International and Domestic Trade of Cashew in India — An Economic Analysis

The study has examined growth, instability and direction of export of cashew from India by collecting time series data from 1994–95 to 2013–14. The study has revealed that area and production of cashew in India has registered a positive significant growth during this period. The cashew export in terms of quantity, value and unit value also had a positive significant growth. Further, the export of cashew from India to major importing countries has registered a positive growth rate. The instability index has shown that export quantity of cashew was more stable than export value and unit value. Among the countries, Netherland, UK and France have recorded a significant and positive growth rate in terms of both quantity and value. The cashew export from India was stable to Japan, France, USA and UK. The transition probability matrix has indicated UAE and USA to be the potential markets for Indian cashew. The study has suggested that technological improvements in Indian cashew processing industry would improve the quality standards and acceptance of Indian cashew in the world market.