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Supply Response of Cashew Nuts in Kerala

Author

Listed:
  • Shibu Sebastian
  • K Jesy Thomas
  • E K Thomas

Abstract

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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