Growth Performance of Indian Cashew Industry

An attempt had been made to study the growth rates in exports of cashew kernels, cashewnut shell liquid from India and import of raw nuts into India for a period of 26 years (1978–79 to 2003–04).The results of the study had shown an increasing growth trend in export quantity (5.71 per cent) and value (14.62 per cent) of cashew kernel over a period of 26 years. This was mainly due to the increase in export unit value of cashew kernel along with rise in quantity of cashew kernel. The export quantity and value of cashewnut shell liquid registered a negative growth rate of –8.72 per cent and –6.23 per cent, respectively. This decline in quantity and value of cashew nut shell liquid export from India was mainly due to the stiff competition from Vietnam and Brazil and also due to low price of Almond and thereby, our CNSL fetches less price and also African countries like Vietnam could supply its produce in the world market at a much lower price compared to our price. The quantity of imports of raw cashewnut had registered a highest growth rate (17.69 per cent) as compared to the value of imports(12.44 per cent), but the unit value of import had decelerated (−4.46 per cent) for the entire study period. Increasing area and production of raw cashewnut in India will help in generating better farm income, improving living standards of cashew growers. Thus, considering the country's diverse agro-climatic conditions and available cheap manpower, there exist vast potential for production and export of cashew products, which needs to be harnessed effectively in coming years.