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Indian Journal of Social Research Vol.56 (4) (July - Aug, 2015) (613-619)

GROWTH AND INSTABILITY OF INDIAN CASHEW – AN ECONOMIC ANALYSIS

T Thanga Durai
Ph.D. Scholar, Deptt. of Agricultural Economics
Agricultural College and Research Institute, Madurai - 625104

Daniel V Samuel A
Professor, Centre for Agricultural and Rural Management Studies
Tamil Nadu Agricultural University, Coimbatore

Abstract

In this paper an attempt has been made (i) to study growth in production, export and import of cashew and (ii) to measure the extent of instability in production, export and import of cashew from India. The period for the study from 1995 to 2011 as post WTO regime. Cashew production for the period from 1995-2011 has increased at 28 percent for India and 65 percent for world. The value of coefficient of variation for the world cashew production was higher when compared to India. The instability index indicated that cashew production is more unstable for world than India. India ranked first accounting for about 92 percent of total import of raw cashew nut. Next to Vietnam (39.20%), India ranked second interms of export of cashew kernel accounting for about 31.78 percent of total export followed by Brazil (6.23), Tanzania (4.07), Indonesia (0.88), Thailand (0.01) and other countries (24.57). The first six countries listed in the table accounts for 75 percent of the global cashew kernel exports. It was estimated that world exports of cashew kernel both in quantity and value terms increased at higher rate than India’s export. The instability for cashew kernel exports for India was more unstable than world both in quantity and value terms. The growth rate of import of raw cashew nut implies that India has higher growth rate than world imports. The instability index indicated that raw cashew nut import was stable for both India and world in terms of quantity and value.

Key words: Cashew, Growth, Instability index, Coefficient of variation, Export and Import

Introduction

Cashew is one of the most valuable processed nuts on global commodity markets and has potential to generate employment and revenue for developing countries. Cashew is a significant component of agricultural productions and processing of the country, has been identified as having great potential in the domestic and world markets. Vietnam, India, & Brazil are the major players in the international cashew trade. Cashew is grown in 0.95 mha in India mostly in states of Kerala, Karnataka, Goa, Maharashtra, Kerala, Andhra Pradesh, Tamil nadu, Orissa and West Bengal with total production of 674600 MT (2011)...

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