Cashew Project Report

79
04/Dec./2006 1 CASHEW We are…… Ganesh Kumar Nikhil Sheth Dipayan Das ITM Business School Global Leadership Centre Masters In International Business Navi Mumbai

description

All about Cashew Industry, This is great presentation on Cashew Industry worldwide..Keeping indian Industry in mind..This is part of MBA academic at ITM Business School, Navi Mumbai. I hope this will help U in great way as International product Life cycle has also been included in this PPT. in case you need help contact me on [email protected]. Thank You. Ganesh Kumar

Transcript of Cashew Project Report

Page 1: Cashew Project Report

04Dec2006 1

CASHEW

We arehelliphellipGanesh KumarNikhil ShethDipayan Das ITM Business School

Global Leadership Centre

Masters In International Business

Navi Mumbai

04Dec2006 2

History The Portuguese introduced cashew into India Second half of the 16th century Its commercial value was only realized in

the twentieth century

The world market for cashew is relatively new Cashew started appearing on global markets towards the middle of the 1920s

Trade was dominated by two countries India United States

04Dec2006 3

Cont

The cashew tree native to Brazil was introduced to Mozambique and then India

As a means of controlling coastal erosion

04Dec2006 4

Some background

India is a major player on the cashew world stage While cashew cultivation originated in Brazil

Today cashew is cultivated in Asia Africa and Latin America

In the year 2000 the total global area under cashew cultivation 4000000 ha

Average productivity was around 510 kg per ha

Total raw nut production was 18 million tones

04Dec2006 5

Cont India is the 2ND largest country in the

world cashew economy for area as well as production of raw cashew nuts

Brazil is first Today cashew is cultivated on around

720000 ha in India Yielding an output of 450000 MT Average productivity of 710 kgha

04Dec2006 6

Cont

Cashew processing using manual techniques was started in India in the first half of the twentieth century

It was exported from there to the wealthy western markets particularly the United States In the 1960s

04Dec2006 7

Cont

The cashew industry ranks third in the world production of edible nuts

world production in 2000 at about 2 million tones of nuts-in-shell and an estimated value in excess of US$2 billion

India and Brazil are the major cashew exporters with 60 percent and 31 percent respectively of world market share

The major importers are the United States Netherlands Germany Japan United Kingdom

04Dec2006 8

Cashew

Three main cashew products are traded on the international market

Raw nuts Cashew kernels Cashew nut shell liquid (CNSL) A

fourth product The cashew apple is generally

processed and consumed locally

04Dec2006 9

Cont One major factor that affects the

consumption of cashew kernels in world markets is competition from other tree nuts

The major importers in developed countries contract their requirement for the whole year based on the sales from previous years

04Dec2006 10

Cashew nut shell liquid

Cashew nut processing allows for the development of an important by-product which can increase its added value

The liquid inside the shell (CNSL) represents

15 percent of the gross weight and has some attractive possible medicinal and industrial uses

Main Markets are United state European Union Japan

04Dec2006 11

Cont Cashew is a good crop for smallholder

farmers In Mozambique cashew is considered by smallholder farmers to be one of their most lucrative crops

Thus cashew has the potential to increase the incomes of poor producers to create employment opportunities during harvesting and processing and to increase exports

04Dec2006 12

Quality

First quality

W210 W240 W320 W450 WB WS LWP

SWP

Second quality

LBW210 LBW240 LBW320 LBW

SW210 SW2440 SW320 SW SB SS

LP SP

Third quality DW320 DW350 DW

Fourth quality DW2 DW3

Fifth quality SW2 SW3 DW DWT

Sixth qualityCS SK SK2 TPN TPN2

TPB DW4

04Dec2006 13

Grading

Cashew Kernels are graded into whitescorched wholes pieces splits butts etc depending on the shape size amp color of the kernel

The Govtof India Act prescribes 33 different grades of cashew kernels Only 26 grades are commercially available and exported

W - 180 is the King of Cashew - They are larger in size and very expensive

04Dec2006 14

Cont W - 210 are popularly known as Jumbo

nuts W - 240 it is an attractive grade which is

reasonably priced W - 320 are the most popular among

cashew kernels and highest in terms of availability worldwide

W - 450 are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades

04Dec2006 15

Product description

Designation W - 240

Trade Name White Wholes

Color characteristics

Whitepale ivorylight ash Characteristic shapes

Count454 gms size description

220 - 240

Max Moisture

5

Broken Max 5

NLSG NLG max

5 (NLSG amp SW together)

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 2: Cashew Project Report

04Dec2006 2

History The Portuguese introduced cashew into India Second half of the 16th century Its commercial value was only realized in

the twentieth century

The world market for cashew is relatively new Cashew started appearing on global markets towards the middle of the 1920s

Trade was dominated by two countries India United States

04Dec2006 3

Cont

The cashew tree native to Brazil was introduced to Mozambique and then India

As a means of controlling coastal erosion

04Dec2006 4

Some background

India is a major player on the cashew world stage While cashew cultivation originated in Brazil

Today cashew is cultivated in Asia Africa and Latin America

In the year 2000 the total global area under cashew cultivation 4000000 ha

Average productivity was around 510 kg per ha

Total raw nut production was 18 million tones

04Dec2006 5

Cont India is the 2ND largest country in the

world cashew economy for area as well as production of raw cashew nuts

Brazil is first Today cashew is cultivated on around

720000 ha in India Yielding an output of 450000 MT Average productivity of 710 kgha

04Dec2006 6

Cont

Cashew processing using manual techniques was started in India in the first half of the twentieth century

It was exported from there to the wealthy western markets particularly the United States In the 1960s

04Dec2006 7

Cont

The cashew industry ranks third in the world production of edible nuts

world production in 2000 at about 2 million tones of nuts-in-shell and an estimated value in excess of US$2 billion

