analysis of cashew nut production in india - Indianresearchjournals ...

Asia Pacific Journal of Marketing & Management Review______________________________________ ISSN 2319-2836
Vol.2 (3), March (2013)
Online available at indianresearchjournals.com
ANALYSIS OF CASHEW NUT PRODUCTION IN INDIA
A. SENTHIL*; DR M P MAHESH**
*PH D RESEARCH SCHOLAR IN COMMERCE,
ANNAMALAI UNIVERSITY,
ANNAMALAI NAGAR
**ASSOCIATE PROFESSOR OF COMMERCE,
ANNAMALAI UNIVERSITY,
ANNAMALAI NAGAR
______________________________________________________________________________
Cashew (Anacardium occidentale L.), often referred to as „wonder nut‟, is one of the
most valuable processed nuts traded on the global commodity markets and is also an
important cash crop. It has the potential to provide source of livelihood for the cashew
growers, empower rural women in the processing sector, create employment opportunities
and generate foreign exchange through exports. The term “Cashew” has originated from
the Brazilian name „Acajaiba‟ and the Tupi name „Acaju‟ which the Portuguese converted
into „Caju‟ and is commonly known as „Kaju‟ in India. It is known as „Paragi Andi‟ in
Kerala meaning foreign nut, „Lanka Beeja‟ in Orissa assuming its introduction from Sri
Lanka and „Mundri‟ indicating the shape of the nut in Tamil Nadu. Cashew is cultivated
mainly in the Asian, African and Latin American zones
Statement of the Problem
In the beginning cashew was mainly considered as a crop for afforestation. As it can
adapt to varied agro climatic conditions, it has become a crop of high economy and
commercial value. The cultivation and marketing of cashew nut involve a considerable
amount of manpower and hence play a vital role in the economic activities in India.
However, in recent years the owners of the cashew nut growers are unable to obtain
optimum yield and return.
The coastal states of India are the main cashew producers. Though the production
flourishes both in domestic and foreign trade, the problems associated with its cultivation,
domestic and export marketing do not permit the growers to reap optimum return and
traders do not get reasonable profit. In India, large numbers of middlemen are involved in
domestic and export marketing of cashew nut. As there is no organized domestic and export
market for cashew nuts, many a time the growers are at the mercy of unscrupulous village
traders. Further in the recent past, the export price of cashew nut is widely fluctuated due to
changes in foreign market. Therefore, a scientific study to explore the ways and means to
identify the problems connected with the production and marketing of cashew nut in order
106

Asia Pacific Journal of Marketing & Management Review______________________________________ ISSN 2319-2836
Vol.2 (3), March (2013)
Online available at indianresearchjournals.com
to enlighten the people concerned about the inherent strength, weakness, opportunity and
threat becomes relevant and socially significant.
The main objective of the article is to highlight the growth and performance of
cashew nut production in the various states in India during 1990-91 to 2009 -10. The
secondary data were collected from the Directorate of Cashew and Cocoa Development,
Cashew Export Promotion Council, Cashew Research Stations, Agricultural Department,
Forest Department, District Industrial Centre, Directorate of Horticulture, Directorate of
Economics and Statistics and Directorate of Agricultural Marketing.
Cashew Nut Production
India is the largest producer of cashew nut in the world as well as in Asia accounting
39.47 per cent of world cashew production in 2010. It has the largest area harvested under
the raw cashew nuts in the world. it is an important plantation crop in wasteland
development programme due to its utility in soil conservation and to buildup of balanced
ecosystem. The major cashew nut producing states in India are Maharastra, Kerala, Andhra
Pradesh, Orissa, Karnataka, Tamil Nadu, Goa and West Bengal. The cashew nut production
of major producing states in India from 1990-91 to 2009-10 is shown in Table 1.
It is seen from the table, that there was an increasing trend in the production of
cashew nut throughout the study period. The annual production of cashew nut varied
throughout the study and the variation ranged from -16.27 per cent to 14.37 per cent. As per
the F.A.O statistics, 21.6 per cent of the world harvested area under cashew nut was in India
and the country accounted for 17.3 per cent of the total world cashew nut production during
the year 2009-10.
Maharastra is the leading cashew nut producer in India. It has an average of
111334.4 metric tonnes per annum. It alone has registered a gradual increasing trend during
the study period except the years 1997-98, 2000-01 and 2009-10. The reasons behinds are
pest and disease problems in cashew cultivation and due to water stress
107

