| dc.description.abstract | Coffee, although an important commodity in India's agricultural exports, has faced fluctuating
international prices and decreasing unit value realisation, especially in the post-reform period.
Hence, domestic market for coffee cannot be neglected altogether. In fact, Coffee Board has
proposed a promotional campaign to increase domestic demand for coffee. In this context, it
becomes necessary to understand weather the emphasis should be on price incentives or nonprice
factors. We estimate coffee demand for the Indian domestic market using the dynamic
error-correction methodology (ECM). Results show that while demand for coffee is inelastic in
the long-run, it is highly inelastic in the short-run. This suggests that Coffee Board may focus
efforts on non-price factors rather than price incentives in their generic coffee promotional
campaign. | en |
