chapter ii production and processing of...
TRANSCRIPT
59
CHAPTER– II
PRODUCTION AND PROCESSING OF CASHEW
2.1 Introduction
2.2 Importance of Cashew
2.3 Nutrition Value of Cashew
2.4 World Cashew Production
2.5 Cashew Production in India
2.6 Statewise Cashew Production in India
2.7 Export of Cashew Kernel from India
2.8 Import of Cashew nut into India
2.9 Export of Cashew nut Shell Liquid.
2.10 Cashew Production in Tamil Nadu
2.11 Pricing Trend of Raw Cashew nut in Different States.
2.12 Historical Background of Cashew Industry
2.13 Cashew Processing Units in India
2.14 Cashew Processing Units in Tamil Nadu
2.15 Wage Disparity
2.16 Growth of Cashew Industry in Tamil Nadu
2.17 Reasons for Shifting Cashew Industry from Kerala to Tamil Nadu.
2.18 Methods of Cashew nut Processing.
60
2.1 INTRODUCTION
The first section of this chapter deals with the production, export and
import of cashew kernel at the international and national level and the
second part examines the historical background of cashew industry and the
growth of cashew processing units in India and Tamil Nadu. Cashew
industry is one of the employment and income oriented industry. It depends
on the production of cashewnut. Hence, an attempt is made to examine the
past and present possition of cashew production, export and import at the
world level and in India.
2.2 IMPORTANCE OF CASHEW
Cashew kernel has a unique place in all functions and celebrations of
both developed and developing countries. It is offered at wedding
ceremonies as a token of fertility. In fact, it is considered as having
aphrodisiac properties. It’s place is very prominent at social and religious
celebrations. It is offered to the guests and visitors and very important
persons in educational, social, religions and political field. In fact, it is used
to honour the guests, VIP’s and rich people in the semi-urban and rural areas
in Kanyakumari District.
Three main cashew products are traded at the international market:
raw cashew nuts, cashew kernel and cashew nut shell liquid. Cashew apple
is another product which is generally processed and consumed locally. The
61
raw cashew nut and cashew kernel are the main commercial products. Raw
nuts are exported and imported before or after processing the cashew kernel.
Cashewnut shell liquid is an important commercial by product released from
raw nuts at the time of processing. It has industrial and medical
applications. Moreover, the skin of the nut is high in tannins and can be
recovered and used in the tanning of hides. From Cashew apple or fruit,
juice is extracted which has high vitamin content and it could be fermented
to give a high proof sprit. In fact cashew nut shell liquid is a valuable raw
material for the preparation of oil paints, varnishes, pigments of gums, type
writer rolls, automobile, break lining and lubricant in air craft. The cashew
apple is used in the preparation of fruit juice, syrup, candy, jelly, pickles,
cashew wine and fenny
Cashew kernel is smaller in size, higher in nutritional value, pleasant,
tastey and one of the most important commercial product. It is known for its
delicious, pleasant taste and for the balanced nutritive profile. It is estimated
that 60 per cent of cashew kernel is consumed in the form of snacks and the
remaining 40 per cent included in confectionery. It contains protein, fat,
carbohydrates and all the fat soluble vitamins A, D and K. It is also a source
of minerals like calcium, magnesium, phosphorous, potassium, sodium, iron
and others. In fact, cashew is a perfect food with zero per cent cholesterol.
At present the dry leaves are used as natural manure for the few other crops.
The dead branches and twigs are regularly collected for fire wood.
62
From the economic point of view, cashew has many advantages.
Cashew is an export oriented commodity that earns foreign exchange,
provides employment opportunities to lakhs of people and generates income
to a large level. So, it is a boon to the development of cottage and small
scale industries. It is the backbone of rural economy. It is the only industry
mostly requiring women labourers. India earned so for Rs 439068 lakhs
through the export of cashew kernel to United States, Japan, Russia and
European countries and Rs 5946 lakh through selling cashew nut shell
liquid. Thus, cashew kernel and cashew nut shell liquid plays an important
role in domestic and international markets.