India and Brazil are the major cashew exporters with 60 percent and 31 percent respectively of world market share

The major importers are the United States Netherlands Germany Japan United Kingdom

04Dec2006 8

Cashew

Three main cashew products are traded on the international market

Raw nuts Cashew kernels Cashew nut shell liquid (CNSL) A

fourth product The cashew apple is generally

processed and consumed locally

04Dec2006 9

Cont One major factor that affects the

consumption of cashew kernels in world markets is competition from other tree nuts

The major importers in developed countries contract their requirement for the whole year based on the sales from previous years

04Dec2006 10

Cashew nut shell liquid

Cashew nut processing allows for the development of an important by-product which can increase its added value

The liquid inside the shell (CNSL) represents

15 percent of the gross weight and has some attractive possible medicinal and industrial uses

Main Markets are United state European Union Japan

04Dec2006 11

Cont Cashew is a good crop for smallholder

farmers In Mozambique cashew is considered by smallholder farmers to be one of their most lucrative crops

Thus cashew has the potential to increase the incomes of poor producers to create employment opportunities during harvesting and processing and to increase exports

04Dec2006 12

Quality

First quality

W210 W240 W320 W450 WB WS LWP

SWP

Second quality

LBW210 LBW240 LBW320 LBW

SW210 SW2440 SW320 SW SB SS

LP SP

Third quality DW320 DW350 DW

Fourth quality DW2 DW3

Fifth quality SW2 SW3 DW DWT

Sixth qualityCS SK SK2 TPN TPN2

TPB DW4

04Dec2006 13

Grading

Cashew Kernels are graded into whitescorched wholes pieces splits butts etc depending on the shape size amp color of the kernel

The Govtof India Act prescribes 33 different grades of cashew kernels Only 26 grades are commercially available and exported

W - 180 is the King of Cashew - They are larger in size and very expensive

04Dec2006 14

Cont W - 210 are popularly known as Jumbo

nuts W - 240 it is an attractive grade which is

reasonably priced W - 320 are the most popular among

cashew kernels and highest in terms of availability worldwide

W - 450 are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades

04Dec2006 15

Product description

Designation W - 240

Trade Name White Wholes

Color characteristics

Whitepale ivorylight ash Characteristic shapes

Count454 gms size description

220 - 240

Max Moisture

5

Broken Max 5

NLSG NLG max

5 (NLSG amp SW together)

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 3: Cashew Project Report

04Dec2006 3

Cont

The cashew tree native to Brazil was introduced to Mozambique and then India

As a means of controlling coastal erosion

04Dec2006 4

Some background

India is a major player on the cashew world stage While cashew cultivation originated in Brazil

Today cashew is cultivated in Asia Africa and Latin America

In the year 2000 the total global area under cashew cultivation 4000000 ha

Average productivity was around 510 kg per ha

Total raw nut production was 18 million tones

04Dec2006 5

Cont India is the 2ND largest country in the

world cashew economy for area as well as production of raw cashew nuts

Brazil is first Today cashew is cultivated on around

720000 ha in India Yielding an output of 450000 MT Average productivity of 710 kgha

04Dec2006 6

Cont

Cashew processing using manual techniques was started in India in the first half of the twentieth century

It was exported from there to the wealthy western markets particularly the United States In the 1960s

04Dec2006 7

Cont

The cashew industry ranks third in the world production of edible nuts

world production in 2000 at about 2 million tones of nuts-in-shell and an estimated value in excess of US$2 billion

India and Brazil are the major cashew exporters with 60 percent and 31 percent respectively of world market share

The major importers are the United States Netherlands Germany Japan United Kingdom

04Dec2006 8

Cashew

Three main cashew products are traded on the international market

Raw nuts Cashew kernels Cashew nut shell liquid (CNSL) A

fourth product The cashew apple is generally

processed and consumed locally

04Dec2006 9

Cont One major factor that affects the

consumption of cashew kernels in world markets is competition from other tree nuts

The major importers in developed countries contract their requirement for the whole year based on the sales from previous years

04Dec2006 10

Cashew nut shell liquid

Cashew nut processing allows for the development of an important by-product which can increase its added value

The liquid inside the shell (CNSL) represents

15 percent of the gross weight and has some attractive possible medicinal and industrial uses

Main Markets are United state European Union Japan

04Dec2006 11

Cont Cashew is a good crop for smallholder

farmers In Mozambique cashew is considered by smallholder farmers to be one of their most lucrative crops

Thus cashew has the potential to increase the incomes of poor producers to create employment opportunities during harvesting and processing and to increase exports

04Dec2006 12

Quality

First quality

W210 W240 W320 W450 WB WS LWP

SWP

Second quality

LBW210 LBW240 LBW320 LBW

SW210 SW2440 SW320 SW SB SS

LP SP

Third quality DW320 DW350 DW

Fourth quality DW2 DW3

Fifth quality SW2 SW3 DW DWT

Sixth qualityCS SK SK2 TPN TPN2

TPB DW4

04Dec2006 13

Grading

Cashew Kernels are graded into whitescorched wholes pieces splits butts etc depending on the shape size amp color of the kernel

The Govtof India Act prescribes 33 different grades of cashew kernels Only 26 grades are commercially available and exported

W - 180 is the King of Cashew - They are larger in size and very expensive

04Dec2006 14

Cont W - 210 are popularly known as Jumbo

nuts W - 240 it is an attractive grade which is

reasonably priced W - 320 are the most popular among

cashew kernels and highest in terms of availability worldwide

W - 450 are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades

04Dec2006 15

Product description

Designation W - 240

Trade Name White Wholes

Color characteristics

Whitepale ivorylight ash Characteristic shapes

Count454 gms size description

220 - 240

Max Moisture

5

Broken Max 5

NLSG NLG max

5 (NLSG amp SW together)

