Global Cashew Nut Industry Report

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1 Brochure More information from Global Cashew Nut Industry Report Description: Cashew a native of Eastern Brazil was introduced to India by the Portuguese nearly five centuries ago. India was the first country to hit the world market with cashew kernels and it was she who pioneered cashew processing as an industry. The kernel being the economic part is extracted from the shell of the cashew nut. The other products and by-products of cashew are Cashew apple, Cashew apple juice, Cashew syrup, Cashew apple jam, Cashew apple candy and Cashew Nut Shell Liquid. India has the largest area under cashew and is confined mainly to the peninsular areas. It is grown in Kerala, Karnataka, Goa and Maharashtra along the west coast and Tamil Nadu, Andhra Pradesh, Orissa and West Bengal along the east coast. Cashew occupied an area of 0.75 million hectares in the country in , with a production of 0.55 million tonnes. The highest productivity is observed in Kerala and Maharashtra with over one ton per ha. India is also one of the largest cashew consuming countries in the world. The requirement of raw nut in the industry is more than 1 million tonnes for processing, but the availability from internal sources is half of the requirement. The industry's dependence on imported raw nuts has gone up substantially, with indigenous production failing to keep pace with the growing demand for the raw material. However, import of raw nuts by the industry was the highest with 5.78 lakh tonnes at US$485 million in (4.52 lakh tonnes, worth US$311 million in ). Cashew is exported from India in several forms, such as cashew kernels, broken and whole; raw cashew nuts; roasted cashew nuts and cashew nut shell liquid. The export of cashew kernels from India has grown at the rate of 3.6 per cent per annum during the last ten years as compared to the annual growth rate of 4.73 per cent of the world export. In , cashew kernel export touched a record of US$ 602 million with exports of 1.26 lakh tonnes, against 1 lakh tonnes at US$401 million in Among the agri-horticultural commodities getting exported from India, cashew bags the second position. USA, Netherlands, UK, Japan, UAE, France, Canada, Saudi Arabia, Singapore, Italy, German Fed. Republic, Austria, Israel and Spain are the major international buyers of Indian Cashews. Nowadays Indian cashew export market is facing stiff competition from the new entrant to the world cashew market-vietnam. Cashew ranks third in world production of edible nuts that are traded globally. World trade in edible nuts has experienced relatively rapid growth, averaging about 2.7 per cent per year. Worldwide, trade in cashews exceeds US$2 billion and its demand is increasing. Of the total world supply, 0.1 million tonnes are traded on international markets, with India claiming (40 per cent) and Vietnam (33 per cent). World Raw Cashew nut (RCN) production in 2004 is estimated to be around 2.08 million tonnes from a total area of 3.06 million hectares. Vietnam, India, Brazil, Nigeria and Tanzania account to 80 per cent of global output. In 2004, Vietnam topped global production with 0.64 million tonnes which is 30 per cent of global production, followed by India (0.5 million tonnes) and Brazil (0.22 million tonnes) in the second and third position respectively. Going by the area under cashew production, Vietnam is in the fifth position with 0.26 million hectares and Brazil has the second largest area under harvest with 0.68 million hectare after India. The United States is the largest importer of cashew kernels, accounting for over 50 per cent of the world s imports. Other importers include the Netherlands (ten per cent), Germany (seven per cent), Japan (five per cent) and the United Kingdom (five per cent). Cashew production in Asia currently accounts for about 50 per cent of global production. India has long been the main cashew producer in Asia, accounting for 70 to 90 per cent of total Asian production. Also Indonesia and Vietnam emerged as important cashew producing countries within Asia. The cashew nut output in Vietnam in 2004 increased 35 per cent over 2003 with an average of 1,100kg a hectare. African countries produce one-third of the world's raw cashew nuts, but 95 per cent of Africa's production is currently being exported abroad for processing. Tanzania and Guinea-Bissau are the largest producers of cashew nuts in Africa, each accounting for eight per cent of the world's production. Brazil produces approximately 2.24 lakh tonnes of raw cashew nuts a year, of which 90 per cent are sold abroad, and 80 per cent of the producers are small scale. Brazil currently occupies the third position in world exports with 16 per cent share. Majority of importers of cashew are serviced by India cashew growers. The countries like Japan, UAE, Russia,

