Karnataka's cashew exports up 36%

Cashew kernel exports from Karnataka have gone up by 36 per cent to 15,000 tonne during the year 2006-07. In value terms, cashew exporters from the state have earned Rs 365 crore, a rise of 15.87 per cent compared to the previous financial year.

According to Prakash Kalbavi, president, Karnataka Cashew Manufacturers' Association (KCMA), cashew kernel (W320 grade) exported during the last financial year fetched a price of Rs 240 a kilo. The exports were mainly to the US, Europe, Japan and West Asia.

Cashewnut processing units in the state processed around 1.10 lakh tonne during the year, a growth of 29.4 per cent over the financial year 2005-06. While the state produced 45,000 tonne raw cashewnut, the industry imported the remaining 65,000 tonne.

The KCMA aims to sustain the present momentum in the industry and has set a target of 15 per cent growth in exports for the financial year 2007-08.

During the year 2006-07, the processing units in Karnataka had increased their capacity following a production slump in the neighbouring state of Kerala. The units in Kerala have been shifting from cashewnut to rubber cultivation due to the high labour costs. Many economically unviable units in Kerala were taken on lease by Mangalore-based units to hike their capacities, Kalbavi said.

However, cashew processors in Karnataka are also facing a shortage of labourers and are thus looking at new locations for their expansion plans. "We have recently made a visit to Orissa and Andhra Pradesh where the industry is lagging behind in modern processing facilities. Despite having abundant raw nuts and low cost of production, the industry in these states is unable to export due to high inter-state taxation and transportation costs. We want to make use of the opportunities there to expand our capacities," Kalbavi said.

The cost of processing cashewnuts in Andhra Pradesh and Orissa is in the range of Rs 450 and Rs 600 a quintal as against Rs 750-800 a quintal in and around Mangalore, Karnataka's major cashew-producing region.

The state of Karnataka is looking at expanding its processing capacities in places such as Kolar,Chitradurga and Gulbarga. A lot of cashew orchards have come up in these places recently.

The industry is also looking at increasing the production of raw cashewnut in the state to 2 lakh tonne by 2020 from the present 45,000, as envisaged in the Vision 2020 outlined by the Cashew Export Promotion Council of India (CEPCI).