Project of Cashew Processing Unit

COST AND PROFITABILITY ANALYSIS OF CASHEW PROCESSING
UNIT IN KOLLAM DISTRICT

PROJECT REPORT SUBMITTED TO
THE UNIVERSITY OF KERALA
In Partial Fulfilment of the requirement for the award of the degree of
Bachelor of Commerce
Submitted By:
NAME OF THE STUDENTS CANDIDATE CODE

ARUNIMA D 15920126021
ASWATHY RAJ V S 15920126022
ASWATHY S 15920126023
BINDHYA B BIJU 15920126024
EBINA MONASHAN 15920126025
EXAM CODE - 15918603

COURSE CODE - CO1644
Under The Guidance of

DR. DEEJA SAJAN
(Research & PG Department of Commerce)
ST. GREGORIOS COLLEGE, KOTTARAKKARA

ST GREGORIOS COLLEGE KOTTARAKARA
CERTIFICATE
This is to certify that the project report entitled “COST AND PROFITABILITY ANALYSIS
OF CASHEW PROCESSING UNIT IN KOLLAM DISTRICT” is a record of Bonafede work
carried out by ARUNIMA D (15920126021), ASWATHY RAJ V S (15920126022), ASWATHY S
(15920126023), BINDHYA B BIJU (15920126024), EBINA MONACHAN (15920126025) submitted
to university of Kerala in partial fulfilment of the requirement for the award of the degree of Bachelor
of commerce. This project work was carried out under my supervision and guidance during the
academic year 2022-2023.
DR SUMI ALEX DR. DEEJA SAJAN

Head of the Department of Commerce Research &P G department of commerce
St. Gregorios College Kottarakara St. Gregorios College Kottarakara
DECLARATION
We ARUNIMA D (15920126021) , ASWATHY RAJ V S ( 15920126022) , ASWATHY

S (15920126023) , BINDHYA B BIJU (15920126024) , EBINA MONACHAN (15920126025)
here by declare that the project entitled “COST AND PROFITABILITY ANALYSIS OF
CASHEW PROCESSING UNIT IN KOLLAM DISTRICT ” submitted to university of Kerala
in partial fulfilment of the requirement of the degree of Bachelor of commerce is the result
Bonafede work carried out by as on Kottarakara under the supervision of DR. DEEJA SAJAN,
ST. GREGORIOS COLLEGE KOTTARAKKARA for the academic year 2022-2023
We further declare that the work reported in this project has not been submitted, either in part
or full, for the award of any Degree, Diploma to any other University of Institutions.
ARUNIMA D : 15920126021
ASWATHY RAJ V S : 15920126022
ASWATHY S : 15920126023
BINDHYA B BIJU : 15920126024
EBINA MONACHAN : 15920126025
ACKNOWLEDGEMENT
First of all, we thank the Almighty God for giving us an opportunity to do this project.
We acknowledge with gratitude to our guide, of DR. DEEJA SAJAN, St. Gregorios College
Kottarakara, for her keen interest and encouragement which gave us the essential confidence
and her valuable guidance and support through this project able that helped us to get the same
completed on time. We sincerely thank DR. SUMI ALEX, Principal; Head of Department;
Commerce St. Gregorios College Kottarakara and all other staffs of the college for their
valuable support and cooperation towards the completion of this project. We recall with
gratitude this service of all the faculties of the Department of Commerce, St. Gregorios College
Kottarakara. We express our deep sense of gratitude to the cashew factories in Kollam districts.
This work will become meaningless if we fail to express our kind acknowledgement to our
beloved parents, classmates and other friends who have consistently encouraged as for
completing this project work.
THANKU YOU
ARUNIMA D
ASWATHY RAJ
ASWATHY S
BHINDYA BYJU
EBINA
MONACHAN
Place: Kottarakara
Date:
CONTENT
CHAPTER TITLE PAGE NO
List of tables
List of figures
1 Introduction
2 Review of literature
3 History of cashew industry
4 Analysis and interpretation
5 Findings, suggestions, conclusion
6 Bibliography
7 Appendix
LIST OF TABLES
TABLE NO TABLE NAME PAGE NO
4.1 Classification according to value of
production
4.2 Classification according to nut
procurement
4.3 Classification of raw nut cost per bag
4.4 Classification according to packaging
and forwarding
4.5 Classification according to office and
administration of companies
4.6 Classification according to interest and
bank charges
4.7 Classification according to average
labour cost in roasting per bag
labour cost in shelling per bag
labour cost in borma and cooling per
bag
labour cost in peeling per bag
labour cost in grading per bag
labour cost in supervision per bag
labour cost in deprecation and on asset
labour cost in other expense per
profit per bag
4.16 Problems associate with working capital
4.17 Problems in the production of raw nuts
4.18 Problems in marketing
4.19 Problems in free trade in raw nuts
4.20 Problem related to import
LIST OF FIGURES
FIGURE NO FIGURE NAME PAGE NO
4.1 Classification according to value of
production
4.2 Classification according to nut
procurement
4.3 Classification of raw nut cost per bag
4.4 Classification according to packaging
and forwarding
4.5 Classification according to office and
administration of companies
4.6 Classification according to interest and
bank charges
labour cost in roasting per bag
labour cost in shelling per bag
labour cost in borma and cooling per
bag
labour cost in peeling per bag
labour cost in grading per bag
labour cost in supervision per bag
labour cost in deprecation and on asset
labour cost in other expense per
profit per bag
4.16 Problems associate with working capital
4.17 Problems in the production of raw nuts
4.18 Problems in marketing
4.19 Problems in free trade in raw nuts
4.20 Problem related to import
Chapter 1
Introduction
INTRODUCTION
India is the largest producer and processor of cashew in the world. Cashew as a marketable
commodity, has a very important role to play in the liberalized Indian economy. With export
earnings of rs.12320 million in 1995-96, cashew ranked as one of the top agricultural export
commodities. From the farmers, as well as from the expert's point of view, the current emphasis
that cashew is reviving as a horticulture crop from the research and development front, is a
welcome sign. At present, India has a processing capacity of nearly seven hundred thousand
metric tons and to meet the raw nut demand, the country depends partially on imports from
several African, and in recent years, from south East Asian countries. This has considerable
drain on the country's foreign exchange reserves and there is an urgent need to increase local
production to substitute imported raw material in order to derive the maximum benefits from a
strong processing and marketing capability developed over the years by the Indian cashew
industry. W-180, the king of cashew. They are larger in size and very expensive. W-210, are
popularly known as ‘jumbo’ nuts. W-240, an attractive grade which is reasonably priced. W-
320, are the most popular among cashew kernels and highest in terms of availability, worldwide
in Kerala most of the cashew processing factories are located in Kollam district. The industry
provides livelihood for about 6-7 lakhs of employees and farmers, the cashew industry has
national importance. In Kollam district alone there are more than 2.5 lakhs employees directly
involved in the industry, which comes about 10 per cent of the population of the district, out of
which 95 per cent are women workers. It is a fact that any amount received by a woman worker
will be utilized directly for the benefit of the family and hence the link relating to family welfare
is quite clear. Even though the government of Kerala has incorporated the Kerala state cashew
development corporation (KSCD) and Kerala state cashew workers apex industrial co—
operative society (capex) to develop the cashew industry, the cashew industry and ancillary
industries did not grow as per the expectation. In this context, an attempt has been made to
analyse the problems and potential of the industry so as to make the industry viable and
sustainable for the perpetual employment and income generation as well as the overall
development of the Kollam district. Marketing in respect of cashew involved several players
and channels. Marketing begins from the sale of raw cashew nuts by farmers and reaches the
level of exporters/retailers for selling of processed and graded kernels to the ultimate
consumers. The sample cashew growers sold a major portion of the produce to the local traders,
who in turn supplied the nuts to large traders and processing units located in Kollam (Kerala),
Godlore (Tamil Nadu), Mangalore (Karnataka) etc. There are several entities in the marketing
channels that get good share in the total spread between the producer and consumer. The
cashew industry, being an important sector in terms of GDP , it is cultivated in more than 17
states of India which makes easy availability of raw cashew ready for exports as well as to
catch the growing demand of cashew and cashew kernels for the Indian population.
SIGNIFICANCE OF THE STUDY
Cashew nut processing allows for the development of an important by-
product, which can increase its added value. The liquid inside the shell represents
15% of the gross weight and has some attractive possible medicinal and industrial
uses. Cashew has been cultivated primarily for its food and medicinal importance,
which involves the use of whole cashew fruit, that is the apple, kernel as well as
a nut for various industrial purposes. Currently, there is a huge market for cashew
products. The units together have a processing capacity of more than 8 lakh tons
per annum. Often cashew nut processing business is considered profitable, and
budding entrepreneurs can take this venture for long-term profits.
STATEMENT OF THE PROBLEM

The cashew processing units are lab our intensive due to many manual works in production
process. Poor working conditions A large majority of the cashew workers are made to sit on
the floor to perform tasks such as shelling, peeling, and grading. This uncomfortable posture
causes health problems. Benches and chairs should be provided to the workers, the majority
of whom are women. Results further showed that farm size, fertilizer, pesticides, pruning,
education and contact with extension officers are positively related to cashew output while
labour and years of experience are inversely related. There is also huge legal formalities,
uncertainty in the supply, competition from other Indian and foreign exports, higher prices of
the raw materials etc.
SCOPE OF THE STUDY

This study is related to the cashew processing units cost and profitability analysis in Kollam
district. The study is restricted to a selective number of cashew industry units in Kollam
districts. In Kollam, there is more than 600 cashew processing units with 8 lakh tons of raw
cashew imported unnecessary to the city for processing. An average of 130000 tons processed
cashews are exported to various countries world wide in every year. As a result, Kollam is non
as the cashew capital of the world. The cost may vary for different places using different
varieties of cashew for cultivation. So we make an analysis to find out the trend involved in the
generation of profit for 2020-21 and 2021-22.
OBJECTIVE
1. To analyse the cost of cashew processing units.
2. To analyse the profitability of cashew processing units.
3. To identify the reason for the increase in cost and decrease in profitability of cashew
processing units.
METHODOLOGY
This an empirical study based on survey method. The data collected are both from primary
and secondary source. The questionnaire is prepared with interview schedule and 40 samples
were taken.
COLLECTION OF DATA
The data needed for the project study is collected through primary source and secondary
source. Survey through questionnaire was conducted for primary source. In secondary source
the data was collected with the help of books, other projects, and also through the help of
internet.
TOOLS OF ANALYSIS
The data collected were analysed by using mathematical and statistical tools like percentage
diagram and figures.
LIMITATIONS
• The study mainly focused on the socioeconomic conditions
• Lack of time for data collection
• The availability time for conducting survey was limited
• The field study has been made in the selected units only
• Some data are not 100 % accurate
CHAPTERISATION
CHAPTER-1- INTRODUCTION
CHAPTER-2- REVIEW OF LITERATURE
CHAPTER-3- HISTORY ABOUT CASHEW INDUSTRY
CHAPTER-4- ANALYSIS AND INTERPRETATION
CHAPETR-5- FINDINGS, SUGGESTIONS, CONCLUSION
Chapter 2
Review of literature
1. JAFFEE. S. (1995), Private sector response to market liberalization Tanzania's cashew
nut industry. In marketing affairs High Value Crops (EDS) Jaffee and Morton Dubuque.
J. Kendall Hunt. pp. 153-198. The fact that little capital is required for cashew
establishment and that low nut perishability minimizes the contribution requirements
for post-harvest activities have given cashew the reputation of being a poor man’s crop.
2. MATHUR RAVI (2000), observes that the effective management of business is

facilitated by electronic commerce, technology and global standards including
packaging. Technologies, such as bar coding and Electronic Data Interchange (EDI)
supports the automation of information system and communication process between
trading partners.
3. ISHARANI CHETHAN (2001), expresses his views regarding the impact of

