Cashew Report

CHAPTER - 1

INTRODUCTION

1.1 INTRODUCTION

Cashew is a tropical evergreen tree known for its seed

worldwide. It flowers once a year between the month of November

and January. The sweet flavored nutriest feature of cashew nut like

seeds are obtained from the bottom of the false fruit of this tree,

which is termed as cashew apples. The Cashew nut can be seen

sitting smugly under the soft belly of the cashew' apple. Cashew

seed is the food product. It is placed third among the largest

consumed tree nuts in the world. The commercial production of

cashew seed is done in more than 32 countries of the world, mostly

in hot and dry agro climatic conditions suitable for cashew

cultivations. Now it has become the number one crop in the world.

Cashew was introduced in Goa by Portuguese during 16th

century. Today this crop is one of the major cash crops of Goa

covering an area of 512000 hector. Since its introduction, cashew

has very well adapted to Indian climatic condition and it is grown

in the east and west coastal region of India. Later it spread as

popular crop to other part of India.

Common names of the cashews and its products are

cashu, caju, acaju, acajou, anacarde, cacajuil, pomme, Maranon,

jocote Maranon, merey, jambu, cashew apple, cashew nut and

cashew kernel etc. In Mozambique, the maconde tride refer to it as

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the “Devil Nut”. It is offered at wedding ceremonies as a token of

fertility and is considered by many to have aphrodisiac properties.

The cashew plantation is mainly to control soil erosion

and to increase forest cover. It also helps to reduce the effects of

cyclone and tidal waves. The cashew is mainly considered as a

employment provider to socially and economically backward

communities .The cashew plantation helps to utilize the vast

stretches of vast land in the country. Besides earning more foreign

exchange, they facilitate economic growth.

1.2 SCOPE OF THE STUDY

India is the largest producer, processor and exporter of

cashews in the world. In India, cashew export accounting into 60%

of world’s total market. Compared to previous year export

performance there is a decrease in volume of export in the current

year. The cashew industry faces lots of problems. So the study was

undertaken to know about the problems faced by cashew exporters.

1.2 NEEDS FOR THE STUDY

Cashew industry is the one of the foreign exchange

earning source in India. Now the cashew exporters face lots of

problems like tax problems, competition, shortage of raw cashew

nut, fluctuations in exchange rate and trade dispute.

1.4 OBJECTIVES OF THE STUDY

To examine the problems faced by cashew exporters from India.

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To study the overall performance of the cashew industry in

India.

To assess the growth of cashew export from India.

To understand the year wise and country wise export from

India.

To suggest suitable recommendation for improving the

performance of the industry.

1.5 RESEARCH METHODOLOGY

RESEARCH DESIGN:-

As a first stage the search on literature about concept,

method of utilization, its proceedings all that require a descriptive

analysis. The opinions were collected through questionnaire.

The results were analyzed by applying tools and result has

been interpreted. So the study was analytical research.

SAMPLE DESIGN:-

The study was conducted in Kerala. The exporters list was

collected from the website www.cashewindia.org.

SAMPLE SIZE:-

A sample of 50 exporters was taken for the study. Among

them, 48 samples are collected from Kollam district and remaining

samples collected from Cochin district.

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http://www.cashewindia.org/

TOOLS APPLIED:-

The data were analyzed through the application of various

statistical tools like chi- square test and simple percentage analysis.

Chi-square Test

The formula is 2 = (O-E)2

E

Where O = Observed frequency

E = Expected frequency

1.6 DATA COLLECTION TECHNIQUES

The study based on both primary and secondary data.

Primary data were collected through structured questionnaire and

secondary data from annual report of cashew export promotion

council of India, books, magazine, journals, and newspapers and

through internet.

1.7 LIMITATION OF THE STUDY

The Sample size was limited.

Time for the study was less.

The exporters hesitated to give the correct opinion on the

questions.

The unwillingness of the exporters provided less

information.

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1.8 CHAPTERISATION:-

CHAPTER I: Introduction, Scope of the study, Need for

the study, Objectives of the study,

Research methodology, Data Collection,

Limitations of the study.

CHAPTER II: Indian Cashew Industry, Cashew

Products, Cashew Export Promotion

Council of India, Cashew and its

Importance, Major problems faced by

cashew exporters

CHAPTER III: Review of Literature

CHAPTER IV: Data analysis & interpretation

CHAPTER V: Findings & Suggestions

CHAPTER VI: Conclusion

Bibliography

Appendix

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CHAPTER – II

INTRODUCTION

2.1 INDIAN CAHEW INDUSTRY

India is the largest producer, processor, exporter, and the

second largest Consumer of cashew kernels in the world. Cashew

ranks second in agriculture and horticulture commodities exported

from India. The country is earning 25,000 Cores through the export

of cashew kernels yearly. Over 65 per cent of the world

cashew kernels are accounted by India. Today, India dominates the

world cashew market. Over 685,000 hectares are under cashew

cultivation here. With an average annual export worth US$ 564

million, India meets two third of world demand for cashew. USA is

the largest buyer of Indian cashews. It is developed only in 20th

century.

Indian cashews are consumed in as many as 60 countries

all over the world, the major markets being the United States, the

United Kingdom, Japan, Netherlands, Australia, Canada, Germany

Hong Kong, Singapore, New Zealand and Middle East countries.

Vietnam is the largest producer of raw cashew followed by India

and Brazil. India dominates and leads the cashew kernel production

list.

There are 32 countries successfully cultivate cashews.

Among these Vietnam, India and Brazil are the top three producers

and processor of cashews. Cashew Kernels are facing stiff

competition from other edible nuts like almonds, walnuts,

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pistachios, macadamia nuts and hazel nuts. India also facing

competition from Vietnam and Brazil.

India has 24 per cent of the global area under cashew but

contributes only 19 per cent of global production of global

production. Whereas,Vietnam with 10 percent of the global area

contributes an average yield of 2.8 tone per hectare as against

India’s around 800 kg.

India was the first country started to exporting manually

processed cashew nut. These processing Operations were

performed by experienced skilled workers. In general Indian

processing system involves lower investment and variable costs

and achieves far efficiency in terms of kernel. However this system

requires large number of experienced workers who work at

unhealthy level of exposure to CNSL. Thus cashew has the

potential to increase the income of poor producers. To create

employment opportunities during harvesting and processing and to

increase exports.

2.1.1 DOMESTIC PRODUCTION OF RAW CASHEW NUT:-

India has always been a major player in the production of

cashew. It is the largest producer of raw cashew in the world. The

major states in India in which cashew has been cultivated are

Kerala

Karnataka

Goa

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Maharashtra

Tamil Nadu

Andhra Pradesh

Orissa

West Bengal

The production of cashew in India has been fluctuating

during the recent years. In India, Maharashtra produces more

cashews compared to other states. Poor qualities of cashews are

grown in some states, which is due to the wrong harvesting

techniques. Maharashtra produces 31% of total production from

India. Kerala has been standing at fourth position. They produce

11% of total production. According to the estimates by the

Directorate of Cashew nut & Coco Development, the production of

raw cashew nuts in India during 2009-2010 was 6,13,000 M.T. as

against the estimate production of 6,95,000 M.T. during 2008-

2009. The raw cashew nut requirement of cashew processing

industry in India is estimated to be over 12 lacks M.T. per annum

and the availability is about half of this. The balance is met by

import from other producing countries. The Govt. is taking in this

direction by promoting replantation, expansion of new cultivation

etc. The Kerala Govt. has set up a special agency (Kerala state

agency for cashew cultivation) for promoting cashew cultivation.

