A Presentation on A Presentation on PLANTATION CROPS MARKETING

MANAGEMENT

Institute of Development Studies,Institute of Development Studies,'Leela Vihar', University of Mysore,'Leela Vihar', University of Mysore,

Manasagangotri-06Manasagangotri-06

March-2014 March-2014

Presented bySATHYENDRA KUMAR

A.D,M.B.A.(Agri-Business)

Topic: CASHEWNUT.

Content Introduction Importance of Plantation Crops Area Of Plantation Crops In India Leading Plantation Crops Producing States CASHEWNUT• History• Some Background• Basic Information about Tree, Fruits.• Climatic Requirements• Planting, Grafting, Seedlings and Planting Distance of cashew Nut plants• Fertilization, Flowering to harvest time, Irrigation, and Weed control.• Processing of Cashew Nut • Grading, Packaging of Cashew Nut• By-products of cashew Nut• Varieties• Production of cashew Nut• Marketing of Cashew Nut• Exports of Cashew Nut• Directorate of Cashew Nut & Cocoa Development• Other Department of Cashew Nut• SWOT Analysis for Horticulture• Strategies for Growing Cashew Nut• References

Introduction

India, with diverse soil and climate types comprising several agro-ecological regions, provides ample opportunity to grow a variety of crops. The aggregate cropping patterns of the country are represented by the gross cropped area allocation among different crops and commodity groups.

Plantation crops in India are considered to be the main segment of the horticulture crops. They are the mainstay of agrarian economies in many States and Union Territories (UTs) of the country.

India is also the largest producer and consumer of cashew nuts. It is estimated that total production of cashew is around 0.57 million tonnes from an area of 0.24 million hectares.

Cont.….

But, in India, plantation crops have been continuously facing the problem of lack of investment and depressed yields, and are in great need of modernization. Their total coverage is comparatively less and they are mostly confined to small holdings.

The Government of India has identified some prominent crops as high-value crops of great economic importance. It is taking all possible steps and initiatives to commercialize the sector. Tea, coffee, rubber and coconut industries are providing greater business opportunities to the investors worldwide.

Importance of Plantation Crops

These plantation crops are high value commercial crops of greater economic importance and play a vital role in our Indian economy.

They contribute to national economy by way of export earnings.

Plantation industry provides direct as well as indirect employment to many millions of people.

Plantation industry supports many by-product industries and also many rural industries.

These crops help to conserve the soil and ecosystem.

Area of Plantation Crops in India

The area and production is more in Kerala (1073000.7 ha and 4359000.9 MT) followed by Karnataka (679000.2 ha and 1401000.0 MT), Tamil Nadu (503000.0 ha and 3810.6 MT), Andhra Pradesh (289000.0 ha/and 1021000.2 MT).

Leading Plantation Crops Producing States

CASHEWNUTScientific classification

Kingdom: Plantae(unranked): Angiosperms(unranked): Eudicots(unranked): RosidsOrder: SapindalesFamily: AnacardiaceaeGenus: AnacardiumSpecies: A. occidentale

Binomial nameAnacardium occidentale

History

The Portuguese introduced cashew into India in Second half of the 16th century.

Its commercial value was only realized in the twentieth century.

The world market for cashew is relatively new. Cashew started appearing on global markets towards the middle of the 1920s.

Trade was dominated by two countries: India, United States.

The cashew tree, native to Brazil, was introduced to Mozambique and then India. As a means of controlling coastal erosion.

Some Background

India is a major player on the cashew world stage. While cashew cultivation originated in Brazil. Today cashew is cultivated in Asia, Africa and Latin America.

In the year 2000, the total global area under cashew cultivation 4,000,000 ha. Average productivity was around 510 kg per ha.

Total raw nut production was 1.8 million tones.

India is the 2 ND largest country in the world cashew economy for area as well as production of raw cashew nuts. Brazil is first.

Today cashew is cultivated on around720,000 ha in India. Yielding an output of 450,000 MT Average productivity of 710 kg/ha.

Basic Information about Tree, Fruits. The treeThe cashew-nut tree is a fast grower and an evergreen tropical tree. It grows to a height of 12 m.