Thus, the use of cashew for food and medicine has been increasing
since the early twentieth century. Cashew and its products serve nutritional,
medicinal and wartime needs. Presently it has been used in the manufacture
of adhesives, resins and natural insecticides. In fact, it has become highly
priced owing to the use of nuts and other products as kernel, oil, medicine
and fire wood. As cashew kernel is a rich source of fat (46 per cent) and
protein (18 per cent) it can be used as a source of calcium, phosphorus and
iron. Moreover it has a high per centage of polyunsaturated fatty acids and
linoleic acid. So it is useful in making people healthy, happy and strong. The
tart apple is a source of vitamin C, calcium and iron. So it can also be used
for manufacturing liquid food. Moreover, cashew leaves, bark, gum and
shell can be used in medical and industrial applications. In fact, leaves and
63
bark are commonly used to relive toothache and sore gums. The boiled
water extracted from leaves and bark is good for mouth washing. The bark
of cashew tree is useful for killing of ringworm in ground water. Moreover,
fibers of cashew leaves strengthen fishing lines and nets. The water resistant
cashew wood is used for boats and ferries. Cashew resin is used as an
expectorant cough remedy and insect repellent. Cashew nut shell liquid is
used as an important and versatile industrial material for phonolic resins and
friction powder which is used in automotive industry brake linings and
clutch disks. The cashew nut shell liquid (CNSL) is also used in moldings,
acid-resistant, paints, foundry resins, varnishes, enamels and black lacquers
for decorating vases and as insecticides and fungicides. It is also used to
treat leprosy elephantiasis, psoriasis, ringworm, warts and corns. Like
cashew kernel, cashew nut shell liquid has also got an excellent international
market. Thus, it has also been source of employment and income to the
country. Cashew apples are used to manufacture jams, and soft and alcoholic
drinks in Brazil, where as it is used to distill a cashew liquor (fenni) in India.
In this way, cashew and its products are very useful to human beings in
many ways.
2.3 NUTRITION VALUE OF CASHEW
Cashew kernel attracts the people of all categories and all parts of the
world. This is so, because of its pleasant taste and nutritive contents. In fact,
it makes the dining table very attractive and add to its luxury. A hundred
64
gram of cashew kernel contributes to about 600 calories. The nutritive value
of cashew kernel is presented in Table 2.1.
TABLE 2.1
Nutritional Value of Cashew Kernel
Nutritional Value Per 100 g (3.5oz)
Energy 2314 kj (553 Kcal)
Carbohydrates 30.19 g
Starch 23.49 g
Sugar 5.91 g
Dietary fiber 3.3 g
Fat 43.85 g
Saturated 7.78
Monounsaturated 23.8 g
Polyunsaturated 7.85 g
Protein 18.22 g
Water 5.2 g
Thiamine (vit. B1) 0.42 mg (37%)
Riboflavin (vit. B2) 0.06 mg (5%)
Niacin (vit. B3) 1.06 mg (7%)
Pantothenic acid (B5) 0.86 mg (17%)
Vitamin B6 0.42 mg (32%)
Folate (vit. B9) 25 mg (6%)
Vitamin C 0.5 mg (1%)
Vitamin E 0.9 mg (9%)
Calcium 37 mg (4%)
Iron 6.68 (51%)
Magnesium 292 mg (82%)
Manganese 1.66 mg (79%)
Phosphorus 593 mg (85%)
Potassium 660 mg (14%)
Sodium 12 mg (14%)
Zinc 5.78 mg (61%)
Source: USDA Nutrient Date base
It is evident from Table 2.1 that the fat and protein content in 100
gms cashew kernel is 43.85 and 18.22 g respectively. It contains 5 mg
65
vitamin C, 6.68 g iron, 42 g vitamin B6, 292 mg magnesium, 593 m
phosphorus, 660 mg potassium 12 mg sodium, 23.49 g starch and 30.19 g
carbohydrates. Cashew kernel particle is also used as an excellent poultry
food.1 The consumption of kernel does not lead to obesity and even diabetic
patients can also consume it without any problem.