The major trading canters in India are:

Palasa

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Cochin

Quilon

Magalore

Kollam

The Government has contemplated various developmental

measures to attain self-sufficiency in the production of raw cashew

nuts in the States. The Directorate of Cashew-nut & Cocoa

Development (DCCD), Ministry of Agriculture has implemented

the measures under National Horticulture Mission and in the North

- Eastern States under Technology Mission. New plantation

development and replanting of old senile and uneconomical

cashew gardens with high yielding varieties are the major activities

of the States for increasing production of cashew with supporting

programmers like establishment of nurseries, frontline technology

demonstrations, popularizing utilization of cashew apple, publicity

for the promotion of crop, pest and disease management, human

resources development, promotion of integrated nutrition

management.

A scheme on up-gradation of existing old cashew

processing units in India has been sanctioned under National

Horticulture Mission (NHM) to be executed in the states of West

Bengal, Orissa, Andhra Pradesh, and Tamil Nadu at a total cost of

Rs.56.00 lacks during the year 2010-11. Recently, the Govt. has

received a request for financial assistance for International brand

building & new market development in Russia and China from the

Kerala State Cashew Development Corporation Ltd.

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2.1.2 IMPORT OF RAW CASHEW NUT:-

Due to the wrong harvesting technique and aging of

cashew tree adversely affect the domestic production. Now India’s

domestic production is around 7 lack tones while their processing

capacity is about 14 lack tones. Hence India has to depend on

imported raw cashew nut for more than half of the requirement.

Four tones of raw cashew nut need to be processed for producing

one tone of cashew kernels. India mainly import raw cashew nuts

from African countries like Ivory Coast,Guinea Bissau, Tanzania,

Indonesia, Ghana, Nigeria and Mozambique.

There is a rise in imports of raw nuts which had gone up

by 24.26 per cent in 2009-10 from the previous fiscal. India

imported 7, 52,854 tones of raw nuts valued at Rs 3,037.35 core in

2009-10 as against 6, 05,850 tones valued at Rs 2,632.41 core in

2008-09. The unit import price for raw cashew nut was Rs. 40.34/

kg. During 2009-10 as against Rs. 43.45/kg during the previous

year. The import value increased by 15.38 percent while the unit

import price by 7.71 per cent.

2.1.3 EXPORT PERFORMANCE:-

From India, cashew kernels and cashew nut shell

liquid/ cardanol are mainly exported to different countries of the

world. Compared to the previous year export performance of India

there is a fall in during 2009-2010, due the global recession.

As per the export- import statistics published by

DGCI&S, Kolkata, the share of agricultural products in the total

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export earnings of the country during 2009-10 was 5.56% and

cashew kernels ranked seventh among contributing 5.59%.

The total export of cashew kernels from India during

2009-10 was1,08,120 M.T valued at Rs. 2905.82 cores (US$ 613

Million).It showed a decrease in comparison with the export of

1,09,522 M.T. cashew kernel valued at Rs. 2988.40 corers (US $

650 Million) during 2008-2009. There is a 1.28% decrease in

quantity.

The unit price of cashew kernels was 268.76 per Kg.

compared to Rs. 272.86per kg during 2008-2009 recording a

decrease of 1.5%.

The export of Cashew nut Shell Liquid (CNSL) from India

during 2009-2010 was 9,748M.T valued at 24.12 corers (US$ 5.08

million). It showed a increase in comparison to the export of 9,099

M.T. of cashew nut shell liquid valued at 26.06 corers (US $ 5.67

Million) during 2008-2009. There is a 7.13% increase

The unit price of CNSL/ Cardanol during 2009-10 was

24.74 per Kg. compared to Rs. 28.64 per kg during 2008-2009

recording a decrease of 13.62%.USA, UAE, Netherland and Japan

continued to be the major buyer. Export to American Zone was

29%, European Zone 30%, West Asia and Africa 29%, South

East and Far East Zone 10% and oceanic zone 2%.

During the last five years, exports declined 10.5 per cent

and Vietnam took advantage of it. Its export increased 67 per cent

during this period and is now claiming to export 50 per cent more

than India.

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2.1.4 TRANSPOTATION:-

There are regular shipping facilities from India to all

ports of the world. Major shipments from India take place through

Cochin port. Other ports are Tuticorin, Mangalore, Madras and

Bombay. Regular services of container ships are available from

Indian ports on India-USA, India-UK/Continent, India-Australia,

India-Japan, India-Middle East and India-Singapore route.

For India the cashew industry has economic and social

significance as the Industry earns valuable foreign exchange for the

country and also provides employment to lacks of people. In

cashew processing factories, over 95% of the workers are women

from lower strata of the society, mainly belonging to socially and

economically back ward communities. Thus the industry has to

play a leading role in social and financial upliftment of the rural

poor.

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2.2 CASHEW PRODUCTS

Three main cashew products are traded on international

market:- raw cashew nut, cashew kernels, cashew nut shell liquid

(CNSL) . A fourth product, the cashew apple is generally

processed and consumed locally. But now cardanol could be

exported. The cardanol continued to be in the list of items under

Minor Forest Produce.

2.2.1 RAW CASHEW NUT:-

The raw cashew nut is the main commercial product of

the cashew tree, though yield of cashew apple are 8 to 10 times the

weight of the raw cashew nut. It is attached to the lower portion of

the cashew apple. The Cashew nut can be seen sitting smugly

under the soft belly of the cashew' apple. Raw cashew nut are

either exported or processed prior to export. Processing of raw nuts

releases the by product CNSL that has industrial and medical

applications. The skin of nut to high in tannins and can be

recovered and used in the tanning of hides. The fruit of cashew tree

that can be made into a juice with a high Vitamin C contents and

fermented to give a high proof spirit,

2.2.2 CASHEW KERNELS:-

They are obtained through the processing of raw cashew

nut. It is estimated that 60% of cashew kernels are consumed in the

form of snacks, remaining 40% are included in confectionary. India

is the largest producer and exporter of cashew kernels in the world

over 65% of world export of cashew kernels is accounted by India.

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Cashew Kernel intact from the shell and grading them

carefully to superior standards required by top food companies all

over the world. The un-shelled nut is steamed to soften the shell

and carefully cut open. The kernel is dried to loosen the skin which

is then peeled off. Whole kernels are graded by size and color.

Pieces are chopped into required sizes.

The consumers are interested in quality and health aspects

of foods. One major factor affects the consumption of cashew

kernels in world market is competition from other tree nuts.