Ecommerce system in cashew trading. Since cashew trading is an international
business, use of internet will reduce the communication cost. Another point is that this
will help for a better management of information because of the huge amount of
information's available on the net, traders can make a more informed decision. Online
trading is also possible.
4. BALASUBRAMANIAN (2001), by conducting a detailed study of more than 1063

factories functioning in different states of India explains about the various aspects of
processing, manpower involved etc. He identifies certain problems like procuring
quality raw nut, increasing the shelf life of raw cashew nuts, increasing white kernel
recovery, scorching of kernels in Borma drier, maximizing whole kernel recovery in
peeling process etc.
5. SHAHAL HASSAN (2001), systematically depicts the evolution of Indian cashew

industry right from the form of a cottage industry in 1920 to the present form of a large-
scale processing and exporting industry contributing Rs 2500.00 crores of foreign
exchange earning.
6. TAKALA.J and SAASELA K.L, (2006), TAKALA et.al, (2006) observed that all over
the world there are about 430 million people were affected by occupational accidents
and occupational diseases annually.
7. NABARD,(2007) Cashew nuts in Orissa evaluation study series: One heart touching
point about this sector is that it gives employment in the lean agricultural sectors and
mostly to women from economically back ward areas of rural and tribal belts.
8. VENKATTAKUMAR.R, (2009): Socio economic factors for cash production and

initiative strategies: an overview. Indian Research Journal of Extension Education
9(3):55,62, Cashew gained status of commercial crop through technological
advancements with respect to propagation production and management. This change
was fuelled as a result of increasing demand for raw cashew nuts and enhanced interest
for its commercialization.
9. RIJUMOHAN.A (2009): Air Pollution: a case study of cashew nut factory, MPRA
paper. Commercial processing of cashew nuts at factories involves different stages of
operations, such as roasting, shelling, peeling, grading, and packing. Most hazardous
stages of cashew nut processing are roasting and shelling. Through the state
Governments press the cashew nut processing units to use non-polluting stembased
technique in place of drum roasting drum roasting technique that creates air pollution,
many units still follow the oldest cheaper method.
10. YADAV.S (2010), Economics of cashew in India NABARD, Mumbai: Cashew industry
provides source of livelihood for the women in processing sector and generates foreign
exchange through exports.
11. K. HARISH KUMAR (2010): Economic analysis of cashew processing in Karnataka,

Journal of plantation crops: The study to investigate the processing aspects of cashew
nut in Karnataka is based on primary data collected from 30 cashew processing units
spread over Udupi and Dakshin Kannada district of Karnataka. Data were analyzed
using descriptive nature. The study indicate that variable cost of cashew worked out to
₹48.849 per ton.
12. Dr. S. SIVASANKARAN, Dr. R. SIVANESAN (2013): A study about the wages and
incentive of cashew industries in Kanyakumari district. Studies indicated that wages
and incentives in cashew factories indicates the rising cost of living compels the
workers to take up the job. The researcher's revels that the workers get their wage on
the basis of piece rate system. Majority of them spent huge money for food. The
workers are satisfied with their job as well as the promotion allowed in the industry.
The researcher document that workers get their 9 wages on the basis of number of
working hours per week. Researcher summed up workers is satisfied with incentive and
bonus scheme also the working condition in the factory.
13. R. SIVASENAN (2013): A study on socio economic conditions of women workers in

cashew industries of Kanyakumari district. International Journal of Management
Research and Business Strategy: The researcher states that majority of workers are
affected by skin diseases and poor low wages and revealed that standard of living of the
cashew industries women workers are very low and their socio-economic conditions
are very poor. The researcher concluded by suggesting measures like, The Employee
State Insurance Scheme can be introduced for the welfare of the workers of that industry
should modify the wage system in order to meet the present condition of expense.
14. M. V. SAJEEV, P. L. SAROJ and R. LAKSHMISHA (2014): Socio-economic corelates

and determinants of cashew productivity: An analysis of Dakshina Kannada district of
Karnataka, Journal of Plantation Crops The study analysis the socio-economic
correlation and determinants of cashew productivity in the Dakshina Kannada district
of Karnataka, as a prerequisite for developing and initiating effective extensive
intervention for combining low productivity and profitability from cashew cultivation.
Results show that majority of cashew farmers recorded medium to low productivity in
cashew cultivation. The study suggests motivating farmers to take up cashew
cultivation in high density mode, undertake cashew cultivation in better quality land
with recommended management practices and proportionately increasing yearly
expenditure for cashew farming in relation to net income from agriculture.
15. KARTHIKKUMAR. P (2014): Indian Cashew Processing Industry, An Overview, the

study shows that cashew is an important cash crop and highly valued nut in the global
market. The Indian cashew industry has a high untapped potential to support the
livelihood of cashew farmers, provide employment opportunities and also improve
returns through global trade. He also says that the present work projects the need for
important changes to be made in the existing system, so as to find a substantial
improvement in the growth of the Indian cashew industry.
16. SOUMITHRA BANERJEE and S. L. SHRIVASTAVA (2014): Economic Analysis of

Cashew Nut Processing in India, Studies indicated that the Indian cashew processors
have travelled a long way from traditional to modern cashew nut processing unit of 100
kg capacity and also found that if the plant operate with full capacity there 10 would be
profit of ₹1329.07 per day, excluding all expenses and also, they say that the profit
margin could be increased by plant mechanization and modernization.
17. V. V GIRI, (2014): National Labour Institute employment and social protection of
cashew workers in India with special reference to Kerala. A research study on
employment and social protection of cashew workers in India.
18. CHABISIKAKL, ADOUKONOU-SOGBADJAH (2015): Journal of Agricultural and

Crop Research. Morphological characterization and agronomic performances of
cashew accessions from Benin the aim of the Study was to evaluate the morphological
diversity of the cashew Varieties for their better management and utilization in crop
improvement. PCA (principal Component Analysis) and Hierarchical clustering
analysis (HCA) deals have been used to describe the genetic Variability Significant
correlations were detected between variables, such as the length and weight of the apple
on one hand and the weight, length and width of the nut and inflorescence on the other
hand. This Preliminary work Suggests the existence of an important genetic Variability
among Beninese cashew accessions that could be used in a breeding program.
19. LUIS CATARINO, YUSUFO MENEZES (2015): cashew cultivation in Guinea Bissau
– risks and challenges of the success of a cash crop. The present Study provides an
account of the process of cashew expansion in Guinea Bissau, reviews the current
situation and discusses its future prospects. The spread of pests and diseases is
becoming a problem. Strong dependence on a single cash crop also renders the country
vulnerable to market fluctuations, entailing risk to local producers and the national
economy in the medium term, losses of the export earnings can occur, which may
impact the living standards and food security of Bissau Guineans both in Urban and
rural areas.
20. VINAY NELSON (2016): Work related health problems of female workers engaged in
the cashew processing industries a cross sectional study from Kollam district Kerala,
Indian Journal of Community Health. The aim of the study was to identify the health-
related problems among female workers of cashew industries in Kollam district. The
researcher recounted that health-related issues pertaining to musculoskeletal system,
respiratory systems skin conditions and eyestrain highly prevalent among women
engaged in cashew processing Industry. The researcher observed that musculoskeletal
problems are more among workers engaged in shelling and peeling among due to
repetitive movements of same joints and fixed squatting working position. Researcher
proposed that health issues can be limited by providing education on postural change.
with special reference to Kerala. The specific objective of the study was to assess the
efficiency of existing social security and welfare measures for workers in cashew
processing. Results from the study Indicate that the employees state insurance (ESI)
scheme act as the main provider of health facilities but not all are eligible for benefits
under ESI scheme. The researcher also suggests that cashew workers depend on ESI
facilities there is an urgent need to strengthen the system of medicines and consumables
to the ESI dispensaries and hospitals. There is much scope to improve working
conditions in Cashew factories. To improve working conditions the government may
provide a onetime grant /soft loans to employer as an incentive to good practices and
also for modernizing working sheds. It may be noted that some of the workers Such as
widows, unmarried women aged above 50 years and workers aged above 80 years are
eligible for higher amounts of pension under other social security schemes initiated by
state and central government.
21. M.V SAJEEV and A.V MEERA MANJUSHA (2016): Decline of cashew cultivation in
north Kerala, an analysis of impact. The Study states that the Social and economic
benefits accrued by frames from cashew and economic cultivation. The results reveal
that the majority of cashew farmers had derived low socio-economic benefits with
particularly high social benefits in comparison to low economic benefits. The farmers
are migrated to other remunerative crops. The study calls for government intervention
in price fixation of cashew farmers association. The findings and intended to help
research and development agencies in targeting their efforts towards increased socio-
economic impact from cashews cultivation.
22. SURYA LEKSHMI PRASAD and K. MOPHINKANI (2016): Comparative assessment

of occupational health and safety issues prevailed among cashew workers, The study
aimed to assess and compare the status of Occupational safety and health at cashew nut
factories and to suggest safety measures for each unit workers and to management
authorities. The researchers analyzed both traditional and modern method of nature of
work. During the study Darling study, it was noticed that workers sit on squat on ground
to perform their task on long working hours whereas graders sat on Chair. The
researchers suggested that occupational diseases can be decreased through
implementation of personal protective equipment's like wearing gloves, masks, exhaust
fans, availability of material facilities within the units.
23. S. DHANUSHKODI, V.H WILSON, K. SUDHAKAR (2016): Energy analysis of

cashew nut processing agro industries, a case study, the study was conducted to
investigate the energy consumption pattern in small scale cashew nut processing
industries located in Panruti taluk, Tamil Nadu. The study compares the energy
utilization, specific energy consumption and energy intensity of processing raw cashew
nut. The energy input for buying of raw 12 cashew nut, steaming, cooling and
tempering, cutting and separation drying of kernel and grading and packing were
qualified using standard equation.
24. AMANCIO NHANTUMBO (2017): Determinates of adoption of technology for

