White Gold:An Experience of Cashew

Abstract

India is one of the largest producer, processor and exporter of cashew in the world. It has tremendous
potential of production and marketing especially export to other countries. It is termed as 'White Gold' to describe its
importance in the economy. Hilly region of Kolhapur district and its environment is suitable for cashew production. The
cashew has significant importance in the life of hilly region people of this district. Thus, cashew-nut industry can play
very decisive role in the development of the hilly region. The Kolhapur district is recognizing as a hilly region area
district. The thousands of people are living under poverty in the hilly area of the district.Research Paper The suitable environmental conditions for cashew cultivations are the natural gift for these people. The presence of cashew has made strong positive impact on the life of the hilly poor people. The development of cashew-nut industry in this region leads the socio-economic development of hilly area of the district. Therefore cashew is the "WHITE GOLD" for the hilly people. The present study will focus on the challenges and opportunity before the cashew-nut industry of hilly region area and explore the different means how the cashew-nut industry would become the instrument of change in the development of hilly region people.

Full text

Vol.1,Issue.XI/May 2012pp.1-4
ISSN No-2231-5063
Research Paper
The suitable environmental conditions for cashew cultivations are the natural gift for these people. The presence of
cashew has made strong positive impact on the life of the hilly poor people. The development of cashew-nut industry in this
region leads the socio-economic development of hilly area of the district. Therefore cashew is the “WHITE GOLD” for the
hilly people. The present study will focus on the challenges and opportunity before the cashew-nut industry of hilly region
area and explore the different means how the cashew-nut industry would become the instrument of change in the
development of hilly region people.
KEY WORDS: White Gold, Cashew, Natural Gift, Hilly Region.
1. INTRODUCTION:
India is one of the largest producer, processor and exporter of cashew in the world. It has tremendous potential of
production and marketing especially export to other countries. It is termed as 'White Gold' to describe its importance in the
economy. Hilly region of Kolhapur district and its environment is suitable for cashew production. The cashew has
significant importance in the life of hilly region people of this district. Thus, cashew-nut industry can play very decisive role
in the development of the hilly region.
2. SIGNIFICANCE OF THE STUDY:
As cashew has the tremendous business potential that may create different business opportunities that may
available to poor people. This crop has a capacity to influence the life of the poor people to large extent. Therefore, it is need
to utilize this potential to uplift the life of poor people. In this direction present study will explore the seasonal issues that can
be helpful to policy makers to formulate the desired policies in this direction.
3. OBJECTIVES OF THE STUDY:
The following are the specific objectives of the study.
(1) To study the challenges and opportunities before cashew-nut industry in hilly region area of Kolhapur district.
(2) To identify the role of cashew-nut industry in the development of hilly region of cashew-nut industry.
4. Hypothesis of the study:
The following are the specific hypothesis of the study.
(1) There is scope for development of cashew-nut industry in Kolhapur district.
5. METHODOLOGY:
It is an exploratory study of the cashew-nut industry of the Kolhapur district. It has attempted to the analyzed the
role of cashew-nut industry into development of hilly region people. The primary data have been collected through
respondents such as cashew manufacturers, cashew farmers, cashew agents, cashew workers, cashew merchants, bankers,
government officers, and marketing co-operatives. The secondary data also have been collected through different sources.
The appropriate statistical tools and techniques have been used for the data processing analysis and interpretation.
6. REVIEW OF LITERATURE:
Chavan et, al, (2009), the paper entitled “Prospects of Farm Processing in Cashew”, studied how the farm
processing unit is useful for farmers to get more benefit. The farm processing units eliminate the intermediaries between the
farmers & Processors. It is mentioned how much cost is required for the home scale machinery. It discussed the performance
of household level cashew processing units against large scale cashew processing units in Sindudurg districts of
White Gold:An Experience of Cashew
ABSTRACT
India is one of the largest producer, processor and exporter of cashew in the world. It has tremendous
potential of production and marketing especially export to other countries. It is termed as 'White Gold' to describe its
importance in the economy. Hilly region of Kolhapur district and its environment is suitable for cashew production. The
cashew has significant importance in the life of hilly region people of this district. Thus, cashew-nut industry can play
very decisive role in the development of the hilly region. The Kolhapur district is recognizing as a hilly region area
district. The thousands of people are living under poverty in the hilly area of the district.