Specifications:-

Standard specification for Indian cashew kernels for export

has laid down by the government of India under Export (quality

control and inspection) Act 1963.

Grades:-

Cashew Kernels are graded into white/scorched wholes,

pieces, splits, butts etc. depending on the shape, size & colour of

the kernel. The Govt. of India Act prescribes 33 different grades of

cashew kernels. Only 26 grades are commercially available and

exported. They are:

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

expensive.

W - 210 are popularly known as ' Jumbo ' nuts.

W - 240, it is an attractive grade which is reasonably priced.

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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.

Scorched wholes are the another grade of cashew kernels, which

have a slight brown color due to longer roasting. They have all

anther characteristics of white kernels and the same nutritional

quality.

1. CASHEW KERNELS – WHITE WHOLES

White Wholes - 180

White Wholes - 210

White Wholes - 240

White Wholes - 320 White Wholes - 450

White Wholes - 500

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http://www.cashewindia.org/homeFiles/c0310c11.jpg%00%E5%A1%B9%EF%92%81%E1%B4%BB%E4%A1%BF%E2%B2%AF%E5%B6%82%E8%97%84%E6%8C%A7%00%00%EA%AE%A5

http://www.cashewindia.org/homeFiles/c0310c12.jpg





2. CASHEW KERNELS - SCORCHED WHOLES

Scorched Wholes(SW)

ScorchedWholes (SW) - 180

Scorched Wholes(SW) - 210



ScorchedWholes (SW) -

450

Scorched Wholes - 500

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3. CASHEW KERNELS - DESERT WHOLES

Scorched Wholes Seconds (SSW)

Dessert Wholes(DW)

4. CASHEW KERNELS - WHITE PIECES

Butts (B)

Splits (S)Large White Pieces

(LWP)

Small White Pieces (SWP) Baby Bits(BB)

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5. CASHEW KERNELS - SCORCHED PIECES

Scorched Butts (SB) Scorched Splits (SS) Scorched Pieces (SP)

Scorched Small Pieces (SSP)

6. CASHEW KERNELS - DESSERT PIECES

Scorched Pieces Seconds (SPS)

Dessert Pieces (DP)

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2.2.3 CASHEW NUT SHELL LIQUID (CNSL) :-

Cashew nut shell liquid is a co product of cashew nut. It

is a dark fluid comprised of different unsaturated alkenyl

substituted phenol. The oil is being extracted from cashew shell,

which is the pericarp fluid of cashew nut. This is purely a natural

product and no chemical is added.

The CNSL has got wide range of applicability for

making raw materials for automobile brake lining such as liquid

resign, PF resign and Cashew Friction Dust (CFD). It is also used

for manufacture of paint and varnishes.

The cashew nut shell liquid is an important raw material

for a number of polymer base industries like paints and varnishes,

industrial and decorative laminates, brake linings and rubber

compounding resin. CNSL is used commercially as a phenolic raw

material for the manufacture of certain resin and plastic. In

particular, it is used as a friction modifier in the manufacture of

industrial belting and clutches. It is also used for reinforcing

synthetic rubber and in laminating or impregnating material where

oil acid resistance is required. Other uses include the manufacture

of lacquer, electrical insulation materials, etc

Advantages: Improved Flexibility and reduced brittleness,

Solubility in Organic Solvents, Improved Process ability,

Resistance to 'Cold Wear', Good Electrical Resistance, Better

Water Repellence, Improved alkali and acid resistance,

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Compatibility with other polymers, Antimicrobial Property,

Termite and Insect Resistance.

2.2.4 CARDANOL:-

Cardanol is a naturally occurring phenol manufactured

from cashew nut shell liquid (CNSL), a by product of cashew nut

processing. Distillation of CNSL under reduced pressure gives

cardanol. The residue will be rich in cardanol which is

conveniently used in friction dust for brake lining, also in rubber

compounding formulation. Cardanol phenol resin was developed in

the 1920s by Mortimer T. Harvey a student of Columbia

University. Cardanol is a phenol obtained from anacardic acid, the

main component of CNSL. Cardanol based resin posses an

outstanding resistance to acid and alkalies. Chlorinated cardanol is

reported to have good insecticidal, pesticidal and germicidal

properties. Co-polymer of cardanol with other film forming

material give good quality lacquer giving golden yellow films both

of drying and baking type.

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2.3 THE CASHEW EXPORT PROMOTION

COUNCIL OF INDIA

The Cashew Export Promotion Council of India (CEPC)

was established by the Government of India in the year 1955, with

the active cooperation of the cashew industry with the object of

promoting exports of cashew kernels and cashew nut shell liquid

from India. By its very set up, the Council provides the necessary

institutional frame-work for performing the different functions that

serve to intensify and promote exports of cashew kernels and

cashew nut shell liquid and allied products.

The council undertakes detailed studies and collects trade

information and other particulars relating to the market potential of

cashews and makes them available to the exporters. It also deals

with the trade enquiries received from various parties and passes

them on to its members. The global trade information on cashew

and cashew products is updated on continuous basis.

The Council also extends its good offices in settling

complaints amicably in the matter of exports/imports either on

account of quality and /or variation in fulfillment of contractual

obligations.

As on 31st March 2010 the Cashew export Promotion

council of India had 183 ordinary Members, 9 Government

Nominee making the total membership to 192.

The council sponsors’ trade delegation and study teams

from time to time for on the spot study of various markets abroad.

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These teams submit their reports on their return, on the markets

visited its potential and trends which serves as reference material

and also provide the basis for necessary follow up action. The

market information collected by these teams Delegations is

disseminated to the trade industry.

The council participates in specialized international Food

fairs and exhibitions and general fairs abroad directly as well as

through the Trade promotion Organizations of Govt. of India. As

the Council represents the whole industry, it arranges display of

products received from the members free cost. The enquiries

received are circulated amongst the members for their contracting

the parties abroad for business negotiations.

During the year 2009-2010, the council participated in five

international exhibition viz. Fancy Food show (New York), Africa

Big seven Exhibitions (Johannesburg), Fine food (Australia), India

show (st.Petersburg), ANUGA (Cologne). The council had

disbursed a sum of Rs. 20.60 lacks to member exporters under

MDA assistance for participating in international fairs and trade

delegations.

The Council publishes two periodicals viz. Monthly

'Cashew Bulletin' and Quarterly 'Indian Cashew Journal' which

contains market news, country profiles, Government's notifications

and circulars, export and import statistics, commodity prices, news

and notes on cashew etc. Apart from this, the Council also

publishes Cashew Grades Folder , Delegation Reports, Statistical

Reports, Cashew Recipe Books, Directory of Indian Cashew

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Exporters, brochures, booklets on cashew kernels, cashew nut shell

liquid etc.