cashew production in Nampula, Mozambique. This study analyzed determinants of
adoption and intensity of use of technologies for cashew production in Nampula,
Mozambique. We used cross-sectional data collected from 258 farmer's household in
2016 - Empirical results revealed that the major determinates of adoption of top are
formal education. Price of cashew nuts and access to extension Services. Training in
cashew was important factor for adoption and intensity of use of grafted seedings.
Adoption was higher in the districts of Angoche and lower in Erati for both assessed
technologies.
25. JEMAL TOLA, YALEW MAZENGIA (2019): -Cashew production benefits and
opportunities in Ethiopia. Cashew nuts are to be used as food, medicine and source of
income in more tropical regions with largest coverage found in Brazil, Indian Vietnam
and several countries in west and east Africa. The study states that the increasing
demand for raw cashew nut from processors has made the crop to be the major source
of foreign exchange in most developing countries. However, despite the huge potential
to produce Cashew in Ethiopia, only little is known about its current production,
potential benefits, and opportunities in Ethiopia, mainly due to lack of knowledge and
awareness.
26. D.KINSLIN (2019): Occupational hazards of cashew workers in Kerala, Study shows
that in cashew industries still poses physical, chemical and psycho - sociological
hazards to the employees. The employers to take necessary steps to prevent the risk of
hazards in the cashew processing industries such as providing gloves, neat and clean
environment including hygienically maintained toilets, ensuring minimum exposure to
toxic gases and giving moral support to the suffering employees.
27. PELEMO, OLALEYA (2019): Analysis of Socio-Economic Benefits derived from
Cashew production in Kongi State Nigeria. The major constraints faced by Cashew
farmers in the study area were insufficient price information inadequate extension and
Inadequate capital. It was re commended that adequate capital and other production
incentives should be provided for farmers in order to maximize their production in the
study area, awareness on cashew potentials should be carried out in order to maximize
the potentials of cashews production and more lands should be devoted to cashew
production in the study areas to enable farmers enhance their production.
28. VIVEK MAHAJAN, Dr. PRAVIN CHAVAN (2019): An Empirical Analysis of factors
Affecting on preference for cashew in Nipani. The objective of the study was to study
the factors influencing on selection of Cashew. The primary data was collected from
120 cashew consumers through questionnaire. The data was analyzed by tabular
analysis, factor analysis, one way ANOVA test and descriptive statistics. The result
revealed that major factors influencing for cashew preference was reasonable price,
taste and quality. The hypothesis result revealed that there is no correlation between
preference for cashew and annual income of the consumers.
29. SWAPNALI BORAH, DARSHANA CHETIA (2019): Musculoskeletal Disorder faced

by women workers in cashew nut processing industries of North- East India. The
objective of the study was to investigate the occupational health hazards and risk of
injury faced by the women workers employed in the cashew nut processing industry.
The study was conducted in four cashew nut processing industry. Ten female workers
from each industry comprising a total of 40 workers, who have normal physiological
characteristics, were selected randomly RULA and QEC tools were used for the
assessment of health of health hazards of the women workers Discomfort survey was
done to investigate the intensity of pain in different body parts. The result of the study
showed that workers in this industry exposed to high occupational health hazards.
30. VIJAYAKUMAR ANU, MAHADEVA SHASTRY SHIVAKUMAR (2019): Cashew

nut shell liquid contains 90 %anacardic acid and 10 % cardol.This liquid when comes
in contact topically is said to have deleterious effects both orally and systematically.
Cross sectional study conducted to assess the prevalence of oral submucous fibrosis
among 600 cashew nut industrial workers in Kanyakumari district The overall
prevalence of OS MF among the study population was 0.002%. The observation from
this study clearly indicates that safe working environment prevents occupational
hazards.
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17. ISHASANI CHETHAN (2001). The impact about the ecommerce in cashew industries.
18. SHAHAL HASSAN (2001). Systematically depicts the evolution of Indian cashew
industry right from the form of a cottage industry.
19. VENKATTAKUMAR. R (2009). Socioeconomic factors for cash production initiative

strategies an overview. Indian research journal of extension education 9(3):55,62,
20. YADAV.S (2010) Economic of cashew in India NABARD, Mumbai:
21. K HARISH KUMAR (2010) Economic analysis of cashew processing in Karnataka ,

jounal of plantation crops:
22. KARTHIKKUMAR.P(2014): Indian cashew processing industry, an overview
23. CHABISIKAKL,ADOUKONOU-SOGBADJAH(2015). Journal of agriculture and

crop research.
24. LUIS CARTARINO, YUSUFOMENEZES(2015). Cashew cultivation in Guinea

Bissau-risks and challenges of the success of a cash crop.
25. VINAY NELSON(2016), Work related health problems of female workers engaged in
the cashew processing industries a cross sectional study from kollam ditrict kerala .
26. MV SAJEEV and AV MEERA MARAJUSHA(2016). Decline of cashew cultivation in

north kerala,an analysis of impact.
27. SURYALEKSHMI PRASAD and K MOPHINKANI(2016). Comparative assessment

of occupational helath and safety issues prevailed among cashew workers .
28. S DHANUSHKODI, VH WILSON, K SUDHAKAR(2016). Energy analysis of cashew

nut processing agro industries, a case study
29. AMANCIO NHANTUMBO(2017) Determinates of adoption of technology for cashew

production in nampula,mozambique.
30. JEMAL TOLA,YALEW MAZENGIA(2019). Cashew production benefits and
opportunities in ethiopia.
CHAPTER 3
HISTORY OF CASHEW INDUSTRY
History of cashew industry
Cashew (anacardium occidentale.) Is a native of tropical America from Mexico to Peru

and Brazil and also the west indies. Four centuries ago, the adventurous Portuguese came
sailing down the Indian coasts and brought with them the priceless nut tree to control soil
erosion on the coasts. Cashew came, conquered and took deep root in the entire coastal region
of India. The crop found the Indian soil more homely than its homeland. The first introduction
of cashew into India was made in goa from where it spread to other parts of the country’s west
and east coasts, especially in the states of Kerala, Tamil nadu, Karnataka and Andhra Pradesh
(sham singh et al., 1963). In the beginning it was mainly considered as a crop for afforestation
and soil binding to check erosion. Although its commercial exploitation began from the early
60s, only marginal land and denuded forests were set apart for plantation development. The
word ‘cashew’ is derived from the Portuguese name for the nut ‘Caju’, which was adopted by
them from the native name ‘acuju’. The cashew is a low, sprawling evergreen tree with a
gnarled or twisted trunk, possessing alternate, simple, leathery, oval or obovate glabrous 18
leaves that are rounded and often notched at the apex. The wood of the tree exudes a yellow
gum. The flowers are borne in clusters on lax terminal panicles at the end of the branches. The
fruit consists of a soft, shiny, pear-shaped, swollen, juicy basal portion or hypo carp, commonly
known as cashew apple. In fact, the swollen peduncle and receptacle is reddish or yellow in
colour when ripe. The cashew apple bears at its summit a kidney-shaped, single-seeded nut
with a hard, grey-green pericarp or shell. This true fruit attains its full size before the
enlargement of the receptacle. The shell of the nut contains an acrid juice or sap that causes
severe irritation of the skin resulting in painful blisters. The seeds are ex albuminous with
reddish brown testa, two large white cotyledons and a small embryo. They are inedible when
raw and must be cooked or roasted to drive off the volatile oil before it is opened or shelled. In
the field of international development, cashew cultivation has attracted considerable interest
from the development agencies, producers, governments and advocates of sustainable
economic and environmental development. As a resilient and drought resistant tree that is
adaptable to poor soil conditions, it offers environmental benefits in the fight to combat
deforestation and soil erosion. Most importantly, its cultivation and exploitation are regarded
as economically promising for both rural growers and urban industrial processors in terms of
employment generated and value added to emerging economies. Cashew nuts have a relatively
high fat content (12 g per ounce and 2 g saturated fat), but it is considered “good fat”. Even
with a relatively high fat content, cashew nuts are considered to be a “low-fat” nut. In fact,
cashew nuts contain less fat per serving than many other popular nuts commonly found in
grocery stores and health food stores, including almonds, walnuts, peanuts and pecans. Cashew
is composed mainly of unsaturated fatty acids (nearly 80%), which in humans raise the levels
of high-density lipoproteins (hdls), which are associated with a decreased risk of
atherosclerosis and coronary heart disease. Cashew kernels contain polyunsaturated fatty acids
in a 1:1 ratio with saturated fatty acids, which also is considered to have potential good health
effects (nair, 2009). There are various recommendations for use of cashew nut consumption for
diet and weight loss. Cashew nuts have a high energy density and high number of dietary fibers,
both of which have been credited as having a beneficial effect on weight control, but only when
eaten in moderation
Cashew development
The cashew development programme started with distribution of seedlings of the crop
to farmers. A concerted effort to develop the cashew industry started with the focus on
production, area expansion, improvement of quality planting material and development of
production technology, which included rejuvenation and plant protection. Research was
strengthened by establishing the all India coordinated research project on cashew. At the same
time, the state forest departments started systematic plantation of this crop using seedlings from
high yielding plants. The formation of cashew development corporations and forest
development corporations was a significant developmental step in the promotion of cashew to
the public. Due to the absence of any recommended cultivars and suitable multiplication
techniques, massive 29 areas were covered using seeds and seedlings as planting material. High
yielding cultivars suitable for different agro-climatic conditions have been identified. The
establishment of regional nurseries, both under public and private sectors closely monitored by
dccd, provided an excellent infrastructure for the production of quality planting material. Forty
high yielding cultivars were developed (table 6). A standardized soft wood grafting technique
and standardized production practices were developed. These efforts continued with substantial
increase in allocation of funds coupled with accelerated growth in production and productivity.
The emphasis is now placed on removal of old unproductive plantations and replanting with
high yielding cultivars constraints in cashew production even though cashew production is
blessed with a huge research effort, a vast network of processing industries and elite private
processing sector, and the most congenial climatic conditions, there are still a number of
constraints on production. For example, many early cashew plantations were established with
poor quality seedling progeny and are now unproductive. Also, poor soil fertility in cashew
growing areas, seedling progeny of indistinct origin and neglect of crops have resulted in low
yields. This was prevalent in most of the cashew growing areas of Karnataka, Goa, Andhra
pradesh, Orissa and Tamil nadu. The lack of transfer of technology programmes to better equip
farmers is yet another constraint opportunities for enhancement of production and productivity
there is enormous scope to introduce cashew into the non-traditional states of Orissa,
Maharashtra, Andhra pradesh and Karnataka. Massive replanting programmes to replace the
aging cashew plantations with improved cultivars, establishing cashew export zones, using
quality clonal planting material, establishing cottage industries for the processing of raw nuts
and cashew apples, effective transfer of technology programmes, and introduction of a contract
farming system, provide opportunities to enhance production and productivity and to overcome
the shortage of raw nuts required by the processing industries.
Cashew industry in Kerala
Kerala is the main cashew processing state in India with almost hundred per cent
concentrations in Kollam district. As the industry began to grow, the number of processing
units increased and the importers began to take speculative position on the commodity. The
pioneering efforts taken by some industrialists in Kollam had helped to bring up the Indian
cashew industry into global monopoly. In the 1960s the government of Kerala had brought the
land reforms act; cashew was taken away from the plantation status while rubber, tea, coffee
and cardamom were given the plantation status. Before the act came into force, existing cashew
plantations were converted into rubber plantations. Since Kerala had a monopoly of the cashew
crop, the land reforms act and similar acts in other states simultaneously affected the indigenous
production of cashew nuts. The scarcity of raw nuts and unfavorable fluctuation in the market,
created out throat competition among the processors in achieving more export. According to
the directorate of cashew and cocoa we need about 10 lakh mt of raw nuts for processing and
the production is only 4 lakh mt giving rise to a deficit of 6 lakh tonnes, which is met through
imports. Now Brazil, Vietnam etc. Has started processing in a big way leading to lot of
problems for exporters in the market with respect to raw cashew procurement from abroad as
well as finding the export market.
The commercial processing of cashew

