Cygnus drafts cashew AEZ feasibility study

In order to tap the fast-growing global cashew nut market, West Bengal Government has firmed up plans of establishing an Agri Export Zone (AEZ) in five districts of Midnapore East, Midnapore West, Bankura, Birbhum and Purulia.

These five districts contribute to around 94 per cent of net cashew production in the state.

The government has in fact engaged Cygnus Business Consulting and Research for conducting a feasibility study for the same.

According to ORS Rao, head of Cygnus there is a enormous potential for increasing production, processing and exports of cashew nuts from West Bengal.

"However, to harness this potential, there is a need for modernisation of the entire value chain for farming, like improved variety of seeds, better harvesting practices and adherence to international standards," he explained.

The Cygnus report envisages an investment of Rs 11.58 crore, which includes 40 per cent from the central government, 10 per cent form the state government and balance from private sources.

"This initiative would improve the yield per hectare and increase price realisations for cashew nut growers in the area.

"We have handed over the report to the state government a few days ago and the government is at present considering it," he explained.

Giving out figures, Rao said that India contributes to around 24 per cent of the global cashew nut market which has been growing at around 9 per cent. The rate of growth of the cashew industry in India has however been declining due to a number of factors.

India produces around 20 lakh tonnes of raw cashew every year which is cultivated over 30 hectares of land.

The global trade volume however is around $1.7 billion with Vietnam recently having overtaken India in terms of market share.

USA is the major market for cashew consumption at 45 per cent of the total global production while Netherlands consumed around 18 per cent of the global production.