Karnataka plans to become cashew hub

Karnataka has initiated massive efforts in conjunction with indsutry and farmers to emerge as the largest producer of raw cashew in the country. The state is taking measures to expand the area under cultivation and achieve a four-fold rise in productivity.

The industry has set a target of producing 1,50,000 metric tonne (MTs) from the present 40,000 MTs annually, while the area under cultivation is expected to be doubled to 1.20 lakh hectare.

According to a vision document prepared and presented to the state government by Karnataka Cashew Manufacturers Association (KCMA), the Mangalore based trade association representing the cashew interests in the state, presently, the area under cashewnut cultivation is estimated to be 60,000 to 70,000 hectare.

Presently, Karnataka's cashewnut production is a nineth of the conservative estimate of 3,60,000 MTs produced in India, said Giridhar Prabhu, coordinator, National Steering Committee on cashew under the Union Ministry of Agriculture.

While Kerala is the largest producer of cashew at 1.25 lakh metric tonne, there has been no major efforts to increase the cultivation and production in the state. The growers are changing over from cashew to rubber cultivation and the processing industry is also migrating to neighbouring Tamil Nadu.

Tamil Nadu accounts for about 50,000 metric tonne of cashewnut and Andhra Pradesh produces nearly 70,000 tonne and aims to increase it to one lakh tonnes. Although Maharashtra claims to be producing 1.2 lakh metric tonne, the industry estimates put it at just 35,000 tonne.

Karnataka hopes to attain the number one status in production of cashewnut by focusing on cultivating high yielding varieties as well as bringing more area under cultivation.

The state government has taken steps to grow cashewnut in the districts of Kolar, eastern Uttara Kannada, eastern Belgaum, eastern Dharwad, Mysore, Shimoga, Hassan, Kodagu in a big way.

India imports 5,60,000 metric tonne from over 15 countries in the world. The industry hopes that the same quantity will come in this year too. Processing units have already taken up a good portion of the West African material and will soon be shopping in Indonesia and East Africa for the 2006 crop, adds Prabhu.

The matter assumes importance as the Karnataka cashew industry has been growing at a clipping pace and is now racing to have 10 per cent of the nation's exports as against 3 per cent just five years ago. This was possible due to the maturity of the exporting community, prominently in Udupi District in the west coast, where units in rural areas are churning out cashew kernels out of 100,000 metric tonne.

Prakash Kalbavi, president, KCMA said the cashew industry wants growers in the state to aggressively take on cashew cultivation through modern scientific means. "The immediate need is to have a mindset for cultivating cashew orchards," he said. This is a major change compared to just planting cashew trees or grafts.

Scientists have developed over 20 varieties which are validated by the Indian Council for Agriculture Research (ICAR). These can produce over 10 kilos per tree as against conventional seedling varieties producing one kilo per tree. "We aim to increase the yield from 800 kg per hectare to 2 tonne per hectare by 2021," Kalbavi said.

Production of 150,000 MTs of cashewnut in 2021 even at current prices will amount to a total output of Rs 525 crore. The value addition will be Rs 200 crore or higher. Therefore, the total shipped value can be around Rs 725 crore.

The net returns for farmers will be around Rs 350 crore and Rs 175 crore will be the value of inputs and labour that go into the production effort, the vision document stated.

The facilities provided by New Mangalore Port Trust (NMPT) and regular container services now make Karnataka competitive in import and export activity.

The international market is ruling steady at 230 cents per lb for W-320 grade cashew kernel presently after it dipped in June and July due to accumulation of stocks. September to December are peak consumption months for cashew both in the domestic and international markets.

The prices of tree nuts is globally very high. Almond prices are at record highs. In the local market almonds are selling at Rs 485 per kilo in the Delhi and Mumbai principal markets plus tax. Cashew at Rs 265 to Rs 310 looks handsomely priced for seasonal sales. Hazelnuts, walnuts and all tree nuts are facing very buoyant prices amidst growing demand and tight supplies from producing centres.

Treenuts will occupy a growing place in the diets of consumers worldwide as nuts are recommended as a must in a balance diet needed for healthy living. For example, many are not aware that cashews are zero cholesterol.

Presently, there are 175 cashew manufacturing units in Karnataka employing over 40,000 women in the coastal districts of Mangalore, Udupi and North Kanara.