Pak, target for Indian cashewnut

Cashew exporters seek Centre's nod; Exports to West Asia is also planned

In an effort to increase the country's share in the global cashew kernel market, the Cashew Export Promotion Council of India (CEPCI) is making a strategic shift by exploring untapped markets like Pakistan, other SAARC countries and West Asia. The country exported 1.14 lakh tonnes valued at Rs 2,515 crore in 2005-06.

CEPCI chairman Walter D'Souza said, "There is a huge requirement for cashew kernels in Pakistan, which it presently buys from India through the unofficial barter trade. There is no official export of the nuts from India to Pakistan. Traders from Pakistan bring spices and perfumes to India and in turn buy cashew kernels from here. Officially, India exports only 100 metric tonnes to Pakistan."

According to an estimate, Pakistan needs 15,000-20,000 tonnes of cashew kernels annually, which is worth Rs 350-400 crore.

"We have submitted a proposal to the government of India to allow the export of cashew kernels to Pakistan. If everything goes as per our plan, we will be able to ship the first consignment by September this year to coincide with the global buyer-seller meet being held at Kovalam near Thiruvananthapuram," D'Souza told Business Standard.

"We want to promote cashewnut as a food ingredient. There is huge scope for exporting our nuts to Pakistan where it is used as one of the main ingredients in biryani and gravies. There is also a huge demand for even 'baby bits' (the small tip of cashewnut) in Pakistan. They use 'baby bits' for preparing gravies," D'Souza said.

While the large whole pieces of cashew kernels are sold at Rs 350 per kg, the baby bits are sold at an average Rs 100 per kg in Pakistan, he said.

He said that CEPCI is also likely to participate in the trade delegation being taken to Pakistan and other SAARC countries in June this year. During the visit efforts will be made to officially export cashew kernels to Pakistan.

Apart from commencing exports to Pakistan, CEPCI also plans to strengthen its presence in the US and Europe. US accounts for 49 per cent of the Indian exports and Europe 27 per cent.

"We are adopting a different strategy for these markets, which are saturated. We plan to strengthen these markets as well as recover the lost market in Australia. India's exports to Australia have declined to less than 1 per cent of the total exports from as high as 5 per cent a few years ago. This is on account of emergence of Vietnam as one of the leading exporters," D'Souza added.

He said CEPCI aims to tap this huge market in a phased manner. During 2005-06, India exported 11,231 metric tonnes of cashew kernels to United Arab Emirates, Saudi Arabia, Bahrain, Quwait, Oman and Qatar.

The country exported 7,500 metric tonnes to UAE, 2,500 tonnes to Saudi Arabia, 1,200 tonnes to Quwait and Bahrain, and 100 tonnes to Qatar and Oman.