved possible to give uniformly adequate treatment to developments during 1976.   INDIA EXPORT PERFORMANCE, PROBLEMS, POLICIES AND PROSPECTS VOLUME II MAJOR COMMIODITIES AND CATEGORIES Table of Contents Page No. PREFACE .. TABLE OF CONTENTS . MAP. INTRODUCTION ...... ................................ i I. CASHEW KERNELS ...... .......................... I II. CHEMICALS, PHARMACEUTICALS AND COSMETICS ......... 8 III. COFFEE ........................................... 24 IV. COTTON TEXTILES AND GARMENTS ................. .... 29 V. ENGINEERING GOODS ..... ........................... 51 VI. HANDICRAFTS ...................................... 85 VII. IRON ORE ....... .................................. 100 VIII. IRON AND STEEL ...... ............................. 125 IX. JUTE MANUFACTURES ................. ... ............ 136 X. LEATHER AND LEATHER MANUFACTURES ............ .... 146 XI. MARINE PRODUCTS .................................. 161 XII. OILCAKES ......................................... 170 XIII. SILVER ....... .................................... 186 XIV. SPICES ....... .................................... 195 XV. SUGAR ........................................ 200 XVI. TEA .............................................. 212 XVII. TOBACCO ....... ................................... 222 Index of Tables I/ 1.1 Cashew Nut Imports and Cashew Exports ............ . 4 1.2 Sources of Raw Cashew for Processing ............. 5 1.3 Exports of Cashew Kernels ..... ....................... 6 1.4 Prices of Cashew Nut Imports and Cashew Exports ...... 7 2.1 Exports of Chemical Products from 1963-64 to 1974-75 . ......................................... 16 2.2 Growth Rates for Categories of Chemical Exports ...... 17 2.3 Chemical Exports by Destination ...... ................. 18 2.4 Deflated Series of Chemical Exports .... .............. 19 2.5 Representative Price Changes, 1972-73 to 1974-75 ......... ................................ 20 1/ It should be noted that tab,les mentioned in each chapter without a prefix refer to tables attached to that chapter. Thus, Table 4.1 is described in Chapter IV, as Table 1. When noted elsewhere in the report, the table will be labeled 4.1.  Page No. 2.6 Composition of Chemical Exports, 1969-70, 1974-75, Contribution to Growth, 1970-71 to 1974-75 ............. .. .................. 21 2.7 Domestic vs. International Prices - Selected Chemicals . . 22 2.8 Chemical Exports - Breakdown by Major Commodities ................ .................. 23 3.1 Coffee Production ................. ................... 27 3.2 Coffee Exports .................. ..................... 28 4.1 Volume of Indian Cotton Textile Exports .... .......... 45 4.2 Volume of Indian Cotton Textile Exports .... .......... 46 4.3 Volume and Unit Value Indices of Cotton Textile Exports .................................... 47 4.4 India's Textile Exports in Comparison with other LDCs .................................... 48 4.5 The Direction of India's Garment Exports .... ......... 49 4.6 Direction of India's Exports of Millmade Textiles .... 50 5.1 Composition of Engineering Exports: 1960/61-1975/76 . 75 5.2 Geographic Distribution of Indian Engineering Goods Exports: 1972/73-1975/76 ........ ........... 76 5.3 Principle Engineering Exports ......... .. ............. 77 5.4 Value Added, The Gross Value of Output and Exports for the Engineering Goods Industry 1970/71-1974/75 ...... .............................. 78 5.5 Export Performance of First 100 Exporters of Engineering Goods: 1972/73-1975/76 ..... ........ 79 5.6 Comparative Freight Rates for Indian Engineering Exports ............. .. ................. 80 5.7 Export Credit ................... ..................... 81 5.8 Profitability and Efficiency of Some Engineering Exports ..................... ....................... 82 5.9 Provisional Exports of Engineering Goods: April-September, 1976 ............. .. ............... 83 5.10 Engineering Goods Exports Earnings: 1971/72-1980/81 ................. ................... 84 6.1 Handicraft Exports ................................... 94 6.2 Handicraft Export Volume ........... .. ................ 95 6.3a Direction of Diamond Exports ......................... 96 6.3b Direction of Exports of Other Handicrafts ..... ....... 96  Page No. 6.4 Net Exports of Gems and Diamonds ..... ................ 97 6.5 Indian Imports of Rough Diamonds by Country of Origin ............................... 98 6.6 Indian Emerald Imports . .............................. 99 7.1 Production and Export of Iron Ore ..... ............... 110 7.2 Direction of India's Exports of Iron Ore .... ......... 111 7.3 Trends in Export Prices of Indian Iron Ore .... ....... 112 7.4 Unit Value of Exports by Principal Importing Countries .......................................... 