TY - BOOK AU - Haritha Paul AU - Ushadevi K N (Guide) TI - Marketing strategies for export of cashew in Kerala U1 - 380.1 PY - 2023/// CY - Vellanikkara PB - Department of Rural Marketing Management, Co-opertaion, Banking and Management KW - Rural Marketing Management N1 - PhD N2 - Cashew (Anacardiumoccidentale L) often referred to as ‘wonder nut’ is one of the most valuable processed nuts traded on the global commodity markets and also an important cash crop. In 2021, the global cashew nut production was 39 lakh tonnes, led by Vietnam and India with a combined 39 percent of the world total (FAOSTAT, 2021). Vietnam (20%) is the largest producer of cashew and the major competitor for India (19%) in cashew export. Vietnam exports 54.24 percent of the total cashew traded in the world compared to India’s share of 16.32 percent (Rajesh, 2019). India is the secondlargest exporter of cashew in the world. India’s export of cashew was 67647 metric tonne valued at 3867.16 crore in 2021. The major markets for Indian cashew during 2021 were the UAE, Netherlands, Japan and USA (GoI). India is the largest importer of raw cashew nuts from African nations. The Cashew Export Promotion Council of India (CEPCI) is an agency to promote the export of cashews and acts as an intermediary between global importers and Indian exporters of cashew. Even though Kerala stands 5th position in the production of the cashew in India, it is ranked first in the processing and exporting followed by Tamil Nadu, Karnataka and Andhra Pradesh (GoI, 2021). However, currently, there is a continuous decline in both the area and production of cashews in Kerala from 2013 onwards (Annual Report of CEPCI, 2020). The cashew processing industry in Kerala which has been facing lot of problems due to increased wage rate, trade union issues, continuous use of traditional methods of processing (labour intensive), stiff international competition, fluctuations in international markets etc. The cost of production in Kerala is too high compared to other states. It is around . 3400 for a bag in Kerala compared to 1000 to 1800 in other states. Besides in other states the industry was able to improve the productivity by mechanisation and automation processes as a result it was multiplied by two or three times. In Kerala due to high resistance from the labour force this could not be materialised. More over high dependence on imports and price fluctuation affected our cashew exports. Cashew export processing unit also face supply crunch amid low xiv domestic output. The above listed problems are serious export marketing problems faced by the cashew export industry. Though there are lot of literature related to the trend and pattern and problems of cashew exporters, the study related to export marketing strategies and the determinants of cashew exports is very limited. In this context a study of “Marketing strategies for export of cashew in Kerala” is highly imperative. The study will help to contribute to this research gap. Moreover, the findings of the study will help to identify the existing export strategies and the problems faced by cashew exporters which will in turn help to improve the existing status of cashew exports and find a solution to the problems of cashew exporters. The objectives of the study are: to analyse the trend and pattern in cashew exports, to analyse the export marketing strategies for export of cashew in Kerala, to identify the major determinants of cashew exports in Kerala and to examine the problems faced by the cashew exporters in Kerala. The study used both primary and secondary sources for the collection of data. Secondary data were collected for analysing the trend and pattern in cashew exports from authenticated sources like Cashew Export Promotion Council of India (CEPCI), Directorate of Cashew nut and Cocoa Development Board (DCCD), Department of Economics and Statistics, Ministry of Agriculture and Farmers Welfare, Directorate General of Commercial Intelligence and Statistics (DGCIS), Agricultural and Processed Food Products Export Development Authority (APEDA) and UN Trade Statistics. Primary data were collected from the cashew exporters of Kollam district in Kerala. A sample of 68 exporters who were continuously exporting cashew for the last five years were selected through stratified random sampling method. To analyse the trend and pattern in cashew exports, variables like area, production, productivity of cashew nuts in India and Kerala, price of raw cashew nuts in Kerala, country wise export and country-wise import during the period from 1990-91 to 2019-20 (30 years), and the variables like import of raw cashew nut to India and export of cashew kernel from India were measured. The collected data were analysed with Annual Growth Rate (AGR), xv Compound Annual Growth Rate (CAGR), Instability Index, Regression Analysis and Kinked Exponential Method. To analyse the export marketing strategies of cashew exporters in Kerala, export marketing mix strategies (product, packaging, pricing, payment, distribution and promotion) were taken and analysed by using percentage method. The major determinants of cashew exports were identified by using variables such as legal and political factors, socio-cultural, geographic, economic, export