Performance of Cashew Processing Units in Tamil Nadu; A Case Study in Kanyakumari

Abstract

Aims: This study aimed to analyse the growth rate of export and import of raw cashew nuts and Cashew Kernels in terms of quantity and value in India and to carry out the economic analysis and evaluate investment efficiency of Mechanised and partially mechanised processing units in the Kanyakumari District. Study design:  Purposive random sampling is used. Place and Duration of Study: The study was carried out in the Kanyakumari District of Tamil Nadu in February 2022. Data were also collected from the official website of DCCD(Directorate of Cashew and Cocoa Development) and the UNCTAD(United Nations Conference on Trade and Development) special issue on cashew nuts. Methodology: The growth rate of exports of cashew kernels and import of raw cashew nuts in terms of quantity and value is calculated using CAGR (Compound Annual Growth Rate) and the instability index has also been calculated using Cuddy Della Valle Index(CDVI). Economic analysis of cashew processing units was calculated by categorizing processing units into mechanized and partially mechanized units. 10 samples in each category were selected randomly and analyses like gross returns, net returns, payback period, and break-even point were carried out. Results: The study lead to many important findings as follows. The CAGR of export of cashew kernels in terms of quantity and value is found to be -2.27% and 5.19% respectively. Also, the CAGR of import of raw cashews in terms of quantity and value was found to be 4.91% and 13.27% respectively. The net returns from processed cashew products gave a mechanised business an edge over a partially mechanised firm (a mechanised firm earned a net return of Rs.31126/tonne, whereas a partially mechanised firm received a net return of Rs.18032/tonne). Conclusion: Also, this study shows that even though mechanization involves a large initial expenditure, mechanisation is a beneficial alternative in the long term. As a recommendation, it could be suggested from the study that mechanization is a feasible option wherever there is labour shortage as it can help the processors to maintain the quantity of cashew processed to obtain the benefits.