Model Answer
0 min readIntroduction
The cashew nut industry is a vital component of India’s agricultural economy, particularly in coastal states like Kerala, Karnataka, Tamil Nadu, and Odisha. India is the world's largest producer and consumer of cashew nuts. The industry provides livelihood to millions, especially in rural areas. While India dominates production, post-harvest losses and low productivity remain significant challenges. Recent years have witnessed increasing global demand for cashew nuts, presenting opportunities for India to enhance its export potential and improve the industry's overall sustainability.
Current Status of the Cashew Nut Industry in India
Production
India accounts for approximately 30-35% of the global cashew nut production. In 2022-23, the total cashew nut production was estimated at 3.88 million tonnes of raw cashew nuts (RCN). Key producing states include Kerala, Karnataka, Andhra Pradesh, Tamil Nadu, and Odisha. However, production has been fluctuating due to factors like erratic monsoon patterns, pest infestations, and labor shortages. The area under cashew cultivation is roughly 1.1 million hectares.
Productivity
Cashew productivity in India remains relatively low compared to other major producing countries. The average yield per hectare is around 1.5-2 tonnes of RCN. This is attributed to factors such as traditional farming practices, lack of improved varieties, and inadequate irrigation facilities. There's a significant potential for yield enhancement through the adoption of high-yielding varieties and better agronomic practices.
Consumption
India is the largest consumer of cashew nuts globally, with domestic consumption estimated at around 75% of the total production. Rising disposable incomes and changing dietary preferences are driving increased demand. The consumption pattern varies regionally; in Southern India, consumption is higher compared to Northern India. Processed cashew nuts, often roasted and salted, are particularly popular.
Export
India exports around 25-30% of its cashew nut production. Major export destinations include the United States, European Union, and the Middle East. However, India faces stiff competition from countries like Vietnam and Ivory Coast, who have gained market share due to lower labor costs and improved processing efficiencies. The export value in 2022-23 was approximately $350 million.
Strategies for Further Improvement
- Technology Adoption: Promoting the use of improved, high-yielding varieties like RVS 11, Ramanad Old Yellow, and Bhubaneshwar 2. Encouraging precision farming techniques, including drip irrigation and integrated nutrient management.
- Value Addition: Shifting focus towards processed cashew nuts (flavored, chocolate-coated) to increase export value and cater to evolving consumer preferences. Promoting “origin” branding to command premium prices.
- Post-Harvest Management: Improving post-harvest handling and storage facilities to minimize losses, which are estimated to be around 10-15%. This includes better drying and shelling practices.
- Skill Development: Providing training to farmers and processing units on improved agricultural practices, processing techniques, and quality control measures.
- Market Linkages: Strengthening linkages between cashew farmers, processors, and exporters to ensure fair prices and access to markets. Exploring e-commerce platforms for direct sales.
- Government Support: Continued support through schemes like the “Mission for Integrated Development of Horticulture in North Eastern Region (MIDH)” and other relevant initiatives to provide subsidies for inputs, infrastructure development, and market promotion.
| Parameter | Value (Approximate) |
|---|---|
| Global Cashew Production (2022) | 11.5 million tonnes |
| India's Share in Global Production | 30-35% |
| India’s Cashew Consumption | 75% of Production |
| India’s Cashew Export | 25-30% of Production |
Conclusion
The Indian cashew nut industry faces both opportunities and challenges. While India remains the dominant producer and consumer, low productivity, post-harvest losses, and increasing competition necessitate a strategic shift. By embracing technology, focusing on value addition, strengthening market linkages, and providing adequate government support, India can significantly enhance its cashew nut industry’s competitiveness and ensure sustainable growth, benefiting millions of farmers and processors. A focus on quality and branding will be crucial for maintaining and expanding its global market share.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.