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INDIAN CASHEW PROCESSING INDUSTRY FACES WORKFORCE SHORTAGE
Mangalore, March 24 Jobs are scarce in most sectors during a slowdown. But the cashew processing industry is facing a shortage of hands.
Those in the cashew industry here pointed out that though the cashew-processing sector is ready to absorb 20,000 women workers in Karnataka alone, it is unable to get the workforce. Women workers form more than 90 per cent of the cashew-processing sector.
Mr K. Prakash Rao, Proprietor of Kalbavi Cashews in Mangalore, told Business Line that there is shrinkage of 10-15 per cent in workforce in cashew processing sector every year.
Around 40,000 women are employed in 225 cashew processing units in Karnataka. “In spite of all the recession, the cashew industry is looking to absorb nearly 20,000 women into the production line in Karnataka. But we (the industry) are unable to get them,” he said. Marriage, attractions of the modern retail sector and reluctance by children to send their mothers to work are some reasons for the workforce shrinkage in the industry.
Mr Rao said that younger women working in the industry migrate to other places after they get married. There is no replacement for them. Of the total workforce shrinkage in the industry, around 7 per cent is because of this reason, he said.
In the case of older women, children take the decision.
Mr Rahul Kamath, Partner of the Karkala-based cashew processing firm Bola Surendra Kamath & Sons, said that children of some older women do not want their mothers to work once they (children) get a well-paying job.
Mr Giridhar Prabhu, proprietor of Achal Cashew Industry in Mangalore, said self-help groups and self-employment are encouraged in rural areas. Hence less people are attracted to the cashew processing sector, he said.
Modern retail chains are also adding to the problem of the industry. One of the cashew processors in the region, who did not wish to be quoted, said that some workers prefer to work in fashionable industries, like the retail sector, even if they get paid less in that sector.
A worker in the cashew industry earns Rs 100 to Rs 130 a day. Another Rs 40 is earned by way of statutory benefits such as ESI, PF and leave encashment.
Some units regularly conduct medical camps and picnics for employees.
Mr Ganesh Kamath, Partner of the Vittal Cashew Industries based in Kasaragod of Kerala, said labour shortage will be one of the major issues the industry will face in the next few years. Acute shortage of labour may force an increase in wages in the cashew processing sector, he added.
Way Out
Expansion of cashew cultivation in non-traditional areas and establishment of cashew-processing units in those areas may help tackle the problem of labour shortage.
Mr Prabhu of Achal Cashew said there was a strong case for growing cashew in non-traditional districts such as Dharwad, Belgaum and Kolar in Karnataka. It will also generate employment in those regions.
Mr Rao of Kalbavi Cashews said the industry has to go to greenfield areas where labour is available and set up industries. “We have to look at areas where plenty of women workforce is available,” he said.
The industry is finding ways to increase the productivity of the workforce by automation wherever possible, though it is a disadvantage to the industry in terms of global competition, he added.
Manual processing has placed Karnataka cashew industry on top position in terms of quality in the market.
Another industry representative, Mr Rahul Kamath, said if the situation continues like this, the industry may prefer to operate in States such as Orissa. Even Madhya Pradesh and Bihar have some cashew processing units, he added.
A.J. Vinayak
(Source: Business Line)
WEAK RUPEE, POOR CROP AFFECT CASHEW EXPORTS
Kochi, March 13 - Dependence on imported raw nuts continues as there hasn’t been any proper and consistent effort to promote cashew cultivation in the country.
Short supply of cashew kernels in major growing countries in Africa, due to reported drop in crop coupled with depreciation of rupee against dollar, appears to have pushed up the prices of raw cashew imported by the Indian cashew processing industry in 2008-09.
The industry paid Rs 48 a kg for raw nuts in February and imported 50,000 tonnes against Rs 28 a kg footed between April 2007 and February 2008, according to Mr Sasi Varma, Secretary, Cashew Export Promotion Council of India (CEPC), here.
unit value realisation
At the same time, the unit value realisation for the cashew kernels dropped in the international market after shooting up to around Rs 380 a kg in mid-2008, in the wake of the ongoing economic recession which has started pinching from September last. The exports have also witnessed a drop during the current fiscal, he said.
Exports of cashew during April-Feb of the current fiscal stood at 99,348 tonnes valued at Rs 2,719.79 crore ($597.62 million) against 1,03,139 tonnes valued at Rs 2,033.18 crore ($505.14 m) in the corresponding period a year ago.
Average unit value realisation during the current fiscal has been Rs 273.76 a kg compared with Rs 197.13 a year ago.
Shipments of cashew kernels in Feb 2009 were 7,968 tonnes (8,350 tonnes), a 4.20 per cent drop. The unit value realisation dropped from Rs 297 a kg during last quarter of 2008 to Rs 267 a kg in Feb 2009.
Re fall impact
Sharp fall in the value of rupee against dollar has pushed up the cost of imported raw nuts, while it has raised the unit value realisation on exports. This phenomenon has made the exports unattractive, Mr Varma told Business Line.
Availability of indigenously produced raw nuts has been almost stagnant at around six lakh tonnes against 12 lakh tonnes required by the industry. The price of raw nuts in the country has also correspondingly gone up to Rs 50-52 a kg and even more in some areas, he said.
Dependence on imported raw nuts continue to remain a perpetual phenomenon as there hasn’t been any proper and consistent effort to promote the cultivation of cashew in the country, official sources in the Union Ministry of Commerce said.
cashew board
They said that the proposal to set up a cashew development board aimed at developing cashew cultivation in a scientific manner failed to take off because of the road blocks created by the Union Agriculture Ministry and the Ministry of Finance.
Imports during the current fiscal up to Feb 2009 were at 5,89,103 tonnes valued at Rs 2,557.49 crore ($561.96 million) against 5,73,092 tonnes valued at Rs 1,612.37 crore ($400.59 million) in the same period a year ago.
The average unit value of the raw nut was at Rs 43.41 a kg this fiscal as against Rs 28.13 a kg last fiscal.
The foreign exchange outgo towards import of raw cashew nuts during the current fiscal increased by $161.37 million where as the corresponding increase in the forex earnings from export of cashew kernels during the period this fiscal was only $92.48 million.
Recovery of kernals
Assuming that the recovery rate of cashew kernels is 25 per cent, the total recovery from the imported raw nuts should come to 1,47,275 tonnes from 5,89,100 tonnes imported during Apr–Feb 2008-09, experts connected with the industry say. Since the exports up to February this fiscal were at 99,348 tonnes the balance should have been sold on the domestic market at almost double the price overseas. From 5,73,092 tonnes of raw nuts imported last fiscal, the cashew kernel recovery must have stood at 1,43,273 tonnes and of which only 1,03,139 tonnes were exported and rest must have gone to the ever-growing domestic market.
Thus, it gives the impression that the organised sector is solely marketing imported nuts in the export as well as domestic market. They get high premium price in the domestic market and thus export sales are made at the cost of the domestic consumers in India, they alleged.
G.K. Nair
(Source: Business Line)
MOZAMBIQUE: CASHEW NUT PROCESSING FACTORY EXPECTS TO DOUBLE PRODUCTION
Maputo, Mozambique, 13 April – Mozambican cashew nut processing factory, Macia Castanha Moçambique (MCM), located in Macia, in Mozambique’s Gaza province, expects this year to process 1,000 tonnes of cashew nuts, the factory’s owner said.
Speaking to Mozambican newspaper Notícias, Mussá Cassamo Mussá said that the unit currently had capacity to process 1,000 tonnes of cashews per year, but that by acquiring electrical machinery production could be doubled.At the moment MCM has over 500 tonnes of cashews in its warehouses.
He said that the only problem was a lack of work force, adding that this had led to production dropping and contracts not being signed with foreign buyers. “This is affecting production, and so due to this difficulty I cannot close deals with foreign nut buyers, as we cannot meet the demand from other markets,” said Mussá.
Every year the company exports 100 tonnes of cashew nuts to foreign markets, which is a small amount due to low levels of production.As well as exporting to South Africa, MCM sells its production on the local market, particularly to wholesalers.
Mussá said that this season had been overshadowed by exporters of unprocessed cashews entering the market, as they had led producers to raise their prices, which makes it difficult for factories to acquire the raw materials. He added that this year the price of raw cashews had risen substantially, and now stood at 13.5 meticals per kilo.
(Source : Macau Hub)
KENYA TO BAN RAW CASHEW NUTS EXPORTS
NAIROBI, Kenya, Apr 9 - The government will regulate the exportation of raw cashew nuts as a way of encouraging the development of local industries, processing factories and job creation.
Agriculture Minister William Ruto told reporters on Thursday that the exportation of unprocessed nuts had for many years undermined local production and processing.