The council has sponsored many research projects for

improvement of packaging , developing new products out of

cashew, etc in association with reputed research institutions like

Indian Institute of Packaging, Central food Technological research

Institute, regional Research Laboratories, etc. The council had

entrusted Research and development project with Central Food

Technological Research Institute, Mysore for developing a

technology for commercial manufacture of value added products

like cashew butter, cashew kernel oil etc. A research project to

develop of transparent resins from cashew nut shell liquid is being

undertaken by Regional Research Laboratory, Trivandrum, for the

council.

The council has set up CEPC Laboratory and Technical

Division at Quilon. The Laboratory renders analytical services to

exporters for ensuring the quality of their products. National

accreditation board for Testing and calibration laboratories

(NABL). Under the Department of Science and Technology,

Government of India has granted accreditation in the fields of

Chemical Testing Biology Testing to the Laboratory, This

accreditation is recognition of the technical competence of the

Laboratory acquired during the years.

The Laboratory also extends consultancy services to

exporters for technology up gradation, Modernization of factories,

adaptation of HACCP/ISO 9000 quality systems in cashew

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factories etc. The Training Centre attached to its Laboratory at

Quilon imparts training to cashew processors, workers in

processing factories, etc. on good manufacturing practices,

maintenance of hygienic standards, etc.

In addition to the above the council also undertakes

publicity abroad with a view to projecting the ‘Product Image’

which serves to focus attention on the high quality and superiority

of Indian cashews.

With regards to the development of cashew processing-

exporting sector, the council provide grant- in- aid to exporters

under Five year plan Scheme for projects like Modernization of

factories, Technology transfer, improving quality by adopting ISO/

HACCP quality systems acquiring latest packaging system etc.

2.3.1 BENEFITS PROVIDED BY CEPCI TOWARDS

MEMBER EXPORTERS

Export of cashew kernels and CNSL & cardanol:-

Export of Cashew kernels, CNSL AND Cardanol could be

carried out the member of CEPC HAVING A IE code.

Cardanol continued to the included in the list of items under

Minor Forest Produce.

Import of raw cashew nut:-

During 2009-2010 the member of CEPC could import raw

cashew nut under OGL

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Export incentives:-

The DEPB rate for export of cashew kernels continued at

1.5%

Duty draw back rates remained at 1% of FOB value.

Vishesh Krishi Aur Gram Upaj Yojana (VKGUY) for

cashew and CNSL during 2009-2010 at 5% .This helped the

industry to survive in spite of global recession.

Production development:-

Since the shortage of raw cashew nut continued to be a

serious problem of Indian cashew industry, the council

continued its effort to persuade the authorities concerned to

implement schemes for increasing production of raw cashew

nut.

Sales Tax/ VAT / CST/ Service Tax:-

The council continued to pursue with the Central/ State

Govt. to exempt or reduce the rate of VAT for raw cashew

nut and cashew kernels.

CST rates continued unchanged

The council has been representing to the Govt. to exempt

cashew export from purview of service tax.

Assistance for Export Promotion Activities to Exporters

Five Year Plan Scheme : -

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The Govt. of India, Department Of Commerce has

accorded approval to the Export Promotion Scheme of the

Cashew Export Promotion Council of India to implement a

scheme “Modernization & Diversification Scheme”. This

scheme extending financial assistance to member exporters

for upgrading and improving their processing and

manufacturing facilities. During 2009-2010, the council

disbursed Rs. 5.00 Crs to 380 exporters under this scheme.

This Scheme has following four components. They are:

Process Up gradation / Modernization of Cashew

Processing Units.

Setting up facilities for value addition / consumer

packing of Cashew kernels.

Adaptations of new packaging system.

Implementation of internationally quality systems like

ISO, HACCAP, ORGANIC etc.

Market Development Assistance (MDA) Scheme:-

During 2009-2010, a sum of 20, 56,158/- was

distributed to 35 member exporters as grant towards

international fairs, trade delegations etc under this scheme.

2.4 CASHEW AND ITS IMPORTANCE

2.4.1 Cashew Wood: The cashew tree is known for producing

wood with high levels of resin. The resin from the cashew wood is

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made into a varnish for books wood and floorings which is to

prevent deteriation from ants and other home-invading insects.

2.4.2 Raw Cashew Nut: The raw cashew nut is not edible.

However through processing, the caustic oil is removed from the

cashew nut shell. This caustic oil is referred to as Cashew Nut

Shell Liquid (CNSL) and is located in the tissue between the two

walls of the nut shell. CNSL has many industrial uses which

include automobile and airplane brake fluid, adhesives, paints and

varnishes, insecticides, electrical insulation, and anti-microbials

2.4.3 Cashew Nut Kernel: Cashew nuts contain high degree of

proteins, fats and vitamins. Cashew kernels contain 21 % of

vegetable proteins. Nutritionally they stand at par with milk, eggs

and meat. It also contains a high concentration of much needed

amino acids.

Indian cashews are nature’s proven finest diet. Its all time all

place snack. It is a storehouse of nutrients. It contains protein 21%,

fat 47%, moisture 5.9 %, carbohydrates 22%, phosphorus 0.45%,

calcium 0.05%, iron 5% for every 100 gm and other mineral

elements. They protect human nervous system.

Cashew nut consumption is also recommended for diet and

weight loss. Cashew nuts have a high energy density and high

amount of dietary fiber, both which have been attributed to a

beneficial effect on weight management.

Cashew nut kernel contains 47% fat, but 82% of this fat is

unsaturated fatty acids. This is important because no dietician will

27

prescribe a saturated fat packet to any one due to its high

cholesterol content. Unsaturated fat eliminates the possibility of,

and actually lowers, the cholesterol level in blood.

The most prominent vitamins in cashew are Vitamin

A, D and E. These vitamins help assimilate the fats and increase

the immunity level.Cashew comprises a surprising spectrum of

vitamins and Amino acids in the right proportions. The percentage

of Arginine is 10.3, Histidine 1.8, Lysine 3.3, Tyrosine 3.2,

Phenylalamine 4.4, Cyctine 1.0, Methinonine 1.3, Valine 4.5.

2.4.6 Medicinal Uses: There are many medicinal uses of cashew

leaves, bark, and juice from the cashew apple. The cashew tree's

leaves and bark as well as the popular cashew apple possess herbal

health benefits that include killing bacteria and germs, stopping

diarrhea, drying secretions, increasing the libido, and reducing

fever, blood sugar, blood pressure and body temperature.

Cashew bark teas were used to stop diarrhea while the

caustic shell oil was used to treat skin infections, warts, intestinal

worms, and parasitic larvae beneath the skin. Teas and fruit juices

from the cashew apple and leaves are known to have antimicrobial,

anti-inflammatory, astringent, diuretic, hypoglycemic, and other

medicinal properties. The active ingredients in the teas and juices

are thought to be tannins, anacardic acid, and cardol. Modern uses

of shell oil and fruit juice include facial peels and scalp

conditioners and shampoos. The cashew apple has also been a long

time nutrional supplement as it contains up to 5 times more vitamin

C than citrus and strawberries.

