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Transcript of 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
1
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.
2
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.
3
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.
4
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
5
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,
6
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
7
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
8
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.
9
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
10
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.
11
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.
13
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.
14
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
15
2. CASHEW KERNELS - SCORCHED WHOLES
Scorched Wholes(SW)
ScorchedWholes (SW) - 180
Scorched Wholes(SW) - 210
ScorchedWholes (SW) - 240
ScorchedWholes (SW) - 320
ScorchedWholes (SW) -
450
Scorched Wholes - 500
16
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)
17
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)
18
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,
19
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.
20
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.
21
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
22
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
23
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
24
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 : -
25
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
26
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
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
Particulars No. of Respondent Percentage
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
Particulars No. of Respondent Percentage
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
Particulars No. of Respondent Percentage
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
Particulars No. of Respondent Percentage
Yes 9 18
No 41 82
Total 50 100
TABLE – 4.12
PROBLEMS IN PACKAGING OF
62
CASHEW PRODUCTS
Particulars No. of Respondent Percentage
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
Particulars No. of Respondent Percentage
Yes 35 70
No 15 30
Total 50 100
INFERENCE:
From the above table it is inferred that 70% of the
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
Particulars No. of Respondent Percentage
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
Particulars No. of Respondent Percentage
Yes 30 60
No 20 40
Total 50 100
TABLE -4.16
DOMESTIC PRODUCTION OF SUFFICIENT
RAW CASHEW NUT
70
Particulars No. of Respondent Percentage
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
Particulars No. of Respondent Percentage
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.
CALCULATION OF CHI- SQURE
Null Hypothesis (H0): Fluctuations in exchange rate are not
affecting cashew exports.
2 = (O-E)2
74
E
Expected value E= RT*CT/E
= 50*50/100=25
(O-E)2/E =77.44
So 2 = 77.44
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 – 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:
From the above table it is inferred that 80% of the
respondents are facing problems in infrastructure facilities and
remaining 20% of the respondents are not facing any problems in
infrastructure facilities.
CALCULATION OF CHI- SQURE
Null Hypothesis (H0): Lack of infrastructure facility not affects
cashew exports.
2 = (O-E)2
77
Particulars No. of Respondent Percentage
Yes 40 80
No 10 20
Total 50 100
E
Expected value E= RT*CT/E
= 50*50/100=25
(O-E)2/E =27
So 2 = 27
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 - 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:
From the above table it is inferred that 90% of the
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.
CALCULATION OF CHI- SQURE
80
Particulars No. of Respondent Percentage
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
Expected value E= RT*CT/E
= 50*50/100=25
(O-E)2/E =64
So 2 = 64
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 - 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:
From the above table it is inferred that 64% of the
respondents are facing the problem of sourcing funds, and
remaining 36% of the respondents are not facing the problems of
sourcing funds.
CALCULATION OF CHI- SQURE
83
Particulars No. of Respondent Percentage
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
Expected value E= RT*CT/E
= 50*50/100=25
(O-E)2/E =7.84
So 2 = 7.74
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 – 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.
From the survey, it was found that majority of the
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.
From the survey, it was found that majority of the
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.
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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
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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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