“This is an industry that used to employ 5,000 Kenyans. Today all those jobs have been lost because we allowed the export of raw nuts. It is against public interest to export unprocessed nuts and that’s why we are seriously considering regulating the exportation of nuts in such a state,” he said.
Although he did not specify how this would be done, it is believed that sale of raw nuts will only be done when the need arise.
The government had imposed a ban on raw nuts export last year but this did not go down well with farmers who argued that the move would not have any impact since the country lacks the processing capacity.
This followed the collapse of the Kilifi Cashew Nuts Processing Factory (which now has 20 staff down from 3,000) in the early 1990s and the consequent sale to a private company in unclear circumstances. This meant that the farmers were deprived of a structured market for their produce and they therefore turned to middlemen.
Total cashew nut production stands at 10,000 Metric Tonnes (MT) and comes from approximately two million cashew nuts trees. However, 50 percent of these nuts are sold in raw form while only about six percent is process locally.
Ruto however reiterated the government commitment to turn around the nuts industry which has the potential to produce 120,000 MT and contribute Sh3 billion annually to the country’s coffers. About 60,000 farmers are engaged in the production and they are currently fetching about Sh260 million annually from the cash crop which is planted on 30,000 hectares of land.
Towards this end, the Minister announced the setting up of a five-member taskforce to consolidate stakeholders’ views and advice on the way forward.
The team, which was given two weeks to come up with the recommendations, is among other things expected to propose how the government can own a stake in the Kilifi factory with a view to streamlining its operations.
“They should discuss with the current owners (of the factory) how to create a public private partnership so that government can buy into the plant,” he directed the taskforce members who were present at the press briefing.
The government has in the past put in place measures such as the provision of spraying equipment to farmer and staff training on cashew nut management to revive the industry which have not borne fruits.
Stakeholders however reckon that there is a need to develop a cashew nut policy to guide production, processing and marketing of the crop as well as promote cottage industries in order to add value to the produce.
(Source: Capital FM)
KENYA TO CHART WAY FOR CASHEW INDUSTRY
The government on Thursday moved a step towards reviving the troubled cashew nut industry by launching a task force that is expected to propose the way forward.
The five-man team will consist of Mr John Safari Mumba, a former managing director of Kilifi Cashew nut Factory, Ms Nancy Kabeyeka Abisai from Shelter Forum and Mr Nasaro Hada.
Others are Mr Francis Muniu, a researcher with the Kenya Agricultural Research Institute in Mtwapa and Ms Margaret Kavenge Masaku of the ministry of Agriculture.
Agriculture minister William Ruto said the team would be expected to identify mechanisms of improving the production of the crop, its development, marketing and husbandry.
“They are expected to compile a comprehensive report and submit it to me in two weeks with effect from next week,” the minister said at a news conference.
The cashew nut industry is an important cash crop especially at the Coast province, with a total population of more than two million trees.
But production has been on the decline from 14,000 metric tones three years ago to 10,000 metric tones last year.
Statistics from the ministry of Agriculture indicate that income from the crop consequently declined from Sh300 million to Sh260 million during the same period.
(Source: Daily NATION)
KERALA CASHEW CORPORATION'S PLANS TO BEAT RECESSION
Monday, March 30, 2009 - A plate of cashewnuts may find its way out from a party menu during these times of global recession. Exports have been hit hard, especially with prices dropping to very low levels forcing several processing units to temporarily shut down or drastically reduce the number of working days.
Cashew exports during April 2008-February 2009 stood at 99,348 tonnes valued at Rs 2,719.79 crore ($597.62 m) against 1,03,139 tonnes worth Rs 2,033.18 crore ($505.14 m) in the same period last year.
But the Kerala Government's Cashew Development Corporation seems unfazed by the global situation and sees a huge untapped domestic market. And entry into this arena should be with a host of value-added products, says Dr KA Ratish, managing director of the corporation. The corporation has also decided to intervene in the market and procure raw nuts directly from farmers.
It has already readied a big array of cashew-based products which include cashew soup and cashew powder. Taking into account the health attributes of cashew, the corporation is readying a health mix called Cashew Vita. All these products are expected to enter the market in not more than two months.
And looking at the potential of the Chinese and Japanese market, the corporation is also in the final process of readying a technology to come out with cashew noodles. It proposes to have a new market in Russia and is in talks with the trade there.
There is a huge domestic market for cashew kernels. But what most of the consumers need are small packs and the corporation is out to meet this. Already, the corporation has had talks with a number of retail supermarket chains across the country as part of marketing these products.
The price of cashew kernels have fallen to slightly over $2 for a pound (in weight) from $3.75 in February last year. And for the Rs 2,500-odd crore cashew exporting market in the country, the country's production of 5.5 lakh tonnes raw cashews is insufficient and an equal amount has to be imported. The rupee depreciation has led to processors buying raw nuts at Rs 48 a kg against Rs 28 during the whole of last year.
It is in this context that the corporation is all set to enter the market for direct procurement from farmers from April when the cashew harvest begins. It had identified a few districts from where it would procure raw cashew at prices above that in the market, said Dr Ratish. It was also going to put up more cashew nurseries so that there would be sufficient saplings for people to undertake cashew cultivation to ensure a steady domestic supply to the 1000-odd cashew processing units in Kerala and Kanyakumari district.
(Source: Bureau Thiruvananthpauram)
MANGALORE CASHEW PROCESSING INDUSTRY FACES WORKFORCE SHORTAGE
Mangalore, March 24 Jobs are scarce in most sectors during a slowdown. But the cashew processing industry is facing a shortage of hands.
Those in the cashew industry here pointed out that though the cashew-processing sector is ready to absorb 20,000 women workers in Karnataka alone, it is unable to get the workforce. Women workers form more than 90 per cent of the cashew-processing sector.
Mr K. Prakash Rao, Proprietor of Kalbavi Cashews in Mangalore, told Business Line that there is shrinkage of 10-15 per cent in workforce in cashew processing sector every year.
Around 40,000 women are employed in 225 cashew processing units in Karnataka. “In spite of all the recession, the cashew industry is looking to absorb nearly 20,000 women into the production line in Karnataka. But we (the industry) are unable to get them,” he said. Marriage, attractions of the modern retail sector and reluctance by children to send their mothers to work are some reasons for the workforce shrinkage in the industry.
Mr Rao said that younger women working in the industry migrate to other places after they get married. There is no replacement for them. Of the total workforce shrinkage in the industry, around 7 per cent is because of this reason, he said.
In the case of older women, children take the decision.
Mr Rahul Kamath, Partner of the Karkala-based cashew processing firm Bola Surendra Kamath & Sons, said that children of some older women do not want their mothers to work once they (children) get a well-paying job.
Mr Giridhar Prabhu, proprietor of Achal Cashew Industry in Mangalore, said self-help groups and self-employment are encouraged in rural areas. Hence less people are attracted to the cashew processing sector, he said.
Modern retail chains are also adding to the problem of the industry. One of the cashew processors in the region, who did not wish to be quoted, said that some workers prefer to work in fashionable industries, like the retail sector, even if they get paid less in that sector.
A worker in the cashew industry earns Rs 100 to Rs 130 a day. Another Rs 40 is earned by way of statutory benefits such as ESI, PF and leave encashment.
Some units regularly conduct medical camps and picnics for employees.
Mr Ganesh Kamath, Partner of the Vittal Cashew Industries based in Kasaragod of Kerala, said labour shortage will be one of the major issues the industry will face in the next few years. Acute shortage of labour may force an increase in wages in the cashew processing sector, he added.
Way Out
Expansion of cashew cultivation in non-traditional areas and establishment of cashew-processing units in those areas may help tackle the problem of labour shortage.
Mr Prabhu of Achal Cashew said there was a strong case for growing cashew in non-traditional districts such as Dharwad, Belgaum and Kolar in Karnataka. It will also generate employment in those regions.
Mr Rao of Kalbavi Cashews said the industry has to go to greenfield areas where labour is available and set up industries. “We have to look at areas where plenty of women workforce is available,” he said.
The industry is finding ways to increase the productivity of the workforce by automation wherever possible, though it is a disadvantage to the industry in terms of global competition, he added.
Manual processing has placed Karnataka cashew industry on top position in terms of quality in the market.
Another industry representative, Mr Rahul Kamath, said if the situation continues like this, the industry may prefer to operate in States such as Orissa. Even Madhya Pradesh and Bihar have some cashew processing units, he added.
A.J. Vinayak
(Source: Business Line)
INDIAN CASHEW INDUSTRY IN A TIGHT CORNER
HIGHER PRICE REALISATION: Depreciation of the rupee against the dollar has kept the value realization of raw cashew nuts in rupees at higher levels during April – January 2009.
