Kollam: A considerable hike in the import of processed cashew from foreign countries including Vietnam has adversely affected the indigenous production and sale of cashew by companies including Kerala State Cashew Development Corpoation (KSCDC). The import of processed cashew at cheap rates through the special economic zone in Kochi has witnessed a hike of over 1000 metric tonnes (MT) this year, compared to the import in the previous year.
“We are now facing a new challenge in the industry with the import of processed cashew especially from Vietnam. We had earned the title ‘cashew capital’ but are witnessing import of cashew to our own State. Over 3018 MT of cashew has been imported during the last financial year till January 2017 worth Rs. 157.16 cr against an import of 1307 MT in 2016. This should we addressed seriously,” said KSCDC Chairman S. Jayamohan. On an average over 210 MT of processed cashew worth Rs 15 crore is being imported every month.
The comparatively low cost of production and extensive mechanisation are learnt to have enabled Vietnam to sell cashew at low prices. Industrialists in the State have also started processing businesses in Vietnam which is then brought back to mix with Indian cashew to export in the name of Indian cashew which has a huge demand in the international market. These exporters also enjoy export relaxations in both India and Vietnam.
India exports an average of 82,302 MT of cashew, getting a whopping Rs. 5168 cr per year. The cashew from India has customers in over 75 countries including the U.S., Canada, Dubai, and The Netherlands. This market has now been conquered by Vietnam because of low processing rates in the country. The sub-quality cashew kernels rejected by major countries are imported in India in the name of cattle feed, which is then sold by agents in the market for low rates, which again affects the indigenous market. Vietnam cashew has almost conquered Malabar region of the State, finding markets in Kasargode, Kannur, Kozhikkode, and Malappuram.