The commercial aspect of the industry consists of
1. Procurement of raw nut
2. Processing
3. Marketing
Procurement
until 1970 each processor procured his raw nut supply from both imported and local. In 1970
government of india established the cashew corporation of india as sole importer of raw nuts.
Distribution to processors is based on the export performance in the year preceding cci
establishment. Until 1976, local nuts in all state were procured by processor’s agents through
a series of middlemen. Farmers either sold directly to traders or pre- harvest contractors. Raw
nut prices were set by processors based on forward new york kernel prices and hence risen
steeply from about rs 2.5 / kg in 1975 to rs 6 / kg in 1978. This type of marketing appears to
work smoothly, and continues in all state except kerala. The government of kerala became
concerned by large outflow of nuts to neighbouring states where rates and processing cost are
lower. To ensure kerala nuts are processed in kerala as well as to ensure that growers receive a
fare price government of kerala introduced in 1976,state monopoly procurement of raw nuts.
Since the nuts have been purchased by the kerala state co—operative marketing federation,
which employed marketing co—operatives and primary co—operatives as buying agents.
Distribution to processors is based on the cci model according to previous year factory
performance. Initially the operation was reasonably successful. However, in 1978 gok set too
high a procurement price for raw nuts based on a temporary kernel price peak. The high price
benefited the growers and encouraged the new planting but caused financial loss to gok and
problems in processing industry. Consequently in 1979 gok used a lower procurement price
with the result that a considerable portion of the crop by passed the state purchasing
organization. In 1982 gok withdrew the monopoly procurement policy. In 1987 gok again
implemented monopoly procurement policy that lasted up to 1991.the new gok formed by udf
again withdrew the monopoly procurement policy. In 1996 ldf government came into power
but they couldn’t implement monopoly procurement because of the difference of opinion
within the 58 government. The cashew growers are against the monopoly procurement but the
Kollam based trade unions argued for monopoly procurement. The experience shows that the
monopoly procurement policy neither helped the growers nor the employees. The cashew is
mainly imported from Argentina, Australia, Bahrain, Burkina Faso, Gambia, Ghana, guinea
Guinee, Bissau, Idonesia, Iran, Iverycost, Kenya, Mozambique, Myanmar, Nigeria, Senegal,
Singapore, Sri Lanka, Thailand, Tanzania, Togo, united Arab emirates, and united kingdom.
We are importing at an average of about 2.5 lakhs metric tonne of cashew per year to India (see
table 3.1). Now each processor is importing directly from the above countries or through
agents. If we are able to produce the nut within the country we can save foreign exchange to
the tune of 250 crores of us dollar.
Processing
Processing of cashew refers to the conversion of cashew nuts in shell to its blanched kernel
fun. In factories nuts are roasted and cracked. Then kernels are separated from shells, peeled,
dried and graded, finally packed into tins containing 25 pounds of kernels. Capital investment
is small and all operations are manual cashew nut processing covers all the stages from drying
of raw cashew nuts 60 to the packing of processed kernels. We shall divide the entire process
into 8 stages .
1. Drying of raw cashew nuts
Drying seeks to reduce the moisture content to facilitate storage without rapid deterioration.
Moisture loss at this stage ranges between three to ten percentages depending on the time of
harvest. Storage in well-ventilated warehouses is also prerequisite for good yield.
2. Roasting
steaming roasting or steaming is employed to facilitate the removal of the shell in the
subsequent process
A) roasting roasting could be done in two ways:
(i) drum roasting
this is one of the oldest and most widely used methods. The raw nuts are passed through a
heated drum where it catches tire. The whole process takes about two minutes. About 8 to 10
bags of 80kg/ bag can be roasted in one about 8 to 10 bags of 80kg/ bag can be roasted in one
hour. This is one of the cheapest available methods, though shell oil recovery is not possible
(ii) oil (plant) roasting
in this method dried nuts conditioned with water are passed through a hot oil bath (cashew nut
shell liquid) by conveyer buckets. Shell oil can be recovered at this point and also later by
crushing the shell. However this method involves higher initial investment. Moreover, unless
the raw nuts are of good quality and well dried the colour of the processed kernel would be
poor. This method is generally not being used now. Steaming steaming is an alternative to
roasting. Well-dried raw nuts are steam cooked at about 120 to 140 lbs. / square inch pressure.
About six bags can be cooked in an hour. Shell oil can be extracted in the later stages by
crushing. Removal of the shell shelling roasted (drum or oil roasted) nuts are shelled by
workers using wooden mallets
B) cutting steamed nuts are cut by workers with blades mounted on wooden tables.
At this point a comparison of roasting/ shelling and steaming / cutting is warranted. The later
scores as far as pollution control is concerned and is more productive when the nuts are of
fairly large size and well dried. Shell oil recovery is also possible. However it involves higher
initial investment, higher maintenance cost, extra drying of the raw nuts and is counter
productive when these nuts are small in size. Hence the cheaper and more convenient drum
roasting/shelling combination is most widely used.
4. Drying and cooling of shelled kernels
The shelled kernels are dried in “borma”(oven) at 80 to 90 degrees centigrade. The process
takes about six to twelve hours depending on the kernels and type of borma used. The old
methods such as 8 feet, 12 feet and the “thattu” borma used direct applications of heat generated
using cashew shell as fuel. The “blower borma” in which hot air is blown into the chamber
where the kernels are kept and the electric borma are recent arrivals. Though the older methods
cause greater scorching, they are still widely used because of the higher investments and
maintenance cost associated with the 63 recent innovation. Bormas, which use combination of
old and new methods can also be found in industry. Drying makes the kernel harder, the
moisture level being 5 to 6 per cent. The kernels are later cooled using humidifiers. Drying and
cooling facilitates the removal of testa (skin) in the peeling process. Proper drying and cooling
is necessary to maintain the white colour of the kernels and to reduce excessive breakage in the
subsequent process.
5. Peeling
the testa is peeled off and initial grading as wholes and broken and by colour is done. The
peeling worker has to be experienced and skilled if breakage is to be kept to a minimum.
6. Grading
The kernels undergo a final grading by hand and or sieve (mesh). The cashew export promotion
council specifications are adopted for export grades. Standard specification for indian cashew
kernels for export has been laid down by the government of india under the export (quality
control and inspection) act 1963. The act 64 prescribes 33 different grades of cashew kernels.
Only 26 grades are commercially available and exported
7. Filling
the graded kernels are filled in 25-pound thin containers after vaccumizing and infusing co2
to prevent infestation.
8. Packing
two 25-pound tins are packed in corrugated box and strapped. The whole process takes about
six days from roasting/ steaming to packaging and is highly labour intensive. Now modern
packaging systems are adopting in the industry.
Quality control concepts in cashew nuts processing industry

The price and marketability of any commodity especially an export commodity like cashew
kernel rests on fulcrum of quality certainly the changing the quality criteria have strong
reflections on the entire industry thus to be precise, to stay in any market not only the marketer
but also the producer has to adopt the norms of time regarding quality. Here comes the
relevance of hazard analysis critical control point system (haccp) the most modern armament
of the total quality management. This approach being preventive rather than curative. 66
cashew kernel being an income elastic product, quality plays a vital role in getting a higher
price. A quality product system from good quality control regime backed up by appropriate
quality assurance mechanism. In the case of cashew kernel the quality norms begin right from
the selection of cultivators through farming, harvesting to the final processing stage. A
processor having a captive plantation can apply all these norms. But for a processor, who
procures raw nut from terminal markets or imports from other countries, the quality control
begins at a different stage i.e. From procurement only.
HACCP
The hazard analysis critical control point approach consists of seven steps comprising
of
(a) conducting a hazard analysis to identify the hazard, assessing their severity and the risk they
pose.
(b) identification of critical control points required preventing or controlling significant hazards
(c) establishment of preventive and control measures
(d) monitoring of each critical points
(e) implementation of appropriate and immediate corrective action whenever criteria are not
met
(f) establishing a verification procedure to see that overall i-iaccp system is working
(g) the formulation of a proper record keeping system of the whole haccp system
the profit in any trade is the difference between the selling price of the product — (raw
material cost + processing cost). In the above chapter we have discussed the procurement
methods and the processing of raw nuts. To survive the industry there should be adequate profit
from the industry. So to get cheap raw material the internal production of raw nut should be
increased considerably. Quality improvement right from the plantation level is needed to get a
higher price. So certainly there is a positive relation between procurement price, production of
raw nut and development of the industry.
Pricing
Indian raw nut price projections
Since 85 per cent of indian production is exported, world market price would determine local
raw nut prices. Other factors are the kernel mix, farm gate to wholesaler expenses and value of
byproduct. The only by-product of importance is cashew nut shell liquid. There is a trade off
for cashew nut shell liquid because when cashew nut shell liquid is recovered from the raw
cashew nut it will affect the quality of the cashew kernel and also a reduction in the price of
kernel. At present, the breakeven price of cnsl is about us$ 500 per tonne. Prices of cnsl are
above us$ 1,000 per tonne at present, after years of being between us$ 150 and us$ 300 per
tonne. Since little information is available on cnsl market and prices, which might again decline
below breakeven level, and since only some factories have cnsl extracting equipment, by-
product recovery has not been assumed in raw nut price calculation. There is considerable
variation in processing costs between private and public sector and, because of different wage
rates, among states. Similarly, there are variations in processing qu'ality among factories and
different states. Main differences are between kerala 70 where both wage rates and quality of
processing are high and in other states where wage rates and quality of processing are low.
Since public sector processors have been steadily expanding their share of exports, their costs
etc. Have been considered for calculating raw nut price for kerala. Quality advantages are more
than offset by high processing costs, and raw nut prices in kerala are, and will continue to be
lower than in other states.
Global shortage lifts cashew kernel prices