2.4 WORLD CASHEW PRODUCTION
The cashew tree, Anacardium occidentale, belongs to the
Anacardiance family of plants. This tree has spread from Brazil to other
parts of the world. As a result, today cashew is planted in 32 countries and
mainly found in 28 countries. However, the major producers are Cambodia,
India, Indonesia, Sri Lanka, Thailand, Vietnam and Korea in Asia, Benin,
Ghana, Guinea-Bissau, Ivory coast, Nigeria, Senegal and other small
produces of West Africa, Kenya, Madagascar, Mozambique and Tanzania in
East Africa and Brazil, Peru and other small producers in Latin America.2
Thus, Asia (49.93 per cent) West Africa (33.69 per cent) East Africa (9.32
per cent) and Latin America (7.12 per cent) are the most important four
regions that produce the maximum in 2011. Among Asian countries, India
accounts for 56.34 per cent of the total cashew production. In the West
African region about 50.23 per cent cashew nut are produced in Ivory Coast.
Mozambique and Tanzania produce about 47.17 per cent of the cashew nut
in East African region. Among the Latin American countries, Brazil (95.74
per cent) is the major producer. It is very important to note that the world
66
cashew production increased from 1383.4 million kgs in 2000 to 2276.4
million kgs in 2011.3
The Food and Agriculture Organization identified top ten cashew nut
producers in the world, which is depicted in Table 2.2.
TABLE 2.2
Major Countries Producing Cashew Nut (with shell) Producers in 2012
Country Production
(metric tons) Per cent
Yield
(MT/hectares)
Viet Nam 9,58,000 28.93 1.97
India 6,95,000 20.99 0.66
Nigeria 5,80,761 17.54 0.42
Cote d’ Ivories 2,46,383 7.44 0.83
Brazil 2,20,505 6.66 0.39
Indonesia 1,45,082 4.38 0.72
Philippines 1,11,983 3.38 0.46
Tanzania 79,100 2.39 0.38
Mozambique 67,846 2.05 0.27
Guinea Bissau 64,653 1.95 0.23
Benin 49,487 1.49 0.20
Thailand 38,184 1.16 0.18
Ghana 35,647 1.08 0.13
Malaysia 10,335 0.31 0.09
Kenya 8,381 0.25 0.6
World Total 3311347 100.00
Source: Commissioner, International Trade Center, September 03,2012.
Table 2.2 indicates the names of fifteen countries which produce
cashew nut at the international level. It is understood that Viet Nam was the
largest producer of cashew nuts with shell in 2012. It produced about
9,58,000 metric tons at the yielding of 1.97 metric tons per hectare. India
was the second largest producer of cashew nut at the yielding of 0.66 metric
67
tons per hectare. These countries are followed by Cote d’ Ivories,
Mozambique, Indonesia, Philippines, Brazil, Guinea Bissau, Tanzania and
Benin. It is important to note that the counties placed first, second and third
in the order have also highest yielding capacity per hectare. This is because
cashew nuts are produced in tropical countries where cashew trees are very
frost sensitive and now they have been adapted to various climatic regions
around the world, particularly between the 25-30 degrees north and south
latitude of the equator.
2.4.1 World Cashew Production Estimate
World Cashew Production Estimates that cashew nuts produced only
in the four regions namely, Asia, West Africa, East Africa and Latin
America are most nutritious.4 But, the size of cashew production has varied
from region to region and country to country. As cashew is the only raw
material to the cashew industry and as it is consumed in all countries, it is
necessary to know the trend of cashew production in different regions.
Moreover, this enables to identify the possibilities of increasing production
of cashew nut and expanding the area under cashew cultivation. The region
wise world production estimate of cashew nut from 2002 to 2012 shown in
Table 2.3 could help arrive at the correct picture.