28

2.5 MAJOR PROBLEMS FACED BY CAHEW

EXPORTERS

Indian cashew exporters are facing number of

problems in the stage of procuring raw materials, production and

exports etc. the major problems faced by cashew exporters includes

acute shortage of raw cashew nuts, fluctuation in exchange rate,

29

lack of infrastructural facility, competition from Vietnam and

difficulties in sourcing funds etc.

MAJOR PROBLEMS

1. Shortage of Raw Cashew Nuts

Shortage of raw cashew nut adversely affects the export

of cashew product. In India Domestic production of cashew has

been fluctuating during the recent year. This is mainly due to the

inclement weather and aging of cashew tree. This would drop the

productivity. Apart from the use hybrid variety, new systematic

and scientific method should be used. The idea of replantation

programme and organic cashew farming can enhance the domestic

productivity. Now, India’s domestic productivity is around 7 lacks.

While their processing capacity is about 14 lacks tones. So India

has to depend on imported raw cashew nuts.

2. Exchange rate fluctuation

The exchange rate fluctuation directly affects the

profitability of the exporting companies. Since the invoicing is

done by the companies against an assumed fixed rate. When the

domestic currency weakens against the foreign currency the

profitability is eroded. The purchase agreement is signed for a

period of three to five years. For the firm most of the contracts are

fixed for term of three years.

30

3. Infrastructure

The export of cashew product requires shipments from

airport and sea ports. The Poor infrastructure in the Indian Scenario

creates logistical problems. To agreement export infrastructure is

more important. The warehousing and storage facilities are not

adequate and the standards are very poor when compared with

international parameters. Most of the airports are not connected to

international cities. The rail net works is inadequate to serve the

transportation requirements of agro commodities. This results in

higher lead time for procurement and cause delay in delivery.

4. Competition

Indian exporters face stiff competition from countries

like Vietnam and Brazil. Productivity of these countries is more

compared to productivity of India. These countries using new

modernized systematic and scientific method. Production capacity

of Vietnam is more than that of India. This is because the usage of

high yielding variety crop, their adequate harvesting technique,

storage and ware house facilities. Vietnam as a major exporter of

raw cashew at competitive price .The Govt. of these countries

gives various concession to the cashew export community. The

tariff was imposed by union Govt. for the Indian exporters. To

increase the economies of scales they enable to offer product at

lower price.

31

5. Financial problems

The cashew industry not has sufficient financial

capacity. The bank and financial institutions are providing few

amounts of loans and advances at high rate of interest basis. At that

bank and financial institutions are ask for high securities and not

giving this loans and advances at correct time. This lead to

shortage of production. Some banks unnecessarily delaying for

opening L\C. This type financial institutional rules and procedure

are very risky. Today cost of production is very high .so the

exporter’s required huge amount of finance. Especially the small

exporters are highly faced in this problem. The govt. spent some

amount to cashew industry, but this amount is not sufficient for all

exporters in India.

CHAPTER - III

REVIEW OF LITERATURE

Dependence on Import of raw cashew nut increases (Business

Line – April 5, 2010)

32

India's dependence on overseas sources for the raw material

has become a perpetual phenomenon and is growing year after

year.

The processing capacity of the industry is claimed to be

around 12 lack tones a year. Exports have not been showing any

increase in the past couple of years. Exploiting the growing

domestic demand of cashew, a good quantity of kernels processed

from the imported RCN is sold at higher prices in the domestic

market. The price is almost double that of those in overseas outlets.

Overseas consumers are provided good cashew kernels cheap

at the expense of the domestic customers. Imports of huge

quantities of raw nuts often deprive the growers in the country of

good prices, which makes the crop unattractive.

Increasing the indigenous production is the only solution to

this problem and that appears to be possible only through scientific

and systematic methods to bring more areas under the crop, apart

from growing high yielding varieties. For achieving this target,

there should have to be an establishment like the Commodity

Boards for Rubber, says Dr Abdul Salam, an expert on cashew and

a senior faculty with the Kerala Agricultural University.

Import of Raw Cashew Nuts to Continue ( Business Line –

April 6, 2010)

During April-February 2009-10, import of RCN stood at

7,26,095 tones against 5,89,299 tones during corresponding period

of previous year while domestic production remained almost

33

stagnant at around 6.5 lack tones for last few years.

Riding on strong domestic demand growth, stagnant

domestic production and lackluster export - import of cashew nuts

is growing at steady pace. While processing capacity of the

industry is estimated to be around 12 lack tones a year, stagnant

production of around 6.5 lack tones is encouraging traders to

import raw cashew nuts, get these processed and sell at much

higher price.

Realizing the importance of this cash crop, the Central

Planning Commission had approved the setting up of a Board for

cashew. Also, considering the importance of cashew as a major

employment provider to the rural poor and utilization of vast

stretches of waste lands in the country, a Committee of Ministers

have agreed to set up a cashew development board aimed at

achieving self-sufficiency in production, taking research findings

to the farmers' field and improving quality of products, processing,

marketing and exports.

S tiff competition from others suppliers ( Business Line – April

23, 2010 )

Cashew exports from the country during 2009-10

declined 1.3 per cent in volume and 2.8 per cent in value on stiff

competition from other suppliers in the world market.

34

During the last five years, exports declined 10.5 per cent

and Vietnam took advantage of it. Its export increased 67 per cent

during this period and is now claiming to export 50 per cent more

than India.

The rupee's appreciation against the dollar has also

contributed to the declining trend. During this period, the rupee

appreciated against the dollar by over 14 per cent.

Next was the global recession, which had a severe impact

on the cashew industry with demand from the US and Europe

dropping. Consequently, the prices and volume of sales fell in the

international market.

The costs of raw cashew nuts and processing had gone up.

Even though the Government announced that service tax

exemption would be granted for export activities, cashew exporters

are being levied service tax for transport of goods from farm/port

to factory and from factory to port, commission paid to foreign

agents, etc. All these have added to the cost of production. At the

same time inadequate availability of domestic raw nuts has forced

the industry to depend on imports,

The domestic production is around 7 lack tones while our

processing capacity is about 14 lack tones. Hence, Vietnam is also

competing with our processors for sourcing raw cashew nut from

African producing countries, resulting in increase in raw cashew

prices. The rupee is strengthening and the effects of recession and

financial crunch are continuing.

35

Business Line Sep 22, 2010

Fuelled by the shortage of domestic cashew crop, lower

supply from the world market, and a considerable growth in

domestic consumption, cashew kernels in the domestic market

have been witnessing all-time high prices for the past 10 days.

About 40 per cent of the Indian crop had been affected due

to inclement weather in April and May. World supply also is lower

due to poor crops in West Africa.

Mr. K. Prakash Rao, former President of Karnataka Cashew

Manufacturers' Association, said there has been a drop in

processing capacity in all the processing centers by about 20 per

cent. Added to this, the internal market has grown by 15-20 per

cent. This net gap of around 40 per cent has resulted in a steep

price increase.

To a query on North Indian demand for the commodity, Mr.

DSouza quoted the example of Delhi and said the Government

there had imposed a VAT of 12.5 per cent in the budget. The VAT

was cut to five per cent in July-end.