There was a global shortage of raw cashew nuts during the year 1998 coupled with increased
demand has pushed up the price of cashew kernels in the international market and it would
have been much higher hadn’t there been undercutting by exporters. The unit value per kg of
cashew kernels stood at rs 200 in august 1998 compared to rs. 184.58 during the corresponding
month previous year. However, the price would have gone up further had there not been an
inter-exporter competition in the exporting countries as well as competition between the
exporting countries. In the view of the executive and secretary, cashew export promotion
council of india “there was an estimated short supply of 1.5 lakh tonnes of raw nuts during the
season leading to a drop in the global 71 kernel availability to around 1.25 lakh tonnes
compared to last year's 1.6 lakh tonnes. The raw nut supply was expected to drop from 10 lakh
tonnes to around 8.5 lakh tonnes as the production in all the cashew- growing countries in the
world was expected to witness a decline” the production in india had declined to 3.6 lakh tonnes
during the 1998 season from 4.3 lakh tonnes in the previous season. Production in brazil was
also down by 10 to 15 per cent to an estimated 1.5 lakh tonnes from 1.85 lakh tonnes. Besides,
the production in vietnam is expected to fall to below one lakh tonnes compared to 1.5 lakh
tonnes. In tanzania, 20,000 tonnes of raw nuts were damaged due to heavy rains. Besides,
vietnam started importing raw nuts for processing and exports, while mozambique and kenya
were improving their processing facilities. The shortage had pushed up the prices of raw nuts.
The indian cashew industry had imported 26,000 tonnes of raw nuts during august as against
7,500 tonnes last year. The price of this raw material had increased to rs.37.68 per kg compared
to rs. 32.55 per kg in august 1997. This increase in the raw material had also reflected in the
international price.
All time record in cashew exports
Cashew exports during 1999-2000 have reached an all time high recording phenomenal growth
in terms of quantity and value both in rupee and dollar terms (see table 3.4) as per estimates of
cashew export promotion council of india, the total exports during 1999-2000 stood at 95,000
tonnes worth rs 2,500 crores (us$ 570 millions). The unit value was rs. 266 per kg. During
1998-99, 75,026 tonnes worth rs. 1,609.88 crores ($380.26 millions) were exported at the unit
value of rs. 214.58 per kg. Thus there had been an increase of 27 per cent in terms of quantity.
In terms of value, the increase was 56 per cent in rupee and 51 per cent in dollar. The rise in
unit value was 24 per cent. No other agricultural commodity exported from the country has
achieved such a phenomenal growth especially in terms of dollar. A shortage in availability of
cashew kernels in the international market and the consequent rise in prices had led to diversion
of cashew from the domestic market to meet the export requirements. Apart from this, the
indian cashew had successfully penetrated into 73 the non-traditional markets in eastern
europe, far east and the gulf. Besides, its usage was promoted in manufacturing convenient
food items in several countries. Today “it is used not only in snack foods but also in other food
preparations” through strategic marketing, by popularizing its advantage over other tree nuts,
indian cashew could find inroads in all the world markets. The consumption in traditional
markets could also be raised substantially through advanced marketing technologies. There had
been of late a shift in consumer preference towards indian cashew. During the last fiscal year
1998-99 1,99,000 tonnes of raw nuts were imported at a total value of rs. 930 crores ($215
millions) as against 1,80,686 tones worth rs. 693.17 crores ($163.73 millions). The unit value
in 1999-2000 was rs. 47 per kg compared to rs. 38.36 per kg the previous year. The above
scenario clearly depicts how the cashew industry influences our economy.
Marketing
India is the largest producer, processor and exporter of cashew kernels in the world. Our
cashew kernels are exported to more than 60 countries of the world mainly to USA,
Netherlands, uk. Gennany, Australia and uae. About 65 per cent of the world export of cashew
kernel is from india. Usa is the largest importer of cashew kernels in the world. Over 60 per
cent of the cashew imports in to usa are from India, and over 40 per cent of India’s export are
to USA. Large quantities of Indian cashews are also re exported from the Netherlands to
European countries and USA after making value addition by the Netherlands. Until the early
1970s, India had a near monopoly in the export of cashew kernels to world markets, although
India was by no means the only producer of raw cashew nuts, India has been traditionally
deficient in production of raw nuts and depends, to a large measure, on imports from the east
African countries and lately from countries in south east Asia. In the matter of export of cashew
kernels, Brazil has the second position. At present, cashew kernels are mainly used as a snack
food in the roasted and salted form. The broken cashew kernels are 78 mainly used in
confectionery, bakery and chocolate industries. In India, cashew is used in a variety of food
items. Many cashew recipes have been developed and they are gaining popularity among chefs
and housewives all over the world. Cashew is a unique combination of fat, proteins,
carbohydrates, minerals and vitamins. High percentage of fat content in food items is
considered to be not good for health. However, there is good fat and bad fat content in food
materials. The fat which cashew contains is definitely good fat. Even though cashew contains
47 per cent of fat, 82 per cent of this fat is unsaturated fatty acids. The unsaturated fat content
of cashew not only eliminates the possibility of the increase of cholesterol in the blood, but
also balances or reduces the cholesterol level. Cashew also contains 21 per cent of proteins and
22 per cent of carbohydrates and a right combination of amino acids, minerals and vitamins,
and therefore, nutritionally they stand at par with milk, eggs and meat. As cashew has a very
low content of carbohydrate, almost as low as 1 per cent of soluble sugar, the consumer of
cashew is privileged to get a sweet taste without having to worry about excess calories. Cashew
nuts do not add to obesity and help to control diabetes. 79 even though cashews have lot of
health advantages this information has not been brought to the knowledge of the consuming
public and no worthwhile programme of promotion has so far been undertaken by any country
or company to increase the consumption of cashews worldwide. Now people are taking efforts
to develop internal market also. Till about a decade and half ago, India enjoyed a virtual
monopoly in the international markets. More than 95 per cent of the cashew kernels consumer
worldwide was supplied by India. It was not only processing the entire raw cashew nuts
produced in India but also was importing most of the cashew crop from east African countries
like Tanzania, Kenya and Mozambique as well. Brazil entered the market in the later years of
1970’s and over a few years they became a major competitor for us. The factors, which helped
them to achieve this status, were: -most of the processors are large-scale farmers of cashew.
This helps them to have a captive cultivation. —even though their production method, which
is machine, oriented produces more brokens, the low raw seed prices ensured price
competitiveness. 80 —proximity to the american markets. This competition from brazil
necessitates that indian cashew nuts needs to be promoted generically. An effort towards this
has been undertaken by the cashew export promotion council of india by way of participation
in trade fairs and by the publishing of brochures etc. But this effort will have to be intensified
if more headway is to be made. Recently the major roasters and salters of cashew nuts in the
u.s have decided to undertake promotion for cashew nuts among the consumers. But here the
problem is that it is cashews as whole, and not indian cashews, which are being promoted. If
we have to reap the benefits of the promotion, we have to be strategically poised to have an
edge over brazil. Recently other cashew producing countries like kenya, tanzania,
mozambique, vietnam and indonesia have started processing of their own. But since they have
not yet mastered the art and since the production efficiencies have not been achieved, they
continue to be small players. It is found that china has also started cashew processing. With the
reputation they have in economic 81 activities, they may soon become a major competitor in
the input as well as in the output market.
RESEARCH ON GROWING TECHNIQUES

Field crops such as groundnut (Arachis hypogeae), black gram (Phaseolus mungo), green gram,
vegetables such as cucumber, bottle gourd (Lagenaria siceraria), tuber crops and fruit crops
such as pineapple (Ananas comosus), spices such as turmeric (Curcuma longa), ginger
(Zingiber officinale) and pepper (Piper nigrum) have been found to be suitable and profitable
intercrops in cashew plantations, increasing the total return per land unit during the early stage
of establishing a cashew plantation. High density planting with 4 x 4 m spacing (625 plants/ha)
was shown to be better than traditional spacing (8 x 8 m), resulting in a yield increase of 2.5
times over the control in the initial ten years. In the summer months, providing irrigation of
200 L of water per tree once every 15 days after flowering was found to increase the cashew
yields profitably. Irrigating cashew at 60-80 L water per tree once in four days through drip
irrigation after flowering till fruit set and development in combination with the application of
750:188:188 g of N-P-K/tree led to significantly higher yields (Bhat et al., 2009). Cashew is a
deciduous tree that provides approximately 5 tons of cashew biomass residues (leaves, twigs,
flowers and apples) per hectare in a well-established cashew orchard. Use of earthworms for
the production of vermicompost from cashew biomass is a low-cost technology with great
potential; 3.5 tons of vermicompost can be produced per ha of adult cashew orchard per year
60-day-old scion shoots of high yielding cultivars, recorded a higher survival of 72.14%
compared to beheading and grafting trees at 0.75 m height.
INSTITUTES IN CASHEW INDUSTRY

