Resource-use Efficiency in Raw Cashew Nut Production in Kerala, India

Abstract

Aim: To analyze the Resource use efficiency related to raw cashew nut production in Kerala Study Design: Data was collected using a structured questionnaire administered to 120 randomly selected respondents. Place and Duration of Study: The study was conducted in the Kannur and Kollam districts of Kerala from 2023-2024. Methodology: The analysis employed production function analysis through the Ordinary Least Squares (OLS) method using the mathematical form of the Cobb-Douglas production function. The simple descriptive statistics were used to analyze the Socio-economic profile of sample farmers. Results: The findings revealed that most farmers were elderly and dependent on agriculture (72.5%), with marginal (47.5%) followed by small farmers (31.7%), and had a good literacy level. The study stated that manure (p-value; 1.4E-13), and human labour, (0.032), were found to be significant and positively impacted cashew output, and the age of plants (0.019) was found to be significant but negatively related to the yield. This states that with an increase in the age after reaching the yield decreasing phase i.e. of age (> 30 years) the yield starts declining. The analysis also indicated inefficiencies in resource use: manures were underutilized (r>1 i.e. 3.65) whereas labour (r<1 i.e. 0.143) was overused. Conclusion: Raw cashew cultivation efficiency was analyzed using the Cobb-Douglas function, showing organic manure and labour as significant factors. With increasing returns to scale, better resource use can boost production. Extension programs can enhance farmers' knowledge, improve labour efficiency, reduce costs, and increase profitability. Youth involvement is vital for sustaining cashew production.