Cashew body eyes 1.4 mt output by 2020

Faced with a shortage of raw cashewnuts and stiff competition from African countries and Vietnam in the international cashew kernel market, the domestic cashew industry is preparing a multi-pronged strategy to retain its numero-uno status.

Cashew kernel exporters, under the umbrella of Cashew Export Promotion Council of India (CEPCI), are working out a strategy to increase domestic raw nut production from the present 5.5 lakh tonne per annum to 1.4 million tonne per annum by 2020.

The CEPCI, an apex body for the promotion of cashew kernel exports, will be holding a national convention of all the stakeholders of the industry in December in Panaji to discuss various issues concerning the industry and draw up a roadmap.

The event will be attended among others by raw nut producers, processors, exporters, policymakers at all state governments and scientists from cashewnut research stations across the country, CEPCI Chairman Walter D'Souza said.

"The issues to be discussed are how to increase the domestic raw nut production, increase the area under cultivation and adoption of new international practices to improve the quality of kernels. We will inform the officers of all the state departments of agriculture and horticulture the size of the crop the industry is expecting in the next few years. Our target is to achieve at least 1.4 mt of raw cashewnut production by 2020," D'Souza said.

He said CEPCI is proposing to increase domestic production by arresting senility. A proposal has been sent to the directorate of cashewnut under to implement a nationwide project to replace the senile trees with new high-yielding grafts to increase production.

It has also been proposed to bring new area under cultivation across the country with the help of National Horticulture Mission.

In order to maintain its leadership position in the international export market, the Indian cashew industry needs at least 1.4 mt of raw nuts by 2020. The CEPCI has set a target of increasing cashew kernel exports to 2.75 lakh tonne from the present 1.14 lakh tonne and achieve domestic consumption of 2 lakh tonne per annum by 2020.

"If we do not increase our domestic production, we may have to face severe shortage of raw nuts in the next few years. In the next few years, there is a possibility of decline in our imports, as many of the raw nut exporting countries are switching over to processing and export of finished product. This will leave us with a shortage of raw nuts," D'Souza said.

Already, Vietnam, which was exporting all of its raw nuts till last year, has stopped raw nut exports and switched over to processing the nuts and exporting kernels.

The Indian industry is also faced with a new threat from African countries, such as Tanzania, Mozambique, and Indonesia, who are switching over to processing.

During 2005-06, India exported 1,14,143 tonne cashew valued at Rs 2,514.86 crore as against 1,26,667 tonne valued at Rs 2,709.24 crore during 2004-05. There was a decrease of 9.89 per cent in quantity and 7.17 per cent in value.

The average unit export price realised during 2005-06 was Rs 220.33 per kg compared with Rs 213.89 per kg during 2004-05, an increase of 3.01 per cent.