A granger causality analyses on production and export of coffee industry in India

The increasing economic integration of Indian economy with the global process has brought significant challenges and changes at the door of the agriculture sector. Within the agriculture, plantation crops are an important segment of export oriented crops. Coffee occupies a place of pride in plantation sector. Coffee is an important commodity and a popular beverage. The liberalized coffee market gave an opportunity for the coffee growers to sell their produce in both domestic and international market thus India stands fifth in global production and occupies seventh place in exporting coffee to global market, coffee adds-up its share in National income from export section., coffee exports are not only a vital contributor to foreign exchange earnings but also account for a significant proportion of tax income and gross domestic product. Hence an attempt is made to study trends in coffee export. The objective of the paper is to study whether coffee production is paving the way for huge coffee export from India to the international market. The analysis is based on secondary data collected from the publications of Coffee Board of India, Ministry of Commerce and journals. Unit root test is used to test the stationarity and Pair wise Granger Causality test is used to check the relationship between coffee production and coffee export in India. The result showed that there is no granger cause between production and export