MARGAO
Increasing the domestic cashew production, adding value to the products a la Amul cooperative model and setting up of Cashew Boards, including Goa, besides effecting changes in the import policy on cashew products to stabilise and protect the local industry are measures suggested to bring a turnaround in the Indian cashew industry.
The fate of the Indian cashew industry figured at the ongoing National Conference on e-nam: Operational difficulties & Challenges organised by the National Council of Agricultural Marketing Boards, New Delhi at Colva when the stakeholders discussed the import implications on Indian cashew economy.
Analysing the cashew industry scene in the country, Agricultural Economist, Dr Parashram Patil, NMML Fellow, New Delhi was categorical in saying trade competitiveness is the cause of concern.
Saying that India is the pioneer in the world cashew economy, Dr Patil said the smooth growth of cashew sector is a matter of national interest considering the relevance of cashew sector in rural economy and its export potential, farmers involvement, suitable agro climatic conditions, women employment and growing demand in domestic market.
Pointing out that the total quantity of cashew nuts processed in India in 2021-22 was to the tune of 17.28 metric tons, Patil, however, said domestic production accounted for only 7.73 metric tons, while the balance tonnage 9.55 lakh tons was met by the import of raw nut.
Citing the reasons behind this imbalance, Patil said the import of raw nut is increasing rate due to low domestic production. “The growth rate of consumption in domestic market is increasing trend. The rate of imported raw nut is quite low as compared to the Indian produce as a result of which processors prefer imported raw nut as it is economically feasible,” he said.
He outlined a host of strategies to reverse this trend, by calling for adoption of high density planting with high yielding varieties to enhance domestic production and reduce import. Besides suggesting massive area expansion and replanting, Patil has underscored the need to encourage farmers at the national level to take up cashew farming as primary crop.
He added that India’s cashew exports have dropped by around 21 per cent in the financial year ending March 2023 due to a dip in overseas demand.
Saying the Centre has amended the import policy for raw cashew nuts exempting export oriented units and processing units operating from the Special Economic Zones from the minimum import price norm, he said the cashew industry had reacted by saying the policy amendment would be detrimental to the domestic players as it would open up imports from cheaper producers.
Saying that around 22,000 hectares of cashew is brought under new planting programme on an average, Patil has underlined the need to accelerate the pace to cover at least 50,000 hectares per annum in traditional and non-traditional areas with high yielding varieties including high density concept to achieve self-sufficiency by 2030.
The agricultural economist attributed the reasons for decline in export to high cost of domestic processing, besides price competition from Vietnam in cashew kernel trade in the international market and the increasing growth rate of consumption in domestic market.
To a question from the Chairman of Goa Marketing Federation, Prakash Velip, Patil said if the organisation headed by Velip is having 40,000 farmers, then the time has come to adopt the Amul model to take the cashew industry to greater heights. “Cashew industry is very important for the rural economy since it is a cottage industry and very few corporates involved in the industry. If Kurien could take Amul through the cooperative movement, Prakash Velip and his team should take the cashew industry forward with the help of thousands of cashew farmers,” he added.