KOCHI: The weakening rupee and short supply from major cashew-growing countries in Africa have pushed up the prices of the raw nuts imported by the Indian cashew-processing industry, sources in the Cashew Export Promotion Council of India here say.
The industry imported raw nuts at Rs.48 a kg in February, when 50,000 tonnes were so brought in, as against Rs.28 a kg between April 2007 and February 2008, sources say.
The unit value realisation for the kernels dropped in the international markets after shooting up to around Rs.380 a kg in mid-2008, in the wake of the ongoing economic recession, which started having an impact from September 2008.
The exports dropped during the current financial year, sources say.
Exports during April-February stood at 99,348 tonnes, valued at Rs.2,719,79 crore ($597.62 million), as against 1,03,139 tonnes, valued at Rs.2,033.18 crore ($505.14 million), in the corresponding period a year ago.
The average unit value realisation during the current fiscal has been Rs.273.76 a kg from the Rs.197.13 a year ago.
Shipments of cashew kernels in February 2009 were 7,968 tonnes from the 8,350 tonnes the corresponding month a year ago, a 4.2 per cent drop.
The unit value realisation dropped from Rs.297 a kg during the last quarter of 2008 to Rs.267 a kg in February this year.
Exports of cashew kernels have become unattractive as the cost of imported raw nuts has gone up. This has also raised the unit value realisation on exports.
Availability of indigenous raw nuts has been stagnant at around six lakh tonnes as against the 12 lakh tonnes the industry requires. The price of raw nuts in the country has gone up to Rs.50-52 a kg and even more in some areas.
The industry has been dependent on imports and unless sustained efforts are made to promote cultivation in wider areas, the prospects of the traditional industry of the State, which employs a large number of skilled workers, will continue to be in the doldrums, sources add.
K. Venkiteswaran
(Source: Business Line)
GUINEA BISSAU'S AG. PRESIDENT SEEKS PROCESSING OF CASHEW NUT
Bissau, Guinea Bissau - 29/03/2009 - Guinea Bissau's Acting President Raimundo Pereira has called on the country's government to promote the processing of cashew nut, noting that the country "can not keep on exporting raw cashew nut".
Speaking at the launch of the campaign for cashew nut commercialisation here on Sunday, Pereira declared "I urgently call on the government of Carlos Gomes Junior (Prime Minister and head of government) to conduct awareness campaign on cashew nut processing.
"The government is promoting the cashew nut industry through the process of setting up the National Cashew Nut Institute as well as a fund to encourage the local processing of this product," he added.
Last year, the government was wary of fixing the reference price of the kilogram of cashew nuts, but the kilogram was sold at 300 CFAF while the average export tariff increased from US$ 550 per tonne in 2007 to US$ 750 per tonne in 2008.
The country exported 110,000 tonnes of cashew nuts last year, an increase of about 4,000 tonnes, compared with 2007.
Guinea Bissau is the leading raw cashew nut exporter in Africa and the fifth in the world.
Cashew tree plantations cover an area of 175,000 hectares, an increase in the annual rate of four per cent, according to official statistics.
(Source: Afriquejet)
CASHEW FARMERS IN GHANA COMPLAIN ABOUT PRICE REDUCTION
Bissau, Guinea Bissau - 29/03/2009 - Guinea Bissau's Acting President Raimundo Pereira has called on the country's government to promote the processing of cashew nut, noting that the country "can not keep on exporting raw cashew nut".
Speaking at the launch of the campaign for cashew nut commercialisation here on Sunday, Pereira declared "I urgently call on the government of Carlos Gomes Junior (Prime Minister and head of government) to conduct awareness campaign on cashew nut processing.
"The government is promoting the cashew nut industry through the process of setting up the National Cashew Nut Institute as well as a fund to encourage the local processing of this product," he added.
Last year, the government was wary of fixing the reference price of the kilogram of cashew nuts, but the kilogram was sold at 300 CFAF while the average export tariff increased from US$ 550 per tonne in 2007 to US$ 750 per tonne in 2008.
The country exported 110,000 tonnes of cashew nuts last year, an increase of about 4,000 tonnes, compared with 2007.
Guinea Bissau is the leading raw cashew nut exporter in Africa and the fifth in the world.
Cashew tree plantations cover an area of 175,000 hectares, an increase in the annual rate of four per cent, according to official statistics.
(Source: Afriquejet)
CASHEW UNITS IN ORISSA INDIA WANT GOVERNMENT TO HELP EXPORTS
The cashew processing units in Orissa have urged the state government to take enabling measures to facilitate the export of processed cashew from the state.
Though Orissa is the third largest cashew producing state in India after Maharashtra and Tamil Nadu, it is not able to export the commodity to other countries due to poor quality of processing and packaging, felt the cashew processors.
If the Orissa government creates an enabling environment for export, it will not only benefit the cashew processors, but also the state government, said Rajendra Sabat, president, Orissa Cashew Processors Association.
Sabat was re-elected as the president of the association at its general body meeting held here on Sunday.
“Despite the economic recession, the cashew exports from the country stood at Rs 2,507 crore by the end of January 2009. The major buyers of Indian cashew are countries like USA, UK, Netherlands and Japan. Most of the cashew in India was exported from Kerala and Tamil Nadu”, he added.
In Orissa, there are 240 cashew processing units, producing around 80,000 metric tonnes of cashew per annum. Most of these units are located in the districts of South Orissa including 80 units in Ganjam, 58 in Gajapati and 48 in Koraput.
However, the cashew processing units in Orissa remain idle for about three to four months in a year due to shortage of raw materials.
Even though the area under cashew cultivation is adequate to cater to the needs of the processing units, the yield is hit by poor management of the plants, said Sabat. The yield of cashew in Orissa stood at550 kg per hectare as against the national average of 650-700 kg per hectare.
About 1.60 lakh hectares were earmarked for cashew cultivation in Orissa. The cashew plantations are owned by the Cashew Development Corporation and the departments of forests and soil conservation.
The association has urged the state government to make the boiling process of cashew mandatory for processing instead of the roasting process. “The boiling process is cost effective and also non-polluting. States like Andhra Pradesh have made the boiling process mandatory for cashew processing”, he added.
The association has also sought the easing of rules and procedures for the cashew processing units. “A processing unit has to obtain a number of certificates for its operations. If the processes are simplified, more number of processing units will come up in the state”, said Sabat.
(Source: Business Standards)
GATES FOUNDATION AIDS AFRICAN COCOA, CASHEW FARMERS
WASHINGTON (AFP) – The Bill & Melinda Gates Foundation announced 48 million dollars in grants for public-private projects designed to boost the incomes of poor small cocoa and cashew farmers in Africa.
The US foundation, created by the wealthy founder of software giant Microsoft, Bill Gates, and his wife, said it had joined two partnerships marshalling 90 millon dollars to help the small farmers lift themselves out of poverty and reduce hunger.
The projects focus on improved training and access to markets for hundreds of thousands of small cocoa and cashew farmers in sub-Saharan Africa, the Gates Foundation said in a statement.
"Cocoa and cashews provide income for millions of small farmers in sub-Saharan Africa, who, like a majority of the world?s poorest people, live in rural areas and rely on agriculture for their food and income," the philanthropy said.
"These projects will help farmers improve the quality and quantity of their crops and provide them with reliable opportunities to sell their crops so they can build better lives for themselves and their families."
The development initiative comes as the global economic crisis has ground growth to a halt, slashed trade volumes and is hitting impoverished countries hard.
The Gates Foundation said it had awarded 23 million dollars to the World Cocoa Foundation for the cocoa project and 25 million dollars to the German development organization Deutsche Gesellschaft fuer Technische Zusammenarbeit (GTZ) GmbH for the cashew project.
Those grants were teamed with 42 million dollars in cash and in-kind contributions from private industry, non-governmental organizations (NGOs) and government, the Seattle, Washington-based foundation said.
"Creative partnerships like these bring together the knowledge of locally based NGOs and governments with the technical know-how and market expertise of private-sector firms, and have the potential to help millions of farmers boost their yields and incomes so they can improve their lives," said Rajiv Shah, director of the foundation's Agricultural Development initiative.
The initiative works with partners in sub-Saharan Africa and South Asia to strengthen the farm-to-market value chain. "We focus on small farmers, primarily women, who do most of the actual work," Shah told AFP.
The five-year cocoa project aims to help 200,000 smallholder cocoa farming households in Cameroon, Ghana, Liberia, Nigeria and Ivory Coast, the world's largest cocoa producer.
The goal of the 40-million-dollar project headed by the World Cocoa Foundation is to help the cocoa farmers double their incomes by 2013.
Cocoa is West Africa?s largest agricultural export and accounts for 70 percent of the world?s supply. Approximately two million West African smallholder farming households rely on cocoa production for a significant portion of their income, the foundation said.