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 4: Cashew Project Report

04Dec2006 4

Some background

India is a major player on the cashew world stage While cashew cultivation originated in Brazil

Today cashew is cultivated in Asia Africa and Latin America

In the year 2000 the total global area under cashew cultivation 4000000 ha

Average productivity was around 510 kg per ha

Total raw nut production was 18 million tones

04Dec2006 5

Cont India is the 2ND largest country in the

world cashew economy for area as well as production of raw cashew nuts

Brazil is first Today cashew is cultivated on around

720000 ha in India Yielding an output of 450000 MT Average productivity of 710 kgha

04Dec2006 6

Cont

Cashew processing using manual techniques was started in India in the first half of the twentieth century

It was exported from there to the wealthy western markets particularly the United States In the 1960s

04Dec2006 7

Cont

The cashew industry ranks third in the world production of edible nuts

world production in 2000 at about 2 million tones of nuts-in-shell and an estimated value in excess of US$2 billion

India and Brazil are the major cashew exporters with 60 percent and 31 percent respectively of world market share

The major importers are the United States Netherlands Germany Japan United Kingdom

04Dec2006 8

Cashew

Three main cashew products are traded on the international market

Raw nuts Cashew kernels Cashew nut shell liquid (CNSL) A

fourth product The cashew apple is generally

processed and consumed locally

04Dec2006 9

Cont One major factor that affects the

consumption of cashew kernels in world markets is competition from other tree nuts

The major importers in developed countries contract their requirement for the whole year based on the sales from previous years

04Dec2006 10

Cashew nut shell liquid

Cashew nut processing allows for the development of an important by-product which can increase its added value

The liquid inside the shell (CNSL) represents

15 percent of the gross weight and has some attractive possible medicinal and industrial uses

Main Markets are United state European Union Japan

04Dec2006 11

Cont Cashew is a good crop for smallholder

farmers In Mozambique cashew is considered by smallholder farmers to be one of their most lucrative crops

Thus cashew has the potential to increase the incomes of poor producers to create employment opportunities during harvesting and processing and to increase exports

04Dec2006 12

Quality

First quality

W210 W240 W320 W450 WB WS LWP

SWP

Second quality

LBW210 LBW240 LBW320 LBW

SW210 SW2440 SW320 SW SB SS

LP SP

Third quality DW320 DW350 DW

Fourth quality DW2 DW3

Fifth quality SW2 SW3 DW DWT

Sixth qualityCS SK SK2 TPN TPN2

TPB DW4

04Dec2006 13

Grading

Cashew Kernels are graded into whitescorched wholes pieces splits butts etc depending on the shape size amp color of the kernel

The Govtof India Act prescribes 33 different grades of cashew kernels Only 26 grades are commercially available and exported

W - 180 is the King of Cashew - They are larger in size and very expensive

04Dec2006 14

Cont W - 210 are popularly known as Jumbo

nuts W - 240 it is an attractive grade which is

reasonably priced W - 320 are the most popular among

cashew kernels and highest in terms of availability worldwide

W - 450 are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades

04Dec2006 15

Product description

Designation W - 240

Trade Name White Wholes

Color characteristics

Whitepale ivorylight ash Characteristic shapes

Count454 gms size description

220 - 240

Max Moisture

5

Broken Max 5

NLSG NLG max

5 (NLSG amp SW together)

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 5: Cashew Project Report

04Dec2006 5

Cont India is the 2ND largest country in the

world cashew economy for area as well as production of raw cashew nuts

Brazil is first Today cashew is cultivated on around

720000 ha in India Yielding an output of 450000 MT Average productivity of 710 kgha

04Dec2006 6

Cont

Cashew processing using manual techniques was started in India in the first half of the twentieth century

It was exported from there to the wealthy western markets particularly the United States In the 1960s

04Dec2006 7

Cont

The cashew industry ranks third in the world production of edible nuts

world production in 2000 at about 2 million tones of nuts-in-shell and an estimated value in excess of US$2 billion

India and Brazil are the major cashew exporters with 60 percent and 31 percent respectively of world market share

The major importers are the United States Netherlands Germany Japan United Kingdom

04Dec2006 8

Cashew

Three main cashew products are traded on the international market

Raw nuts Cashew kernels Cashew nut shell liquid (CNSL) A

fourth product The cashew apple is generally

processed and consumed locally

04Dec2006 9

Cont One major factor that affects the

consumption of cashew kernels in world markets is competition from other tree nuts

The major importers in developed countries contract their requirement for the whole year based on the sales from previous years

04Dec2006 10

Cashew nut shell liquid

Cashew nut processing allows for the development of an important by-product which can increase its added value

The liquid inside the shell (CNSL) represents

15 percent of the gross weight and has some attractive possible medicinal and industrial uses

Main Markets are United state European Union Japan

04Dec2006 11

Cont Cashew is a good crop for smallholder

farmers In Mozambique cashew is considered by smallholder farmers to be one of their most lucrative crops

Thus cashew has the potential to increase the incomes of poor producers to create employment opportunities during harvesting and processing and to increase exports

04Dec2006 12

Quality

First quality

W210 W240 W320 W450 WB WS LWP

SWP

Second quality

LBW210 LBW240 LBW320 LBW

SW210 SW2440 SW320 SW SB SS

LP SP

Third quality DW320 DW350 DW

Fourth quality DW2 DW3

Fifth quality SW2 SW3 DW DWT

Sixth qualityCS SK SK2 TPN TPN2

TPB DW4

04Dec2006 13

Grading

Cashew Kernels are graded into whitescorched wholes pieces splits butts etc depending on the shape size amp color of the kernel

The Govtof India Act prescribes 33 different grades of cashew kernels Only 26 grades are commercially available and exported

