NABARD - Student Internship Scheme 2016-2017 - page 123

• The Retained earnings of fruits and vegetable processing units were higher than cashew nut and
wheat processing units. The only reason for this could be the increase in the cost of raw cashews,
thereby increasing the cost of cashew processing units and thus decreasing the profit in the hands
of the owner.
• The amount of capital and number of employees required by the cashew processing units and fruits
and vegetable processing units were more or less the same and that of wheat processing units very
less capital was required to start the business and no need of any employees was required due to its
small scale of operation.
• The common problem faced by all the three sectors was that of lack of power supply. Another major
problem faced by few of the units was lack of funds to expand their business. Also one of the major
problems faced by cashew processing units was that of increase in cost of raw cashews from Rs. 90/
kg to Rs. 150/kg which is an increase of 66.67% thereby increasing the costs tremendously.
Major Recommendations:
• Liberal Loan facilities at low rate of interest may be provided by Banks to the units. The government
should also take necessary steps to offer subsidies to the increase production.
• The government must take necessary action and must provide electricity especially during peak
hours so that the production of these industries is not hampered
• The government should aid the units for advancement of their technology and machineries so as
to meet the emerging challenges. There is an urgent need to bring efficiency in production process
through either maximizing the output or minimizing the cost. Therefore, technology is the key for
improvement in growth and efficiency in food processing sector.
• The Central Government should form a separate ‘Cashew Board’ for the development of cashew
cultivation, procurement of raw nut and marketing of cashew kernels. This Cashew Board should
function like the tea board, coffee board, rubber board and the coir board.
• The problem of shortage of raw nut can be solved by increasing the domestic production of cashew
nut. High yielding varieties and improved technologies capable of boosting cashew production in
the country.
• Co-operative cashew processing units are required to be established in this area for getting additional
benefit in income and employment.
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