The Gates Foundation said cash and in-kind contributions come from US manufacturers Hershey, Kraft, and Mars; cocoa processors ADM, Blommer Chocolate Company, and Cargill of the US and Swiss firm Barry Callebaut; and supply chain managers and allied industries Armajaro of Britain, Ecom-Agrocacao of Switzerland, Olam International Ltd. of Singapore, and US coffee retailer Starbucks.
The 50-million-dollar cashew project, to be led by Germany's GTZ, in particular focuses on building processing facilities.
The continent currently produces about one-third of the world's cashew crop, but "a lack of cashew processing facilities in Africa has created major market inefficiencies and denies Africans the economic benefits that accompany jobs in the cashew processing sector," the foundation said.
The project?s goal is to help 150,000 smallholder cashew farming households in Benin, Burkina Faso, Ghana, Ivory Coast and Mozambique increase their incomes by 50 percent by 2012.
Among the project's other supporters are supply chain managers and processors Global Trading Agency and Olam International; branded manufacturers Intersnack Group and Kraft Foods; US retailer Costco Wholesale; and the US Agency for International Development.
(Source: AFP)
VN CASHEW FACTORIES SEEK FREE GOVT LOANS TO BUY HUGE FARM STOCKS
Cashew processing companies want the government to give them interest-free loans so that they can buy up the huge stockpiles of nuts on the growers’ plantations, the Vietnam Cashew Association said.
VCA Vice Chairman Nguyen Thai Hoc said the growers were sitting on an estimated 30,000 tons of raw cashews for which the industry needed about VND6.7 trillion, or US$383 million, to purchase.
Hoc said the factories were asking the government for zero-interest loans as they could not afford the commercial bank rates, even though these were subsidized by the government to an extent.
“What worries the cashew processors is that they will not have enough for their factories this year if the growers quit planting because of their high stockpiles,” he said.
To help them buy up all the stocks, VCA chairman Nguyen Duc Thanh said, the factories were forming a loose alliance based on the main cashew-growing regions of Binh Phuoc, Dong Nai and Tay Ninh provinces and the Central Highlands.
Thanh said the reason for the buildup was that the factories had curtailed their purchasing as their new export orders had declined sharply.
Cashew exports fell 22 percent yearon-year to 12,000 tons in 2008, with orders from the all-important US market taking a 30 percent hit, according to Thanh.
Even so, the General Statistics Office says Vietnam earned $920 million from exporting cashews in 2008, a 40 percent increase year-on-year.
(Source: Thanh Nien Daily)
INDIA CLAIMS TO BE TOP CASHEW EXPORTER
Cashew export figures emanating from Vietnam, quoting its Government and other sources, give the impression that it is the top exporter of cashew kernel in the world.
But Indian processors and exporters contest it and say they continue to occupy the top slot.
“They might have overtaken us in pepper but in cashew we still continue to enjoy our position as the top exporter of this tree nut,” said some of the major exporters in Kollam.
They said that the Indian cashew industry (in the organising sector) has the capacity to process around 12 lakh tonnes of raw nuts a year as against Vietnam’s six to seven lakh tonnes.
India imports around 5.5 lakh tonnes of raw cashew nuts a year, while the indigenous production of this raw material comes to about six lakh tonnes, they said.
Therefore, with the processing capacity of 6-7 lakh tonnes of raw nuts a year, it is quite unlikely for them to export 1.65 lakh- to 1.7 lakh tonnes of cashew kernels annually, they claimed.
A recent report quoting Vietnam Ministry of Industry and Trade sources said “Vietnam is expected to rake in $992 million from exporting 1.65 lakh tonnes of cashew nuts in 2008.
The figures will show a rise of 20.5 per cent in value despite a fall of 8.29 per cent in volume against 2007”.
Vietnam Cashew Association (Vinacas) last week said “in Jan-Nov, the country is estimated to have exported 1.53 lakh tonnes of cashew nuts, earning $859 million, up 10.9 per cent on year in volume and 47 per cent in value, according to the General Statistics Office (GSO)”.
Meanwhile, another report quoting the Head of the Department of Farming, Forest and Fisheries Processing etc. under the Ministry of Agriculture and Rural Development said even though the value of cashew exports is expected to decline this year due to the global financial crisis, Vietnam “will export 1.7 lakh tonnes of cashews, worth $900 million, in 2009, 16 per cent lower in value than in 2008”.
Vietnam, according to the Vinacas, has 220 cashew processors with a total capacity of 6-7 lakh tonnes a year. The country exports to 78 markets, including Russia, the US, Japan, Germany, Australia, the UK, the EU and China.
Despite the increase in exports, the Vietnam Cashew Association (Vinacas) complained that local cashew nut processing and exporting companies are facing a lot of difficulties such as high lending rates and high import tax.
In January, cashew exporters shipped an estimated 12,000 tonnes, earning $55 million, said the department. Those figures were down 14.3 per cent in volume and 19 per cent in value compared to December 2008.
Mr Nguyen Thai Hoc, Deputy Chairman of the association, was quoted as saying that exporters still had unsold stocks from 2008. The exporters have signed contracts to export 40-50 per cent of total processed cashew output, but there were few long-term contracts.
However, the Indian cashew industry does not seem to accept the export figures appeared in the reports and claimed that cashew kernel exports from Vietnam in 2008 were unlikely to have crossed 1.2 lakh tonnes. Their figures are of the calendar year while ours are for the financial year. But, it won’t make much difference, they said. In 2007-08, India exported 1,14,340 tonnes of cashew kernel (and 7,813 tonnes of cashew nut shell liquid), valued at Rs 2,300 crore ($572 million).
Exports during Apr – Jan 2008-09 were at 91,381 tonnes valued at Rs 2,507.08 crore at an average unit value of Rs 274.35 a kg as against 94,794 tonnes valued at Rs 1,850.71 crore at unit value realisation of Rs 195.23 a kg in the corresponding period last fiscal. Total imports of raw nuts during Apr–Jan 2008-09 stood at 5,39,184 tonnes valued at Rs 2,317.57 crore at an average unit value of Rs 42.98 a kg as against 5,10,434 tonnes worth Rs 1,358.38 crore at the unit value of Rs 26.61 a kg in the same period the previous year, Cashew Export Promotion Council of India (CEPC) sources said.
Indian exporters claimed that India continued to occupy the top slot of exporters of cashew kernels in the world market. Vietnamese figures were on the higher side but, the Vietnam industry does not seem to have claimed as the top supplier of this tree nut in the world market like the way it projects itself as the largest producer and supplier of pepper in the world.
(Source: Business Line)
RAW CASHEW SUPPLY WOES UNLIKELY TO AFFECT INDIAN SECTOR
The reported fall in raw cashew nut availability in some of the producing nations in Africa is unlikely to affect the Indian cashew industry.
In fact, imports so far in the current fiscal have been more than what was imported in the corresponding period last financial year.
Total imports of raw nuts during April-January 2008-09 stood at 5,39,184 tonnes valued at Rs 2,317.57 crore at an average unit value of Rs 42.98 a kg against 5,10,434 tonnes worth Rs 1,358.38 crores at the unit value of Rs 26.61 a kg in the same period the previous year, Mr K Sasi Varma, Secretary, Cashew Export Promotion Council of India (CEPC), said.
Exports during April-January 2008-09 stood at 91,381 tonnes valued at Rs 2,507.08 crore at an average unit value of Rs 274.35 a kg against 94,794 tonnes valued at Rs 1,850.71 crore at unit value realisation of Rs 195.23 a kg. Depreciation of rupee against dollar has kept the value realisation in rupees at higher levels, though there has been a decline in volume exported, he said.
However, industry sources said when the prices of cashew kernels shot up mid-year last year, exporters in Africa booked high prices and thereafter, when the kernel prices dropped, some of them were said to have defaulted and that did not have any significant impact on imports by the Indian industry.
Imports break-up
Indian imports of raw cashew nuts during April-December 2008 were mainly from Ivory Coast (2,07,915 tonnes) followed by Guinea Bissau (86,415 tonnes), Benin (83,780 tonnes) Ghana (41,275 tonnes), Indonesia (34,664 tonnes) and Gambia (23,339 tonnes). Import from Mozambique was 4,222 tonnes, they said.
Therefore, the reported decline in raw cashew nut production in Mozambique this year due to unfavourable weather conditions is unlikely to affect the
Indian cashew processing industry, the sources said.
The total output in Mozambique is estimated to be 90,000 tonnes against the projected 1,00,000 tonnes.
According to Mozambique national Cashew Institute (INCAJU) many growers did not apply pesticides/fertilisers because of rise in fuel prices last year. Also, cashew trees in the coastal belt were damaged or destroyed by cyclone and slash and burn agricultural practices.