W - 180 is the King of Cashew - They are larger in size and very expensive

04Dec2006 14

Cont W - 210 are popularly known as Jumbo

nuts W - 240 it is an attractive grade which is

reasonably priced W - 320 are the most popular among

cashew kernels and highest in terms of availability worldwide

W - 450 are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades

04Dec2006 15

Product description

Designation W - 240

Trade Name White Wholes

Color characteristics

Whitepale ivorylight ash Characteristic shapes

Count454 gms size description

220 - 240

Max Moisture

5

Broken Max 5

NLSG NLG max

5 (NLSG amp SW together)

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 6: Cashew Project Report

04Dec2006 6

Cont

Cashew processing using manual techniques was started in India in the first half of the twentieth century

It was exported from there to the wealthy western markets particularly the United States In the 1960s

04Dec2006 7

Cont

The cashew industry ranks third in the world production of edible nuts

world production in 2000 at about 2 million tones of nuts-in-shell and an estimated value in excess of US$2 billion

India and Brazil are the major cashew exporters with 60 percent and 31 percent respectively of world market share

The major importers are the United States Netherlands Germany Japan United Kingdom

04Dec2006 8

Cashew

Three main cashew products are traded on the international market

Raw nuts Cashew kernels Cashew nut shell liquid (CNSL) A

fourth product The cashew apple is generally

processed and consumed locally

04Dec2006 9

Cont One major factor that affects the

consumption of cashew kernels in world markets is competition from other tree nuts

The major importers in developed countries contract their requirement for the whole year based on the sales from previous years

04Dec2006 10

Cashew nut shell liquid

Cashew nut processing allows for the development of an important by-product which can increase its added value

The liquid inside the shell (CNSL) represents

15 percent of the gross weight and has some attractive possible medicinal and industrial uses

Main Markets are United state European Union Japan

04Dec2006 11

Cont Cashew is a good crop for smallholder

farmers In Mozambique cashew is considered by smallholder farmers to be one of their most lucrative crops

Thus cashew has the potential to increase the incomes of poor producers to create employment opportunities during harvesting and processing and to increase exports

04Dec2006 12

Quality

First quality

W210 W240 W320 W450 WB WS LWP

SWP

Second quality

LBW210 LBW240 LBW320 LBW

SW210 SW2440 SW320 SW SB SS

LP SP

Third quality DW320 DW350 DW

Fourth quality DW2 DW3

Fifth quality SW2 SW3 DW DWT

Sixth qualityCS SK SK2 TPN TPN2

TPB DW4

04Dec2006 13

Grading

Cashew Kernels are graded into whitescorched wholes pieces splits butts etc depending on the shape size amp color of the kernel

The Govtof India Act prescribes 33 different grades of cashew kernels Only 26 grades are commercially available and exported

W - 180 is the King of Cashew - They are larger in size and very expensive

04Dec2006 14

Cont W - 210 are popularly known as Jumbo

nuts W - 240 it is an attractive grade which is

reasonably priced W - 320 are the most popular among

cashew kernels and highest in terms of availability worldwide

W - 450 are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades

04Dec2006 15

Product description

Designation W - 240

Trade Name White Wholes

Color characteristics

Whitepale ivorylight ash Characteristic shapes

Count454 gms size description

220 - 240

Max Moisture

5

Broken Max 5

NLSG NLG max

5 (NLSG amp SW together)

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 7: Cashew Project Report

04Dec2006 7

Cont

The cashew industry ranks third in the world production of edible nuts

world production in 2000 at about 2 million tones of nuts-in-shell and an estimated value in excess of US$2 billion

India and Brazil are the major cashew exporters with 60 percent and 31 percent respectively of world market share

The major importers are the United States Netherlands Germany Japan United Kingdom

04Dec2006 8

Cashew

Three main cashew products are traded on the international market

Raw nuts Cashew kernels Cashew nut shell liquid (CNSL) A

fourth product The cashew apple is generally

processed and consumed locally

04Dec2006 9

Cont One major factor that affects the

consumption of cashew kernels in world markets is competition from other tree nuts

The major importers in developed countries contract their requirement for the whole year based on the sales from previous years

04Dec2006 10

Cashew nut shell liquid

Cashew nut processing allows for the development of an important by-product which can increase its added value

The liquid inside the shell (CNSL) represents

15 percent of the gross weight and has some attractive possible medicinal and industrial uses

Main Markets are United state European Union Japan

04Dec2006 11

Cont Cashew is a good crop for smallholder

farmers In Mozambique cashew is considered by smallholder farmers to be one of their most lucrative crops

Thus cashew has the potential to increase the incomes of poor producers to create employment opportunities during harvesting and processing and to increase exports

04Dec2006 12

Quality

First quality

W210 W240 W320 W450 WB WS LWP

SWP

Second quality

LBW210 LBW240 LBW320 LBW

SW210 SW2440 SW320 SW SB SS

LP SP

Third quality DW320 DW350 DW

Fourth quality DW2 DW3

Fifth quality SW2 SW3 DW DWT

Sixth qualityCS SK SK2 TPN TPN2

TPB DW4

04Dec2006 13

Grading

Cashew Kernels are graded into whitescorched wholes pieces splits butts etc depending on the shape size amp color of the kernel

The Govtof India Act prescribes 33 different grades of cashew kernels Only 26 grades are commercially available and exported

W - 180 is the King of Cashew - They are larger in size and very expensive

04Dec2006 14

Cont W - 210 are popularly known as Jumbo

nuts W - 240 it is an attractive grade which is

reasonably priced W - 320 are the most popular among

cashew kernels and highest in terms of availability worldwide

W - 450 are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades

04Dec2006 15

Product description

Designation W - 240

Trade Name White Wholes

Color characteristics

Whitepale ivorylight ash Characteristic shapes

Count454 gms size description

220 - 240

Max Moisture

5

Broken Max 5

NLSG NLG max

5 (NLSG amp SW together)

