Cashew Export Council seeks Rs 100 cr for modernisation

Council chairman says modernisation of the cashew processing sector is essential in order to face overseas competition

The Cashew Export Promotion Council of India (CEPCI), a body under the Ministry of Commerce for promotion of cashew nut trade, has sought a manifold jump in the allocation of funds for mechanisation and automation of cashew processing units in the 12th plan period.

The CEPCI, in a proposal sent to the ministry of commerce, has sought close to Rs 100 crore, a jump of 11 times over Rs 9 crore released for automation of the industry in the 11th plan period. The proposal is currently awaiting the approval from the Central government.

“The CEPCI implemented the “Modernisation and Diversification”, scheme during the 11th plan period extending financial assistance to member exporters for up-grading and improving their processing and manufacturing facilities. We have submitted a proposal for process mechanisation and automation of cashew processing units, quality upgradation, food safety certifications and generic promotion of Indian cashews overseas during the 12th plan period,” Hari Krishnan R Nair, chairman, CEPCI said.

The modernisation of the cashew processing sector is essential in order to face overseas competition, he said in his address at the 57th annual general meeting of CEPCI.

The Council had also requested the government to include cashew among the eligible items in the new Status Holders Incentive Scrip (SHIS) scheme to withstand competition. In the new scheme, he said, status holders in labour intensive sectors are eligible to use this scrip to import capital goods for upgradation of technology. Cashew is one of the most labour-intensive export sectors in the country, he said and added that cashew producing countries such as Vietnam and Brazil have modernised their industry with significant government support.

Referring to exports during 2011-12, he said the foreign exchange earned by the country through export of cashew kernels, cashewnut shell liquid and allied products was $928 million (Rs 4,450 crore). The country exported 131,760 tonnes of cashew kernels valued at Rs. 4,390.68 crore and 13,575 tonnes of cashew nut shell liquid (CNSL) valued at Rs 59.46 crore.

This is an all-time record both in quantity and value terms. There was 24.59% increase in the quantity of cashew kernels exported during 2011-12 compared to that of 2010-11. Export to American Zone was 37%, European Zone 27%, West Asia and Africa 23%, South East and Far East Asia Zone 12% and Oceanic Zone 1% of the total exports. The USA, UAE, Netherlands and Japan were among major buyers of Indian cashew kernels.

As regards to production of raw cashew nuts, Nair pointed out that states such as Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh have shown significant increase in productivity. However, it is declining or stagnating in Kerala, Odisha and Goa.

Nair called upon the state Horticultural Departments of these states to make use of the resources available under the National Horticulture Mission (NHM) and give focus to cashew cultivation to replicate the success achieved in Maharashtra.

As per the estimate of Directorate of Cashew Nut and Coca Development in 2011-12, Maharashtra led the chart with production of 223,000 tonnes of raw cashew nuts, followed by Andhra Pradesh with 110,000 tonnes, Odisha with 97,000 tonnes, Kerala with 73,000 tonnes and Tamil Nadu with 68,000 tonnes.

The raw nut production was up 6% to 692,000 tonnes in 2011-12 compared to 653,000 tonnes in 2010-11.