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Production and marketing of cashew nut in india marketing essay

Cashew (Anancardium Occidentale L.) the king of nuts or also known as the wonder nut of the world. Cashew nut founds its new home in the coastal region of India by the adventurous Portuguese nearly 5 centuries ago. Over the years, cashew nut has become one of the leading exports of India and has been instrumental in bringing increased foreign exchange to India. India ranks first in imports of raw cashew nut (shelled) and export of different processed cashew nut in the world, followed by Brazil and Vietnam. India exports cashew nut primarily to USA, Europe, Japan and Australia. But in recent years raw cashew nut production in India has become stagnant despite of good technology and high yielding varieties available in the country. India export earnings from cashew but was US$ 554, 444, 000 in 2006-07 to US$ 598, 444, 000 in 2007-08. In this report we are going to see various reasons for decrease in cashew nut production in India? What are issues leading to low production? What alternatives do cashew nut growers have? Evolution of cashew nut prices and their impact on farmers?

Cashew nut is a native of the tropical parts of the South America continent commonly around Brazil. The Portuguese introduced this crop into India mainly in Goa five centuries ago for wine and brandy production. It is placed third among the largest consumed tree nuts in the world. The commercial production of cashew seed is done in more than 32 countries of the world; some of the major producing countries are Vietnam, India, Brazil, Nigeria, Indonesia etc.

The commercial importance of cashew nut was not known at that time; in the beginning it was mainly considered as a crop for afforestation and soil binding to check erosion. Trading of cashews started as late as in 1920′s. The nut, apple and other by products of this crop are of commercial importance.

The shells contain high quality oil known as cashew nut shell liquid (CSNL) which has got wide industrial uses. Cashew apple is eaten fresh or mixed in fruit salads, juice is also distilled to produce alcoholic drink (Fenny). India ranks first in processing of cashew nut as shelling are usually done by hand; mechanical shelling processes are not as affective at producing unbroken nuts or coping with variation in size. Around 90% Brazil raw cashew nut are exported to India for processing.

Cashew is produced in almost 32 countries of the world. It is mainly found in the tropical zone of the planet. The major cashew producing countries are Vietnam (827000 tons), India (460000 tons), Brazil (251268 tons), Nigeria (213000 tons), Indonesia (123000 tons), Tanzania (100000 tons) etc. Almost 95% of world cashew production comes from 5 countries- Vietnam, India, Brazil, Kenya, and Mozambique. Whereas two countries India and Brazil provide 64% of the total production[1].

Cashew nut (Anacardium occidentale) founds its new home in the coastal region of India in 16th century through the adventurous Portuguese. It is native to eastern Brazil, this tropical crop was first introduced in Goa and subsequently spread to different parts of country. In the beginning Cashew importance was not known it was used for afforestation and soil binding. India ranked 1st in cashew production in 2003, but this place was taken by toughest competitor Vietnam[2].

The Cashew is said to be a poor man′s crop but a rich man′s food. For a poor farmer it is said to be a source of income and livelihood and for the consumer it′s a status of symbol. India is the global leader in the world in terms of net production of cashew[3]. Cashew nut in India is mainly produced in 8 states. There are 8 major producing states in India those are as follows Kerala, Karnataka, Goa, Maharashtra, Tamil Nadu, Andhra Pradesh, Orissa, and West Bengal.

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