How to Sell your Product in International Market - Part 2 Sources and Evaluation of Indian Foreign Trade Statistics

Foreign Trade Statistics is a great help for any kind of research on overseas markets. In India - there are mainly two sources for reliable foreign trade statistics - DGCIS and Customs. The former provides summary table for all merchandise export and import from India - commodity-wise and country-wise. The later provides shipment details for export and import - port-wise.

In this issue, we shall examine sample records from DGCIS statistics and discuss strong points as also limitations of this data. The objective is to help you develop a marketing plan based on best information sources.

DGCIS

Directorate General of Commercial Intelligence and Statistics (DGCIS) publishes 'Monthly Statistics of Foreign Trade of India' Its March issue contains cumulative data for whole financial year (April to March). Let us take the example of export of Pepper and examine sample records from DGCIS compilation

Summary Table

ITC 9 - Spices

Article Code

Description

Unit

Total Quantity

Total Value (Rs.)

0904

Pepper of gennus piper; dried/crusted/ground/fruits of genus capsicum/genus pimenta

Kg

-

7,647,863,067.00

090411

Pepper neither crushed nor ground

Kg

32,531,713.00

6,056,532,521.00

09041101

Pepper Long

Kg

272,661.00

395,467,590.00

09041102

Light Black Pepper

Kg

7,396,950.00

1,384,730,425.00

09041103

Black Pepper Garbled

Kg

21,503,999.00

4,102,066,949.00

09041104

Black Pepper Ungarbled

Kg

1,042,080.00

184,672,164.00

09041105

Dehydrated Green Pepper

Kg

189,638.00

47,474,451.00

09041106

Pepper Pinheads

Kg

1,416,958.00

217,658,301.00

09041107

Freez Dried Green Pepper

Kg

50,439.00

25,151,102.00

09041108

Frozen Pepper

Kg

1,500.00

692,364.00

09041109

Other Pepper Incl White

Kg

32,531,713.00

6,056,532,521.00

09041200

Crushed or Ground Pepper

Kg

326,870.00

27,612,079.00



For each 8-digit Article Code (or ITC-Code) - DGCIS publishes country-wise distribution in following manner.



Article Code 09041101 - Pepper Long

Country

Unit

Quantity

Value (Rs.)

Avg Price (*)

Russia Kg 38980 7,616,765.00 195.40
Pakistan Kg 36804 5,419,538.00 147.25
Germany Kg 46700 4,282,372.00 91.70
Canada Kg 15000 3,340,922.00 222.73
United Arab Emirates (UAE) Kg 14975 3,051,745.00 203.79
Sweden Kg 16000 2,983,770.00 186.49
Trinidad Kg 15000 2,691,337.00 179.42
South Africa Kg 14902 2,662,439.00 178.66
Colombia Kg 22000 2,345,351.00 106.61
Netherlands Kg 13000 2,297,488.00 176.73
Sri Lanka Kg 20185 799,786.00 39.62
Nepal Kg 2425 557,825.00 230.03
Japan Kg 10000 457,237.00 45.72
UK Kg 400 139,348.00 348.37
Jamaica Kg 1000 121,149.00 121.15
Malaysia Kg 1100 121,105.00 110.10
Australia Kg 710 57,533.00 81.03
Yemen Kg 100 5,613.00 56.13


(*) - DGCIS does not provide 'Average Price' - I have included it for discussion.



Notes on DGCIS Statistics

  • DGCIS statistics is considered as the most comprehensive, authentic and reliable source of Indian foreign trade data. It includes all merchandise export and import from India through all recognised sea-ports, air-ports, land customs stations, inland container depots, export processing zones, foreign post offices etc.


  • Export statistics is based on Daily Trade Returns prepared from declarations made by exporters in shipping bill. Import statistics is based on declarations made by importers in bills of entry as subsequently checked by customs authority.


  • The quantity, for both export and import, is net of packing. The value for export is FOB while that of import is CIF.

Limitations of DGCIS Statistics

Despite all the strong points about DGCIS statistics - one should be aware of certain limitations in this source.

  • DGCIS statistics covers merchandise export and import only. It does not cover services, including software.


  • It provides summary table, helpful for broad indication only. In the example of pepper export above - the quantity and value figures are clubbed for all varieties of pepper under given ITC code. With such clubbed figures - one can not get micro level picture of a specific variety.


  • The value figure, though mathematically accurate, could be misleading in practical use as there may exist many varieties of a particular product. To illustrate this point, I have included 'Average Price' in country-wise distribution table (DGCIS does not provide Average Price). Look at wide variation of average price from country to country and you would not require any more elaboration.


Conclusion

One can not get more authentic and reliable foreign trade data in India than DGCIS statistics. It provides accurate country-wise data for analysis at macro level. For micro-level analysis, there exists another set of data from customs. We shall discuss that in next issue.



Happy and Productive Surfing

Dr. Amit K Chatterjee

Related Links:

 

Source: FAIDA - Newsletter on Business Opportunties from India and Abroad Vol: 5, Issue 15 ; December 17' 2004

Author : Dr. Amit K. Chatterjee
(Amit worked in blue-chip Indian and MNCs for 15 years in various capacities like Research and Information Analysis, Market Development, MIS, R&D Information Systems etc. before starting his e-commerce venture in 1997. The views expressed in this columns are of his own. He may be reached at amit@infobanc.com )


Copyright
� All Rights Reserved. Limited permission is granted to publish this article in a web-site or printed in a journal/ newspaper/ magazine provided the publisher takes prior permission from author, do not make any change in the article (i.e. keep it exactly same as displayed above) and cite the Source of this article as The Great Indian Bazaar with a link to this page.