• Directorate of Cashew Research (DCR)
In India, research on cashew was first carried out in the early 1950s. In 1971, Indian Council
of Agricultural Research (ICAR) sanctioned the All India Coordinated Spices and Cashew
improvement Project (AICS and CIP) with its headquarters located at Central Plantation Crops
Research Institute (CPCRI), Kasaragod. The National Research Centre for Cashew was
established at Puttur on 18th June, 1986, after which it was upgraded and renamed by ICAR in
2009 as Directorate of Cashew Research (DCR). Subsequent to the bifurcation of AICS and
CIP, the headquarters of All India Coordinated Research Project on Cashew was shifted to
DCR, Puttur. At present, this Coordinated Research Project is operating in ten centers, one
subcenter and three co-operating centers located in major cashew growing areas of the country
• Directorate of Cashew Nut and Cocoa Development (DCCD)
The Directorate of Cashew Nut and Cocoa Development (DCCD) established in 1966 under
the Union Ministry of Agriculture gave a greater impetus to the development of cashew in a
more scientifically oriented manner. This marked the first step towards the integration and co-
ordination of cashew development in association with developmental agencies of States and
Research Institutes. The prime objective of DCCD is the formulation and execution of various
development programmes on cashew nut and cocoa in the country.
• Cashew Export Promotion Council of India (CEPC)
The Cashew Export Promotion Council of India (CEPC) was established by the Government
of India in the year 1955, with the active cooperation of the cashew industry, to promote exports
of cashew kernels and CNSL from India. Through its very set up, the Council provides the
necessary institutional frame-work for performing the different functions that serve to intensify
and promote export of cashew kernels and CNSL. The Council provides the necessary liaison
between foreign importers and member exporters of cashew kernels. The enquiries received
from foreign importers are circulated amongst Council members. The Council also extends its
role to settling complaints amicably in the matter of exports/imports, either on account of
quality and/or variation in fulfillment of contractual obligations.
INDIA IN THE GLOBAL CONTEXT
India is a major player on the cashew world stage. While cashew cultivation originated in
Brazil, today cashew is cultivated in Asia, Africa and Latin America. In the year 2000, the total
global area under cashew cultivation was around 4,000,000 ha, while the estimated average
productivity was around 510 kg per ha and total raw nut production was 1.8 million tones
(Singh and Balasubramanian, 2002). India is the second largest country in the world cashew
economy for area under cultivation as well as production of raw cashew nuts, second only to
Brazil. Today cashew is cultivated on around 720,000 ha in India, yielding an output of 450,000
MT and an average productivity of 710 kg/ha.3 The Portuguese introduced cashew into India
as early as the second half of the 16th century, but its commercial value was only realized in
the twentieth century. The world 20 market for cashew is relatively new. Cashew started
appearing on global markets towards the middle of the 1920s and trade was dominated by two
countries: India, the sole exporter of cashew kernels and the United States, the only buyer. Raw
cashew nuts hardly figured in world trade because in India kernels were produced entirely from
raw nuts grown within the country. It was with the emergence of East Africa as a supplier that
trade in raw nuts started. Of course, growth in the demand for kernels also helped. The
expansion of the global market for cashew kernels in the 1960s prompted India to adopt a
systematic and integrated approach towards developing the cashew economy, including
reducing India’s dependence on imported raw nuts. In the mid-1960s the government launched
a cashew development program and in 1966 a separate Directorate of Cashew Nut
Development was established under the Ministry of Agriculture. As a result, India witnessed
remarkable expansion in the area under cultivation although the processing industry is still
heavily dependent on imported raw nuts.
EXPORT SCENARIO
India has a creditable record of attaining good foreign exchange by exporting cashew kernels.
During the year 2009-2010, India exported 108,120 MT of cashew kernels valued at US$590
million (Table 3). USA, The Netherlands, UK, Japan, UAE, France, Canada, Saudi Arabia,
Singapore, Italy, Germany, Austria, Israel and Spain are the major international buyers of
Indian cashews. Further, cashew nut is also imported into India from other producer countries.
These nuts are processed in the country and then are either distributed in the local market or
re-exported. The first commercial cashew processing unit was set up in Kollam in the mid-
1920s. However, early exports were not followed up because the cashew kernels were not
vacuum-packed, but wrapped in newspapers and packed in reused tea chests. World War II put
a halt to any further development of the trade. Export volumes picked up only after the
introduction of airtight tins infused with carbon dioxide in the mid1950s. Soon after this
technological advancement, processing plants were established in Mangalore and Goa. Another
small but important processing center is located in Panruti, the South Arcot district of Tamil
Nadu. A major problem facing the Indian cashew industry is the acute shortage of raw cashew
Figure 2. Major cashew growing areas in India. nuts within the country. The processing
requirement is about 1,200,000 MT per annum while the domestic production is only 600,000
MT per annum. Consequently, the cashew processing industry has resorted to importing raw
nuts for processing and export. Along with the increasing world demand for cashew, Indian
consumption is also growing. India and Brazil were the major suppliers of cashew to the world
market until about five years ago. In recent years, Vietnam has also emerged as a major supplier,
replacing Brazil in second position. At present, USA and West Europe are India’s major
markets, followed by Japan, West Asia and Australia. New emerging markets like Eastern
Europe, Commonwealth of independent state countries and China are becoming active buyers
of cashews. Another area where there is potential for significant market growth is export of
organically produced cashews. Moreover, new products are being developed apart from the
cashew kernels, including cashew apple, cashew nut shell liquid (CNSL), cashew shell and
cashew testa. Cashew apples can be sold fresh as soon as they have been picked, and are then
used as a culinary ingredient or further processed into drinks (juice, wine), marmalade or
vinegar. There are interesting prospects for setting up processing plants for utilization of
cashew apples, which, at present, are mostly wasted. Many preparations like juices, jams,
candies, pickles, chutneys, and alcoholic beverages can be prepared from this by-product.
Cashew nuts consist of 35-45% seed and around 55-65% shell. The shells contain 15-30% oil.
A ton of nuts contains around 200 kg seeds and 180 kg oil (cashew nut oil or CNSL). CNSL is
a naturally occurring phenol, which is contained in the soft honeycomb mesocarp of the shell.
CNSL is a viscous, oily or balsam-like substance, pale yellow to dark brown, having bitter taste
and caustic properties. Fresh CNSL contains 90% anacardia acid, which is converted into
cardanol 24 on heating. The remaining 10% is cardo, which is mainly responsible for the
vesicant property. CNSL, a by-product of cashew processing, is used as oil in industry. It is a
versatile industrial raw material that has applications in polymer-based industries such as
friction dust, brake linings, paints and varnishes, laminating resins, cashew cements,
polyurethane-based polymers, surfactants, and epoxy resins (Peter, 2002). Cashew shell, after
removal of the kernel and extraction of shell liquid, is currently used as fuel. However, this
shell can also be used to manufacture particle- based boards for the packaging industry. Tannin
can also be extracted from the testa of the kernel. It has application in the leather industry and
many other chemical industries. The major products for industrial applications are cashew
lacquer, insulating varnishes, electrical windings and electrical conductors impregnated with
CNSL and cashew cement (CNSL reacted with formaldehyde).
Global Scenario
Cashew production takes place mainly in central and South American zone, Asia and oceanic
zone and African zone. The Asiatic zones include India as the major producer besides China,
Indonesia, Malaysia, the Philippines, Thailand, Vietnam, Srilanka and Myanmar. 101 In
African zone, Mozambique, Tanzania and Kenya are major producers, besides minor countries
such as Benin, Guinea Bissau, Ivory Coast, Madagascar, Nigeria, Ghana, Senegal and Togo. In
the Latin American zone, the primary producer of cashew to the world comprises Brazil, the
original inhabitant of cashew where development takes place on a faster speed besides
Columbia, Costa Rica, Honduras, Salvador, Guatemala, Panama and Venezuela. The total raw
nut production in the world is around 1.8 million tones from 4.0 million ha. The productive
area is likely to be around 3.6 million ha. The average global productivity is only around 500
kg/ha. The total and productive areas in Asiatic Zone are 1.34 and 1.12 million ha respectively.
Total production in this region is 0.75 million tones with manifested productivity of 670 kg/
ha. In African Zone, there is 0.7 million ha as total area and 0.58 million ha as productive area.
Total production emanating from this region is 0.51 104 million tones with productivity of 880
kg/ ha. Under Latin American Zone, there is nearly 2 million ha (50 per cent of global area) as
total area. Productive areas also are more or less the same. Total production of this region is
0.57 million tones with productivity of 300 kg/ha. India in Asiatic Zone, Nigeria in African
Zone and Brazil in Latin American Zone are largest area holders under cashew, in each of the
zones. India has 150 per cent productivity in comparison to the global productivity, while the
same in Nigeria is 152 per cent. Inter zonal productivity in global relationship is 1:123 in case
of Asiatic zone, 1:1:8 in African zone and 1:026 in Latin American Zone. Some of the countries
having more than 1 tonne / ha of productivity are Malaysia and Thailand In Asiatic Zone,
Tanzania and Kenya in African Zone, Guatemala and Panama in Latin American Zone. In this
group Malaysia and Philippines are recent emerges for cashew production, gaining the
knowledge of advanced technologies from other well — developed countries.
Global trade on cashew

Of the 28 Cashews — producing countries, 26 are, engaged in production of cashew either for
export or for their own consumptionf the total production of 1.83 million tones only 0.430
million tones takes part in kernels exports while 1.40 million tonnes are either traded as raw
nuts or processed and consumed within the producing countries themselves. In global trade,
only 24 per cent of the total raw nut produced takes part in cashew kernel conversion for export,
while 78 per cent takes part as unprocessed raw nuts transaction for export or for processing
and consumption within cashew producing countries. In case of unprocessed raw nuts
transaction (export of raw nuts) some countries of Asiatic region and majority of African zone
are mostly involved. India does not take part in raw nuts export as such. Most of the nuts from
other countries are exported to India. Such exports take place from Mozambique, Tanzania,
Kenya, Benin, Guinea Bissau, Ivory Coast, Ghana, Senegal, Madagascar, Nigeria and Togo of
African zone. Similarly, Indonesia from Asiatic zone also takes part in raw nuts export mainly
to India. Some cashews are coming from Singapore of the Asiatic zone; the sources of these
are unknown, for Singapore is not a producing country. This has to be considered as an inter
transmission process through Singapore ports, where intermediaries collect raw nuts from other
sources (perhaps from Africa) and reexport to India. 108 The Asiatic and African Zone together
produce 1.256 million tonnes of raw nuts (68 per cent of the global production) of which 0.338
million tonnes (27per cent) takes part in kernel trade 0.246 million tonnes takes part in raw nut
trade and the remaining 0.72 million tonnes (53 per cent) goes for local consumption. The
unprocessed raw nuts export amounting to 0.246 million tonnes takes place mainly to India.
The other countries of Asiatic Zone such as China, Malaysia. Thailand, Vietnam and Sri Lanka
do not take part in export of unprocessed raw nuts to India; but to some extent it takes place to
other Asiatic producing countries and consume for internal processing both for export and or
local consumption. The Latin American zone remains uninvolved with Asiatic and African
zone. Their nuts, they process, they export or they consume exclusive of production trade
phenomena of Asia—African zone. Another interesting phenomena on global aspects of
cashew trade is that raw nuts processed for export by Asiatic and African Zone amounting to
0.338 million tones is almost 27 per cent of the total production in these areas and 18 per cent
of global production. The contribution of Brazil from Latin American zone for export is also
17 per cent of her production. The consumption by cashew kernel importing countries in the
world is 0.097 million tonnes of kernels 109 0.430 million tonnes in raw nuts equivalency) of
which 78 per cent is contributed by Asian and African countries while the rest 22 per cent is
provided by Brazil alone. IN other words, while Brazil is able to harness only less than 25 per
cent of the needs of kernel importing countries only, but remains on a par with that of Asiatic-
African countries.
INDIAN CASHEW TRADE

