Trade Performance of Indian Cashew Sector under Policy Analysis Matrix (PAM) Framework

Abstract

Aim: The objective of the study is to evaluate the trade performance of the Indian cashew sector. This study uses Monke and Pearson's [1] Policy Analysis Matrix (PAM). Study Design and Methodology: Private and social prices are taken for studying PAM, while private prices of tradable and non-tradable inputs serve as domestic price and social price is the international price of Vietnam which is a major competitor to India in cashew trade.  Results and Conclusion: Despite the distortions, the cashew nut industry is financially and commercially lucrative, according to this study (net margin, financial and economic profit are greater than zero). It is, however, inadequately protected at the producer level and vast scope for encouraging the export of cashew from India in future. This study suggests that Indian cashew sector was highly competitive in trade when it re-exports the processed cashew kernels to other countries. Since domestic cashew production and processing is labour intensive, appropriate technology for cashew processing is a must.