Dr. Shrikrishna S. Mahajan
Head,
Department of Commerce and Management,
Shivaji University,
Kolhapur-416004.
Mr. Patil Parashram.J.
Research Scholar,
Department of Commerce and Management,
Shivaji University,
Kolhapur-416004.
Please cite this Article as : ,
Cashew : Golden Research Thoughts (MAY ; 2012)
Dr. Shrikrishna S. Mahajan and Mr. Patil Parashram.J. White Gold:An Experience of

Vol.1,Issue.XI/May 2012;
Maharashtra. It is explain the feasibility of home scale processing. Prabhu, et,al, (2001), they discussed about the history of
cashew crop as well as history of cashew industry, how was the manufacturing started and getting the commercial importance.
The development of cashew market has been taken place by the over a period of time however, still it has a lot of work to be do
in this respect. Nair, (2001), has discussed the Indian cashew exports in terms of crop estimates, cashew price and export of
India. It studied the upward and downward phases of world cashew trade. It is estimated that the state wise area of cashew
cultivation and cashew production of India. Its mentioned cashew price has declined due to many risen such as sluggish
demand, weak euro etc. It's also clear the picture of India's cashew kernel export to the rest of the world. Balasubramanian
(2001), is discussed about the holding pattern of cashew production in Indian that more than 90% farmers are small holders. It
mentioned programmed implemented in the IX plan i.e. senile plantations, Infrastructure to reach research towards framers,
research database, Motivation to farmers, good planting material, and crop management practices etc. Rao (et. al. 2001), they
studied the different agro-ecological regions of the country, on the basis of different agro-climatic conditions like soil type,
weather parameters, etc. It is suggested the different varieties of cashew to the different parts of the country like for
Maharashtra some cashew varieties are recommended V4, V6, V7, Dhana, Kanka, Goa1, NDR2-1, Ullal 1, Ullal 4, VRI 3, V
1, VRI 2, and BPP 8 etc.
7. CASHEW-NUT INDUSTRY IN KOLHAPUR DISTRICT:
7.1. SUITABILITY OF GEOGRAPHICAL CONDITIONS FOR CASHEW IN KOLHAPUR DISTRICT:
The Kolhapur district has specific geographical and environmental conditions which are required for the cashew
cultivation. Table 4.2 highlights the environmental conditions required for cashew cultivations and existing geographical
condition available in district.
White Gold:An Experience of Cashew
Table 1
Comparative Statement of Geographical Conditions Require d for Cashe w Cultivation & its
Availa bility in Kolhapur District
Sr.
No.
Factors of
Climatic condition
Geographical conditions
require d for cashew
Suitable Geographical
Conditions available in
Kolhapur Dis trict
1
Latitude
It requires between 310 c nort h
and 100 c south.
Kolhapur is located at 16.7 0 north
and 22.0 C east.
2
Altitude
It requires elevation up to
1200m.
It has an average elevation of
544m.
3
Rainfall
The cashew adopts different
rainfall levels from 400. to
5000mm p.a. along with that it
require 5-6 months dry season.
The distr ict receives abundant
rainfall from June to September
due to its proximity to the
Western Ghats and it has rest of
the month’s dry season i.e.
October –May.
4 Tempe rature
Cashew being a tropical plant
thrives at high temperature up to
400 c
Kolhapur has daily average
temperature ranges between 14°C
to 35°C.
5
Humidity Cashew requires a hot or mild
humid climate.
The humidity of hilly region of
Kolhapur district is high.
6 Wind
The optimum wind speed for the
purpose of cashew growing may
be around 225 k.m. p.h.
The speed of wind required for
cashew plants in available in
Kolhapur district.
7
Light
The optimum sunshine is
required in the flowering /fruit
set period (November to March)
range from 1500- 2000 hours
year.
In Kolhapur good light is
available during cashew farming/
fruit set period i.e. December to
May.
8 Topography
Cashew can be planted on a ll
slopes with appropr iate soil
conservation measures. It can
grow on undulating and sloppy
hilly region.
Most of the area of Kolhapur
distr ict is a sloppy hilly region
area along with big forest.
