Even with stagnant import demand, this report finds that AGC countries could increase both the quantity and value of their exports to regional markets and raise their market shares by cutting their domestic costs of production and distribution. The expected growth in demand for oilseeds on regional markets, the sharp response of groundnut import demand to changes in prices and income, and the relatively high expenditure elasticity of demand for AGC groundnuts all indicate that regional markets could indeed play an important role in the future of AGC exports. However, in devising strategies to revitalize their groundnut sectors, AGC countries should not look at regional markets as alternatives to traditional export markets. This is exactly what they would need to do to raise their competitiveness and regain their shares in traditional export markets. If AGC countries pay more attention to their domestic policy environments and their implications for prices and incentives in the groundnut sector, they should be able to take advantage of export demand in both regional and traditional export markets.
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