The commerce for international supply of cashew from India started in the beginning quarter
of the 20”‘ century. Cashew nut industry was primarily built up in the early stages depending
upon the import of raw nuts from East African Countries.The plantations existed during this
period were stray, wild and unscientific, wherefrom the production was the least. Till 60’s the
Indian production was below 1.00 lakh tonnes, whereas trade consumption was almost 1.4 lakh
tonnes (see table 4.4). An import of 84000 tonnes was getting affected to achieve near about
32000 tonnes of cashew kernels, for export. Hardly, 56000 tonnes of raw nuts alone was
becoming available from indigenous sources for export. It was on from early 80’s Indian
production reached the level of 2.0 lakh tonnes. The export from 60’s-80’s were gradually 114
increasing and the average annual export was around 52000 tonnes of kernels consuming near
about 2.3 lakh tonnes of raw nuts of which 1.26 lakh tonnes were met through import (see table
4.4). The indigenous production participation during this period was only participation during
this period was only 106000 tonnes. The Indian production touched the level of 3.00 lakh
tonnes in 1990-91. During the period 1981-90 the export was 36000 tonnes on an average per
annum consuming 1.64 lakh tonnes of raw nuts (see table 4.4). The average level of import
during the decennium 1981-90 was around 38000 tonnes and indigenous participation for
export was 127000 tonnes. The export during decennium 1991-2000 was 72000 tonnes of
cashew kernels per annum, consuming 311000 tonnes of raw nuts (see table 4.4). The import
during this period was 2.08 lakh tonnes per annum and the indigenous participation was 1.00
lakh tone that though the indigenous production has been increasing, the import also
simultaneously increased and indigenous participation for export has remained within the range
of 50-60 per cent. The internal consumption, which was meager in pre-60’s also gradually
increased as indigenous production increased from the post 60’s and now remains within a
range of 40-50 per cent.
CHAPTER 4
ANALYSIS AND INTERPRETATION
ANALYSIS AND INTERPERTATION
In this chapter an attempt is being made to analyse the data which was
collected from the cashew factories of Kollam district. A total of 40
factories were selected for the study.
Value of production
The details regarding the value of production of companies are shown
below:
Table 4.1
Classification according to the value of production
Sl.no Year Average
1 2020 1127.625
2 2021 1252.72
SOURCE: Primary data
It is clear from the table the value of production in 2020 is 1127.625
and the average of 2021 is 1252.72.
Fig:4.1
VALUE OF PRODUCTION
1350
1340
1330
1320
Average
1310
1300
1290
1280
1270
1260
2021-22 2022-23
Details of nut procurement
The details regarding the details of nut procurement of companies are
shown below:
Table 4.2
Classification according to nut procurement
Sl.no Year Average
1 2020 1187.51
2 2021 1262.75
SOURCE: Primary source
It is clear from the table the details of nut procurement in 2020 is
1187.51 and the average of 2021 is 1262.75
Fig:4.2
Average
1280
1260
1240
1220
1200
1180
1160
1140
2020 2021
Raw nut cost per bag
The details regarding the details of raw nut cost per bag of companies
are shown below:
Table 4.3
Classification according to raw nut cost per bag
Sl.no Year Average
1 2020 1293.31
2 2021 1342.54
It is clear from the table the details of raw nut cost per bag in 2020 is
1293.31 and the average of 2021 is 1342.54.
Fig:4.3
Classification according to raw nut cost per bag
Average
1350
1340
1330
1320
1310
1300
1290
1280
1270
1260
2020 2021
Packaging and forwarding
The details regarding the details of packaging and forwarding of
companies are shown below:
Table 4.4
Classification according to packaging and forwarding
Sl.no Year Average
1 2020 129.20
2 2021 132.20
It is clear from the table the packaging and forwarding in 2020 is
129.20 and the average of 2021 is 132.20
Fig:4.4
Classification according to packaging and forwarding
Average
132.5
132
131.5
131
130.5
130
129.5
129
128.5
128
127.5
2020 2021
Office and administration
The details regarding the details of office and administration of
Table 4.5
Classification according to office and administration of companies
Sl.no Year Average
1 2020 54.34
2 2021 62.56
It is clear from the table the details of office and administration in
2020 is 54.34 and the average of 2021 is 62.56.
Fig:4.5
Classification according to office and administration
Average
64
62
60
58
56
54
52
50
2020 2021
Interest and bank charges
The details regarding the details of interest and bank charges of
Table 4.6
Classification according to interest and bank charges
Sl.no Year Average
1 2020 59.81
2 2021 64.56
It is clear from the table the details of interest and bank charges in
2020 is 59.81 and the average of 2021 is 64.56
Fig:4.6
Classification according to interest and bank charges
Average
65
64
63
62
61
60
59
58
57
2020 2021
Average labour cost in roasting per bag
The details regarding the details of average labour cost in roasting per
bag of companies are shown below:
Table 4.7
Classification according to average labour cost in roasting per bag
Sl.no Year Average
1 2020 10
2 2021 13
It is clear from the table the details of labour cost in roasting in 2020
is 10 and the average of 2021 is 13
Fig:4.7
Classification according to average labour cost in roasting per bag
Average
14
12
10
0
2020 2021
Average labour cost in shelling per bag
The details regarding the details of average labour cost in shelling per
Table 4.8
Classification according to average labour cost in shelling per bag
Sl.no Year Average
1 2020 125
2 2021 148
It is clear from the table the details of labour cost in shelling in 2020
is 125 and the average of 2021 is 148.
Fig:4.8
Classification according to average labour cost in shelling per bag
Average
150
145
140
135
130
125
120
115
110
2020 2021
Average labour cost in boorma and cooling per bag
The details regarding the details of average labour cost in boorma and
cooling per bag of companies are shown below:
Table 4.9
Classification according to average labour cost in boorma and
cooling per bag
Sl.no Year Average
1 2020 10.00
2 2021 62
It is clear from the table the details of average labour cost in boorma
and cooling in 2020 is 10 and the average of 2021 is 62 .
Fig:4.9
Classification according to average labour cost in boorma and
cooling per bag
Average
70
60
50
40
30
20
10
0
2020 2021
Average labour cost in peeling per bag
The details regarding the details of average labour cost in peeling per
Table 4.10
Classification according to average labour cost in peeling per bag
Sl.no Year Average
1 2020 125
2 2021 165
It is clear from the table the details of peeling in 2020 is 125 and the
average of 2021 is 165.
Fig:4.10
Classification according to average labour cost in peeling per bag
Average
180
160
140
120
100
80
60
40
20
0
2020 2021
Average labour cost in grading per labour
The details regarding the details of average labour cost in grading per
Table 4.11
Classification according to average labour cost in grading per bag
Sl.no Year Average
1 2020 28.84
2 2021 39.94
It is clear from the table the details of average labour cost in grading
per bag in 2020 is 28.84 and the average of 2021 is 39.94.
Fig:4.11
Classification according to average labour cost in grading per bag
Average
45
40
35
30
25
20
15
10
5
0
2020 2021
Average labour cost in supervision per bag
The details regarding the details of average labour cost in supervision
per bag of companies are shown below:
Table 4.12
Classification according to average labour cost in supervision per
bag
Sl.no Year Average
1 2020 20.31
2 2021 27.20
It is clear from the table the details of average labour cost in
supervision per bag in 2020 is 20.31 and the average of 2021 is 27.20.
Fig:4.12
Classification according to average labour cost in supervision per
bag
Average
30
25
20
15
10
0
2020 2021
Average depreciation on asset per bag
The details regarding the details of average labour cost in depreciation
on asset of companies are shown below:
Table 4.13
Classification according to average labour cost in depreciation on
asset
Sl.no Year Average
1 2020 8.9
2 2021 10.2
It is clear from the table the details of depreciation per asset in 2020 is
8.9 and the average of 2021 is 10.2.
Fig:4.13
Classification according to average labour cost in depreciation on
asset
Average
10.5
10
9.5
8.5
8
2020 2021
Average total of other expense per bag
The details regarding the details of average labour cost in other
expense per bag of companies are shown below:
Table 4.14
Classification according to average labour cost in other expense
per bag
Sl.no Year Average
1 2020 354.34
2 2021 362.56
It is clear from the table the details of average labour cost in other
expense in 2020 is 354.34 and the average of 2021 is 362.56.
Fig:4.14
Classification according to average labour cost in other expense
per bag
Average
364
362
360
358
356
354
352
350
2020 2021
Average profit per bag
The details regarding the details of average profit per bag of
Table 4.15
Classification according to average profit per bag
Sl.no Year Average
1 2020 283.5
2 2021 316.32
It is clear from the table the details of average profit in 2020 is 283.5
and the average of 2021 is 316.32.
Fig:4.15
Classification according to average profit per bag
Average
320
310
300
290
280
270
260
2020 2021
PROBLEMS ASSOCIATED WITH WORKING CAPTITAL
The table regarding the details which related with working capital of
Table 4.16
PROBLEMS ASSOCATE WITH WORKING CAPITAL
SL.NO Variables Factories Percentage
1 Huge legal 28 70
formality
2 High interest 6 15
3 Shortage of 4 10
security
4 Small amount 2 5
of financial
assistance
The table represent the problems which are to be associate with the
working capital. Here the huge formality is to be faced by several
factories. Others are just below that the problems.
Fig:4.16
Problems associate with working capital
PROBLEMS ASSOCATE WITH WORKING CAPITAL
2, 5%
4, 10%
6, 15%
28, 70%
Huge legal formality High interest

Shortage of security Small amount of financial assistance
PROBLEMS IN THE PRODUCTION OF RAW NUT
The table regarding the details which related with the problems in the
production of raw materials companies are shown below:
Table 4.17
PROBLEMS IN THE PRODUCTION RAW NUTS
1 Unnecessity in the 16 40
supply
2 Scarcity of local 10 25
nut
3 Poor quality of 5 12.5
nuts
4 High price 5 12.5
5 Diversification of 4 10
nuts to other states
problems in production of raw nuts. Here the unnecessity in the
supply is to be faced by several factories.
Fig:4.17
4, 10%
5, 13%
16, 40%
5, 12%
10, 25%
Unnecessity in the supply

Scarcity of local nut Poor quality of nuts
High price Diversification of nuts to other states
PROBLEMS IN MARKETING
The details regarding which related with the problems in marketing
are shown below:
Table:4.18
1 Competition from 26 65
other Indian export
2 Fluctuation in the 10 25
price of kernal
3 Other 2 5
governmental
support
4 Lack of demand 2 5
for kernal
marketing. Here the competition from other Indian export is the major
problem .
Fig4.18
2, 5%
2, 5%
10, 25%
26, 65%
Competition from other Indian export Fluctuation in the price of kernal

Other governmental support Lack of demand for kernal
PROBLEMS OF FREE TRADE IN RAWNUTS
The details regarding which related with the problems of free trade in
raw nuts are shown below:
Table 4.19
1 High price 13 32.5
2 Profit making 10 25
by middle men
3 Competition 9 22.5
among
processor
4 Diversion of 8 20
nuts to other
state
free trade in raw nuts. Here high price is the major problem.
Fig 4.19
Problems of free trade in raw nuts
8, 20%
13, 32%
9, 23%
10, 25%
High price Profit making by middle men

Competition among processor Diversion of nuts to other state
PROBLEMS OF IMPORT
The details regarding which related with the problems of import are
shown below:
Table:4.20
PROBLEMS OF IMPORT
1 Competition from 15 37.5
other countries
2 Competition by 7 17.5
importer
3 Absence of 8 20
quality guarantor
4 High price 5 12.5
5 Uncertainty in 5 12.5
supply of nuts
import. Here competition from other countries are to be the major
problem.
Fig 4.20
Problems related import
PREOBLEMS OF IMPORT
5, 13%
5, 13%
15, 37%
8, 20%
7, 17%
Competition from other countries

