Export Trade Performance of Indian Cashew
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Date
2017-06
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University of Agricultural Science, Dharwad
Abstract
Cashew is one of the most valuable processed nuts on global commodity markets and has the potential to generate employment and revenue for developing countries. India is the largest producer, processor, and the second largest exporter and consumer of cashew kernel in the world. The present study done during 2016-17 at University of Agricultural Sciences, Dharwad aims to analyse the growth in area, production, productivity and export of Indian cashew, promotional activities of cashew developmental agencies, pattern of foreign trade and export competitiveness of cashew and co-integration among national and international markets of cashew kernel. The secondary data collected for the study period covers 15 years from 2000-01 to 2014-15. The Compound Annual Growth Rate (CAGR) was computed for area, production, productivity and exports. The CAGR and percentage were also calculated for promotional activities. For the direction of foreign trade of cashew kernels and Cashew Nut Shell Liquid (CNSL) from India, Markov Chain Transitional Probability Matrix (TPM) was used. For export competitiveness, the Nominal Protection Co-efficient (NPC) technique was used. Co-Integration technique was used for relationship among national and international markets of cashew kernel. Growth rate was (2.58%) in area (3.46%) in production and (1.45%) in export in term of value. The Indian cashew industry plays a very vital role in the economy. The NPC under exportable hypothesis was less than one, which revealed that the domestic prices received by the farmers were lower than the international prices. The United States of America was the most stable country among the major importer of Indian cashew kernel and CNSL as indicated by the high retention probability of (76.50%) and (90.10%) respectively. Finally, the results of the co-integration analysis depicted that there was an unidirectional influence among the markets.