Constraints in Indo-Sri Lanka agricultural trade: perspectives of stakeholders

Abstract

India's share of Sri Lanka's imports of many agricultural commodities was declining in late nineties in spite of India's comparative advantages for many products over Sri Lanka and other countries. Objective of the study was to discuss the non-price constraints of India's agricultural exports in Sri Lanka's market. Poor quality image of India's exports of agricultural commodities was proved only in case of potato. India's onion, spices and pulses have maintained superiority over other exporters and domestic product of Sri Lanka. Unnecessary delays in ports, high level of formalities, rent seeking behavior of officials and lack of assurance of timely imports were main obstacles of India's exports. Study found that the intensity of above obstacles have been increased with regional and bilateral trade agreements as opportunities to suppress traders have increased with increased formal requirements due to rule of origin (ROO) and other criteria under SAPTA and ISLFTA.