Blossoming takes place between November and January. Seedling trees flower in the third year after planting. The fruit ripens fully within 2 months.

The fruit (nut)The nut is attached to the lower portion of the cashew apple which is conically shaped. The

cashew nut (seed) hangs at the bottom of the apple, and is c-shaped.

The cashew seed has within the outside shell the edible kernel or nut. In its raw form the cashew kernel is soft, white and meaty. When roasted it changes colour and taste. Salted, it appeals to the palate as the most delicious nut.

Cashew apples and cashew nuts are excellent sources of nutrition. The cashew apple contains five times more vitamin C than an orange and contains more calcium, iron and vitamin B1 than other fruit such as citrus, avocados and bananas.

Cashew shell oil extracted from the shells is caustic and causes burns on the skin. The mucous membranes of the mouth and throat are severely affected when it comes into contact with shell oil or the irritating fumes emitted during roasting. The oily shell liquid has many uses.

Climatic Requirements

Cashew trees are genuinely tropical and very frost sensitive. The trees grow in a wide spectrum of climatic regions between the 25 °N

and S latitudes. Although the cashew can withstand high temperatures, a monthly mean of

25 °C is regarded as optimal. Yearly rainfall of 1 000 mm is sufficient for production but 1 500 to 2 000

mm can be regarded as optimal. The cashew tree has a well-developed root system and can tolerate drought

conditions. Rain during the flowering season causes flower abortion due to anthracnose and mildew.

During harvesting, while nuts are on the ground, rain and overcast weather causes the nuts to rot or start germinating.

Nuts germinate within 4 days when lying on wet soil.

Planting, Grafting, Seedlings and Planting Distance of cashew Nut plants.

Fresh seeds that sink in water are planted in an upright position in a planting bag containing a loose, sterilized soil mixture. Three to four seeds can be planted directly in the planting hole. The weakest ones are thinned out later and the strongest left to develop further. The seedlings are very susceptible to Phytophthora root rot. The plant bags should be 350 to 400 mm deep, as the tap-root grows very fast and bends around as soon as it touches the bottom.

Two grafting techniques, namely side grafting and wedge grafting are practiced with success. Grafting should commence as soon as possible (seedlings of 3-4 months old) and planted out in the orchard to prevent the tap-root from bending.

Cashew seedlings are grown under shade (45 %) and hardened off before planting in the orchard. It is very important not to disturb the root system during planting. Young trees should be supported for the first 2 to 3 years so that wind will not blow the plants over.

Cont.…..

Planting distances of 8 x 5 m is recommended. The trees grow vigorously in the first 3 years and as soon as the crowns touch each other alternate trees should be removed until the permanent planting distance of 10 to 12 m is reached. Branches hanging on the ground should be removed because they interfere with harvesting. In other parts of the world cashew trees bear well, in spite of the little attention devoted to the orchards.

Growth and production of cashew trees can be enhanced by establishing clonal orchards, and improving fertilizing and irrigation practices.

Fertilization, Flowering to harvest time, Irrigation, and Weed control.

The application of nitrogen and phosphate are important. Approximately 75 g LAN and 200 g superphosphate per year age of the tree is applied annually with a maximum of 750 g LAN and 2 kg superphosphate. Cashew trees are subject to zinc deficiency that can be treated with 200 g zinc oxide/100 l water applied as a leaf spray.

Flowering is affected by weather conditions and also varies from tree to tree, but continues for a period of 3 months. High temperatures lead to earlier flowering. Both male and bisexual flowers are borne on one cluster. The flowers are very susceptible to mildew and control thereof on the leaves and flowers is a prerequisite for good production.

Pollination is mostly by insects. After pollination it takes 6 to 8 weeks for the fruit to develop. The nut develops first while the apple develops and enlarges only 2 weeks before fruit fall. Nuts should be harvested as soon as possible, especially under wet conditions and should be dried before storage.

Irrigation is important during establishment of young trees because it doubles the growth tempo of young trees in a dry season. Due to the deep root system the trees can survive several months without irrigation. Mature trees should receive 1 800 l of water per tree every 2 weeks.

Grass strips in the inter-rows between the tree lines are ideal to prevent erosion and should be cut regularly.