Cashew industry seeks Endosulfan ban ( Business Line -Nov

13.2010)

The Kollam-based cashew processing industry has sought a

ban on Endosulfan.Cashew entrepreneurs said the industry did not

need raw nuts from plantations that use Endosulfan. The use of

36

such nuts would only serve to harm the industry, especially in the

export markets.

They said the global production of raw cashew touched 20

lack tones. India produces about 6 lack tones of raw nuts. The

country processes more than 12 lack tones of raw cashew out of

which about 6.5 lack tones to 7 lack tones were processed by the

Kollam-based industries and the bulk of these were imported.

Endosulfans were a negligible quantity which the industry

did not require. For that matter, the industry was averse to process

nuts from plantations that used not only Endosulfan but also any

other chemical pesticide. The industry sought to ban the use of

Endosulfan and other chemical pesticides not only from plantations

close to human habitations like Kasaragod but also in plantations

that were far away from human dwellings.

At a time when the global markets were insisting on organic

agro-based products, processing nuts grown through the use of

toxic chemical pesticides would only serve to harm exports from

Kollam. In fact, the major quantity of the raw nut requirement for

Kollam was met through imports, mainly from African countries.

More than four tones of raw cashew nuts are required to

produce one tone of cashew kernels. ( Business Line – Jan 3,

2011)

India has the world's largest capacity in cashew processing.

The organized sector has an annual capacity to process 14 lack

37

tones of raw nuts. India's indigenous production of raw material is

estimated at about 6-7 it is far short of the installed processing

capacity. Annual import of raw cashew, mostly African origin, has

shown a rising trend.

More than four tones of raw cashew nuts are required to

produce one tone of cashew kernels. Interestingly, India was the

first country to tap the export.

Raw cashew imports serve many purposes including

bringing down the deficit in domestic production and helping meet

raw material needs of the processing units. Importantly, imports

ensure employment to a large number of cashew factory workers.

The cashew sector provides employment to estimated three lacks

persons.

Many are vulnerable to weather aberrations. Rising

domestic demand also squeezes export availability. India is a

classic example. So, priorities for the processing industry include

exploring backward integration and strengthening the supply chain

management. It is necessary to adopt good manufacturing

practices.

The demand side whether domestic or export is expected to

continue to be robust; but given the premium nature of the product,

consistent supply of top quality is the key to success. The

Government implements various schemes to promote quality

improvement, export promotion and so on.

38

Lack of Demand keeps cashew price low (Business Line – Jan

11, 2011)

Cashew prices have maintained their weak trend despite

poor global supplies because of subdued demand from consumers.

Traders, however, feel that prices won't stay weak for long as

Indian production is expected to be less, while cashew crop in

Ivory Coast another big producer is also expected to be less due to

bad weather. As per market sources, cashew market continued to

be quiet. Uncertainty in demand has made buyers wary as well.

They do not want to be carrying long positions at prices which are

the highest ever and then see a dramatic drop in demand. As per

cashew processors, raw materials prices are very high and not

viable for processors.

Indian cashew production, which accounts for more than a

fifth of the global production, is projected to come down in 2010-

11 due to unseasonal rains and erratic temperature in the producing

region, officials from the Kochi-based Directorate of Cashew and

Cocoa Development (DACCD) said. The cashew crop in 2011 is

likely to be delayed by more than a month due to slower and fewer

flowering, as per Venkatesh Hubballi, director of DACCD.

Asian markets emerging major cashew consumers ( Business

Line-Jan18,2011)

Indian and Asian markets have, of late, become major

consumers of cashew kernels, absorbing large quantities even as

consumption in traditional markets remain largely flat, making

39

http://www.cashew-nuts.in/



Asia a deciding factor of prices. India has been the largest

consumer of cashew for some years, consumption in other Asian

countries has also been growing fast whereas consumption in

traditional markets has been flats or showing small growth in some

segments.

Asian markets are a spot market where price changes are

passed on to final consumer almost immediately. Impact of this

change has been felt only in the last year. The buying prices have

to be dependent on the Asian spot market prices. This has changed

the structure of cashew market and dynamics of price movement.

Large processors are not willing to reduce their prices due to

uncertainty over RCN crops and prices.

CHAPTER –IV

TABLE -4.1

EXPORT OF CASHEW KERNELS FROM

INDIA DURING 2009-2010

40

2009-2010

Countries QTY %(M.T)

U.S.A 30804 28.49U.A.E 18161 16.81

Netherlands 10314 9.53Japan 5633 5.20U.K 4477 4.14

Saudi Arabia 3827 3.53France 3814 3.52Spain 2782 2.57

Belgium 2470 2.28Greece 2222 2.05Egypt 2018 1.86

Australia 1482 1.37Germany 1451 1.34

Others 18663 17.26

Total 108120 100

INFERENCE:

The above table shows that cashew kernels exports from India to various countries. USA stands the 1st position in consuming cashew kernels from India.

CHART – 4.1

EXPORT OF CASHEW KERNELS FROM

INDIA DURING 2009-2010

41

TABLE-4.2

EXPORT OF CASHEW NUT SHELL LIQUID

FROM INDIA DURING 2009-2010

42

IN FER ENC E:

F

r o

m

the above table shows that the export of cashew Nut shell liquid

from India to various countries.USA stands the 1st position in

consuming cashew Nut Shell Liquid from India followed by China,

Korea, Japan etc.

CHART - 4.2

EXPORT OF CASHEW NUT SHELL LIQUID

FROM INDIA DURING 2009-2010

43

2009-2010Countries QTY %

(M.T)U.S.A 4827 49.51China 2770 28.41

Korea Rep. 1368 14.03Japan 322 3.30

Indonesia 178 1.26Taiwan 65 0.66Slovenia 41 0.42Thailand 31 0.31

Egypt 20 0.20South Africa 16 0.16

Others 110 1.12

Total 9748 100

TABLE – 4.3

TYPE OF EXPORTER

Type No. of Respondents

Percentage

44

Merchant 10 20

Manufacturer 35 70

Both 5 10

Total 50 100

INFERENCE:

From the above table inferred that 70 % of the respondents

are manufacturer exporter, 20% of the respondents are merchant

exporter and remaining of the respondents are both manufacture

and merchant exporters.

CHART- 4.3

TYPES OF EXPORTERS

45

TABLE – 4.4

COUNTRY WISE EXPORT

46

Countries No. of Respondents Percentage

American Zone 17 34

European Union 12 24

West Asia 9 18

East Asia 6 12

African Zone 4 8

Others 2 4

Total 50 100

INFERENCE:

From the above table reveals that 34 % of the cashew

products are consumed by American zone, 24 % , 18 % , 12% are

consumed by European Union, West Asia, East Asia respectively.

Remaining 8 % and 4% of cashew products are consumed by

African Zone and other countries.