9 Soil
The cashew is prefers deep loose
soils , receiving no rain from 5-6
months year. Generally it grows
well in loose deep soils without
water hogging and w ith rapid
drainage.
Fertile soil.
Source: Compiled on the basis of data obtained from Ko lhapur Gazatte and Rao et.al. Cashew,
2006.
Please cite this Article as : ,
Cashew : Golden Research Thoughts (MAY ; 2012)
Dr. Shrikrishna S. Mahajan and Mr. Patil Parashram.J. White Gold:An Experience of

Vol.1,Issue.XI/May 2012;
Cashew is known for its resistance to most varied climatic conditions. It found in the tropical climate with sufficient
annual rainfall and a pronounced dry season cashew is growing well. As in the district, suitable geographical conditions are
available for cashew cultivation, the large amount of cashew cultivation is possible. It implies that there is tremendous scope
for the cashew cultivation and simultaneously formation of the cashew processing units.
7.2. CASHEW PRODUCTION IN THE KOLHAPUR DISTRICT:
The total cashew production in Kolhapur district has been described in Table 2.
There is contradiction between the data shown in the Table 4.3 and the data stated by Dr P.B. Kolekar in his books
'White Gold – Cashew' regarding to the total production of cashew in Kolhapur district. He has mentioned total cashew
cultivation area in district is 14953 hector and total production is more than 35854 metric tons in the year of 2008. But as per
the data collected from all the Talukas Agriculture Officers total cashew cultivation in the district is 16642.38 metric ton and
total cashew production is 12420.497 metric tons in the year of 2009. Table 4.3 highlights the cashew cultivation areas and
total cashew production in the district. Since 1998-99 to 2008-09 the cashew cultivation area and cashew production has been
increased continuously. There is continuous growth in cashew cultivation and production during the period of ten years. It is
strong basic input to the formation of additional cashew-nut processing units in the district.
Figure 1 shows that there is positive co- relationship between the area of cashew cultivation and the cashew production.
There is steady growth in both of them.
7.3. CASHEW PROCESSING UNITS IN KOLHAPUR DISTRICT:
The sufficient availability of raw cashew production is the basic input for the formation of cashew processing units. Table 4.4
focuses on the number and capacity of cashew processing units which are working in the district.
Table 2
Total Cashew Production of Kolhapur District
Year Area of Cultivation
(Hectors)
Production
( Metric Ton)
1998-99 11419.57 7138.994
1999-00 11804.64 7310.895
2000-01 12166.92 7510.33
2001-02 12356.61 8414.741
2002-03 12492.14 8737.659
2003-04 12640.96 9013.512
2004-05 13496.24 9721.175
2005-06 14348.09 10374.423
2006-07 14882.11 10928.521
2007-08 15804.13 11657.695
2008-09 16642.38 12420.497
Source: Co mplied on the basis of data obtained from Ta luka Agriculture Office rs.
Fig ure 1
Cashew Production of Kolhapur District
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
1998-991999- 002000-012001-0220 02-032 003 -04200 4-052005- 062006-072007-08200 8-09
P
r
o
d
u
c
t
i
o
n
Years
Area of
Cultivation
(Hector)
Production (
Metric
Ton e)
White Gold:An Experience of Cashew
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Cashew : Golden Research Thoughts (MAY ; 2012)
Dr. Shrikrishna S. Mahajan and Mr. Patil Parashram.J. White Gold:An Experience of

Vol.1,Issue.XI/May 2012;
Note: cashew processing units do not exist in talukas such as Shirol, Kagal, Panhala, Radhanagri, Shahuwadi, and
Gaganbawada.
Table 3 shows that 79 cashew processing units are working in the district and their processing capacity is 12157 tones. Ajara
has top position in the district in terms of higher number of cashew processing units, on the basis of capacity Chandgad has
top position in the district.
7.4 SCOPE FOR CASHEW CULTIVATION:
The Kolhapur district has tremendous scope for the cashew cultivation as far as its good geographical condition is
concerned. Table 4.6 focuses on the scope of cashew cultivation in the Kolhapur district.