and import policy, international trade agreement, market logistics, competitive and cost factors. Indices method and factor analysis were used to identify the major determinants in cashew export. Internal and external factors were taken into account for identifying the problems of cashew exporters. Garrett ranking method was employed to examine the problems faced by the exporters in Kerala. The trend in production of cashew in India and Kerala state has witnessed a positive growth. The demand for cashew nuts is always increasing in India and also at the world level. On the other hand, in India, the cashew export sector witnessed a negative growth in terms of quantity/value of export throughout the study period due to high competition from other countries and the slashing of the export incentives. Compared to export, import of raw cashew nut showed an increasing trend, because the domestic production of cashew in India is not sufficient enough to fulfill the requirement of the international demand of cashew kernels. The study on pattern of cashew export showed that USA, Netherlands, Japan, UAE and UK were found the most stable markets for Indian cashew. Ivory Coast, Tanzania, Guinea Bissau, Benin and Ghana were found as the major importing countries of raw cashew nuts to India. Additionally, the price of raw cashew nuts in Kerala showed positive growth till 2018. The comparatively lower price of imported raw cashew nuts increased the imports of raw cashew nuts and reduced the demand for domestic raw cashew nuts which in turn resulted in a fall in the price of the domestic cashew after 2018. With respect to the export marketing strategies, the strategies related to product, price, distribution and promotion were analysed. All the exporters are following only the xvi strategies directed by CEPCI nomenclature. The major export product strategies followed by the exporters are offering certified cashew, specified grades of cashew, premium cashew, crispier cashew, level of infestation, minimum broken percent of cashew and high-quality cashew. All the exporters were following premium and competitive pricing as pricing strategies. Further they focus on the distribution strategies like reaching customers via their mail order / WhatsApp/ online modes, exporting through shipping mode and ensuring timely delivery. The promotion of the cashew is ensured by giving samples to new customers, attending trade fairs organised by CEPCI (Kaju India) and BSM (Business Sellers Meet), publishing advertisements in the CEPCI Directory; permitting visitors to the exporting company, sending brochures, photographs and price lists by postal/online mode to their clients. From the factor analysis, quality of the product, the language and communication of the product package, the proximity of the international buyers to India, food quality standards and location where cashew is processed were found as the major critical success factors of cashew export market. After examining the problems faced by the exporters of cashew it is found that they were facing both internal and external problems. Exporters were confronted with internal problems such as high processing costs, Continuous strike of labours in seaport, high wage rates of workers, outdated shelling methods and high penalty charges for the damage of the product during transit. Unattainable Standard Input Output Norms (SION), competition from other countries, the impact of import duty on raw cashew nuts, export incentives are low compared to competing countries and penalties for late clearance cargo were the major external problems faced by the cashew exporters in Kerala. The study put forward some suggestions to improve the cashew export sector in Kerala. Drum roasting method (labour intensive) of processing of raw cashew nuts to cashew kernels to be replaced with machineries in a phased manner without affecting the premium label of cashew kernels from Kerala. This will help to reduce the cost of processing and there by reduction in the price of cashew kernels in the export market. xvii Further the reduced price will attract the price sensitive customers in the international market and will help to boost up export position of India. Effective marketing strategies like featuring of “Indian Cashew” (like brands of almonds, pistachio) as a brand and promoting through films, or television programmes, offering free gift to regular importers at certain intervals etc may be implemented to increase the quantity of export of cashew kernels in the existing markets and to attract more countries to export from India. Abolishment of Merchandise Export from India Scheme (MEIS) negatively affected exporting firms of cashew kernels. Recently announced Remission of Duty and Taxes on Export Products (RODTEP) scheme has to be implemented at the earliest so as to help the exporters. Based on the study, it is suggested that, as state of Kerala is exporting only cashew kernels at present, if the exporters can explore the market of value added products of cashew which could help to improve their income generation and premier position in the export. In this regard, promotion and support from the cashew regulatory authorities is essential UR - https://krishikosh.egranth.ac.in/handle/1/5810207658 ER -