By P Bharathan Pillai
The foreign exchange earned by the country through export of cashew kernels, cashewnut shell liquid and allied products during 2008-09 was US $ 656 million, equivalent to Rs. 3,014 crores.
The global economic recession has affected our cashew kernel exports adversely. There was 4% decrease in the quantity of Cashew Kernels exported during 2008-09 compared to that of 2007-08.India exported 1,09,523 MT of cashew kernels valued at Rs. 2,988.40 Crores and 9,099 MT of CNSL valued at Rs. 26.06Crores during the year 2008-09.
USA, Netherlands, UAE and Japan continued to be our major buyers. Export to American Zone was 34.5%, European Zone 30%, West Asia and Africa 24.5%, South East and FarEast Zone 8% and Oceanic Zone 2%. Besides earning valuable foreign exchange, cashew exports generate employment direct and indirect, for more than 10 lakh workers, 95% of whom are rural women from the underprivileged sections of the society.
Production of raw cashew nuts
As per the estimate of the Directorate of Cashewnut & Cocoa Development, production of Raw Cashewnuts in India
during 2008-09 was 6,95,000 MT as against 6,65,000 MT during 2007-08. The raw nut requirement of the cashew processing industry in India is estimated to be over 12 lakh MTs per annum and the availability from internal sources is about half of this.
Explore Commodity Online Mobile Services
The balance is met by import from other producing countries, mainly African countries and Indonesia. As such, it is very
important to make the country self-sufficient in the matter of raw cashewnuts. India Government is taking some steps in this
direction by promoting replantation, expansion of new cultivation, etc.
The Kerala Government. has set up a special agency for promoting cashew cultivation under the chairmanship of the Cashew Special Officer. I appeal to the Cashew exporters in Kerala to actively support this initiative of the Kerala Government to effect a quantum jump in the availability of raw cashewnuts in the State.
I request the Government of India to allocate sufficient funds to put forward necessary schemes to increase the production as also the productivity in India on par with Vietnam, which is reportedly 2000 kg/ha. as against about 815 kg/ha. in India.
Vishesh Krishi Aur Gram Upaj Yojana (VKGUY)
We are thankful to Union Commerce Ministry for extending timely support to the industry by way of VKGUY. This has helped the industry to survive in spite of the globalrecession.
Service Tax
I am thankful to the Government of India for exempting most of the export related activities from the purview of service tax. However, the job processing/contract processing of cashew are liable for service tax and exporters engaging contract processing for sourcing the product for exports are being charged with service tax which adds to the product cost. The Council has taken this up with the Government and I hope to get a favourable order exempting the contract/job processing of cashew from service tax.
XI Plan Schemes
The Council is implementing the export promotion scheme under the XI Five Year Plan viz. ‘Modernisation and Diversification’ for providing assistance to member exporters. The total approved outlay is Rs. 19.36 crores for the XI Plan period of which 50% is for setting up facilities for value addition. The exporters are eligible for 25% of the expenditure subject to a maximum of Rs.50 lakhs per exporter. Civil works amounting to not more than 50% of the total expenditure is also eligible for grant-in-aid.
Publicity and Promotion
During the year 2008-09, the Council participated in four international exhibitions viz. All Candy Expo, Chicago, Fine Food, Melbourne, SIAL, Paris, and World Food, Uzbekistan. Cashew Export Promotion Council has taken a keen interest in the formation of the Global Cashew Alliance and its representative Walter D'Souza had meetings with SINDICAJU and VINACAS regarding the alliance.As you are aware, Council signed an MoU with VINACAS and SINDICAJU for sharing of information and to co-operate in various sectors of mutual interest. Further to this, a meeting of the CEPCI, VINACAS and SINDICAJU was held during thismonth (September 2009) at Ivory Coast during the African Cashew Alliance Conference to decide on future plans for the Global Cashew Alliance.
NAIP Project
The CEPC Laboratory & Technical Division was able to get Government approval and financial assistance for the project
“Creation of Sustainable Value Chain in Cashew” under the National Agricultural Innovation Project (NAIP). The projectis being implemented by the Council now. The Lab is also pursuing many research projects, which I am sure will go a long way inassisting the cashew industry in improving the processing techniques and ensuring better quality of our cashews. (Adapted from speech made by Chairman, Cashew Export Promotion Council at the Fifty-fourth Annual General Meeting held on 24th September 2009)
