Cash crops vs. food security? Examining the role of Cocoa-Cashew intercropping in smallholder farming systems

Balancing income generation with food security remains a persistent challenge for smallholder farmers in tropical regions. In India, especially in Kerala, cocoa-cashew intercropping has emerged as a strategy that promises both economic returns and ecological sustainability, yet its impacts remain empirically unexplored. The study examines the cocoa-cashew intercropping system in Kerala and evaluates its economic benefit, determinants of adoption, and structural barriers. A multiple regression model was applied using a survey of 412 smallholder farmers from five districts to quantify its impact. The results confirm that intercropping is significantly associated with household income and food security, primarily because of technical training, cooperative membership, and market price stability. Additionally, socioeconomic benefits included higher household income, food access, and cooperative-led training benefits, while environmental impacts involved improved soil health, reduced erosion, and decreased pesticide reliance marking cocoa-cashew intercropping as a dual pathway for inclusive resilience and ecological balance in Kerala. Remarkably, land tenure security, education, and credit access had no significant impact however, restricted market access and high initial investment costs are limiting factors to large-scale adoption. Using Propensity Score Matching (PSM), the study further finds that intercropping is statistically associated with higher household income and improved food security outcomes. To scale up intercropping adoption, policymakers have to enhance farmer training programs, improve cooperative-based marketing, invest in rural infrastructure, and introduce focused financial incentives. By addressing these structural challenges, intercropping can become a transformative pathway for improving smallholder resilience, economic security, and food sustainability.