Kenya, Vietnam moves
The Kenyan government is reportedly contemplating banning export of raw cashew nuts in a bid to support value addition locally. But the Kenya Cashew Nuts Processors and Exporters Association has expressed apprehension that the ban would reduce the number of commodity buyers, leaving farmers in the hands of middlemen out to fleece them. "If the ban is effected, exporters will have to look for other alternatives," the association said. The major beneficiary of such a step would be Tanzania which produces around 1.3 lakh tonnes of raw nuts annually, it said.
Meanwhile, Vietnam cashew processors have stockpiled 30,000 tonnes of cashew nuts which will be exported by April this year, according to the Vietnam Cashew Association (VINACAS). The cashew industry in Vietnam, it said, is in a financial crisis for want of support from the banks.
Vietnam, India's main competitor in the world cashew kernel market, expects to produce 4.5 lakh tonnes of raw cashew nuts equivalent to one lakh tonnes of cashew kernels this year. The processors, the VINACAS said, plan to export 70,000 tonnes of kernels from May to December this year. The remaining 30,000 tonnes would be exported in 2010. So far in 2009, it added, the industry had signed contracts to export 10,000 tonnes of nuts, and the exporters would deliver it in the first half of this year.
(Source: Business Line)
CASHEW EXPORTS RECORD HIGHS DESPITE REJECTION
Despite the rejection of several export consignments due to the presence of chlorophenol, Indian cashew exports have managed to post a remarkable growth in revenue for the current fiscal on lower volumes. Traders point out that India has gained in a shrinking market due to the problems faced by the Vietnamese cashew industry.
Export figures provided by the Cashew Export Promotion Council for the first ten months of 2008-09 show a value increase of 35.46%, when compared to the performance of the same period of 2007-08. During the April-January period of 2008-09, Indian export volumes recorded a decline of 3.6% when compared to the figures of the same period of 2007-08.
Dollar revenue for the period has also improved by 21%. India exported 91,381 tonne of cashew kernels valued at Rs 2,507.02 crore ($555.39 million) during the ten months of 2008-09 as against the export of 94,794 tonne valued at Rs 1,850.71 crore ($459.23 million) during the first ten months of 2007-08. Unit value realisation has increased by 40% over the period to touch Rs 274.35 per kg.
Cashew exporters in Vietnam are facing huge problems due to the large inventory which was imported when cashew prices rose sky-high due to a supply shortage. With the decline in global cashew prices due to a general slowdown in demand, Vietnamese traders are facing losses and are reneging on contracts due to credit shortages. Export of cashew has slowed down considerably in the last four months due to the global recession. Trade experts see prices coming down further with recession-affected households turning value-conscious.
Indian exporters are also facing erosion in profit margins due to the increased cost of imported raw cashew. The price of imported cashew has increased by 61% during the ten months of 2008-09 when compared to the performance of the same period of 2007-08. Import of raw cashew for the first ten months of 2008-09 stands at 539,184 tonne valued at Rs 2,317.57 crore as against 510,434 tonne valued at Rs 1,358.38 crore during April-January of 2007-08.
By Rajesh Ravi
(Source: Financial Express)
RS 57.83-CR NHM AID FOR INDIA'S CASHEW SECTOR
THIRUVANANTHAPURAM: Giving a fillip to the cashew sector in the State, the Executive Committee of the National Horticulture Mission (NHM) has approved the proposal for sustainable cashew nut production in Kerala submitted by the State Horticulture Mission (SHM).
The Committee which met in New Delhi the other day approved the proposal with a financial outlay of Rs 95.60 crore of which the NHM assistance will be Rs 57.83 crore for a period of 4 years. Rs 27.28 crore has been released as the assistance for the year 2008-09, according to a communication that reached the office of Labour Minister P.K.Gurudasan who is also in charge of cashew development in the State. The rest of the assistance will be released in the next three years.
The Annual Action Plan (AAP) 2008-09 of the SHM was approved with the Union Government’s share of Rs 148.07 crore and Rs 75.17 crore has been released for the implementation of NHM programmes in the State. The approved Action Plan includes coverage of 5,000 hectares of new cashew plantations besides provision for rejuvenation of 1,924 hectares of cashew plantations.
The SHM had submitted a comprehensive proposal for sustainable cashew nut production in the State in an additional area of 10,000 hectares of cashew plantation and the rejuvenation of plantation in 20,000 hectares integrating all the components involved in improving production and productivity of cashew in the State.
The project will be implemented by the Kerala State Agency for expansion of Cashew Cultivation (KACC) in association with the Kerala Agricultural University, Department of Agriculture, Local Self-Government and Forest Departments. KACC will be the nodal agency for cashew development in the State. The SHM will ensure that all cashew development programmes of the NHM are implemented through the agency. The SHM will also include the Directorate of Cashew and Cocoa Development, Kochi, under the Ministry of Agriculture, as a participating agency in the implementation of the project.
Five model nursery units of 4 hectares each will be set up. 20 small nurseries of 1 hectare each in the private sector and 24 nurseries of 1 hectare each in the public sector would also be set up.
Replanting and rejuvenation of 10,000 hectares of plantation and establishing of 10,000 hectares of cashew plantation are among the components of the development plan. Adoption of organic farming in 2,000 hectares and construction of 4,000 vermicompost units have also been approved. Rs 6 crore has been earmarked for post-harvest management. Rs 10 crore will be spent for creating water resources in 1,000 hectares.
(Source: Express Buzz – India)
INDIAS CASHEW EXPORTS UP 25% IN JANUARY AMID SLUMP
Cashew kernel exports recorded a 25 per cent growth during January at over Rs 223 crore due to increase in value realisation amid global economic slowdown.
The exports stood at Rs 178.76 crore in January 2008, according to data by Cashew Export Promotion Council (CEPC). However, in terms of volume the exports have declined marginally to 8,460 tonnes as compared to 8,483 tonnes. But the unit value realisation saw an increase of Rs 53 at Rs 263.64 a kg as compared to Rs 210.73 a kg during the review period.
“There was an impact of international economic crisis on cashew exports as it is not an essential commodity,” said CEPC Secretary Sashi Verma. Going by the trend, Verma said, things are improving slightly. Cashew nuts are now costing $2.3 a pound as compared to $2 some few months back.
CEPC is on a constant look out for new export avenues eyeing to raise the number of countries in its fold. However, in the current scenario it seems a bit difficult and we are hoping that things will return to normal in another six months, he added.
As per the cumulative data from April 2008 to January 2009, there was over 35 per cent increase in exports at Rs 2,507.02 crore as against Rs 1,850.71 crore during the same period last year.
In terms of quantity, the exports stood at 91,381 tonnes during the current financial year till January as compared to 94,794 tonnes in the corresponding period in the previous year. In the earlier part of 2008-09, the prices were good but came down in the later part, Verma said .
(Source: PTI)
CASHEW BODY EMPLOYEES DEMAND IMPLEMENTATION OF PAY PACKAGE
Kochi, Jan. 15: The employees of the Cashew Export Promotion Council of India (CEPC) have sought the intervention of Union Commerce Minister and the Commerce Secretary to get the sixth Pay Commission recommendations and promotions due to them implemented.
In a representation signed by around 20 employees of the CEPC, an autonomous organisation under the Commerce Ministry, they said that the Economic Officer of the Union government had circulated order No A-16018/1/2006/EIII dated September 4, 2008 to all Autonomous Bodies/EPCs/Statutory Bodies to implement the Sixth Central Pay Commission from September 30, 2008. This was followed by another order No 7/23/2008-E-III dated September 30, 2008 from the Ministry of Finance that 80 per cent of funds will be provided by the Central government for implementing the report for autonomous bodies, quasi-government organisations, etc which are following central DA pattern. The CEPC management, despite these orders, has not initiated any action to implement the pay commission recommendations even after the lapse of six months.
They said the CEPC followed central DA pattern and had implemented all the previous five Pay Commission recommendations.
They alleged that only the CEPC had not implemented the latest pay commission recommendations where as all the other Export Promotion Councils/Commodity Boards/Statutory Bodies have implemented it.
Besides, the employees alleged that they had been denied their legitimate promotions/ upgradations/accelerated career promotions to posts fell vacant due to normal retirement/ resignation etc., by the CEPC management.
A senior CEPC management source, when asked about the implementation of the pay commission recommendations, told Business Line that the Council had already taken it up with the Commerce ministry and its reply was awaited.
According to the Government order “the adoption of revised pay structure based on these orders by Autonomous Organisations etc., both where the pattern of emoluments structure is identical to the Central government and where the emoluments structure is not similar will be subject to the following conditions as far as budgetary support for additional expenditure is concerned”:
(a) 80 per cent of the additionality will be met by the Central government; (b) 10 per cent of the additionality will be met by the Autonomous Organisations etc., through additional generation of revenue; and (c) balance 10 per cent of the additionality will be managed by the Autonomous organisations etc through savings.
