India forms cashew body pact with Brazil, Vietnam

After more than a year's discussions, India has succeeded in forming a global alliance on cashewnut along with two other major exporters "" Brazil and Vietnam. They have agreed to work together to promote the global cashew trade and help each other in increasing production and consumption.

A memorandum of understanding (MoU) was signed by three countries at the 101st international convention of the Association of Food Industries (AFI) at Florida on April 26.

Each country will initially contribute $100,000 to set up the body, Walter D'Souza, chairman, Cashew Export Promotion Council of India (CEPCI), said.

"We will meet in Madrid from May 10-12 to decide the roadmap and arrive at a consensus on the name of the global body. It will be formally launched during the international commodity fair at Anuga in Germany in October this year," D'Souza said.

With this MoU, India, Brazil and Vietnam, who together constitute 90 per cent of the global cashew processing capacity, have come under one umbrella to promote the trade globally. The balance 10 per cent of the cashew trade is spread over the East and West African countries, Indonesia, China, Panama, Cambodia, Thailand and Mayanmar.

All the three nations have agreed to register the global body in a neutral country. They have shortlisted three nations "" Britain, Dubai and Singapore "" to locate the headquarters of the global body, D'Souza said. It is expected that Walter D'Souza will become president of the organisation. However, other two countries are yet to give their consent for this.

The MoU envisages roping in all stake holders - producers, traders, international brokers, salters, roasters, super market chains, service providers, logistics and shipping companies. A nine-member committee with three nominees from each country will start working on the future course of action.

The major objectives of the global alliance include promotion and marketing of cashew kernels across the world, exchange reliable market information, crop size, government policies in each of the nations and conduct joint research on enhancing the yield per acre.

They have also agreed to work towards promotion of cashews in new and expanding areas of indirect consumption (for example: chocolate, confectionery and bakery products, food ingredients). They will also set up a committee to formulate uniform world-wide grades and specifications to avoid ambiguity and difficulties in international trade and implement these standards amongst the industry in respective countries.