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 8: Cashew Project Report

04Dec2006 8

Cashew

Three main cashew products are traded on the international market

Raw nuts Cashew kernels Cashew nut shell liquid (CNSL) A

fourth product The cashew apple is generally

processed and consumed locally

04Dec2006 9

Cont One major factor that affects the

consumption of cashew kernels in world markets is competition from other tree nuts

The major importers in developed countries contract their requirement for the whole year based on the sales from previous years

04Dec2006 10

Cashew nut shell liquid

Cashew nut processing allows for the development of an important by-product which can increase its added value

The liquid inside the shell (CNSL) represents

15 percent of the gross weight and has some attractive possible medicinal and industrial uses

Main Markets are United state European Union Japan

04Dec2006 11

Cont Cashew is a good crop for smallholder

farmers In Mozambique cashew is considered by smallholder farmers to be one of their most lucrative crops

Thus cashew has the potential to increase the incomes of poor producers to create employment opportunities during harvesting and processing and to increase exports

04Dec2006 12

Quality

First quality

W210 W240 W320 W450 WB WS LWP

SWP

Second quality

LBW210 LBW240 LBW320 LBW

SW210 SW2440 SW320 SW SB SS

LP SP

Third quality DW320 DW350 DW

Fourth quality DW2 DW3

Fifth quality SW2 SW3 DW DWT

Sixth qualityCS SK SK2 TPN TPN2

TPB DW4

04Dec2006 13

Grading

Cashew Kernels are graded into whitescorched wholes pieces splits butts etc depending on the shape size amp color of the kernel

The Govtof India Act prescribes 33 different grades of cashew kernels Only 26 grades are commercially available and exported

W - 180 is the King of Cashew - They are larger in size and very expensive

04Dec2006 14

Cont W - 210 are popularly known as Jumbo

nuts W - 240 it is an attractive grade which is

reasonably priced W - 320 are the most popular among

cashew kernels and highest in terms of availability worldwide

W - 450 are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades

04Dec2006 15

Product description

Designation W - 240

Trade Name White Wholes

Color characteristics

Whitepale ivorylight ash Characteristic shapes

Count454 gms size description

220 - 240

Max Moisture

5

Broken Max 5

NLSG NLG max

5 (NLSG amp SW together)

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 9: Cashew Project Report

04Dec2006 9

Cont One major factor that affects the

consumption of cashew kernels in world markets is competition from other tree nuts

The major importers in developed countries contract their requirement for the whole year based on the sales from previous years

04Dec2006 10

Cashew nut shell liquid

Cashew nut processing allows for the development of an important by-product which can increase its added value

The liquid inside the shell (CNSL) represents

15 percent of the gross weight and has some attractive possible medicinal and industrial uses

Main Markets are United state European Union Japan

04Dec2006 11

Cont Cashew is a good crop for smallholder

farmers In Mozambique cashew is considered by smallholder farmers to be one of their most lucrative crops

Thus cashew has the potential to increase the incomes of poor producers to create employment opportunities during harvesting and processing and to increase exports

04Dec2006 12

Quality

First quality

W210 W240 W320 W450 WB WS LWP

SWP

Second quality

LBW210 LBW240 LBW320 LBW

SW210 SW2440 SW320 SW SB SS

LP SP

Third quality DW320 DW350 DW

Fourth quality DW2 DW3

Fifth quality SW2 SW3 DW DWT

Sixth qualityCS SK SK2 TPN TPN2

TPB DW4

04Dec2006 13

Grading

Cashew Kernels are graded into whitescorched wholes pieces splits butts etc depending on the shape size amp color of the kernel

The Govtof India Act prescribes 33 different grades of cashew kernels Only 26 grades are commercially available and exported

W - 180 is the King of Cashew - They are larger in size and very expensive

04Dec2006 14

Cont W - 210 are popularly known as Jumbo

nuts W - 240 it is an attractive grade which is

reasonably priced W - 320 are the most popular among

cashew kernels and highest in terms of availability worldwide

W - 450 are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades

04Dec2006 15

Product description

Designation W - 240

Trade Name White Wholes

Color characteristics

Whitepale ivorylight ash Characteristic shapes

Count454 gms size description

220 - 240

Max Moisture

5

Broken Max 5

NLSG NLG max

5 (NLSG amp SW together)

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 10: Cashew Project Report

04Dec2006 10

Cashew nut shell liquid

Cashew nut processing allows for the development of an important by-product which can increase its added value

The liquid inside the shell (CNSL) represents

15 percent of the gross weight and has some attractive possible medicinal and industrial uses

Main Markets are United state European Union Japan

04Dec2006 11

Cont Cashew is a good crop for smallholder

farmers In Mozambique cashew is considered by smallholder farmers to be one of their most lucrative crops

Thus cashew has the potential to increase the incomes of poor producers to create employment opportunities during harvesting and processing and to increase exports

04Dec2006 12

Quality

First quality

W210 W240 W320 W450 WB WS LWP

SWP

Second quality

LBW210 LBW240 LBW320 LBW

SW210 SW2440 SW320 SW SB SS

LP SP

Third quality DW320 DW350 DW

Fourth quality DW2 DW3

Fifth quality SW2 SW3 DW DWT

Sixth qualityCS SK SK2 TPN TPN2

TPB DW4

04Dec2006 13

Grading

Cashew Kernels are graded into whitescorched wholes pieces splits butts etc depending on the shape size amp color of the kernel

The Govtof India Act prescribes 33 different grades of cashew kernels Only 26 grades are commercially available and exported