Processing of Cashew Nut

The objective of cashew processing is to extract the healthy, tasty kernel from the raw nut in the shell. Most modern factories are designed to obtain the maximum number of whole nuts and as much shell oil as possible. Processing can be subdivided into a series of steps.Drying: Harvested nuts are dried in the sun for a few days. Properly dried nuts can be stored for 2 years before being shelled.Shelling: This is the most difficult operation in cashew processing. In India shelling is mostly done by cheap female labour. Shelling is carried out by using special wooden mallets and pieces of bent wire, at a rate of about 200 nuts per hour.Removal of the testa: Before the thin, papery seed coat (testa) can be removed, the kernels must be dried. Nuts are dried on big racks in an oven at 70 °c. The testa becomes dry and brittle and is easily removed. The remaining traces of membrane are removed with bamboo knives. Modern factories use electronic machines to detect nuts with pieces of remaining testa which are then sorted and cleaned by hand.

Grading, Packaging of Cashew Nut

Kernels, whole and broken, are sorted into 6 grading schedules. There is only a small demand for broken or dark and unevenly roasted kernels.

• Kernels are dried to 3 % moisture content before they are packed.• Drying is necessary to extend shelf life and prevent fungal and other

infections.• Dried kernels do not become rancid.• Nut kernels of export quality are vacuum packed in tins.

By-products of cashew Nut

Shell oil represents about a quarter of the mass of an unshelled nut and approximately equal to that of the kernel. This fluid, that is not an oil as the term "shell oil" indicates, but a mixture of anacardic acid and cardol is the main by-product.

There are more than 200 registered patents of different uses of shell oil. One of the most important uses is in the manufacture of brake linings. Shell oil is used in the manufacture of numerous materials that have to be resistant to heat, friction, acids and caustic products, for example clutch plates, special isolators, varnish and plastic materials. The wood is insect repellent and used in making book cases and packing crates. The gum is a replacement for gum arabic and used as insect repellent glue in book bindings. In the nut and the apple, a compound has been found that combats tooth decay.

The apple is highly perishable but very healthy. It can be eaten fresh or juiced. Syrup, wine, brandy, gin, preserved fruit, pickles and glazed fruit are also made from the cashew apple. In Brazil, fresh cashew-apples are packed in trays and marketed in retail fresh produce outlets.

The indigenous people in cashew-producing regions use different parts of the plant such as the leaves, bark, gum, wood, juice and roots for the preparation of local medicines or insect-repellent mixtures. The bark is rich in tannins and is used in leather tanning. The papery seed coat around the kernel can serve as cattle feed.

Varieties

Thirty-three cultivars have been released so far by the National Research Center as well as several Agricultural Universities. Most of the varieties have a mean yield of 8-10 kg per tree which gives over one ton per ha. In view of the export potential however, cultivation is recommended only for such cultivars that have a kernel grade of W-210 to W-240 (210-240 kernels per lb).

• W - 210, are popularly known as ' Jumbo 'nuts.

• W - 240, it is an attractive grade which is reasonably priced.

• W - 320, are the most popular among cashew kernels and highest in terms of availability, worldwide.

• W - 450, are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades.

Production of cashew NutArea, Production & Productivity of Cashew nut in India (A - Area in '000 Ha, P

- Production in '000 MT, APY - Average Productivity in Kg per Hectare.)

STATE2007-08 2008-09 2009-10

A P APY A P APY A P APY

Kerala 84 78 900 70 75 1071 72 66 957

Karnataka 103 56 710 107 60 561 118 53 461

Goa 55 31 700 55 30 545 55 26 473

Maharashtra 167 210 1500 170 225 1323 175 198 1186

Tamil Nadu 123 65 700 131 68 519 133 60 472

Andhra Pradesh

171 107 900 182 112 615 183 99 544

Orissa 131 90 860 137 95 693 143 84 641

West Bengal 10 10 1000 11 11 1000 11 10 909

Gujarat 4 4 1000 0 0 0 0 0 0

NE States 15 12 750 0 0 0 0 0 0

Others 5 2 500 30 19 633 33 17 680

T O T A L 868 665 860 893 695 778 923 613 695

Source : Directorate of Cashew nut & Cocoa Development, Cochin.