Table 3
Cashew Processing Units in Kolhapur District
Sr.No. Taluka No of Processing
Units
Processing Capacity
(In Tone)
1 Chandgad 18 6,112
2 Ajara 45 3,700
3 Gadhinglaj 8 1,495
4 Gargoti 4 400
5 Hatknangale 3 350
6 Karveer 1 100
Total 79 12,157
Source : Complied on the basis of data obtained from Taluka Agriculture Officers
Figure 2
Cashew Processing Units and its Processing Capacity in Kolhapur District
6,112
3,700
1,495
400 350 10 0
0
5
10
15
20
25
30
35
40
45
50
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
T
o
t
a
l
P
r
o
c
e
s
i
n
g
U
n
i
t
s
T
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l
P
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o
c
e
s
s
i
n
g
C
a
p
a
s
i
t
y
Cashew Producing Talukas
Table 4
Scope of Cashe w Cultivation in Kolhapur District
Sr.No. Taluka
Areas in Hectors
1 Chandgad 1500
2 Ajara 1000
3 Gadhinglaj 1200
4 Gargoti 500
5 Shahuwadi 900
6 Radhanagari 250
7 Gaganbawda 200
Total 5550
Sourc e: Estimated by Taluka Agriculture Officers.
White Gold:An Experience of Cashew
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Vol.1,Issue.XI/May 2012;
Table 4. indicates still there is tremendous scope for cashew cultivation in district. Still 5550 hectors of land is
available where cashew cultivation is possible. Chandgad, Ajara, Gadhinglaj and Shahuwadi have more scope for cashew
cultivation (Figure 3). It implies that there is need of strong will and proper approach to utilize this land in a proper way.
7. 5 SCOPE FOR DEVELOPMENT OF CASHEW-NUT INDUSTRY IN KOLHAPUR DISTRICT:
The Kolhapur district is producing good amount of cashew which is the raw material for the cashew processing
units. At present the annual cashew production of district is 12420.497 metric tons. And annual processing capacity of the
district is 12157 metric tons. It indicates the sufficient availability of raw material for the existing processing units. Therefore
it has scope for the development of cashew-nut industry in Kolhapur district.Kolhapur district has abundant natural resources
which may be used as raw material to different agro-based industries. The suitable geographical conditions may promote
cultivation of different horticulture crops which may raw material for different processing units like cashew-nut. \
8. OPPORTUNITIES TO HILLY REGION PEOPLE:
The cashew is mainly grown in the hilly region area of the district where hardly any crop Is cultivated. Therefore,
this crop is mainly belong to the hilly region people of the district. It has tremendous business potential which thrown up
different opportunities that may available to the hilly region people. The following are the specific opportunities available to
hilly region people with respect of this crop.
(1) LIVELIHOOD:
There is always question in front of poor people is that getting of livelihood. However, the cashew is a providing
source of income and livelihood for poor people it is giving instant cash and employment to this people. Thus, cashew may be
instrument in the hands of the poor hilly people to earn their livelihood.
(2) CASHEW CULTIVATION:
The hilly region area of the district has perfect suitable conditions for cashew cultivations. It is a natural gift for this
people. The demand for cashew has increasing day by day. The existing raw cashew production of India is not sufficient to
meet the processing demand of the units. There is strong need to increase the domestic raw cashew production. It indicates
the cashew farming has bright prospects.
(3) SALE OF CASHEW APPLE:
Cashew apple is the raw material for the different cashew apple processing product. Hence, cashew apple
processing units are taking cashew apple even from the farm itself. Thus, cashew apple processing units required the fresh
cashew apple. Thus, selling of cashew apple is alternative income source to the cashew farmers.
(4) ESTABLISHMENT OF CASHEW PROCESSING UNITS:
The growing demand of cashew kernel indicates the better prospects of the cashew processing units. Therefore, it is
an opportunity to the new entrepreneurs to open the cashew business enterprises. The local people can form cashew
processing units independently or by forming Self Help Group. As Kolhapur district has good raw material production which
motivate the local entrepreneurs to form the cashew processing units.
(5) ESTABLISHMENT OF CASHEW BY-PRODUCT PROCESSING UNITS:
The by-product of cashew has unique demand in worldwide market the by-product units such as cashew apple
processing units, cashew nut shell oil, cashew wine, making ethanol from cashew apple and preparing plywood form cashew
apple etc. The local entrepreneurs can form cashew these units independently or through Self Help Group.
