Title: Onion dehydration industry in Gujarat state of India: issues of competitiveness, expansion and diversification

Authors: Subrata Dutta; Richa Mandan

Addresses: Sardar Patel Institute of Economic and Social Research, Thaltej Road, Near Doordarshan Tower, Ahmedabad, 380054, India ' L.J. Institute of Management Studies, L.J. Campus, Near Sanand-Sarkhej Circle, S.G. Road, Ahmedabad, 382210, India

Abstract: The fruits and vegetables processing industries have tremendous potentials in creating income and employment for rural labour-force. This study is concerned with the problems and prospects of the cluster of onion dehydration enterprises located in Bhavnagar district of Gujarat state in India. The issues that concern the entrepreneurs of the onion dehydration industry have not been discussed much in the existing literature. Gujarat ranks second in India, after Maharashtra state, in terms of onion production, and ranks first in terms of productivity. That is why we have selected Gujarat for this study. Dehydrated onion has very limited market in India; this industry mainly markets their products in foreign countries. India's international competitiveness is found to be contingent upon several local/regional factors that have been thoroughly investigated in this paper. In addition, we have carried out econometric analyses to identify the determinants of financial expansion and diversification of the processing industry.

Keywords: onion dehydration enterprise; supply-demand mechanism; competitiveness; price issue; firm expansion; product diversification; regional development; Gujarat; India; logit model.

DOI: 10.1504/IJEBR.2020.109148

International Journal of Economics and Business Research, 2020 Vol.20 No.2, pp.192 - 216

Received: 10 Aug 2019
Accepted: 01 Feb 2020
Published online: 21 Aug 2020 *

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