Call To Create Cashew Development Authority

Kochi: Experts and political leaders concerned with the slow pace in indigenous production of raw cashew nuts and need for value addition and exports have suggested that the Centre should consider setting up of a Cashew Export Development Authority (CEDA) on the lines of the APEDA and MPEDA with its headquarters here.

“It is right time for the Union government to moot such an authority, as it is understood to be planning to create a Cashew Development Board”, Dr Sebastian Paul, Member of Parliament from Ernakulam, told Business Line.

The CEDA could cover all the activities connected with raw nut production, processing, export promotion, value addition to cashew products etc. In addition, it could also encompass research and development activities for developing different cashew products.

However, the ICAR and the Agricultural Universities in the cashew growing states would continue with their research activities for raising cashew nut production in the country. Value addition and product development including Cashew nut Shell Liquid (CNSL) could continue to be done by the research establishments under the CSIR such as RRL, Thiruvananthapuram and CFTRI, Mysore, he said.

Value-addition

The most important area on which the Cashew Export Development Authority to concentrate is increasing production of raw cashew nuts as an import substitute besides export promotion of value-added cashew and cashew products. At present much of the shipments are in bulk form and value-addition is done overseas by multinational companies, he said.

He said that the Indian cashew processing industry has an installed capacity to process around 1.2 million tonne of raw cashew nuts and where as the raw nut availability indigenously still remained at around half of the requirements of the industry. As a result, the imports have been on the increase consistently. As against 2,49,315 tonne valued at Rs960.54 crore during 2000-01 the imports in 2006-07 were at 5,92,604 tonne valued at Rs1,911.62 crore. Where as, the exports in 2000-01 stood at 89,155 tonne valued at Rs2,049.60 crore, which had gone up to 1,19,540 tonne valued at Rs2,455.15 crore last fiscal. Thus, there is a continuous outflow of substantial sum of forex, he pointed out.

In a bid to achieve self-sufficiency in production of raw nuts the Centre had introduced various schemes in the 9th and 10th five- year plans to raise the indigenous production to 10 lakh tonnes by the end of the 10th plan. However, the achievement remained far short of the target at 6.2 lakh tonne in 2006-07.

The Central funds earmarked for enhancing cashew cultivation are, of late, given to the state governments for implementation of the schemes. But, “unfortunately, these funds are diverted for other purposes with the result the expansion of area under the crop and re-planting etc are not implemented”, he said.

Since cashew could be grown successfully in wasteland if its cultivation on a large scale were promoted in such areas in the country that could lead to productive utilization of vast expanses of wasteland in several states. In Kerala, the government has recently exempted cashew from the land ceiling by amending the Kerala Land Reforms Act paving the way for its cultivation as plantations. However, the government has yet to enforce this provision of the Act, industry sources told Business Line.

In fact, the Centre had earmarked huge funds for wasteland development and cashew was identified as a major crop which could be easily grown in wasteland successfully. But, for want of sufficient motivation from the concerned developmental agencies these funds could not be utilized and hence lapsed every year, he pointed out.

An effective government authority exclusively entrusted with the development of cashew cultivation could be an ideal proposition to make the country self-sufficient in raw nut production and to arrest the outflow of forex on its imports.

On the other hand, India is the second largest consumer of cashew kernels in the world and the demand is growing at an estimated 10 per cent a year.

The cashew processing in the country is concentrated in Kollam district of Kerala and the neighbouring Kannyakumari district of Tamil Nadu and Mangalore district of Karnataka. In fact, Kollam district has over three lakh workers, mostly women, out of the estimated five lakh workers engaged in the cashew industry. The entire exports from Kerala are also taking place through the Kochi port. In fact, 95 per cent of processing and exports are done by the Kerala-based exporters and processors, he said.

The Cashew Export Promotion Council of India (CEPC) is understood to have some time ago prepared a design, plan and estimates for constructing an 11-storey building on its 24 cents of land in the heart of the city. All the clearances for constructing it were also obtained some time back. Once constructed this building could be the headquarters of the CEDA, he said.

More than 1,000 factories are in the country and of this not even a dozen are ISO certified and HACCP compliant, he said.

To meet the financial requirements for running the authority, just like the Spices Board two per cent cess on exports of cashew could be levied and that would come to around Rs50 crore a year.

CEDA could be created by merging the Directorate of Cashew and Cocoa Development under the union ministry of Agriculture and the CEPC. The Spices Board was created by merging the Spices Export Promotion Council and the Cardamom Board and similarly, the MPEDA was given birth.

He said that the Union government may consider creating CEDA so as to effectively increase production of raw cashew nuts, enhance value addition of cashew products and its exports and promoting R&D besides implementing its findings given the importance of this cash crop, he added.

When contacted, the CEPC Chairman, P. Bharathan Pillai said that “interference from government and other agencies such as the proposed Board is not there the cashew exports will flourish in the country and for that CEPC should be allowed to function as it is at present”.