(6) EMPLOYMENT GENERATIONS:
The cashew industry is the labour intensive industry. In the cashew processing units 95 % workers are women. It
indicates that the women are getting direct employment in the cashew processing units. As the development of cashew-nut
industry will take place in this region more employment opportunities may available to the local people especially for poor
hilly women.
Figure 3
0
200
400
600
800
1000
1200
1400
1600
Chandgad Ajara Gadhinglaj Gargoti Shahuwadi Radhanagari Gaganbawda
C
a
s
h
e
w
C
u
l
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i
v
a
t
i
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A
r
e
a
s
i
n
H
e
c
t
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r
s
Cashew Producing Taluka
Scope for Cashew Cultivation Area
White Gold:An Experience of Cashew
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(7) EXPORT POTENTIAL:
The cashew has unique demand in worldwide, it has great export potential. The local cashew processing units can
participated in the international trade by making of export of cashew kernel and get the benefit of international trade. It is an
opportunity available to local cashew processing units.
(8) INFRASTRUCTURE DEVELOPMENT:
The development of cashew-nut industry at local would induced the different infrastructure development such as good road,
supply of electricity, transportation facility and banking etc.
(9) SOCIAL AND ECONOMIC DEVELOPMENT:
The cashew is closely belong to the poor people of society. It closely associated to the lower strata of the society.
Thus, development of the cashew-nut industry eventually made impact on the development of the different associated factors
of the cashew-nut industry. Hence it will help to the social and economic development of the society in hilly region area.
Thus, role of the cashew-nut industry in to the development of the hilly region people is immense. It is an important
instrument in the hands of this people to reduce their poverty. The above mentioned opportunities have light upon how the
cashew- nut industry contributes to the development of hilly region people.
9. CHALLENGES BEFORE CASHEW-NUT INDUSTRY IN HILLY REGION:
The following are the major challenges before the development of cashew-nut industry in hilly region.
(1) INADEQUATE INFRASTRUCTURE FACILITY:
Good infrastructure is the basic requirement for the industrial development. However, unfortunately this is not
available in the hilly region area for the cashew-nut industry. In the formation of cashew processing units in this region there
are some infrastructural problem such as lack of good road, lack of transportation facility and inadequate electricity supply
etc.
(2) SHORTAGE OF RAW MATERIAL:
In the off season raw material is not available in India for the cashew processing. In that season either raw material
has to import from foreign countries or make sufficient storage of raw material when it is available in the domestic market.
The small cashew processing units neither import the raw material from the foreign counter due to requirement of raw
material is small nor do they make sufficient storage due to unavailability of good warehouses.
(3) UNAVAILABILITY OF SKILL WORKERS:
As the cashew processing is a systematic and skilful work. It requires skilled manpower but majority of cashew
processing units (78.4%) that are not getting easily. The available workforce is unskilled. Therefore, the cashew processing
units have difficulties regarding to availability of skilled worker for cashew processing work.
(4) SHORTAGE OF CAPITAL:
The capital is the basic thing which is required to start the business. The major reason of sickness of the cashew
processing units is the shortage of the capital especially working capital. The majority of cashew processing units (94.11%)
have serious problem of insufficient capital. The growth of industry may hamper by the inadequate capital flow in the cashew
business. Hence, the shortage of capital is the main problem of the cashew-nut industry.
(5) TRADITIONAL CASHEW CULTIVATION:
The majority of cashew farmers (95.55%) have traditional cashew cultivation than commercial cashew cultivation.
The farmers are looking towards the cashew as a wild crop. It is not providing proper attention toward this crop. It do not
taking proper care of the cashew crop that approach of farmers leads to the traditional cashew cultivation which has less
productivity and low cashew production.
(6) RISK OF STOLEN AND FIRE OF CASHEW-NUT:
The cashew-nut is providing instant cashew hence it is always risk of thief that could emerge serious problem of
stolen of cashew-nut. The cashew farms are generally open especially at night that may risk of stolen increases. Due to that
these farmers have cut the cashew from tree itself even they know it has not getting fully mature. Also the cashew farm is
based on hilly areas and adjunct to forest hence it is always risk of fire. And even the farmers at the time of harvesting clear the
surrounding of cashew trees and collect all the waste material and fire it that may also cause for fire. The farmers will make
heavy loss if cashew tresses getting fired because then it have not given production for couple of years.
