Agricultural Economics Research Review
Year : 2021, Volume : 34, Issue : conf
First page : ( 220) Last page : ( 221)
Print ISSN : 0971-3441. Online ISSN : 0974-0279.

Economic and value chain analysis on cashew nut in Meghalaya: A policy perspective

Hatai Lakshmi Dhar*

Department of Social Science, College of Horticulture & Forestry, Central Agricultural University, Pasighat-791 102

*Corresponding author: lakshmidharhatai@gmail.com

Online Published on 16 March, 2022.

Abstract

The study analyses the economics of cashew nut production and value chains in Meghalaya. The present study was undertaken with the sample of 120 cashew nut growers comprising of 60 small (1–2 ha), 40 medium (2–4 ha) and 20 large (> 4 ha) farmers from eight villages of Selsella and Dadenggiri CD Blocks of West Garo Hills district of Meghalaya. Moreover, a sample of 10 village traders, 10 retailers, 5 wholesalers, 3 pre-harvest contractors and 2 processors in each major marketing centre was randomly drawn. Cost C₂ was higher in the first year of cultivation because of establishment cost, and later on, its cost gradually increased due to labour. The Gross Farm Income (GFI) was found to increase from Rs.34,321 per ha in the fifth year to Rs.1,24,685 per ha in the year of the tenth year. The net farm income was found at Rs.104824 per ha in the tenth year of cashew nut cultivation. Moreover, the economic return analysis shows that cashew nut crops in West Garo Hills of Meghalaya are highly profitable and their profitability must be realized by the cashew farmers of the state. The highest cost incurred by the wholesaler (Rs.200/- per qtl) followed by village merchant (Rs.70/- per qtl of cashew nut) and processor (Rs.60/- per qtl). The cost incurred by the wholesaler (Rs.100/- per qtl) for cleaning and drying raw cashew nut in West Garo Hills of Meghalaya. It was observed that cashew producers incurred the cost of value addition of raw cashew nut through cleaning and sun drying and made disposal of raw cashew nut to the village merchant and wholesaler in the study area. It is evident that apart from the economic importance of the cashew nut value chain, it has got greater potentiality in generative income and employment at the farm level. In the West Garo Hills, the cashew nut value chain needs the application of modern technology and proper management practices for better production and marketing. The study highlighted that the prospect of the cashew nut value chain in Meghalaya is bright as the trend of other traditional crop production in the potential areas is quite encouraging for organic cashew farming. There is enough scope of enhancing the organic produce of cashew nut.

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