Indian cashew cultivations are old as 400 years. Portuguese seafarers introduced into the west coast of India in the sixteenth century (Dr.Patil P.J, 2012). In the beginning, cashew does not have much importance as horticulture crops due to it was only using for afforestation and wasteland development (K C John, 2002). It was found useful in soil binding to check erosion. Commercial cultivation began in the early 1960s and, over the years, cashew became a crop with high economic value and attained the status of an export-oriented commodity, earning considerable foreign exchange for the country. In 1960, Kerala, Andhra Pradesh, and Odisha were the leading cashew producing states in India. Presently, in terms of Production and Productivity Maharashtra is the leading cashew producing states in India. The total area of cultivation during the past three decades has increased from 530869 hectares to 978000 hectares (FAO).
Indian cashew nut industry is facing the problem of shortage of raw material, India does not produce sufficient raw material, and it made an negative effect on processing and exports. In 2020-21, import of raw cashew improved progressively to reach 831231 mt valued at Rs 7331.28 crore. In 2006-07, India’s raw cashew nut import was 592604 mt valued at Rs 1811.62. This situation demand, policy change in raw cashew nut production, because valuable foreign exchange is outflow. In 2006-07, net foreign exchange from cashew kernel was Rs 643.53 crore, which has increased to Rs 2979.06.
Indian cashew nut industry has great prospects, it has sufficient resources to produce exportable cashew kernel such as traditional knowledge, suitable agro-climatic conditions, fertile land, and availability of labor, availability of markets, Indian brand, technical know-how, labour intensive. It will help India to achieve cashew export potential.
Over a period of time, advanced cashew production techniques have been developed that help to increase cashew production at a large extent. At present India is one of the largest cashew producing nation in the world. In India, cashew production is available in ten states ie. Maharashtra, Kerala, Goa, Tamilnadu, Andhra Pradesh, Karnataka and Orissa, West Bengal, Gujarat, Assam are the major cashew producing states in the country.
India is a major player in world cashew economy. It is the larger producer of raw cashew nut contributing 20% of global production. In India cashew is being grown in an area of 10.27 lakh hectares with a total production of 7.25 lakh MT of raw nuts and unit area productivity of 706 kg/ha. Maharashtra is the highest state in cashew production and productivity. Andhra Pradesh and Orissa are on 3rd and 4th position in cashew production followed by Maharashtra. Intensive and integrated research efforts have resulted in the development of new varieties, high yielding technologies increase cashew productivity and production at a significant level.
Cashew processing is mostly done by small and processors. It is a highly export-oriented commodity. India importing the raw cashew over a long period of time, imports of raw cashew increased over a period of time. Domestic cashew production is far below than the requirement of processing. Raw cashew production is hardly 60 percent of the demand for processing to export.
India is the top raw cashew-nut importer in the world. Over a period of time, India’s cashew processing capacity has increased tremendously. The domestic production of cashew is not sufficient to meet the demand of industry and due to this India started importing raw cashew. Therefore, various production statuaries have to be followed such as the development of new areas, replanting, commercial cultivations, adoption of high yielding varieties, increase in productivity, elaborate research network and development of infrastructure, eco-friendly production packages such as organic farming and integrated pest management. The world market for cashews is dynamic, with sustained growth rates of approximately 10% per year and the nuts produced could receive the “organic” label as they are chemical-free and get a premium price. In major cashew growing areas of our country, natural farming is followed. It is estimated that not more than 20% of cashew holdings in India use chemical fertilizers or pesticides (Shalini Yadav, 2010).
India is the leading cashew kernels exporter in the world, earns valuable foreign exchange of Rs 5500 crores every year. At present India is exporting cashew kernels to more than 60 countries. Major India’s cashew export market are USA, UAE, Netherlands, Saudi Arabia and Japan with whom India exporting 1.19 lakhs MT of cashew kernel. India also exports various by-products of cashew such as Cashew Nut Shell Liquid Oil (CNSL), Cardanoi, Cashew wine, etc. The export of cashew worth Rs 2465.44 crore in 2008, has increased to Rs 2840.39 crore in 2020-21. Cashew market is dynamic and fluctuating in terms of price, quantity, and value. Recently India’s raw cashew import value is overcoming total cashew export value. India largely depends on the import of raw cashew for processing, domestic cashew produce is not sufficient to meet the processing demand of processing units.
In international agriculture trading basket, the cashew nut is the most significant item. India is the largest producer, processor, exporter and importer (raw) of cashew. However, in recent times countries like Brazil, Indonesia, Vietnam, and some African countries, India is facing strong completion as they have started processing and less transportation cost to export destinations. In 2017, global production of cashew nuts was 3,971,046 tonnes, led by Vietnam, India and Côte d’Ivoire with 22%, 19%, and 18% of the world’s total respectively. Benin, Guinea-Bissau. Cape Verde, Tanzania, Mozambique, Indonesia, and Brazil also had significant production of cashew kernels. Indian cashew processing units are using now, modern methods of cashew processing either by Oil bath roasting and steam roasting. It helps to maintain the quality of cashew kernel and extraction of cashew nut shell liquid oil.
In food-related industries, cashew is becoming one of the important ingredients, hence it’s market potential is growing. India has a unique brand in the international market because of its taste and long-standing presence. Further, there is always good demand for Indian cashew in the international market. However, there is strong competition coming from other countries, its giving challenges to India’s positing in the world cashew market. Hence industry needs a supportive environment from the government for further growth in a planned manner.
Challenges and Suggestions:
Shortage of domestic production, growing demand from processing units leads for import of raw cashew. Some states like Maharashtra, Kerala, Tamil Nadu are doing well in terms of area of cultivation, productivity, and total production. However, in spite of having suitable agro-climatic conditions for cashew other states like Telangana, Karnataka, Gujarat, North East, are not utilizing their potential fully.
Raw cashew market is not well organized in India. Farmers don’t get fair price of their produce. They get cheat by agents at weighing and price. There is no direct procurement of raw material from farmers.
International cashew kernel market is dynamic in nature. Farmers and small processors do have access hence they can’t predict the price of raw cashew and cashew kernel and market trend. High rice of price changes consumer preferences towards other nuts. Packaging and minimum residual lever are the main challenges of Indian cashew export.
In light of the above challenges, commercial cultivation can be promoted for increasing cashew production and productivity. Market intelligence needs to improve to cope up the changes in the international market. Cashew Product and Processing Clusters should be increased after proper identification and analysis at each District level. Formation of the cashew export cluster at every district level that will address export address challenges will help in export promotions.
In nutshell government of India should encourage Quality Standards and Specifications, implement Good Agriculture Practices, improving Packaging of Products, the transformation of Farm produce to FSSAI standards, interventions for rejuvenation of orchards, replacement of old senile plants and encouragement for Intercropping, promote the export of Value-added items, traceability to be established for all exportable items in a phased manner in order to establish credibility in the international market. Growth in the export of cashew kernel and it’s by the product will also make a positive impact on prices in the domestic market.