W - 180 is the King of Cashew - They are larger in size and very expensive

04Dec2006 14

Cont W - 210 are popularly known as Jumbo

nuts W - 240 it is an attractive grade which is

reasonably priced W - 320 are the most popular among

cashew kernels and highest in terms of availability worldwide

W - 450 are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades

04Dec2006 15

Product description

Designation W - 240

Trade Name White Wholes

Color characteristics

Whitepale ivorylight ash Characteristic shapes

Count454 gms size description

220 - 240

Max Moisture

5

Broken Max 5

NLSG NLG max

5 (NLSG amp SW together)

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 11: Cashew Project Report

04Dec2006 11

Cont Cashew is a good crop for smallholder

farmers In Mozambique cashew is considered by smallholder farmers to be one of their most lucrative crops

Thus cashew has the potential to increase the incomes of poor producers to create employment opportunities during harvesting and processing and to increase exports

04Dec2006 12

Quality

First quality

W210 W240 W320 W450 WB WS LWP

SWP

Second quality

LBW210 LBW240 LBW320 LBW

SW210 SW2440 SW320 SW SB SS

LP SP

Third quality DW320 DW350 DW

Fourth quality DW2 DW3

Fifth quality SW2 SW3 DW DWT

Sixth qualityCS SK SK2 TPN TPN2

TPB DW4

04Dec2006 13

Grading

Cashew Kernels are graded into whitescorched wholes pieces splits butts etc depending on the shape size amp color of the kernel

The Govtof India Act prescribes 33 different grades of cashew kernels Only 26 grades are commercially available and exported

W - 180 is the King of Cashew - They are larger in size and very expensive

04Dec2006 14

Cont W - 210 are popularly known as Jumbo

nuts W - 240 it is an attractive grade which is

reasonably priced W - 320 are the most popular among

cashew kernels and highest in terms of availability worldwide

W - 450 are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades

04Dec2006 15

Product description

Designation W - 240

Trade Name White Wholes

Color characteristics

Whitepale ivorylight ash Characteristic shapes

Count454 gms size description

220 - 240

Max Moisture

5

Broken Max 5

NLSG NLG max

5 (NLSG amp SW together)

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 12: Cashew Project Report

04Dec2006 12

Quality

First quality

W210 W240 W320 W450 WB WS LWP

SWP

Second quality

LBW210 LBW240 LBW320 LBW

SW210 SW2440 SW320 SW SB SS

LP SP

Third quality DW320 DW350 DW

Fourth quality DW2 DW3

Fifth quality SW2 SW3 DW DWT

Sixth qualityCS SK SK2 TPN TPN2

TPB DW4

04Dec2006 13

Grading

Cashew Kernels are graded into whitescorched wholes pieces splits butts etc depending on the shape size amp color of the kernel

The Govtof India Act prescribes 33 different grades of cashew kernels Only 26 grades are commercially available and exported

W - 180 is the King of Cashew - They are larger in size and very expensive

04Dec2006 14

Cont W - 210 are popularly known as Jumbo

nuts W - 240 it is an attractive grade which is

reasonably priced W - 320 are the most popular among

cashew kernels and highest in terms of availability worldwide

W - 450 are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades

04Dec2006 15

Product description

Designation W - 240

Trade Name White Wholes

Color characteristics

Whitepale ivorylight ash Characteristic shapes

Count454 gms size description

220 - 240

Max Moisture

5

Broken Max 5

NLSG NLG max

5 (NLSG amp SW together)

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 13: Cashew Project Report

04Dec2006 13

Grading

Cashew Kernels are graded into whitescorched wholes pieces splits butts etc depending on the shape size amp color of the kernel

The Govtof India Act prescribes 33 different grades of cashew kernels Only 26 grades are commercially available and exported

W - 180 is the King of Cashew - They are larger in size and very expensive

04Dec2006 14

Cont W - 210 are popularly known as Jumbo

nuts W - 240 it is an attractive grade which is

reasonably priced W - 320 are the most popular among

cashew kernels and highest in terms of availability worldwide

W - 450 are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades

04Dec2006 15

Product description

Designation W - 240

Trade Name White Wholes

Color characteristics

Whitepale ivorylight ash Characteristic shapes

Count454 gms size description

220 - 240

Max Moisture

5

Broken Max 5

NLSG NLG max

5 (NLSG amp SW together)

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 14: Cashew Project Report

04Dec2006 14

Cont W - 210 are popularly known as Jumbo

nuts W - 240 it is an attractive grade which is

reasonably priced W - 320 are the most popular among

cashew kernels and highest in terms of availability worldwide

W - 450 are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades

04Dec2006 15

Product description

Designation W - 240

Trade Name White Wholes

Color characteristics

Whitepale ivorylight ash Characteristic shapes

Count454 gms size description

220 - 240

Max Moisture

5

Broken Max 5

NLSG NLG max

5 (NLSG amp SW together)

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 15: Cashew Project Report

04Dec2006 15

Product description

Designation W - 240

Trade Name White Wholes

Color characteristics

Whitepale ivorylight ash Characteristic shapes

Count454 gms size description

220 - 240

Max Moisture

5

Broken Max 5

NLSG NLG max

5 (NLSG amp SW together)

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 16: Cashew Project Report

04Dec2006 16

Product description

Grade Designation

W - 320

Trade Name White Wholes

Colour characteristics

Whitepale ivory light ash Characteristic shapes

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 17: Cashew Project Report

04Dec2006 17

Product description

Grade Designation W - 450

Trade Name White Wholes

Colour characteristicsWhitepale ivorylight ash Characteristic shapes

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 5 (NLSG amp SW together)

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 18: Cashew Project Report

04Dec2006 18

Product description

Grade Designation SW - 320

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

300 - 320

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW

together)