(Source: blonnet)
PLEA TO RAISE AID FOR GROWING CASHEW CROP
The current pattern of assistance made available to promote cashew crop in the country is said to be quite inadequate and to motivate the farmers to take up its cultivation it has to be enhanced to make it attractive given the increased input costs, according to experts.
The pattern of assistance of the Directorate of Cashew and Coco Development (DCCD) for cultivation of cashew is 50 per cent of the cost subject to a maximum of Rs 9,000 a hectare in three instalments at 50:30:20: basis for the 1st, 2nd and 3rd year respectively. It works out to Rs 4,500 for 1st year, Rs 2,700 for 2nd year and Rs 1,800 for 3rd year which will come to Rs 45 a plant in three years, says Dr Abdul Salam, Professor& Head, Department of Agronomy and Cashew Expert College of Agriculture, Vellayani, Thiruvananthapuram. Dr Salam, who has submitted a proposal to the National Horticulture Mission (NHM) for the Kerala State Agency for Cashew Cultivation (KSACC) at the behest of Mr P.K. Gurudasan, Minister for Labour, Excise and Cashew, told Business Line that the current package is too meagre and needs to be enhanced to somewhere near the level of assistance given to other cash crops such as rubber, tea, coffee etc.
ORGANIC CASHEW
The cashew farmers need to be motivated to take up organic cashew cultivation so as to raise the indigenous production of this important raw material and to reduce the dependence of the country's cashew industry on imports. According to him the assistance per tree should be raised to Rs 150 for three years from Rs 45. The cost of various inputs has gone up while the labour cost in Kerala has shot up several folds. The actual cost per plant for three years works out to Rs 358 and against this the assistance needs to be Rs 150 a plant for three years for all the cashew growing States except Kerala, where it has to be Rs 200 given the high labour cost, he argued. He said the proposal was expected to be cleared by the NHM soon.
WAGE RATES
Here the labour requirement for cashew estimated by the DCCD is assumed, for estimating the cost of cultivation. DCCD estimates man days of 150, 73 and 40 for the first, second and third years of planting at a wage rate of Rs 100 a man-day. But the wage rate in Kerala today ranges from Rs 200 to Rs 300 a man-day. Therefore, in the proposal it has been given as Rs 150 a man-day and that has raised the demand for assistance than what is offered by government.
At a wage rate of Rs 150 a man-day the cost of cultivation of organic cashew is Rs 31,500 a hectare during first year while its maintenance cost during 10th year is Rs 39,000/hectare, he said.
The man day requirement for cashew cultivation during first year is 150/hectare and the same during 10th year is 100/hectare. The input cost is Rs 45/tree during first year and Rs 120/tree during 10th year. The labour cost during first year is Rs112 /tree and the same during 10th year is Rs 75/tree.
HIGH COMPETITION
Today, India is facing tough competition from other cashew producing countries in South East Asia such as Vietnam and Africa. The situation demands that the country should reduce its dependence on imported raw nuts. At the same time to be competitive "we have to increase our productivity (yield) per hectare to the level of other producing countries especially Vietnam or more and that demands support from the government and other agencies", he pointed out.
Kerala scenario
Among Indian states, till recently Kerala occupied the first position with respect to area and production of cashew. But, today, it has come down to sixth and fourth with respect to area and production respectively. According to 2005-06 statistics, cashew area in Kerala has shrunk to 87,333 hectare with a production of 67,667 tonnes. The trend in cashew area and production in the State (three year moving averages) clearly indicates sharp decline in area, production and productivity during the last 14 years period. In fact, it looks like a disastrous period with respect to cashew development in the state. Substitution of cashew area with rubber is said to be one of the most important reasons for this dismal trend.
Given this situation the State Government has created the KSSCC so as to improve cashew cultivation in the State so as to regain its lost glory, he said.
G.K. Nair
(Source: Blonnet)
TIME RUNNING OUT FOR CASHEW BOARD
Kochi, Jan. 9 The creation of a Cashew Development Board can become a reality only if the Government gets a Bill passed to this effect in the last session of Parliament as the term of the present Government is nearing an end.
The next session of Parliament is scheduled for the last week of February in which a few Bills and vote on account would be passed, official sources said.
The Union Commerce Secretary, Mr Gopal K. Pillai, said the draft bill and other documents relating to the creation of the Cashew Development Board was in the Prime Minister’s Office and he was not optimistic on the setting up of the Board now as the time left with the Government was limited.
“I am not concerned about under which ministry it is to be set up, it can be under the Agriculture Ministry. What I have been emphasising is that an integrated body for the development of cashew right from research and development, cultivation to processing, marketing and exporting should be in existence like other commodity boards such as for rubber, spices etc,” he said.
The hurdle to the creation of the Board has been put by the Union Agriculture Ministry which is consistently arguing that the entire activities concerning cashew should be undertaken by the National Horticulture Mission, he said. “There is no special interest that it should be under the Commerce Ministry and that is immaterial. What is needed is the creation of an integrated body for the cash crop, which is a raw material for producing an export commodity,” Mr Pillai said.
According to him, setting up of the Board is inevitable for the modernisation, expansion, diversification of the cashew industry apart from promoting value-added products so as to equip the industry to compete with others such as Vietnam in the world market apart from ensuring remunerative prices to the farmers.
Research in cashew and taking the findings to the farmers through effective extension services, monitoring of implementation of various schemes are important aspects that need to be brought under one umbrella.
Production of raw cashew nuts in the country needs to be increased to reduce our dependence on imported nuts, as some of the producing countries have already started processing, he pointed out.
For several years, the demand for the Board has been in hibernation and it was revived recently after a long time. It should become a reality in the interest of the cashew farmers, industry and the workers, he said.
To make the Indian cashew competitive in the world market “we have to bring in more areas with high yielding disease-resistant varieties, especially in the vast stretches of waste lands currently lying idle”. This, apart from commercially utilising the waste lands, would create a green belt in many States, especially in the coastal regions and thus, would result in eco-restoration.
Rural employment generation, providing cheap fuel – fire wood for the rural poor, production of cashew-based diverse products such as cashew apple juice, jam, pickle and above all using it for manufacturing ethanol as bio-fuel, would create more demand for the hitherto wasted apple and thus enhance the income of the growers, he said.
Proper co-ordination between different ministries and departments in the Central and State governments is essential for implementing various schemes drawn up for achieving the desired results. The past experiences have so far proved that in the absence of an integrated body to co-ordinate, implement and monitor properly, the cashew sector has not achieved any significant progress even after several decades of efforts by the Centre. Therefore, several departments related Standing Parliamentary Committees and IIFT had recommended creation of the Board during the past over four decades.
The processing capacity of the Indian cashew industry, at present, is 1.2 million tonnes of raw nuts and almost 50 per cent of it is imported mainly from Africa. Vietnam was a major source for raw nuts but with the setting up of processing units there not only supply has been stopped but it has become a major competitor of India in the world market.
G.K. Nair
(Source: Blonnet)
HAZELNUTS TO HELP FARMERS IN BHUTAN
Bhutanese farmers who thought that degraded lands from deforestation, irresponsible shifting cultivation and over grazing was of little use to them, may be in a for a pleasant surprise.
Those lands will now be used to produce hazelnuts of premium export quality.
This will be done through a public-private partnership venture, between Bhutan and the investing company, the Sage Partners Limited.
The first phase of the memorandum of understanding was signed yesterday between the agriculture minister lyonpo Dr Pema Gyamtsho and the managing partner of Sage Partners Limited Daniel K Spitzer.
“Rural subsistence farmers are facing many challenges economically and socially. This is an opportunity to give them income generation opportunity where they can stay in their homes and actually rehabilitate some of the degraded environment in their area,” said Daniel K Spitzer.
The first phase of the project will start in Radi, Phongmey with the plantation of about 300,000 plantlets, said the program director for the renewable natural resources research centre (RNRRC) for east Tayan Raj Gurung. “The first consignment of plantlets will reach Bhutan in May this year and the plantation will begin by March 2010.”
In the west, the identified areas for hazelnut production are Wangdephodrang, Punakha, Paro and Haa.
The nation wide project will be carried out on about 20, 000 hectors of degraded land all over the country. Lyonpo Dr Pema Gyamtsho said that this venture has both economical and ecological benefits.
But the US$30 million project comes with challenges. “The scale of this project is larger than any investment in this sector in this country. We are talking about the complex system of logistics and outreach, about having to teach farmers on how to plant an entirely new different kind of trees. So that’s a challenge,” said Daniel K Spitzer. “It’s a great opportunity to penetrate international market and to create a positioning of Bhutan as a producer of premium quality food product.”
Tayan R Gurung said that there is a need for public awareness about hazelnut production. “We have to teach them and even show them how the nut looks like.”
