Andhra, Orissa find favour with cashew processors

Karnataka-based cashew processing and export firms are exploring the possibilities of setting up cashew processing units in Andhra Pradesh and Orissa as part of their expansion plans. AP and Orissa are among the top five producers of raw cashewnut in the country, accounting for 17 and 11 per cent of production respectively.

Karnataka, that accounts for just 10 per cent of the country's production, has developed considerable expertise in cashew processing with locally-developed machineries.

According to Prakash Kalbavi of the Karnataka Cashew Manufacturers Association (KCMA), AP and Orissa were once considered the export baskets of the country.

However, in the recent years, the two states have lost their top positions due to high inter-state taxation and transportation costs, he said adding the KCMA was interested in transferring technology to these states to increase their production and exports, he said.

"We are currently in the process of studying the viability of setting up processing units in Tuni in Andhra Pradesh, which is emerging as a major producer of raw nuts. Besides, there are ample opportunities to export processed nuts from Visakhapatnam port. The Kerala-based processors have already shifted their units to Andhra Pradesh due to cheap labour and availability of raw nuts," Kalbavi said.

A 20-member delegation of cashew processors and exporters from Karnataka will embark on a visit to Andhra Pradesh and Orissa from March 7. The delegation, which will be lead by Kalbavi, will visit cashew plantations, manufacturing units in Andhra Pradesh and Orissa.

"There is tremendous potential of increasing cashewnut production in the two states, which lack modern practices to grow and process cashews. We will interact with processors in these two states and share our knowledge on cultivation, harvest, post-harvest of raw cashews. Our aim is to help these states achieve the targets set by Cashew Export Promotion Council of India (CEPCI)," Kalbavi said.

CEPCI has proposed to increase the raw nut production to 4 lakh tonne in Andhra Pradesh, 3.5 lakh tonne in Orissa and at least 2 lakh tonne in Tamil Nadu by 2020.

Currently, Karnataka has an edge on quality of processing, packaging and exports. Karnataka also produces cashew manufacturing equipment for micro and small enterprises. The team will interact with processors to add value to their current capabilities, Kalbavi said.

During the six-day study tour, the delegation will visit Jeypore in Orissa and Tuni in Andhra Pradesh. Discussions will also be held on the formation of All India Cashew Federation based on the resolutions passed in Goa in 2005 and Bangalore in 2006.