Supply Response of Cashew Nuts in Kerala

Shibu Sebastian, K Jesy Thomas and E K Thomas

The IUP Journal of Agricultural Economics, 2009, vol. VI, issue 3-4, 79-86

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.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:icf:icfjag:v:06:y:2009:i:3-4:p:79-86

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