Competition by importer
Absence of quality guarantor
High price
Uncertainty in supply of nuts
CHAPTER 5
FINDINDS, SUGGESTIONS, CONCLUSION
FINDINGS
• The value of production in 2020 is 1127.625 and in 2021 is 1252.72, thus the value of
production increased in 2021 as compared to 2020.
• The nut procurement in 2020 is 1187.51 and in 2021 is 1262.75, thus the nut
procurement is more in 2021.
• The raw nut cost per bag in 2020 is 1293.31 and in 2021 is 1342.54, so the raw nut
cost per bag is increased in 2021.
• Packing and forwarding in 2021(the avg is 132.20) is increased as compared to
2020(the avg is129.20).
• Office and administration in 2021 (the avg is 62.56) have increased as compared to
2020 (54.34).
• Interest and bank charges in 2021 (the avg is 64.56) have increased has come to
2020(the avg is 59.81).
• The average labour cost in roasting per bag in 2021 (the avg is 13) have increased has
compared to 2020 (the avg is 10).
• The average labour cost in shelling per bag in 2021 (the avg is 148) have increased
has compared to 2020 (the avg is 125).
• The average labour cost in boorma and cooling per bag in 2021 (the average is 62)
have increased has compared to 2020 (the avg is 10).
• The average labour cost in peeling per bag in 2021 (the avg is 165) have increased has
compared to 2020 (the avg is 125).
• The average labour cost in grading per labour in 2021 (the avg is 39.94) have
increased has compared to 2020 (the avg is 28.84).
• The average labour cost in supervision per bag in 2021 (the avg is 27.20) have
increased has compared to 2020 (the avg is 20.31).
• The average depreciation on asset per bag in 2021 (the avg is 10.2) have increased has
compared to 2020 (the avg is 8.9).
• Other expense per bag in 2021 (the avg is 362.56) have increased has compared to
2020 (the avg is 354.34).
• The average profit per bag in 2021 (the avg is 316.32) have increased has compared to
2020 (the avg is 283.5).
SUGGESTIONS
• Adequate government support should be provided
• The higher prices in the cashew nuts should be reduced
• Trained and experienced manpower should be employed
• Welfare programmes for labourers and moderate mechanization should be provided
• There should not be any problems related to the quality and quantity of the raw nuts
• There should be an adequate marketing infrastructure
CONCLUSION
The project has a whole describes about the cost and profit analysis of cashew
industries. India primarily exports Cashew Kernels and very small quantities of
cashew nut shell liquid, during 2021-22, the cashew exports by value grew from US$
420 million in 2020-21 to US$ 452 million in 2021-22, witnessing a growth of 7%.
Continue to support the establishment of small-scale factories; consider how to make
affordable credit available to establish more factories; provide business development
services for better management.
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• Nair C.K, (2002), “Quality maintenance of cashew kernels”, Indian Cashew industry,
p.p. 147-151, December 2002.
• Negi J. P, (2002), “Infrastructure support for development of cashew”, Indian cashew
industry Journal, Vol. iv, p.p.46, September 2002.
• Raman Divya.S, Pushpalatha P.B, et. a1, (2002), “Processing qualities of cashew nut
in relation to Phase of varieties”, The Cashew, Vol. xvi, No.3, p.p 9-14, ‘June 2002.
• Russell, (2004), “Cashew nut processing”, FAO agricultural services bulletin; Vol.6,
No. 1 10
• Sharma M.R, (2002), “Credit support from NABARD for Development of cashew nut
plantation in India”, The Cashew, vol. xvi No.2 p.p 5- 22, July 2002.
• Sivaraman.K, (2002), “Organic farming in Cashew”, Indian cashew Industrial
Journal,
p.p.42-45, May 2002.
• Usha.K, Prakasam.V.R, (2002), “Skin sensitization with cashew Nut shell liquid
(CNSL)
in guinea pig, cavia porcellus”, The Cashew Vol xvi No.3, p.p 24-27.
• Vaidehi.M. P, (2002), “Commercial exploitation of cashew apple”, Indian cashew
industry, p.p.166-172, August 2002.
• Varma Sasi. K, (2002), “Nutritional values of cashew nuts”, Cashew Industry,
p.p.124-129, March 2002.
APPENDIX
VALUE OF PRODUCTION
YEAR QUANTITY VALUE
PROBLEMS ASSOCIATE WITH WORKING CAPITAL(RANKING)

• Shortage of security
• Small amount of financial assistance
• High interest
• Huge legal formalities
PART 1- RAW MATERIALS

1. Source of supply (percentage) (i) within the state
(ii) outside the state
(iii) import
2. Details od nut procurement
YEAR QUANTITY(MT) VALUE
3. Do you face any problems in the procurement of raw nuts : YES/NO
4. If yes (ranking)
• High price
• Uncertainty in the supply
• Poor quantity of nuts
• Diversification of nuts to other state
• Scarcity of local nut
5. Raw nut cost per bag (i) within the state
(ii) other state
(iii) import
6. Problems of monopoly procurement of local nuts (ranking)

• High price
• Uncertainty in the supply
• Unsatisfaction quantity of nuts
• Diversification of nut to other state
• Discrimination among processors
7. Problems of free trade in raw nut(ranking)
• Competition among processors
• Higher price
• Profit making by middlemen
• Diversion of nuts to other state
8. Problems of import (ranking)
• Competition by importers
• Competition from other countries
• Higher price
• Absence of quality guarantee
• Uncertainty in supply of nuts
PART -2 PROCESSING
1. Raw nut cost per bag
Year Raw nut Raw nut Total
expense
2. Labour cost per bag

Year Roasting Shelling Borma Peeling Other Total
3. Packing and forwarding cost per bag
Year Value
4. Office and administration cost per bag

Year Value
5. Interest and bank charges cost per bag

Year Value
6. Depreciation on asset per bag

Year Value
7. Utilization of capacity (percentage)
8. Reasons for low capacity utilization (ranking)

• Inadequate raw nuts
• Non-availability of experienced workers
• Lack of shortage facilities
• Lack of export contract
9. Average of workdone and wages paid to a worker

No of workers Average work done Average daily earning
Roasting
Shelling
Borma
Peeling
Grading
Supervision
Other
PART-3 MARKETING
1. Nature of market (i) within the state
(ii) outside the state
(iii) export
2. Details of sales for the last two years

Year Export Sales Local Sales Total
quantity volume quantity volume
3. Do you have any problems in marketing (yes/no)

• Lack of demand for kernal
• Competition from other Indian export
• Fluctuations in the price of kernal
• Government support
• Other

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COST AND PROFITABILITY ANALYSIS OF CASHEW PROCESSING

UNIT IN KOLLAM DISTRICT

NAME OF THE STUDENTS CANDIDATE CODE

EXAM CODE - 15918603

Under The Guidance of

ST. GREGORIOS COLLEGE, KOTTARAKKARA

DR SUMI ALEX DR. DEEJA SAJAN

We ARUNIMA D (15920126021) , ASWATHY RAJ V S ( 15920126022) , ASWATHY

3 History of cashew industry

4 Analysis and interpretation

5 Findings, suggestions, conclusion

STATEMENT OF THE PROBLEM

SCOPE OF THE STUDY

2. MATHUR RAVI (2000), observes that the effective management of business is

3. ISHARANI CHETHAN (2001), expresses his views regarding the impact of

4. BALASUBRAMANIAN (2001), by conducting a detailed study of more than 1063

5. SHAHAL HASSAN (2001), systematically depicts the evolution of Indian cashew

8. VENKATTAKUMAR.R, (2009): Socio economic factors for cash production and

11. K. HARISH KUMAR (2010): Economic analysis of cashew processing in Karnataka,

13. R. SIVASENAN (2013): A study on socio economic conditions of women workers in

14. M. V. SAJEEV, P. L. SAROJ and R. LAKSHMISHA (2014): Socio-economic corelates

15. KARTHIKKUMAR. P (2014): Indian Cashew Processing Industry, An Overview, the

16. SOUMITHRA BANERJEE and S. L. SHRIVASTAVA (2014): Economic Analysis of

18. CHABISIKAKL, ADOUKONOU-SOGBADJAH (2015): Journal of Agricultural and

22. SURYA LEKSHMI PRASAD and K. MOPHINKANI (2016): Comparative assessment

23. S. DHANUSHKODI, V.H WILSON, K. SUDHAKAR (2016): Energy analysis of

24. AMANCIO NHANTUMBO (2017): Determinates of adoption of technology for

29. SWAPNALI BORAH, DARSHANA CHETIA (2019): Musculoskeletal Disorder faced

30. VIJAYAKUMAR ANU, MAHADEVA SHASTRY SHIVAKUMAR (2019): Cashew

2. BALASUBRAMANIAN, D (2001) PH—Postharvest Technology: Physical Properties

3. MUSALIER SHAHUL HASSAN, (2001) “Trend in Export of cashew in Consumer

4. CHETHAN ISHARANI, (2001), ‘Internet and Commodity Trading: Paper Presented

5. TAKALA J.&SAARELA, K. L., (2006), Global estimates of occupational accidents,

8. HARISH KUMAR (2010) SCREENING OF PHYTOCHEMICAL CONSTITUENTS,

9. SIVASANKARAN S, SIVANESAN R (2013) Brand Preference of Packed Milk -

12. SAJEEV, M. V., SAROJ, P. L. AND MEERA MANJUSHA, A. V. (2015) Technology

13. BANERJEE, SOUMITRA (IIT KHARAGPUR), (2015) Development of Mechanized

15. TOLA J, MAZENGIA Y (2019). Cashew production benefits and opportunities in

16. SOUMITHRA BANERJEE and SL SHIRVASTAVA (2014). Development of

19. VENKATTAKUMAR. R (2009). Socioeconomic factors for cash production initiative

20. YADAV.S (2010) Economic of cashew in India NABARD, Mumbai:

21. K HARISH KUMAR (2010) Economic analysis of cashew processing in Karnataka ,

22. KARTHIKKUMAR.P(2014): Indian cashew processing industry, an overview

23. CHABISIKAKL,ADOUKONOU-SOGBADJAH(2015). Journal of agriculture and

24. LUIS CARTARINO, YUSUFOMENEZES(2015). Cashew cultivation in Guinea

26. MV SAJEEV and AV MEERA MARAJUSHA(2016). Decline of cashew cultivation in

27. SURYALEKSHMI PRASAD and K MOPHINKANI(2016). Comparative assessment

28. S DHANUSHKODI, VH WILSON, K SUDHAKAR(2016). Energy analysis of cashew

29. AMANCIO NHANTUMBO(2017) Determinates of adoption of technology for cashew

Cashew (anacardium occidentale.) Is a native of tropical America from Mexico to Peru

The commercial processing of cashew

Quality control concepts in cashew nuts processing industry

Global shortage lifts cashew kernel prices

RESEARCH ON GROWING TECHNIQUES

INSTITUTES IN CASHEW INDUSTRY

Global trade on cashew

INDIAN CASHEW TRADE

PROBLEMS ASSOCATE WITH WORKING CAPITAL

Huge legal formality High interest

PROBLEMS IN THE PRODUCTION RAW NUTS

Unnecessity in the supply

Competition from other Indian export Fluctuation in the price of kernal

PROBLEMS OF FREE TRADE IN RAWNUTS