MSc

The present study on the economic analysis of production and
marketing of cashewnut in Kerala was aimed to examine the supply response of
cashew nuts, to study the marketing channels and margins and to identify the
constraints experienced by the producers in the production and marketing of
cashew nuts.
The growth rate analysis using exponential function revealed that during
the whole period under study (1952-53 to 1999-2000), the area under cashew
expanded by 2.22 per cent per annum. Period wise analysis showed a significant
increase in area by 5.97 per cent per annum in the first period followed by a
decline by 1.82 per cent in the second period (1976-77 to 1999-2000). Regarding
production, a low growth rate of 0.02 per cent per annum was observed during the
whole period while the first period registered a growth rate of 3.76 per cent per
annum and a decline by 1.18 per cent in the second period. But the productivity
showed a decrease by 2.11 per cent in the whole period. The first sub- period
registered a decline in productivity by 2.08 per cent while the second period
recorded a slight increase by 0.87 per cent per annum. The analysis using kinked
exponential model also yielded more or less similar results.
The producers' response to price and non price factors was examined by
studying the response in terms of area and yield. The analysis revealed that the
price of cashew did not have a significant impact on yield, while the relative yield
showed a positive and significant influence on yield. The relative price and the
price of rubber showed a significant influence on area under cashew.
The annual maintenance cost at the aggregate level was computed to
Rs.7709.77 per hectare. The material cost was worked out to Rs.1765.89 and

labour cost was computed to Rs.5943.88. The gross and net returns per hectare at
the aggregate level was worked out to Rs.21427 and RS.13717.23 respectively.
The major marketing channels identified in the study were 'Producer-
village trader-primary wholesaler-secondary wholesaler-processor', 'Producer-
primary wholesaler-secondary wholesaler-processor' and 'Producer-secondary
wholesaler-processor'. The producers' net share in the processors' revenue was
estimated to 48.26, 48.58 and 48.92 per cent respectively in marketing channels I,
II and Ill. Marketing efficiency indices for channels I, II and III were computed to
1.86, 1.88 and 1.90 respectively. The constraint analysis revealed that pests,
diseases and low price of the produce were the most important problems faced by
the producers in the study area.