(7) UNAWARENESS OF GOVERNMENT SCHEMES:
Different schemes are available for cashew growing farmers. But the farmers are not aware about the particular
schemes hence, they are not benefited of the same schemes. The procedures are also lengthy and required the more official
document for getting the benefits of same schemes.
(8) MARKETING OF CASHEW KERNELS:
Marketing of cashew kernel is difficult task even it has instant demand in the market. There is need of different
inputs for making effective marketing of cashew kernel by which generate maximum price for the product, however small
processing units are lacking in this direction they cannot make innovation in marketing due to limited quantity of product. It
is very difficult to them to compete with large firm with small quantity of production. Therefore, concrete formation and
implementation of marketing strategies are required to solve the marketing problem of the small manufacturers of rural area.
Thus, cashew-nut industry in hilly region area has bristle with the number of problems which need to be rectify it as early as
possible in order to make progress in the upcoming time.
10. HILLY REGION DEVELOPMENT PLAN THROUGH CASHEW-NUT INDUSTRY:
The hilly region development is the difficult phenomena for the policy makers due to its complicated structure. It
has involved different factors which create constraints in the development of hilly region. Therefore, there is need of concert
plan for development of it. Figure 4 illustrates how the hilly region development will take place with development of the
cashew-nut industry.
White Gold:An Experience of Cashew
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Vol.1,Issue.XI/May 2012;
As cashew is cultivated well in hilly region, therefore, it is possible to cultivate in (i) waste land (ii) hilly slope (iii)
replace old plant with new plantations that will generate more cashew cultivation which leads the more cashew production.
As poor farmers are facing so many problems in raw cashew market such as intermediaries, lack of minimum price,
malpractices and price fluctuations etc. Hence, existence of marketing co-operatives is emerged, farmers can sell their raw
cashew with the help of marketing co-operatives and can enjoyed the better price as marketing co-operatives will help to the
farmers in marketing of their product and it has reduce the intermediaries from the market. Thus, poor cashew farmers would
get good income which will make direct impact on their life standard.
Further, model suggest that the instead of selling raw material to the processing units farmers by establishing Self
Help Group (SHG) can form cashew processing units through which they can convert raw cashew into consumable form
which has instead demand in the market. The same way they can form cashew apple processing units especially by women.
The basic requirement of this unit is that fresh cashew apple which is available at large quantity at their own form itself. There
are different grants and subsidies available under the different government schemes that may help to the formation of these
units. Again here, marketing co-operatives would play important role to find out good market of processed product of
farmers. Thus, this entire process induced the rural entrepreneurship in hilly region area that generates additional
employment generations especially for hill women, additional income to the poor hilly people and infrastructure
development in this area.
11. CONCLUSIONS:
The Kolhapur district is recognizing as a hilly region area district. The thousands of people are living under poverty
Figure 4
Hilly Region Development Model
Hilly Region Area
Cashew Cultivation
Hilly Slope New plantation of Old Plants Waste Land
Marketing Co-operatives
Raw Cashew Market
Income to Poor Hilly People
Self Help Group
Cashew Apple Processing Units Cashew Processing Units
Marketing Co-operatives
Market Market
Marketing Co-operatives
Rural Entrepreneurship Development
Employment to Poor Hilly Women
Income Generation
Infrastructure Development
Development of Hilly Region People
White Gold:An Experience of Cashew
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Vol.1,Issue.XI/May 2012;
in the hilly area of the district. The suitable environmental conditions for cashew cultivations are the natural gift for these
people. The presence of cashew has made strong positive impact on the life of the hilly poor people. The development of
cashew-nut industry in this region leads the socio-economic development of hilly area of the district. Therefore cashew is the
“WHITE GOLD” for the hilly people.
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White Gold:An Experience of Cashew
Please cite this Article as : ,
Cashew : Golden Research Thoughts (MAY ; 2012)
Dr. Shrikrishna S. Mahajan and Mr. Patil Parashram.J. White Gold:An Experience of