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 19: Cashew Project Report

04Dec2006 19

Product descriptionGrade Designation SW - 450

Trade Name Scorched Wholes

Colour characteristics

Kernels may be scorched slightly darkened due to over - heating while roasting or drying in drierborma

Count454 gms size description

400 - 450

Max Moisture 5

Broken Max 5

NLSG NLG max 75 (NLSG amp SSW together)

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 20: Cashew Project Report

04Dec2006 20

Product descriptionDesignation SSW

Trade Name Scorched Wholes Seconds

Colour characteristics

Kernels may be over - scorched immature shrivelled (Pirival) speckled (Karaniram) discoloured and light blue

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 75

(DW)

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 21: Cashew Project Report

04Dec2006 21

Product description

Designation FS

Trade Name Fancy Splits

Colour characteristicsWhite ivory or light

ash Kernels split naturally lengthwise

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SS)

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 22: Cashew Project Report

04Dec2006 22

Product descriptionDesignation FB

Trade Name Fancy Butts

Colour characteristics

Whitepale ivory or light ash Kernels broken cross - wise (evenly or unevenly) naturally attached

Count454 gms size description

NA

Max Moisture 5

Broken Max 5

NLSG NLG max 5

(SB)

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 23: Cashew Project Report

04Dec2006 23

Product descriptionDesignation BB

Trade Name Baby Bits

Colour characteristics White Pale ivory or light ash

Count454 gms size description

Plemules and broken kernels smaller than those described as SWP but not passing through a 10 mesh 24 SWG Sieve 170 mm IS Sieve

Max Moisture 5

Broken Max NA

NLSG NLG max 1

(Cashew powder)

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 24: Cashew Project Report

04Dec2006 24

Labor Required

Women Semi skilled labor The industry is dominated by small-

scale single-owner or family-owned businesses

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 25: Cashew Project Report

04Dec2006 25

Cont

Traditionally the various processing operations were performed manually by experienced semi-skilled workers This is still the case in India which is the world s largest producer of cashew kernels

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 26: Cashew Project Report

04Dec2006 26

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 27: Cashew Project Report

04Dec2006 27

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 28: Cashew Project Report

04Dec2006 28

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 29: Cashew Project Report

04Dec2006 29

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 30: Cashew Project Report

04Dec2006 30

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 31: Cashew Project Report

04Dec2006 31

Processing step

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 32: Cashew Project Report

04Dec2006 32

Cont

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 33: Cashew Project Report

04Dec2006 33

Govt Scheme

[as per 10th plan period]

CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack(max Rs 8 lakhs)

CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max Rs 8 lakhs)

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 34: Cashew Project Report

04Dec2006 34

Cont CEPC provide subsidy to cashew exporter

for adopting flexi-pouch vacuum packing systems either in indigenously or through import (Max Rs 5 lakhs)

CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories amp get certification like ISOHACCP etc( Max Rs 5 lakhs for one system amp Rs 8 lakhs for more then one system)

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 35: Cashew Project Report

04Dec2006 35

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 36: Cashew Project Report

04Dec2006 36

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 37: Cashew Project Report

04Dec2006 37

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 38: Cashew Project Report

04Dec2006 38

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 39: Cashew Project Report

04Dec2006 39

Raw nut production

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 40: Cashew Project Report

04Dec2006 40

Cont

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 41: Cashew Project Report

04Dec2006 41

Cont

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 42: Cashew Project Report

04Dec2006 42

GLOBAL TRADE Among 28 countries in the world involved in

cashew production 26 countries are actually engaged in production of cashew either for export or for their own consumption or for both export and domestic consumption

The share of the Indian crop vis-agrave-vis world production for the year 2001 was 32 at 375000 tons

The Brazil crop constituted 15 of the world

crop at 1178000 tons

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 43: Cashew Project Report

04Dec2006 43

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 44: Cashew Project Report

04Dec2006 44

INDIAN CASHEW INDUSTRY IN A NUTSHELL

India started its exports in the early part of 20th century with a small quantity of 50 MT which has

increased almost to the level of 01 million MT by the end of the same century Simultaneously

the export earnings almost tripled during the last decade of the 20th century

Cashew forms an important component of the basket of agricultural products exported from India

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 45: Cashew Project Report

04Dec2006 45

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 46: Cashew Project Report

04Dec2006 46

Employment This industry provides employment to rural

poor as under In cashew processing factories 03 million In cashew farms 03 million Of which 1048766 Women workers 95 ie 057 million 1048766 Economically backward communities

50 ie 03 million

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 47: Cashew Project Report

04Dec2006 47

INNOVATION Indian researcher have developed a cashew

nut Sheller at IIT kharagpur in 2005 for use in a processing plant with cashew shelling capacity of 100kg per hour

It is based on centrifugal forces This forces exerted by an impeller with a diameter of 265cm RPM have been standardized to 3000 RPM for better shelling amp prevent vibrations in the machine

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 48: Cashew Project Report

04Dec2006 48

Cont The CEPC has set up a Quality

Upgradation Laboratory amp Technical Consultancy Centre at Quilonthe nerve centre of the Indian cashew industry

The Quality Upgradation Laboratory has the most modern state ndash of- the art equipments procured from india and abroad

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 49: Cashew Project Report

04Dec2006 49

Cont A new planting

method which set the trees directly in the ground eliminating the need for costly and hard-to-find plastic bags (Mozambique)

Organic Cashew

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 50: Cashew Project Report

04Dec2006 50

Why process in india

Better technology Inexpensive amp semi- skilled labor High capacity to process Leader since beginning in processing Indias cashew industry was the first to use

quality control for improvement of performance

India also has a long tradition and good reputation as a high quality processor of cashew

