Economic Analysis of Cashew in West Godavari dt of AP. with Special Reference to Eluru Division
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Date
1998
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Professor Jayashankar Telanagana State Agricultural University
Abstract
The present study entitled "Economic Analysis of Cashew in West Godavari District of Andhra Pradesh with special reference to Eluru Division" was under taken with the objectives of studying trends in area, production and productivity, costs and returns. marketing aspects and constraints in production, marketing and processing of cashewnut. The study data was pertaining to the agricultural year 1997-‘98. A sample of 60 farmers were selected from four villages in two mandals of Eluru division in West Godavari district of AP. Tabular analysis was carried out to study the costs and returns viz., operation wise cost of cultivation, item wise cost of cultivation and cost concepts, farm efficiency measures on cashew orchard. Exponential production function was applied to study growth trends in area, production and productivity. Compound growth rates of area, production and productivity _were estimated at 12.174, 12.267 and 0.082 respectively.
The average total cost of cashew cultivation during bearing period was Rs.1700_9.46 per ha with operational cost and fixed costs accounted 33.23 and 66.77 per cent respectively. Gross returns per hectare obtained by selling the main and byproduct were Rs.18418.49. Farm business income, family labour income and farm investment income were Rs.11872.22; Rs.2497.58 and Rs.10783.61 respectively. Farm investment appraisal techniques like payback period, net present value, benefit cost ratio and internal rate of return were computed and were worked out to 1.66 yrs, Rs.22812,24, 1.65 and 18.65 per cent respectively which pointed out, that the investment on cashew was feasible and economically viable. Total processing costs per 1 bag (80 kgs) of raw nuts was worked out to Rs. 408.33 and marketing costs per 1 bag of raw nuts was Rs.419.02. Four marketing channels were identified. Among all these channels, channel |V(Producer ———> Processor cum Wholesaler ———> Consumer) was found to be the best one with high marketing efficiency (producer's share in consumer's rupee) and low pricespread. Though marketing efficiency was more in channel lV, bulk of sales were routed through channel II and Ill. Non availability of grafts/layers, high price of grafts, high pest incidence, lack of technical know-how, absence of organised markets, absence of storage facilities and absence of processing units were the main problems identified in the study area. From the above discussion it could be concluded that cashew cultivation is profitable in the study region.
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D5654