Hazelnut is a new crop to the farmers in Bhutan. According to RNRRC officials, it requires a temperature between 8-25 degree Celsius and grows at an altitude between 1600-2600 meters.
Daniel K Spitzer said that His Majesty the fourth king inspired the project coming to Bhutan in a large part. “I wanted to do something for Bhutan for a long time. Yes, this is a commercial venture and it’s a practicle venture as a partnership between public and private, but it’s also very much an altruistic venture.”
(Source: Fresh Plaza)
CASHEW NUTS CROPS POPULAR IN TRIPURA - INDIA
Many farmers in west Tripura are taking to growing cashew nut, as it offers better prospects to earn bigger profits.
Farmers get good returns for their produce. The 'Maa Tara Cashew Processing Industry' initiated by Parimal Chanda Saha has been encouraging.
The unit has given employment to over a hundred people. Ninety-five per cent of them are rural women coming from the lowest strata of the society.
"I noticed that the cashew produced here in Tripura gets almost wasted so I though of setting a processing industry by which the farmers shall be benefited and at the same time rural people shall also get employment. With little financial help from the government of India this unit has been set up and I intend to make it bigger as we have raw material (Cashew nut) here," said Parimal Chanda Saha, the owner of the Parimal Chanda Saha, the owner of Maa Tara Cashew Processing Industry.
"I learnt this work in Midnapur (in West Bengal) and before I came here the people knew nothing about processing of cashew nut and most of the cashews produced here were wasted. But now due to the installation of this factory not only the cashew is being utilized but it is also a source of income for hundreds of poor village women," said Joy Krishna Pradhan, Quality controller
"Earlier, we had no work. But with the opening of the factory we got an income source as we got employment here. Our income is around rupees 1,000 a month, which helps in meeting the expenses of our families. We also have provident fund of 12 percent. We are 100 women here and we are very happy as the factory is a source of income for rural women like us," said Jyoti Banik, one of the workers.
Seeing the potential of this factory, more cashew nut processing units have come up in the state. Over 300 farmers also plan to double the area under cashew soon to meet the demands of the existing cashew processing factories.
Today, Tripura is fast emerging as a cashew nut producing state, contributing 4000 metric tonnes of country's total 800,000 metric tonnes cashew kernels in a year.
Besides improving the productivity and quality of produce, marketing of such agricultural commodities has helped thousands of farmers obtain good prices.
(Source: Daily India)
INDIAN CASHEW NUT EXPORTS LIKELY TO FALL BY 20% IN 2008
PANAJI: The current global meltdown has hit the country’s cashew farmers, already reeling under heavy competition with cashew producing countries like Brazil and Vietnam. According to market estimates there are nearly three lakh cashew farmers in India. As India continues to be the largest exporter of cashew kernels, slackening demand is making producers cut profit margins, which has made importing of low-cost raw cashew nuts a lucrative option.
Official reports with the Cashew Export Promotional Council of India (CPECI) show that cashew kernel exports have dropped marginally from 11.5 lakh tonnes in 2006-07 to only 11 lakh tonnes in 2007-08. But, the year ahead is likely to see a further 20% fall. “Cashews are considered to be a luxury item, so it is one of the first commodities to take a hit in a situation like this,” said Suresh Zantye managing partner of one of the big cashew exporting firms.
India exports cashew mainly to the US and Europe, which are facing a severe economic turbulence. Cashew traders are now looking to develop Asian markets like Japan, Israel and Saudi Arabia. India earns a good amount of foreign exchange by exporting cashew kernels and it ranks second among the cash crops exported. In addition to exports, India is also one of the leading raw cashew consumer, which traders hope will keep their business moving. Although cashew production in the country increased by 6% in 2007-08 to 6.6 lakh tonnes as against 6.2 lakh tonnes in 2006-07; traders point to a significant rise in imports from 5.9 lakh tonnes in 2006-07 to 6.5 lakh tonnes in 2007-08. “The import cost is much lower than buying raw nuts in India,” a leading cashew trader told ET.
Imported raw cashew nuts costs Rs 45 to Rs 48 per kg. As against this the Indian variety commands a higher price ranging from Rs 50 to Rs 55 per kg. “When it comes to cashews most people do not know the quality, it is the price that determines sales,” adds Mr Zantye. According to A S Kamath, president, Goa cashew traders association, lack of availability of high-quality Indian cashew is responsible for such rising prices.
“We have developed technology to increase productivity to meet the rising demand. Unfortunately this is used abroad rather than in India,” he said. With nearly three lakh cashew farmers, Indian productivity has only doubled from three lakh tonne in 1990 to a little over six lakh tonnes in 2008 while global cashew nut production rose from 19.04 lakh tonnes in 2001 to 31.03 lakh tonnes in 2006. The cashew nut production in Vietnam in 2001 was 2.93 lakh tonnes which went up to 9.42 lakh tonnes in 2006. For the corresponding year Indian production went up from 4.50 lakh tonnes to 5.73 lakh tonnes.
In addition to farmers, there are nearly a thousand registered and over 1,200 unregistered SSIs processing raw cashews in the country, all of which face threat of closure with the declining demand. Karnataka, Kerala, Goa, Maharashtra and Orissa are major producers.
(Source: Economic Times)
INDIA: PALASA CASHEW UNITS FOCUS ON CURBING POLLUTION
Manufacturing units gradually switching to boiler cooking method.
Cashew manufacturers in Palasa, the largest cashew market in Andhra Pradesh, are gradually switching to boiler cooking from the traditional drum roasting system.
About 200 cashew manufacturing units with a combined processing capacity of 400,000-450,000 tonnes operate at Palasa in Srikakulam district. These units work on the drum roasting system, which causes air pollution.
Over the last three to four years, pollution control officials have been serving notices to processing operators asking them to stop roasting and instead boil cashew nuts. The officials have in the last few months ordered closure of around 124 units.
According to Malla Nooka Raju, former president of the Palasa Cashew Manufacturer Associations, the operators were initially reluctant to switch to boiler cooking as it involved huge investments. Some even shifted base to Orissa, which is about 40 km from Palasa.
However, these operators are now showing interest in changing over to the boiler system, he told Business Standard.
Each unit requires about Rs 10 lakh for changing the processing method.
“The central government has recently announced a subsidy scheme in this regard under which it is offering Rs 10 lakh to each unit, of which the subsidy component is Rs 2.5 lakh while Rs 7.5 lakh is towards tax concessions,” he said.
About 10 unit operators have availed of government's financial assistance and converted their processing system over the last one-and-a-half months.
(Source: Business Standard)
BRAZILIAN CASHEW GROWERS TAKE FAIR TRADE ROAD TO SELL OVERSEAS
Brazil's Center of Cashew Farmer Cooperatives in the northeastern state of Piauí (Cocajupi), created in 2005 to strengthen family farming in the micro-region of Picos, is preparing a strategy to conquer its first clients abroad.
The path chosen by the group in order to grow and become visible to international buyers was certification in foreign trade, which should be issued in eight months.
"We are also awaiting accreditation with the Ministry of Agriculture and setting up the last details regarding the standardization of our products and packages," explains Ruy Brito, executive advisor to the board of directors at Cocajupi.
Consisting of nine cooperatives and 485 members, the organization expects to certify around 70% of farmers and reach demanding markets such as countries in the European Union, the United States and the United Arab Emirates.
"With regard to opportunities in Europe and the United States, we have been prospected by the Bank of Brazil Foundation and the World Bank. We have also been contacted by a Brazilian businessman who is interested in exporting to Dubai," he says.
"We are investing in fair trade certification, which pays up to 50% more than the conventional market, so as to strengthen our products and better structure the communities," he explains. According to him, Brazilian consumers are also increasingly concerned with the origin of products and the type of organization involved in the process.
According to Brito, the cooperative complex counts on nine mini-factories for cashew nut processing and one central for screening, classification and commercialization of production.
"All of them are equipped and ready to operate, with an installed capacity of 2,000 tons of cashew per year, including vehicles for product transport logistics between the cooperatives," he explains. Each mini-factory generates 30 direct jobs, plus another 40 positions at the center.
Expansion in the domestic market took place in 2008 after participation in fairs such as the Piauísampa, held in São Paulo in early June. The group also participated in Fenabrave, the National Fair for Family Farming, held in September in Rio de Janeiro, and in Biofach Latin America, held in October in São Paulo.
Presently, cashew nuts processed by Cocajupi are sold to wholesalers and retailers in the states of São Paulo, Goiânia, Porto Velho, Macapá, Rio de Janeiro, Bahia and Paraíba.
According to Brito, Cocajupi operates in the segments of production, industrialization and commercialization of cashew nuts to organize and strengthen the production chain. The goal of the organization is to enable the incorporation of profit to the gains of family farmers, whereas before it used to go to intermediaries and cashew industries.
