The Hindu Business Line : Raw nut shortage to hit cashew processing units

Indigenous production of raw nuts has not grown to the expected level even after launching various developmental schemes since the Eighth Plan, according to Mr K. Krishna Pillai, Chairman, Cashew Export Promotion Council (CEPC).

Addressing the 47th annual general meeting of the council, he said ``There is acute shortage of raw cashewnuts on a global level. India, Brazil and Vietnam vie with each other to corner the available raw nut in the world thereby raising their price''.

The fact remains that the domestic production of raw nuts in the country was erratic, and the cashew processing and exporting industry was put to several difficulties, he said. The ongoing production development programmes have not brought in the desired levels of production so far.

As per trade estimates, the production of raw nuts in the country during 2002 would be only 2,91,000 tonnes as against 3,01,000 tonnes during 2001 and 3,25,000 tonnes in 2000. While the installed capacity of the industry is more than 10 lakh tonnes a years, the availability from internal sources is less than one-third of it.

Inspite of all these efforts, the industry could not find adequate raw cashewnuts to meet its requirements in full, forcing many units to remain closed either all round the year or for a considerable part of the year, he said. The Eighth Plan provision for cahew development was Rs 45 crore, the Ninth Plan offered Rs 70 crore and in the Tenth Plan provision has been proposed to the tune of Rs 127.41 crore.

He said India earned around Rs 2,000 crore per annum through export of cashew kernels, ``to realise this much foreign exchange we are annually spending more than Rs 900 crore for importing raw cashewnuts''. This points to the need for increasing the indigenous production of raw cashewnuts in order to make the country self-sufficient in the matter of raw cashew nuts, he said.

According to Mr Krishna Pillai, the existing land ceiling laws and the continued denial of plantation status to cashew had deterred taking up large-scale cultivation even in suitable wastelands. He urged the authorities both at the Centre and at various states to speed up the programmes so that ``we may attain self-sufficiency at the earliest possible''.

During April-July 2002, exports of cashew stood at 33,232 tonnes valued at Rs 626.24 crore with a unit value realisation of Rs 188.44 per kg. The increase in value terms, he said, was 33.10 per cent. Exports during the corresponding period last fiscal were 22,728 tonnes valued at Rs 470.50 crore, with a unit value realisation of Rs 207.01 per kg.

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