Value Chain Analysis of Cashew in Srikakulam District of Andhra Pradesh

India occupies the first place in terms of area and production of cashew. In the study area of Srikakulam district in Andhra Pradesh, production technology and plant protection practices are not reaching the farmers. For this, extension services should be improved. Most of the farmers (~^~64%) have been found selling their produce to commission agents. The main reason for this was the loan taken from the commission agents at the time of cultivation. There was no transparency in price at the time of selling the produce. The study has observed lack of industry-oriented technology at processing level. Out of 10 processing units studied, only 3 had modern machinery to remove shells from the nut and testa from the kernel. Most of the processing industries being of small and medium level, cannot procure these costly machineries. Therefore, the government should provide financial support. If the operation scale of the industry increases, the economies of scale will also increase, and thereby the cashew industry will prosper in the state. There is a significant difference in prices between different grades of cashews in organized and unorganized sectors. Therefore, if the organized retailer can do back-end supply for the farmers through contract farming model, both of them will be benefited and thereby, the whole value chain will prosper.