2 Spain, Saudi Arabia, Israel, Greece and Singapore is already catered by India and does not possess much potential for increasing the market share. The countries with high market potential for India are Australia, Canada, Germany, China, and South Africa. Other countries like US, Netherlands, UK, France, Italy, Belgium, Lebanon, Israel and New Zealand has moderate potential for exports. The constraints cashew industry are non allocation of suitable land, Cashew currently being cultivated under wasteland, the poor cultural practices that are being followed, lack of tax exemption, need for market development initiatives, stagnant growth in production, improper utilization of resources, and high dependence on imported raw nuts. The cashew is currently exported from India like any other food commodity with more emphasis being given in quality of the produce along with adoption of sanitary and phyto-sanitary measures. Consumption of cashew in the world continues to rise and is expected to continue with positive health reports and beneficial diets. Another positive factor is that the prices of cashew and almonds in the US and the EU currently are almost at par and, hence, the preference for cashew has picked up. Contents: EXECUTIVE SUMMARY 1. INTRODUCTION 1.1 Cashew: The crop 1.2 Cashew nut processing 1.3 Products and by-products 2. INDIAN SCENARIO 2.1 Research on cashew 2.2 Production 2.3 Marketing of raw cashew nuts 2.4 Price factor 2.5 Imports 2.6 Exports 3. GLOBAL SCENARIO 3.1 Global scenario 3.2 Global trade trends 3.3 Past trade 3.4 Competition with India 3.5 Global markets 3.6 Indian advantage in processing 3.7 Price and quality 3.8 Crop performance 3.9 Cashew production 3.10 Area under cashew 3.11 Imports of cashew 3.12 Exports of cashew 3.13 Cashew production in Asia 3.14 Cashew production in Africa 3.15 Brazilian cashew industry 3.16 Outlook 4. OPPORTUNITY FOR INDIA 5. CONSTRAINTS IN CASHEWNUT INDUSTRY 5.1 Suitable land allocation 5.2 Cashew under wasteland 5.3 Poor cultural practices 5.4 Lack of tax exemption 5.5 Need for market development initiatives 5.6 Stagnant growth in production 5.7 Improper utilization of resources 5.8 High dependence on imported raw nuts 6. RULES AND REGULATIONS FOR EXPORTS 6.1 Registration of the company 6.2 Register with Export Promotion Council 6.3 Registration with Sales Tax Authorities 6.4 Dispatching samples

3 6.5 Appointing agents 6.6 Acquire Export License 6.7 Acquire Export Credit Insurance 6.8 Arranging finance 6.9 Rates of interest 6.10 Dealing with foreign exchange rate changes 6.11 Forward contracts 6.12 Procuring/manufacturing goods and inspection 6.13 In-Process Quality Control (IPQC) 6.14 Self Certification Scheme 6.15 Labeling, packaging, packing and marking goods 6.16 New excise procedure 6.17 Removal of goods under Claim of Rebate 6.18 Export under Bond Procedure 7. FUTURE OF THE INDUSTRY ANNEXURE Table1: Cashew nut area in Indian states over years Table2: Cashew nut production in Indian states over years Table3: Cashew nut productivity in Indian states over years Table4: Pricing trend of raw cashew nut in different States Table5: Price list of vacuum packs of 1Kg, 5Kg and 10 Kg Table6: India Cashew grades for export and its market price FOOD IMPORT PROCEDURES OF FEW COUNTRIES 1. United States (US) Food Import Procedure 2. European Union (EU) Food Imports Procedure 3. Australian Food Import Procedure 4. United Arab Emirates (UAE) Food Import Procedure List of Tables Table 1: Trend in raw cashewnut consumption in India Table 2: Cashewnuts Production (Lakh Tonnes) and Yield (Kg/Ha) Table 3: Cashew Nuts Area Harvest (Lakh ha) Table 4: Cashew Nuts Shelled Imports - Qty (Mt) Table 5: Cashew Nuts Shelled Exports - Qty (Lakh Tonnes) Table 6: Export Price of Shelled Cashew nut in US$ per ton Table 7: Potential Countries for Export of cashewnuts, 2004 List of Figures Figure 1: Cashewnut processing Figure 2: Maharashtra: Major producer Figure 3: Major growth in Maharashtra Figure 4: Trend of consumption, production and Import of Raw cashewnuts Figure 5: Increasing import of raw cashewnut Figure 6: Fluctuating export of cashew kernels Figure 7: Major importer of Cashew kernel-usa Figure 8: Increasing Area and Production Figure 9: Share of Cashewnut Producing Countries in 2004 Figure 10: Vietnam production increase drastically Figure 11: Marginal increase in Area Figure 12: Share of Shelled Cashew nuts Importing Countries, in 2004 Figure 13: Share of Shelled Cashewnuts Exporting Countries, in 2004 Ordering: Order Online - Order by Fax - using the form below Order by Post - print the order form below and send to Research and Markets, Guinness Centre, Taylors Lane,

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