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Export competitiveness of sugarcane jaggery in Karnataka – a comparative analysis

Karnataka is one of the major sugarcane growing states, with an area of 3.06 lakh hectares and production of 262.40 lakh tonnes. More than 50% of the sugarcane produced is processed into sugar. In recent years, the sugar industry is facing problems of high stocks and financial crunch. The jaggery industry is also expanding in the sugarcane growing areas both for export and domestic markets. Hence, the study was undertaken in Mandya and Bagalkot districts of Karnataka to assess the export competitiveness of jaggery. The data were collected from 30 jaggery producers each from Mandya and Mahalingapur market hinterlands which represent highest jaggery producing districts in the state. The Nominal Protection Coefficient (NPC) was found to be less than unity (0.57), which implies that jaggery is a good exportable product; hence there is competitive advantage for export of jaggery from India. Similarly Domestic resource cost (DRC) was found to be less than unity. All these ratios indicated comparative advantage in production and export of jaggery. Therefore, its export should be encouraged to earn foreign exchange

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