Supply Response of Cashew Nuts in Kerala

IUP Journal of Agricultural EconomicsVol. 6 Nbr. 3/4, July 2009

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Summary


In the global scenario, India accounts for 31% of the total production of cashew. Kerala occupies a predominant position in the cultivation of cashew in India. The present study evaluates the degree of response of the producers to price and non-price factors affecting cashew nut in the state. In order to evaluate the producers' response, it was envisaged to study the response in terms of area and yield. Multiple regression models were fitted to the area and yield of cashew in order to study their response to changes in various explanatory variables. It was observed that the average relative price of cashew nuts in the previous three years had a significant influence on area and its elasticity worked out to 0.0133, indicating a very low response to change in the relative price. Yield was found to have a positive relationship with price of cashew nut as well as relative yield.

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Extract


Supply Response of Cashew Nuts in Kerala

(ProQuest: ... denotes formulae omitted.)

Introduction

Cashew (Anacardium occidentale L.), a native of eastern Brazil, was introduced in India by the Portuguese about five centuries ago. The major cashew growing countries in the world include India, Nigeria, Brazil, Vietnam, Indonesia and several African countries such as Tanzania, Mozambique and Ivory Coast. In the global scenario, India accounts for 30.98% of the total production followed by Nigeria with 12.26% (Directorate of Cashew Nut and Cocoa Development, 2003).

Cashew cultivation in India confines mainly to the peninsular area. It is grown in Kerala, Karnataka, Goa and Maharashtra along the West Coast and Tamil Nadu, Andhra Pradesh, Orissa and West Bengal along the East Coast. With regard to area, Maharashtra ranks first with 1.48 lakh ha closely followed by Andhra Pradesh with 1.36 lakh...

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