CHART -4.4

COUNTRY WISE EXPORT

47

TABLE – 4.5

DURATION OF EXPORT

48

Particulars No. of

Respondents

Percentage

Weekly 3 6

Fort nightly 17 34

Monthly 24 48

Quarterly 6 12

Total 50 100

INFERENCE:

From the above table reveals that 48 % of the exporters

are export their cashew product monthly, 34 % and 12 % of the

exporters are export fort nightly and quarterly respectively.

Remaining 3 % of the exporters export weekly.

CHART – 4.5

DURATION OF EXPORT

49

TABLE – 4.6

TYPES OF CASHEW PRODUCT EXPORTING

50

Type No. of

Respondent

Percentage

Cashew Kernel 40 80

CNSL 8 16

Cardanol 2 4

Total 50 100

INFERENCE:

The above table reveals that 80 % of the respondents are

exporting cashew kernels and 16% of the respondents are exporting

CNSL to different countries. Remaining 2 % of the respondents are

now exporting cardanol.

CHART – 4.6

TYPES OF CASHEW PRODUCT EXPORTING

51

TABLE - 4.7

IRREGATION SYSTEM FRUIT FUL FOR THE

GROWTH OF CASHEW

52

Particulars No. of Respondent Percentage

Agree 37 74

Disagree 13 26

Total 50 100

INFERENCE:

From the above table it is inferred that 74% of the

respondent are told the irrigation system fruitful for the growth of

cashew and remaining 26% of the respondents feels that irrigation

system is not suitable for the growth of cashews.

CHART – 4.7

IRREGATION SYSTEM FRUIT FUL FOR THE

GROWTH OF CASHEW

53

TABLE – 4.8

HYBRID YEILDING VARIETY RESUILT

CHANGES IN THE PRODUCTIVITY

54

INFERENCE:

From the above table it is inferred that 64% of

respondent’s opinion is hybrid yielding variety result changes in

productivity and remaining 36 %of the respondent’s opinion is

hybrid yielding variety result no changes in the productivity.

CHART – 4.8

HYBRID YEILDING VARIETY RESUILT

CHANGES THE PRODUCTIVITY

55


Agree 32 64

Disagree 18 36

Total 50 100

TABLE – 4.9

SUFFICIET LABOURS FOR PROCESSING

56

INFERENCE:

From the above table it is inferred that 80 % of the

respondent’s opinion was they have sufficient labors for processing

of raw cashew nut. 20 % of respondents feel they have no

sufficient labours for processing.

CHART – 4.9

SUFFICIET LABOURS FOR PROCESSING

57


Yes 40 80

No 10 20

Total 50 100

TABLE – 4.10

PROBLEMS IN AFTER THE EMERGENCE OF

VIETNAM AS ACOMPITATIVE EXPORTERS

58

INFERENCE:

From the above table inferred that 92 % of respondents are

facing the competition after the emergence of Vietnam and

remaining 8% of the exporters are not facing any competition.

CHART – 4.10

PROBLEMS IN AFTER THE EMERGENCE OF

VIETNAM AS ACOMPITATIVE EXPORTERS

59


Yes 46 92

No 4 8

Total 50 100

TABLE – 4.11

PROBLEMS RELATED TO GETTING PROPER

INFORMATION ABOUT THE WORLD MARKET

60

I

N F

E

R

E

N

C

E:

From the above table it is inferred that 82 % of respondents

are getting information about the world market and remaining 18

% of the respondents are not getting proper information about the

world market.

CHART – 4.11

PROBLEMS RELATED TO GETTING PROPER

INFORMATION ABOUT THE WORLD MARKET

61


Yes 9 18

No 41 82

Total 50 100

TABLE – 4.12

PROBLEMS IN PACKAGING OF

62

CASHEW PRODUCTS


Yes 28 56

No 22 44

Total 50 100

INFERENCE:

From the table it reveals that 56% of the respondents

are facing the problems of packaging of cashew products and

remaining 44 % of the respondents are not facing the problems of

packaging of cashew products.

CHART – 4.12

PROBLEMS IN PACKAGING OF

63

CASHEW PRODUCTS

TABLE- 4.13

FACE ANY TRADE DISPUTES

64


Yes 35 70

No 15 30

Total 50 100

INFERENCE:


respondents are faced the trade disputes and remaining 30% of the

respondents are not faced any trade disputes.

TABLE- 4.13

FACE ANY TRADE DISPUTES

65

TABLE – 4.14

DIFFICULTY IN CUSTOM CLEARENCE

66

FOR EXPORTS

I N

F E

R E

N C

E:

From the above table it reveals that 76% of the respondents

are facing difficulty during customs clearance and remaining 24%

of the respondents are not facing any difficulty during customs

clearance for cashew exports.

CHART – 4.14

DIFFICULTY IN CUSTOM CLEARENCE

FOR EXPORTS

67


Yes 38 76

No 12 24

Total 50 100

TABLE – 4.15

PROBLEMS IN RECEIVING EXPORT

PROCEEDS

68

INFERENCE:

From the above table reveals that 60% of the respondents

are facing the problems in receiving export proceeds, and

remaining 40 % of the respondents do not face the problems in

receiving export proceeds.

CHART – 4.15

PROBLEMS IN RECEIVING EXPORT

PROCEEDS

69


Yes 30 60

No 20 40

Total 50 100

TABLE -4.16

DOMESTIC PRODUCTION OF SUFFICIENT

RAW CASHEW NUT

70


Yes 8 16

No 42 84

Total 50 100

INFERENCE:

From the above table reveals that 84% of the respondents are

not getting sufficient raw cashew nut from domestic production for

processing. Remaining 16% of the respondents are getting

sufficient raw cashew nut to meet their requirements.

CALCULATION OF CHI- SQURE

Null Hypothesis (H0): Domestic production of sufficient raw cashew nuts meets the requirements.

2 = (O-E)2

E

71

Expected value E= RT*CT/E

= 50*50/100=25

(O-E)2/E=46.24

So 2 = 46.24

Degree of freedom = (c-1) (r-1)

= (2-1) (2-1) =1

The degree of freedom 1 at 5% level of significance 2 = 3.841

Calculated value - 46.24

Table value - 3.841

INFERENCE:

Since the calculated value is greater than the table value, the

null hypothesis is rejected. So the cashew exporters were not

getting sufficient raw cashew nuts from domestic production to

meet the requirement.

CHART – 4.16

DOMESTIC PRODUCTION OF SUFFICIENT

RAW CASHEW NUT

72

O E (O-E)2 (O-E)2/E42 25 289 11.568 25 289 11.568 25 289 11.5642 25 289 11.56

TABLE – 4.17

FLUCTUATION IN EXCHANGE RATE

73


Yes 47 94

No 3 6

Total 50 100

INFERENCE:

From the above table reveals that 94% of the respondents are

facing the problems of fluctuation in exchange rate. Remaining 6%

of the respondents are not facing such problem.


Null Hypothesis (H0): Fluctuations in exchange rate are not

affecting cashew exports.

2 = (O-E)2

74

E


= 50*50/100=25

(O-E)2/E =77.44

So 2 = 77.44


= (2-1) (2-1) =1


Calculated value – 77.44

Table value - 3.841

INFERENCE :

Since the calculated value is greater than table value, the null

hypothesis is rejected. So the fluctuation in exchange rate affects

the cashew exports.