Asia Pacific Journal of Marketing & Management Review______________________________________ ISSN 2319-2836
Vol.2 (3), March (2013)
Online available at indianresearchjournals.com
TABLE 1
Cashew Nut Production in the Major Producing States in India during 1990 to 2010. (Qty in Mt)
Year
Maharas
tra
Kerala
Andhra
Pradesh
Orissa
Karna
taka
Tamil
Nadu
Goa
West
Bengal
Others
Total
Increas
e\Decre
ase
% of
Increase\
Decrease
1991 29519 142100 33770 29100 25770 12470 14100 3440 320 294590
1992 31960 143200 40360 31840 26750 12710 14490 3660 340 305310 10720 3.63
1993 43750 151600 44850 39060 31260 19190 15450 3660 340 349190 43880 14.37
1994 46860 140200 46570 43420 31540 19200 16210 3990 360 348350 -840 -0.24
1995 37600 119200 58700 37200 26400 22000 16960 3280 300 321640 -26710 -7.66
1996 69000 140000 71600 43000 37600 30930 17100 6960 840 417830 96190 29.90
1997 80000 134000 60000 50000 52000 30000 20000 6000 8000 430000 12170 2.91
1998 60000 100000 50000 45000 35000 30000 25000 6000 9000 360000 -70000 -16.27
1999 85000 130000 80000 50000 40000 35000 20000 8000 12000 460000 100000 27.77
2000 125000 100000 100000 40000 60000 45000 30000 8000 12000 520000 60000 13.04
2001 98000 76000 75000 59000 42000 59000 25000 6000 10000 450000 -70000 -13.46
2002 103000 87000 86000 59000 40000 46000 30000 7000 12000 470000 20000 4.44
2003 110000 90000 90000 70000 40000 50000 30000 8000 12000 500000 30000 6.38
2004 120000 95000 95000 71000 46000 51000 32000 9000 18000 535000 35000 7.00
2005 174000 64000 88000 74000 43000 53000 26000 8800 14000 544000 9000 1.68
2006 183000 67000 92000 78000 45000 56000 27000 10000 15000 573000 29000 5.33
2007 197000 72000 99000 84000 52000 60000 29000 10000 17000 620000 47000 8.20
2008 210000 78000 107000 90000 56000 65000 31000 10000 18000 665000 45000 7.25
2009 225000 75000 112000 95000 60000 68000 30000 11000 19000 695000 30000 4.51
2010 198000 66000 99000 84000 53000 60000 26000 10000 17000 613000 -82000 -11.79
TOTA
L
2226689
2070300
1528850 1172620 843320 824500 475310 142790
195500
9471910
AVG 111334.4
103515
76442.5 58631 42166 41225 23765.5 7139.5
9775
473595.
5
RANK I II III IV V VI VII VIII
PER
23.50
16.14 12.37 8.90 8.70 5.01 1.50
100.00
CENT
21.85
2.06
CGR 11.40 4.700 5.40 6.00 11.60 8.90 4.30 6.50 28.00 4.30
108