Marketing of Cashew Nut

Raw cashew nuts are a seasonal commodity and the trading season is from March to May. Growers usually supply the primary or village markets where small traders collect and supply the urban markets. The cashew trade is seldom handled by exclusive traders. Usually, those traders who collect other plantation products also trade in cashew. Due to the highly competitive nature of the cashew trade growers have few marketing problems. When large quantities are collected by middlemen, the processors enter the marketing chain and make wholesale purchases. Grades and standards for cashew are yet to be introduced in India. Quality is generally determined by appearance and cutting tests that traders employ prior to purchase. The raw cashew nut market involves a large amount of capital where nearly 80 percent of the produce is transacted within a matter of 35 days. The current value of Indian production is estimated at around Rs. 10,000 million. This capital is made available by industry for procurement and processing operations.

There are no growers’ cooperatives or organizations for cashew marketing. In Kerala however, the government has been involved in the procurement process and supply to large-scale processors. This adversely affected the cashew trade and has now been replaced by a free market policy.

In addition to the local production of nearly 430,000 tons, India also imports a considerable quantity of raw nuts from several African and South-east Asian countries to satisfy the national processing capacity of 700,000 tons established in the country.

Market Channels of Cashew Nut

Cont.……

• The supply chain analysis of raw cashew nut (Fig 4 ) reveals that the trade route involving the cooperative as intermediary between the farmer and processor is the most popular one. While processors look at it as an assured and reliable source of supply, the farmers favor it for the transparent and competitive pricing mechanism. The direct marketing of the produce by farmers to the processors offers the shortest supply chain. However, there is a school of thought that the pre harvest contract and advance credit, which are integral part of the channel, may make it less advantageous to farmers from price realization point of view. The marketing mode involving the traders as intermediary between producer and processor has the longest chain and the number of players involved are 4 or more. This channel makes the raw material costly for processors while the farmers are subjected to exploitation by the intermediary tiers.

Exports of Cashew Nut

• India earns more than 200 million dollars a year by exporting 40 to 50 thousand tones of cashew kernels and the country's trade links are spread over 40 countries. Cashew is a craze in the United States which is by far the largest buyer. The other major purchasers are the eec countries, Japan, Australia, Canada, Hong Kong, Singapore and the countries in the Middle East.

• Cashew is an excellent choice to grow around the house as a shade tree with healthy fruit (apple) and nuts.

• Nuts determined the eating habits of prehistoric people. Along with berries and brook water, nuts followed humanity to civilization. Cashew nuts are packed with proteins, fats and vitamins to a high degree.

• Proteins, the tissue builders in our system, constitutes a large proportion of cashew contents. The cashew kernel contains 21 % of vegetable protein. Nutritionally they stand on a par with milk, eggs and meat. It also contains a high concentration of much-needed amino acids.

Cont.……

Export of Cashew Kernel, Cashew nut Shell Liquid (CNSL) & Import of Raw Cashew nut

(Quantity in MT) Value in Rs. Lakhs

YearCashew Kernel Export C N S L Export Raw nut import

Quantity Value Quantity Value Quantity Value

2005-2006 114143 251486 6405 709 565400 216295

2006-2007 118540 245515 5589 920 592604 181162

2007-2008 114340 228890 7813 1197 605970 174680

2008-2009 109522 298840 9099 2606 605850 263241

2009-2010 108120 290582 9748 2412 752894 303735

Directorate of Cashew Nut & Cocoa Development

The Development of Cashew was first introduced in the early 50’s and was hand in glove with the Research and Development of the ICAR looked after by Indian Cashew nut and Spices Committee till the beginning of 3rd plan period. Cashew Development was taking place from the beginning through adhoc schemes sanctioned by the erstwhile Cashew nut and Spices Committee. In the post independent era from the beginning of 3rd Plan, no central agency was there to devote an individual attention for the development of cashew in India. The Directorate of Cashew nut Development established in 1966 as a primary field functionary under the Union Ministry of Agriculture gave a greater impetus for the development of cashew in a more scientifically oriented manner. This marked the first step towards the integration and co-ordination of Cashew Development in association with developmental agencies of States and Research Institutes. Now cashew development and research go hand in hand conceiving whatever technological advancements taken place in the research front becoming an integral part of the developmental efforts. The Directorate of Cashew nut Development which was handling only cashew got the mandate for development of cocoa in 1997. Though cashew and cocoa enjoys different parameters, both are economical cash crops of the country and in 1997-98 the Directorate of Cashew nut and Cocoa Development started driving both the crops on similar tracks.