CHART– 4.17

FLUCTUATION IN EXCHANGE RATE

75

O E (O-E)2 (O-E)2/E47 25 484 19.363 25 484 19.363 25 484 19.3647 25 484 19.36

TABLE – 4.18

LACK OF INFRASTRUCTURE FACILITY

76

INFERENCE:


respondents are facing problems in infrastructure facilities and

remaining 20% of the respondents are not facing any problems in

infrastructure facilities.


Null Hypothesis (H0): Lack of infrastructure facility not affects

cashew exports.

2 = (O-E)2

77


Yes 40 80

No 10 20

Total 50 100

E


= 50*50/100=25

(O-E)2/E =27

So 2 = 27


= (2-1) (2-1) = 1


Calculated value - 27

Table value - 3.841

INFERENCE:

Since the calculated value is greater than table value, the null hypothesis is rejected. So the lack of infrastructure facility affects the cashew exports.

CHART – 4.18

LACK OF INFRASTRUCTURE FACILITY

78

O E (O-E)2 (O-E)2/E40 25 225 910 25 225 910 25 225 940 25 225 9

TABLE - 4.19

79

COMPETITION IS AN IMPORTANT

HINDERING FACTOR FOR CASHEW

EXPORTS

INFERENCE:


respondents told that competition is an important hindering factor

for cashew export. Remaining 10% of the respondents are told that

competition is not an important hindering factor for cashew

exports.


80


Agree 45 90

Disagree 5 10

Total 50 100

Null Hypothesis (H0): Competition is not an important

hindering factor for cashew exports.

2 = (O-E)2

E


= 50*50/100=25

(O-E)2/E =64

So 2 = 64


= (2-1) (2-1) = 1


Calculated value - 64

Table value - 3.841

INFERENCE:

Since the calculated value is greater than table value, the null hypothesis is rejected. So the competition is an important hindering factor for cashew exports.

CHART– 4.19

81

O E (O-E)2 (O-E)2/E45 25 400 165 25 400 165 25 400 1645 25 400 16

COMPETITION IS AN IMPORTANT

HINDERING FACTOR FOR CASHEW

EXPORT

TABLE – 4.20

82

PROBLEMS IN SOURCING FUNDS

INFERENCE:


respondents are facing the problem of sourcing funds, and

remaining 36% of the respondents are not facing the problems of

sourcing funds.


83


Yes 32 64

No 18 36

Total 50 100

Null hypothesis (H0): Problems in sourcing funds are not

affecting cashew exports.

2 = (O-E)2

E


= 50*50/100=25

(O-E)2/E =7.84

So 2 = 7.74


= (2-1) (2-1) = 1


Calculated value – 7.74

Table value – 3.841

INFERENCE:

Since the calculated value is greater than the table value, the

null hypothesis is rejected. So the cashew exporters were facing

problems in sourcing funds.

CHART – 4.20

84

O E (O-E)2 (O-E)2/E32 25 49 1.9618 25 49 1.9618 25 49 1.9632 25 49 1.96

PROBLEMS IN SOURCING FUNDS

CHAPTER- V

85

FINDINGS AND SUGGSTIONS

FINDINGS:

From the survey, it was found that 70% of the

respondents are manufacturer exporters.

Most of the respondents export monthly.

From the survey, it was found that majority of the

exporters (80%) export cashew kernels and remaining

respondents export other cashew product.

Majority of the respondents export their product to

American Zone.

Most of the exporters told that irrigation system is fruitful

for the growth of cashew.

Majority of the exporters feels that hybrid variety shows

changes in their productivity.


respondents did not get sufficient raw cashew nut to meet

the requirements.

Fluctuation in exchange rate is the major problem faced

by most of the Indian exporters.

Majority of the respondents are facing competition after

the emergence of Vietnam. Vietnam and Brazils is the

major competitor of Indian exporters.


exporters face the lack of infrastructure facility problems.

Most of the exporters get proper information about the

world market. It was given by CEPCI.

86

Majority of the exporters feel that competition is a major

hindering factor for marketing of cashew product.

About 56 % of the respondents are facing problems in

packaging of cashew product.

From the survey, it was found that exporters are facing

trade dispute problem.

From the survey, it was found that 76% of the exporters

are facing the custom clearance difficulties for exports.

About 64% of the exporters are facing the problems of

sourcing funds.

From the survey, it was found that 60% of the

respondents facing problems in receiving export

proceeds.

Majority of the respondents told that Govt. conducting

quality improvement training program for developing

exports.

SUGGESTIONS:

CEPCI should promote the execution of export orders.

87

There should be increase in the production of raw cashew

nut by taking scientific and systematic method other than

using hybrid variety.

Replantation programme and introduction of organic

cashew farming can enhance the domestic production of

raw cashew nuts.

Govt. should provide certain incentives to achieve the

higher growth rate of production.

Cashew exporters should use new innovations and

modernized technology for processing of cashew nut to

overcome the shortage of labours.

Govt. should provide financial assistance to improving

the infrastructural facility.

Should introduce more incentives and facilities to

labours.

CEPCI should provide the information about the world

market at right time to Indian exporters.

Trade fairs and seminars should be conduct in foreign

countries.

Central Govt. can increase the assistance to exporters in

participating trade fair exhibitions.

Govt. should take a step to making lack of poisons, good

quality and recyclable package.

Central Govt. /CEPCI should provide subsidiaries and

loan facilities to cashew exporters.

CEPCI should take a step to unnecessary delaying for

sanctioning loans.

88

The CEPCI should conduct a study to determine the

nutritional value of cashew nuts.

The CEPCI should try to explore untapped markets like

Pakistan, other SAARC countries and West Asia.

All the exporters should get the up to date knowledge of

cashew in the world market.

Govt. should take step to solve the trade disputes between

exporter and buyer.

Govt. should reduce the custom clearance procedure.

CHAPTER - VI

CONCLUSION

89

The research brought about the problems faced by the

cashew exporters from India especially in Kerala. The exporters

face various problems like acute shortage of raw cashew nut,

fluctuation in exchange rate, lack of infrastructural facility,

competition from Vietnam and financial problems etc. Through

these problems it may reduce the export performance of cashew

kernels and CNSL during 2009-2010 when compared to the year

2008-2009. Global recession also adversely affects the Indian

cashew exports during the current year with demand from US and

Europe dropping. Consequently prices and volume of sales fell in

international market.

The central Govt. as well as state Govt. should adopt a

programme for increasing the domestic production of raw cashew

nut and improve the quality of finished product. CEPCI has to

encourage the exporters in participating trade fairs and exhibitions.

So that cashew exports from India will increase and it make India

become a largest cashew exporting country among other countries

of the world.

Thus the central Govt. should adopt certain measure for

reducing the major problems and encouraging exporters. Then only

the cashew exporters to reach their target in future export of India.

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Cashew Report

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Transcript of Cashew Report