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Supply Response of Cashew Nuts in Kerala


  • Shibu Sebastian
  • K Jesy Thomas
  • E K Thomas


In the global scenario, India accounts for 31% of the total production of cashew. Kerala occupies a predominant position in the cultivation of cashew in India. The present study evaluates the degree of response of the producers to price and non-price factors affecting cashew nut in the state. In order to evaluate the producers’ response, it was envisaged to study the response in terms of area and yield. Multiple regression models were fitted to the area and yield of cashew in order to study their response to changes in various explanatory variables. It was observed that the average relative price of cashew nuts in the previous three years had a significant influence on area and its elasticity worked out to 0.0133, indicating a very low response to change in the relative price. Yield was found to have a positive relationship with price of cashew nut as well as relative yield.

Suggested Citation

  • Shibu Sebastian & K Jesy Thomas & E K Thomas, 2009. "Supply Response of Cashew Nuts in Kerala," The IUP Journal of Agricultural Economics, IUP Publications, vol. 0(3-4), pages 79-86, July.
  • Handle: RePEc:icf:icfjag:v:06:y:2009:i:3-4:p:79-86

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    References listed on IDEAS

    1. Harvey, Andrew & Koopman, Siem Jan & Riani, Marco, 1997. "The Modeling and Seasonal Adjustment of Weekly Observations," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(3), pages 354-368, July.
    2. Lovell Jarvis & Esperanza Vera-Toscano, 2004. "Seasonal Adjustment in a Market for Female Agricultural Workers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 254-266.
    3. Douglas J. Miller & Marvin L. Hayenga, 2001. "Price Cycles and Asymmetric Price Transmission in the U.S. Pork Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 551-562.
    4. Randal R. Rucker & Walter N. Thurman & Jonathan K. Yoder, 2005. "Estimating the Structure of Market Reaction to News: Information Events and Lumber Futures Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(2), pages 482-500.
    5. Ana I. Sanjuán & P. J. Dawson, 2003. "Price transmission, BSE and structural breaks in the UK meat sector," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(2), pages 155-172, June.
    6. Timothy J. Richards & Paul M. Patterson, 2005. "Retail Price Fixity as a Facilitating Mechanism," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 85-102.
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