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 51: Cashew Project Report

04Dec2006 51

Cont Lack of financing raw materials in

Mozambique Lack of buyers in Mozambique The ISO 6477 standard was

introduced in 1988 in India No national export brand Marketing constraint High rate of taxation in Mozambique

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 52: Cashew Project Report

04Dec2006 52

The domestic market

It appears that almost 50 of the kernels produced in India are being sold on the domestic market

But this marketrsquos dynamics and major players are as yet unexplored as are the linkages between domestic and international markets

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 53: Cashew Project Report

04Dec2006 53

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 54: Cashew Project Report

04Dec2006 54

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 55: Cashew Project Report

04Dec2006 55

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 56: Cashew Project Report

04Dec2006 56

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 57: Cashew Project Report

04Dec2006 57

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 58: Cashew Project Report

04Dec2006 58

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 59: Cashew Project Report

04Dec2006 59

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 60: Cashew Project Report

04Dec2006 60

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 61: Cashew Project Report

04Dec2006 61

Export from India

Qty Value Qty Value Qty Value

(MT) (RsCrs) (MT) (RsCrs) (MT) (RsCrs)

USA 48504 88155 61546 128849 43149 95833Netherlands 12237 21503 15693 34567 18736 40882

UAE 6239 10242 6690 14823 8274 18441

UK 5392 9561 7108 15834 6238 14088

Japan 5522 10195 5047 11121 4685 1102

France 2444 4361 3329 6649 3470 7579Saudi Arabia 2011 3295 2998 6155 2827 5961

Spain 2198 4111 2870 648 2648 6109

Belgium 1769 3388 2497 5318 2378 5448

Germany 1574 2611 1966 4239 1991 4221

Russia 1413 2209 2331 4341 1990 3877

Greece 830 1557 1511 3374 1859 4261

Canada 1354 2272 1540 3139 1558 3314

I taly 986 1774 1119 2372 1236 252

Countries

2003-2004 2004-2005 2005-2006

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 62: Cashew Project Report

04Dec2006 62

ContAustralia 275 438 873 1836 1114 2529

Norway 890 159 1318 2915 873 1989

Kuwait 847 1534 574 1278 863 1976Hong Kong 477 1025 719 1771 788 1728

I srael 508 971 964 2326 752 174

Singapore 513 924 510 116 694 1361

Lebanon 561 1128 655 1495 470 961

Bahrain 439 682 362 708 393 78Korea Rep 311 583 213 522 255 585New Zealand 332 558 201 446 204 462

Malaysia 40 069 62 139 191 405

Others 3162 5713 3973 9068 6505 13417

Total 100828 180443 126667 270924 114143 251486

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 63: Cashew Project Report

04Dec2006 63

Production Location in India

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 64: Cashew Project Report

04Dec2006 64

Cashew fruit

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 65: Cashew Project Report

04Dec2006 65

Current news

In June 2005 Mozambique Govt unveiled a newly branded cashew nut ldquoZAMBIQUErdquo for its first export sale to a US buyer Suntree

India Market share in cashew industry

has declined due to entry of Vietnam

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 66: Cashew Project Report

04Dec2006 66

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 67: Cashew Project Report

04Dec2006 67

International PLC Introduction Phase(1961-1977)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 68: Cashew Project Report

04Dec2006 68

International PLC

Introduction Phase(1961-1977) Market locations

bull United States over 50 bull Netherlands (10)bull Germany (7)bull Japan (5) bull United Kingdom (5)

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 69: Cashew Project Report

04Dec2006 69

International PLC Introduction Phase(1961-1977)

Competitive factors Skilled semi-skilled amp cheap labor Availability of raw nuts Processing facilities amp techniques

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 70: Cashew Project Report

04Dec2006 70

International PLC Introduction Phase(1961-1977)

Production Technology No Technology was involved in this stage Manually done

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 71: Cashew Project Report

04Dec2006 71

International PLC Growth Phase(1977-1999)

Production locations China Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Savador Tanzania Indonesia Mexico

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 72: Cashew Project Report

04Dec2006 72

International PLC Growth Phase(1977-1999)

Market locations USA EUROPE CHINA JAPAN AUSTRALIA RUSSIA SOUTH AFRICA

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 73: Cashew Project Report

04Dec2006 73

International PLC

Growth Phase(1977-1999) Competitive factors

Skilled and cheap labors Production costs Working capital rate Quality amp reputation Processing Techniques

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 74: Cashew Project Report

04Dec2006 74

International PLC Growth Phase(1977-1999)

Technical factors Roasting amp shelling was done

mechanically Mechanical technique were also

involved during separation pre-grading amp drying

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 75: Cashew Project Report

04Dec2006 75

International PLC

Prolonged Phase(2000 onwards) Production locations

Mozambique India Angola Malaysia Benim Sri lanka Cote d ivoire Thailand Guineabissau Vietnam Kenya Brazil Madagascar Dominican Republic Nigeria El Salvador

Tanzania Togo Indonesia Senegal Mexico Ghana Dominican Republic Burkina

faso Honduras Peru Bangladesh

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 76: Cashew Project Report

04Dec2006 76

International PLC Prolonged Phase (2000 onwards)

Market locations USA CHINA JAPAN AUSTRALIA NETHERLANDS FRANCE RUSSIA SOUTH AFRICA AND OTHERS

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 77: Cashew Project Report

04Dec2006 77

International PLC Prolonged Phase (2000 onwards)

Competitive factors Modern Lab facilities Govt schemes Working capital (Investment) Quality Brand Skilled amp semi-skilled labors

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 78: Cashew Project Report

04Dec2006 78

International PLC

Prolonged Phase (2000 onwards) Technical factors

State-of- the-art laboratories (India) to determine the nutrition content of cashew amp quality upgradation

Sheller developed by IIT-ans for better shelling capacity

04Dec2006 79

Page 79: Cashew Project Report

04Dec2006 79