113 7.5 India in the World Iron Ore Economy .... .............. 114 7.6 Iron Ore Consumption and Production ..... ............. 115 7.7 India's Iron Ore Reserves ............................ 116 7.8 Structure of F.O.B. Cost of Iron Ore .... ............. 117 7.9 Iron Ore Production in Goa ........................... 118 7.10 Gradewise Exports of Iron Ore by MMTC .... ............ 119 7.11 Iron Ore Exports - Past Performance .... .............. 120 7.12 Iron Ore Export Prospects ............................ 121 7.13 Investment Schedule - Port Projects, Ongoing Schemes ........ ............................ 122 7.14 World Imports and Indian Exports of Iron Ore - Actual and Projected ..... .................... 123 7.15 Proportion of India's Iron Ore Exports Covered by Long-Term Contracts ..... ................ 124 8.1 Production of Pig Iron, Ingot Steel, and Finished Steel ........ ............................. 130 8.2 Consumption of Finished Steel ........................ 131 8.3 Iron and Steel Imports ............................... 132 8.4 Iron and Steel Exports Volume ..... ................... 133 8.5 Unit Values of Iron and Steel Exports .... ............ 134 8.6 Destination of Iron and Steel Exports .... ............ 135 9.1 Indian Exports of Jute Manufactures .... ............. 141 9.2 Prices of Jute Goods, US Market . .................... 142 9.3 Share of Jute and Synthetics in the US Carpet Backing Market .............................. 143 9.4 Supply and Distribution of Raw Jute .... .............. 144 9.5 1975 F.O.B. Prices for Jute Goods ..... ............... 145 10.1 World and Indian Livestock Population .... ............ 155 10.2 Leather Exports ........ .............................. 156 10.3 Recent Exports of Leather and Leather Manufacturers by Type of Tanning ..... .............. 157  Page No. 10.4 Major Markets for Leather Exports in 1969/70 and 1973/74 ......... ....................... 158 10.5 Turnover Rate for Hides and Skins ......... ........... 159 10.6 Tariff Treatment of Hides, Skins and Leather in Selected OECD Countries ................ . 160 11.1 Nominal Fish Catches ................ ................. 167 11.2 Marine Product Exports ............. .. ................ 168 11.3 Destination of Marine Products ......... .. ............ 169 12.1 Value of Major Oilseeds, Vegetable Oils and Oilcake Exports, 1968/69-1975/76 ....... ........ 180 12.2 Production of Oilseeds, Vegetable Oils, and Oilcakes ................... ................. 181 12.3 Oilseeds - Area, Production, Yield ........ .......... 182 12.4 Oilcake Exports, Relative Volume Shares & Prices ... .. 183 12.5 Edible and Technical Oil Prices ........ .. ............ 184 12.r oilcakes Production & Exnort Projections 185 13.1 Indian Silver Exports .................. .1 90 13.2 Monthly Exports of Silver, World Prices, and Indian Prices ............................... .. 191 13.3 Silver - World Balance Sheet of Supply and Demand .... 192 13.4 Silver - Historical and Forecast Prices ............. . 193 14.1 Spice Exports ........................................ 198 14.2 Pepper Exports ....................................... 199 15.1 India's Sugar Exports ............. .. ................. 207 15.2 Sugarcane Production - Utilization ......... .......... 208 15.3 Wholesale Price Indices for Sugarcane and Alternative Crops in India ................. . 209 15.4 Wholesale Price Indices for Mill Sugar and Alternative Sweeteners .......... .. ............. 210 15.5 Production and Consumption of Sweeteners in India ..................... ...................... 211 16.1 Indian Production, Consumption and Exports of Tea ...................... ....................... 217 16.2 Direction of India's Tea Exports ........ .. ........... 218 16.3 Export Volume Projection for Tea ..................... 219  Page No. 17.1 Indian Exports of Unmanufactured Tobacco .... ....... 227 17.2 Direction of Indian Unmanufactured Tobacco Exports ................................... 228 17.3 Indian Tobacco Area, Production, Yield . ............. 229 17.4 Indian Tobacco Prices ............................... 230 17.5 Quantities of Raw Tobacco Cleared for Domestic Consumption in India .............................. 231 17.6 Plan Targets and Historical Trend .... ............... 232 Charts Indian and World (New York) Silver Prices .... ....... 194 Proportion of Sugarcane Used by Mills and Size of Crops ....... .......................... 212 Sugarcane Production ................................ 213 Production/Exports for Tea ........... .. ............. 220 Area Under Tea and Yield Per Hectare ............... . 221 Map Railways and Major Iron Ore Deposits and Exporting Ports ........ ........................... 109   IBRD 10483R2 j0~ J -C,'~ ' <s t