Price Volatility of Oilseeds under Trade Liberalization in India: Analysis of Rapeseed and Mustard

Abstract

Trade liberalization has induced volatility in the prices of oilseeds. Oilseeds such as rapeseed and mustard, which are rich in vitamins, minerals, and the staple ingredients in many food items. This paper analyzed the international and domestic prices of rapeseed and mustard for India. The analysis showed that India was a net exporter of rapeseed and mustard oilseeds and has experienced lower price volatility for these crops. On the other hand, in terms of processed rapeseed and mustard oil, India has been a net importer. As such it is unable to influence the prices of these products and has greater price volatility in the domestic market. The present study examined these issues in-depth in post-trade liberalization and India's accession into the World Trade Organization and commitments under the Agreement in Agriculture. The statistical technique used for analysis was the run test and the nominal protection coefficients. Therefore, the present study was carried out to analyze the fluctuations in international and domestic prices of rapeseed and mustard crops after trade liberalization and its impact on the competitiveness of a crop. <strong>JEL Classification: </strong>D40<strong>, </strong>F14,O53