Other goals are strengthening the cashew nut processing industry, improving the quality standard of products, adopting more efficient technologies and appropriate processing methods for purchasing raw material. The standardization of production, increase in productivity, training and the raising of farmers' income across all links in the production chain are other goals of Cocajupi.
Source: Brazil Magazine)
MOZAMBIQUE: CASHEW NUT PRODUCTION TO BE LOWER THAN PROJECTED IN 2009
Maputo, Mozambique, 20 Jan – Cashew nut production in Mozambique in is expected to total 90,000 tonnes in 2009 as compared to an initial projection of 100,000 tonnes due to a number of factors such as slash and burn agriculture and adverse weather conditions, Mozambican newspaper Notícias reported.
Filomena Maiopué, director of Mozambique’s National Cashew Institute (Incaju), told the newspaper that taking into account the production of 90,000 tonnes in 2008 it was expected that production would not be less than 100,000 tonnes this year, if weather conditions were favourable.
The rise in fuel prices last year led to many producers not completing the necessary steps in spraying the cashew trees, cyclone Jokwé affected Nampula province, particularly its coastal districts and there were many slash and burn agricultural practices that got out of control and destroyed cashew trees across Mozambique.
The director of Incaju gave assurances that efforts would be made to continue improving cashew production in the country with the aim of taking a significant place in world cashew production over the next five to ten years.
At one point in the 1970s Mozambique was considered to be the world’s largest producer of cashew nuts, but by the end of the 1980s the sector saw significant drops in production due to climate factors, plant aging, pests and disease, in a situation that led to the sector’s collapse at the end of the 1990s, following the implementation of inappropriate policies recommended by the World Bank.
Over the last few years, due to work coordinated by Incaju with a view to spraying plants, on the one hand,, and replanting new pest-resistant species, on the other, the sector has seen improvements, which currently allows for average annual production of 80,000 tonnes of cashew nuts.
(Source: macauhub)
STRUGGLING VIETNAM CASHEW INDUSTRY CALLS FOR HELP
HA NOI — The Viet Nam Cashew Association (Vinacas) is calling for the Government’s support in obtaining loans for cashew processors and growers to ease difficulties in production and export this year.
In a petition to the Prime Minister, the association has requests banks to lend VND6.7 trillion (US$375 million) to the farmers and processors that produce, purchase, process and export the nuts.
Vinacas has proposed that the farmers and processors could get VND2 trillion ($114.3 million) of the funds from the State-run Viet Nam Development Bank with a zero interest rate.
The rest of the funds would be borrowed from commercial banks with preferential interest rates for processors of farm products for export, Vinacas said.
Nguyen Duc Thanh, acting chairman of Vinacas, forecast that the export price of cashew nuts would fall to $4,500 a tonne for this year from $5,500 last year, because the global economic downturn has decreased cashew demand in the world market.
Thanh said from cashews harvested last year, processors still had stockpiled 30,000 tonnes of cashew nut worth VND4.675 trillion ($267.1 million)- the money to produce them was borrowed from banks.
Last year’s leftover stock would probably not be exported by April of this year. In the meantime, processors must pay interest rates of 15 per cent for the loans, so losses would increase as the goods have to wait longer for export, Thanh said.
Viet Nam exported 165,000 tonnes of cashews last year, earning $908 million. The industry had a year-on-year increase of 38.8 per cent in value. Its key export markets for cashews include the US, China and the Netherlands.
The nation expects to produce 450,000 tonnes of raw cashew, equivalent to 100,000 tonnes of cashew nut for this year, according to the association. The processors plans to export 70,000 tonnes of that from May to December of this year. The remaining 30,000 tonnes would be exported in 2010.
So far this year, the enterprises in the industry had signed contracts to export 10,000 tonnes of nuts, and the exports would be delivered in the first half of this year, the association said. — VNS
(Source: Vietnam News)
GLOBAL ORDERS FOR WALNUT KERNELS DRYING UP
Srinagar: Just when Kashmir’s walnut kernel had begun doing brisk business in the international markets, recession hit and its rates tumbled, resulting in heavy losses to the growers, traders and exporters alike.
In 2007, kernels worth Rs 100 crore were exported. In 2008, the revenues fell to around Rs 50 crore to Rs 70 crore. Half of the kernels produced in Kashmir — around 87,000 tonnes are produced in 61,000 hectares of land — are exported. With no takers now, the export quantum of the dry fruit variety has reduced substantially.
“Rates of walnut kernel have fallen drastically, both in the national and international markets, owing to global recession,” said president, Fruit Growers’ Association, Ghulam Rasool Bhat. “The three-fold decrease in the rates is worrying. Both traders and growers have lost crores of rupees in the past months.”
Walnut is one of the main cash crops of the farmers in J&K’s hilly regions, especially in the bordering districts of Kashmir, Doda and Poonch. In fact, according to officials, J&K has the potential to market kernels worth Rs 500 crore though the state is yet to market it to its potential.
(Source: Indian Express)
CALIFORNIA ALMOND SUPPLIES UP, PRICES DOWN IN 2008
A bumper crop and a decrease in international demand have combined to reduce by half the price almond growers are receiving for this season's crop.
Wil Hunter of the California Almond Board said prices for the nut are about $1 per pound, down from about $2 a year ago. He said about 350 million pounds of almonds will be held over to the 2009 season in hopes the price will rise.
California almond growers ship 70 percent of their crop overseas, but officials say the strengthening dollar has cut demand from big almond consumers such as China and India.
In recent years growers have been trying to cash in on the demand for almonds by planting new orchards, another factor contributing to the surplus and lower prices.
(Source: Merced Sun-Star)
KENYA: EXPORT BAN ON RAW CASHEW NUTS WILL DEPRESS PRICES
A trade lobby is warning that the proposed ban on export of raw cashew nuts will destabilize the market and reduce prices offered to farmers.
The Kenya Cashew Nuts Processors and Exporters Association says the ban would reduce the number of commodity buyers leaving farmers at the hands of middlemen out to fleece them.
“If the ban is effected, exporters have to look for other alternatives,” said Mr Samuel Varghase, the association’s chairman.
Mr Alexander Mwangeka, a Kenya National Chamber of Commerce and Industry Mombasa branch official, said banning the export of raw cashew nuts would reduce options available to farmers and affect producer prices.
Tanzania, which produces 130,000 tonnes of nuts annually, would be the main beneficiary of this search for alternatives.
Some companies - Emke Commodities, Export Trading, Donal International and Jumba international - are understood to have already registered companies in Tanzania with some already doing serious business there.
Agriculture minister William Ruto said in August that the Government may ban the export of raw cashew nuts in a bid to support value addition locally.
Mr Ruto has not yet signed the export ban into law as required through the Kenya Gazette, indicating that he would seek more views from stakeholders on the appropriateness of such an action.
Source: bdafrica.com
CASHEW GROWERS ALLOWED TO RAISE LOAN ON STOCK
PUNE: The cashew growers in the state will now be able to get loan by pledging their stock of cashews under the loan-on-stock scheme.
This was revealed by Madan Patil, minister of state for marketing while speaking to reporters after the valedictory session of the cashew, raisin and jaggery festival organised by the federation of cashew growers, mahagrapes and Maharashtra state agriculture marketing board (MSAMB).
The loan on stock scheme was launched to prevent the loss to farmers on account of fluctuation in prices of the produce. When the price of a commodity dips, farmers can stock the produce at government recognised warehouse and raise a loan by pledging it. Farmer can release the stock when prices go up and repay the loan. The state cabinet recently decided to include cashew growers in the scheme.
Patil said, "The state produces 1.74 lakh tonnes cashew annually. Farmers used to incur losses when the prices reduced due to glut in the market. At present, farmers have to take loans from banks or other sources at interest rates of around 15 per cent to set up processing units. The government is also mulling over arrangements for funding such units."
Speaking at the function, Dilip Mohite-Patil, chairman of the Maharashtra state agriculture produce market committee (APMC), said, "Several APMCs in the state are governed by the administrator. APMCs like Pune and Nagpur which cater to large geographical areas still have administrators. There is a need to conduct elections of these APMCs, otherwise the federation will have to approach the court of law to ensure elections."
Reacting to this, Madan Patil said, "Elections in some APMCs can not be conducted because of court cases. The state has isued instructions to the APMCs where elections can be conducted and further procedure would be completed. The polls can be conducted in the next 3 to 4 months."
He also stated that festivals like this will be organised in various parts of the state, where the producers can directly sell their produce. The MSAMB will promote such activities, he added. Currently, over 1.60 lakh hectare area in the state is under cashew plantation, which produce 1.74 lakh tonnes of cashews.
(Source: Times of India)
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