Asia Pacific Journal of Marketing & Management Review______________________________________ ISSN 2319-2836
Vol.2 (3), March (2013)
Online available at indianresearchjournals.com
Source: The Cashew Export Promotion Council, Cochin.
during flowering and fruiting. 1 It contributes 23.50 per cent of India‟s production. The
compound growth rate reveals that the Maharastra occupies the first place followed by Orissa,
Andhra Pradesh and Kerala. The Compound Growth Rate is 11.40 per cent per annum.
Kerala is the second largest cashew nut producer in India. It has also an increasing trend
during the study period except the years 1993-94 to 1994-95, 1996-97 to 1997-98, 2000-01,
2004-05, 2008-09 and 2009-10. Its contribution is 21.85 per cent of India‟s production. The
reason behinds are felling of cashew trees, conservation of cashew area into rubber plantations,
rising in prices and conservation cashew into turmeric in small patches. Recurring cost in kerala
was high due to high labour cost. The Compound Growth Rate is 4.70 per cent per annum.
Andhra Pradesh has an average of 76442.5 metric tonnes during the study period. It has
an increasing trend in cashew nut production. There was a decreasing in trend production due to
plantations have been established with clonal material of high yielding varieties 2 . Its contribution
to India‟s production is 16.14 per cent per annum. The Compound Growth Rate is 5.40 per cent
per annum.
Orissa has an average production of 58631 metric tonnes in the study period. It has
increasing trend of cashew nut productions throughout the period. But, there was also decreasing
trend noticed in the years 1994-95, 1997-98, 1999-2000 and 2009-2010. The reason behinds are
pest and disease improper utilization manures and fertilizer, mildew and cyclones, deforestation
and farmers switch over to commercial crops like jute and sugarcane. Its contribution to India‟s
production is 12.37 per cent per annum and Compound Growth Rate is 6.00 per cent per annum.
Karnataka has an average of 42166 metric tonnes of cashew nut productions over the
period. It has an increasing trend in cashew nut production. But, unfortunately there was
decreasing trend identified in the years 1994-95, 1997-98, 2000-01, 2004-05, and 2009-10. Its
contribution to India‟s production is 8.90 per cent per annum. The reasons behind are high cost
of grafter/air layer, lack of plant production chemicals and establishment cost was relatively
higher than other crops. The Compound Growth Rate is 11.60 per cent per annum.
Tamil Nadu is the six largest producer state of cashew nut in India. It has an average of
41225 metric tonnes during the study period. Production has an increasing trend except the years
2001-02 and 2009-10. The reasons behind are replantation, deforestation, rainfall and
temperature which are also the two major factors contributing cashew production. Cloudy
weather during flowering sometimes is beneficial, but heavy rains during flowering and fruit
1 Haldankar, P.M. “ Strategies and Constraints for Cashew Production in Maharastra”, The Cashew, 18(8), p14.
2004.
2 Venkattakumar R.,“ Socio Economic Factors for Cashew Production and Implicative Strategies: An Over View,”
Indian Res.J. Ext. Edu. 9(3) September , (2009)
109

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836
Vol.2 (3), March (2013)
Online available at indianresearchjournals.com
development results in crop loss. Its contribution is 8.70 per cent per annum and Compound
Growth Rate is 8.90 per cent per annum.
Goa has an average production of 23765.5 metric tonnes throughout the study period.
The production has an increasing trend but unfortunately decreasing trend has also been noticed
during the years 1998-99, 2000-01, 2004-05, 2008-09 and2009-10 respectively. Drought and
poor soils, without any addition of fertilzers and improper pruning are the main causes for
decreasing trend in cashew cultivation. Its contribution to India‟s production is 5.01 per cent per
annum and Compound Growth Rate is 4.30 per cent per annum.
West Bengal has an average of 7139.5 metric tonnes during the period. It has an
increasing trend in production except in the years 2004-05 and 2009-10. The main causes are
pest and disease attacking during flowering and mild fog. It contributes 1.5 per cent of India‟s
production and Compound Growth Rate is 6.5 per cent per annum.
Conclusion
The cashew nut production in Indian states has been gradually increasing from 1990-91
to2009-10. But sometimes a negative trend and rapid declining have also been noticed over the
study period because of poor crop husbandry and rampant disease spread to endamic level which
causes completely collapse the production process. Problems due to major pests of cashew and
the supply of quality planting material require attentions of research and development
departments. Massive area expansion programme and rejuvenation of old cashew orchards of
seedling origin, coupled with supply of quality planting material may have the potential to alter
the cashew production, processing and exim scenariof not only these four states but also the
whole country. The policy initiatives towards promotion of cashew growers‟ cooperatives (for
procurement of raw nuts, supply of inputs, credit and infrastructure, small scale processing, value
addition and marketing), and cashew apple processing will definitely widen the perspective of
cashew growers
References
Journal
Haldankar, P.M. “ Strategies and Constraints for Cashew Production in Maharastra”, The Cashew, 18(8), P
14. 2004.
R. Venkattakumar “ Socio Economic Factors for Cashew Production and Implicative Strategies: An Over
View,” Indian Res.J. Ext. Edu. 9(3) September (2009)
Websites
www.cashewinfor.com
www.commdityindia.com
110