ABSTRACT

Cashew tree (Anacardium occidentale) is an evergreen tropical tree originated in Eastern Brazil. India is the second largest producer, exporter and largest consumer of cashew nuts in the world. Multistage purposive sampling technique was employed to select 120 sample farmers and 40 market intermediaries from Kannur and Kasaragod districts of Kerala. Various analytical tools like Markov chain analysis, decomposition analysis, applied cost concepts and Garett’s’ ranking technique were employed to achieve the objectives. The results of the study revealed that in India, area (2.13 %), and production (1.70 %) has shown an increasing growth rate in cashew cultivation while productivity (-0.43 %) was declining over 20 years (2003-04 to 2022-23). Whereas, Kerala experienced declining trend in area (-2.18 %) and production (-0.59 %). Transitional probability matrices for both the districts highlighted the shift in area under cashew cultivation over a decade (2012-13 to 2021-22) with notable shift to coconut, arecanut and rubber. The total establishment cost of the cashew plantation per hectare was 2,90,617 and maintenance cost during the bearing period was 87,884.41. The total cost of cashew cultivation in the study area was 97,772.60 and gross returns accounted 1,37,845.76 per hectare. The Net Present Value, Internal Rate of Return and Benefit-Cost Ratio at 12 per cent discount rate were found to be 1,52,466.40, 18 per cent and 1.25 respectively suggesting investment in cashew plantation is feasible. Three marketing channels were identified for raw cashew nuts in the study area. Marketing efficiency in the Channel-III (90.67) was highest compared to Channel-I (5.41) and Channel-II (6.91). Incidence of pests and diseases and low yield due to weather changes were the major production constraints identified in the study area whereas major marketing constraint were high price fluctuation and low price for the produce.