Cont.…..The major objectives with which the Directorate of Cashew nut and Cocoa Development functions are briefly enumerated below.1.Formulation and execution of various development programmes on cashewnut and cocoa in the country.2.Monitoring the effective implementation of the development programmes in the States.3.Functioning as a feed back agency for the Development and Research Institutes in the country for planning and execution of cashewnut and cocoa production, marketing and other allied programmes.4.Exploiting the waste lands for the development of cashew in public and private sector lands.5.Rendering technical advice and suggestions to remove the bottlenecks confronting execution of development programmes.6.Shouldering the responsibility of reviewing the development programmes, taking steps for adoption and dissemination of advanced techniques in respect of production, processing and marketing, assessing the requirements and fulfilling the needs of the project with specific reference to input requirements and identifying sources of supply.7.Functioning as a data bank on crop, area production, price trends, marketing and trade performance of export, import and internal situations.8.Functioning as an advisory body, to recommend, watch and monitor the various aspects of crop development, marketing and by-products utilization.9.Assisting in improving the marketing of the commodity.10.Maintaining close liason with States and Central Institutions.11.Taking up intensive publicity measures such as publishing Journals, Pamphlets etc. and organization/participation in seminars and exhibitions.

Other Department of Cashew Nut

Karnataka Cashew Development Corporation Ltd.

Karnataka Cashew Development Corporation Ltd. was incorporated and registered on 14th February 1978 under the Companies Act, 1956 with the object of managing the cashew plantations transferred to the Company by the Karnataka Forest Department and to increase the areas of cashew cultivation in the State. The registered office is located at Abbakkanagar, 1st Main, Kottara, Mangalore-575 006.

Cashew Export Promotion Council of India

The Cashew Export Promotion Council of India (CEPC) was established by the Government of India in the year 1955, with the active cooperation of the cashew industry with the object of promoting exports of cashew kernels and cashew nut shell liquid from India. By its very set up, the Council provides the necessary institutional frame-work for performing the different functions that serve to intensify and promote exports of cashew kernels and cashewnut shell liquid.

SWOT Analysis for Horticulture

STRENGTHFarmer are hard worker and traditionally agrarian, so have the basic knowledge in cultivating crops.Availability of manpower and positive attitude towards scientific methodology.Existence of self-help groups.Existence of long international border facilities for cross border trader.

WEAKNESSSmall land holdings.Rain-fed horticulture sector high and uneven distribution of rainfall.Unavailability of quality seeds and planting materials.Land locked state, so poor communication facility for creating forward linkages.Poor post – harvest infrastructure facilities.

Cont.……

OPPORTUNITY

Potential for high cropping intensity and area expansion.Scope for promotion of plantation crops – high value cropsEstablishment of agro-based industries – fruits processing.

THREATSoil erosion due to indiscriminate deforestation.

Unilateral expansion of rubber cultivation.

Strategies for Growing Cashew Nut

Awareness programs on cashew cultivation – training, demonstration on grafting of cashew seedlings, media coverage etc.

Extensive planning to be laid out for covering the hillocks of the district.

Strengthening of machinery providers for improving technical specification.

credit and market linkages for provides to growing community.

References

Planningcommission.nic.in.

Plantation Crops en.wikipedia.org/wiki/Plantation

www.agriinfo.in/default.aspx?page=topic&superid=2&topicid.

Notational Horticulture Board nhb.gov.in/area-pro/database-2011.pdf

Cashew Export Promotion Council of India www.cashewindia.org

Directorate of Cashew nut & Cocoa Development, dccd.gov.in

Export of Cashew Kernels from India- portal.indiainfoline.com/.../Cashew-Export...India/Export-of-Cashew. Etc.