Wednesday, March 26, 2008

Time To Give Cashew A Growth Push

Indian cashew industry’s dependence on other producing countries for raw cashew nuts appears to have become a perpetual phenomenon as indigenous supply has not been able to keep pace with the processing industry’s ever-growing requirement.

Rising imports

Import of raw nuts, which began at around 1.3 lakh tonnes in the 1980s following the increase in exports of cashew kernels from the country and due to non-availability of the raw material in required quantity indigenously, has been growing steadily. This trend continued with the expansion of the processing capacity of the industry to meet the growing demand from overseas and domestic markets.

In 2006, while the total processing capacity was 12 lakh tonnes of raw nuts, the indigenous production was only 5.73 lakh tonnes. The industry, therefore, imported 5.65 lakh tonnes of raw nuts from other countries, especially in Africa.

According to official sources, the increased dependency on imports is fraught with danger as the exporting countries could start processing their own raw nuts. Hence, efforts are needed to achieve self-sufficiency in production of raw nuts. Unfocussed research

At present, cashew research appears to be lacking in direction and focus. An extension campaign is required among farmers to make them aware of the benefits of scientific cultivation techniques. At the same time, modernisation in processing, product diversification, value addition and marketing of Indian cashew under a brand are required. If the cashew industry has not achieved the desired levels of growth it must be because of poor coordination and co-operation in planning, chalking out programmes and implementation. All these point to the need for a representative body with sufficient autonomy.

The available data show that the quantity of raw nut processed in India has doubled in the last decade. The total raw nut processing is divided at an average ratio of 52:48 among local production and import. If this trend continues for the next ten years the requirement of raw nut would be 17 lakh tonnes by 2016.

Exports of cashew kernels have also been showing a steady increase, from 1,00,828 tonnes in 2002-03 to 1,26,667 tonnes in 2006-07. And the export earnings were Rs 1,804.43 crore and Rs 2,709.24 crore respectively.

Imports of raw nuts have gone up from 4,00,659 tonnes valued at Rs 1,236.57 crore in 2002-03 to 5,92,604 tonne valued at Rs 1,811.62 crore in 2006-07.

The rate of growth in Indian raw nut production, given the vast area under the crop, has not been at the desired levels.

Indigenous availability, which was at five lakh tonnes in 2002-03 increased to 5.73 lakh tonnes in 2005-06. Growing demand

Though the domestic demand is yet to be assessed accurately, it is estimated it is increasing at a phenomenal rate due to increased awareness among people about the health benefits and nutritional value of the nut. As such, demand is likely to increase, which is viewed as beneficial from the farmers’ and industrial point of view. Given this situation, there is an urgent need to step up domestic production on a war footing. Looking back

In fact, development of cashew cultivation was taken up in 1955 (the beginning of the Second Plan), as part of initially as part of the afforestation activity. After the formation of the Directorate of Cashew Development in 1966 a coordinated effort for the promotion of this crop with a national outlook was taken up, such as the World Bank-aided Multi-State Cashew Project (MSCP) in Kerala, Karnataka, Andhra Pradesh and Orissa during the Sixth Plan. It was during the Seventh Plan that multiplication of high yielding varieties through scion banks was initiated.

To increase production and productivity a two-pronged approach — extensive and intensive cultivation — was implemented during the Eighth Plan. During the next Plan an outlay of Rs 70 crore was made for cashew development programmes in the country.

However, with the emergence of macro management policy for agriculture during the Tenth Plan, the role of the Directorate of Cashew and Cocoa Development (DCCD) was redefined. As a result, the role of the DCCD was reduced to monitoring the status of execution of the programmes by States, in addition to implementation of direct funded components.

In 2005-06, the National Horticulture Mission (NHM) was launched to promote holistic growth of the horticulture sector and since then cashew development programmes are being pursued under the mission. Though areas planted with high yielding varieties of cashew have substantially helped in increasing production and productivity, areas raised with seeds and seedlings prior to the Eighth Plan with a forestry approach is playing a negative role in boosting production. It is estimated that a total area of 3,05,000 hectares of plantation at present falls under the senile and unproductive category, that is, 30 years and above of age.

In fact, considering its importance, the Office of the Prime Minister has identified “re-plantation of senile cashew plantation” as a thrust area. The Finance Minister in his 2007-08 Budget speech had announced a ‘special cashew fund’ to be set up in the pattern of Tea Fund. The Commerce Ministry has also designed cashew development programmes under the thrust area ‘Revival of Plantation Crops Economy’.

With all these efforts, the total area under cashew has expanded to 8.37 lakh hectares and an annual production of 5.73 lakh tonnes with a productivity of 815 kg/ha as against over 2,500 kg/ha in Vietnam. A boost required

India is still the world’s largest producer, consumer and exporter of cashew nuts. Above all, it provides employment to around five lakh workers, over 90 per cent of them being rural women. Besides, it provides livelihood to lakhs of small and marginal farmers, who do the cultivation in an unorganised and unscientific manner.

The farming practices and post-harvest technology are traditional and backward. It has already been found that this crop can be grown in all types of soils, including wasteland and rocky terrains.

1 comment:

Anonymous said...

Great post, I am almost 100% in agreement with you