68
TA
BL
E 2
.3
Wo
rld
Pro
du
ctio
n E
stim
ate
Reg
ion
Cou
ntr
y
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Asi
a
Cam
bodia
10.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
50.0
50.0
60.0
60.0
India
520.0
450.0
470.0
500.0
535.0
544.0
573.0
620.0
665.0
695.0
613.0
640.0
Indon
esia
69.9
91.6
110.2
106.9
131.0
135.1
149.2
154.8
157.4
158.0
100.0
80.0
Phil
ippin
es
10.0
10.0
10.0
10.1
10.0
10.0
10.0
10.3
10.3
10.3
10.0
10.0
Sri
Lan
ka
4.7
6.2
6.4
6.5
6.5
6.2
6.0
6.0
6.0
6.0
6.0
6.0
Thai
land
4.8
4.7
4.7
4.7
4.6
4.7
4.7
4.7
5.0
5.0
5.0
5.0
Vie
tnam
150.0
170.0
210.0
260.0
350.0
320.0
340.0
350.0
349.0
340.0
290.0
330.0
Oth
er
1.0
1.0
1.1
0.9
1.1
1.0
1.0
1.0
1.1
5.0
5.0
5.0
Sub
-Tota
l,
Asi
a 770.5
753.5
837.4
919.1
1073.2
1061.0
1128.9
1196.8
1243.8
1269.3
1089.0
1136.0
69
Afr
ica
Wes
t
R
egio
n
Cou
ntr
y
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Ben
in
30.0
35.0
43.1
40.0
43.0
43.0
37.5
37.6
45.0
100.0
70.0
90.0
Ghan
a 5.5
5.0
5.2
5.2
10.0
10.0
10.0
12.5
12.5
12.5
12.0
12.0
Guin
ea-
Bis
sau
72.7
70.0
70.0
75.0
92.0
100.8
100.0
100.0
100.0
136.0
150.0
130.0
Ivo
ry C
oas
t 60.0
100.0
104.8
120.0
150.0
200.0
250.0
290.0
320.0
350.0
335.0
385.0
Nig
eria
30.0
30.0
40.0
50.0
50.0
60.0
75.0
80.0
81.0
100.0
70.0
85.0
Sen
egal
6.8
3.2
4.0
6.0
8.5
12.0
15.0
17.5
20.0
20.0
35.0
35.0
Oth
er
8.1
8.7
9.2
11.5
14.0
19.5
21.8
21.9
23.5
29.5
28.0
29.5
Sub
- T
ota
l
Afr
ica
213.1
251.9
276.3
307.7
367.5
445.3
509.3
559.5
602.0
748.0
700.0
766.5
70
Afr
ica
Ea
st
Reg
ion
Cou
ntr
y
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Ken
ya
5.1
10.1
4.1
5.2
5.2
5.2
1.0
5.0
5.0
8.5
11.0
8.0
Mad
agas
car
4.0
4.0
4.0
4.0
4.0
4.0
4.0
4.0
4.0
4.0
4.0
4.0
4.0
Moza
mbiq
ue
52.6
52.1
50.2
63.8
42.3
104.4
62.8
74.4
64.2
95.0
112.0
100.0
Tan
zania
121.2
122.3
67.4
92.2
78.6
77.4
92.6
92.6
99.1
96.0
98.0
100.0
Sub
- T
ota
l A
fric
a 182.9
188.5
125.7
165.2
130.1
191.0
160.4
176.0
172.3
203.5
225.0
212.0
La
tin
Am
eric
a
R
egio
n
Cou
ntr
y
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Bra
zil
210.0
200.0
190.0
230.0
250.0
300.0
265.0
320.0
240.0
320.0
200.0
155.0
Per
u
2.7
2.5
2.1
2.2
2.4
2.2
2.2
2.2
2.3
2.3
2.3
2.3
Oth
er
4.2
4.2
4.6
4.5
4.3
4.2
4.3
4.4
4.5
4.6
4.6
4.6
Sub
- T
ota
l,
Lat
Am
216.9
206.7
196.7
236.7
266.7
306.4
271.5
326.4
246.8
326.9
206.9
161.9
Worl
d t
ota
l 1383.4
1400.6
1436.1
1628.7
1837.5
2003.7
2070.1
2259.0
2264.9
2547.7
2220.9
2276.4
So
urc
e: D
CC
D C
och
in
71
It is seen from Table 2.3 that a variation is found in cashew
production from year to year. In other words, no country experiences either
steady increase or decrease in cashew nut production. It is evident that in
India, cashew production has decreased from 520 million kgs in 2000 to 500
million kgs in 2003 but has shown an increasing trend from 535 million kgs
in 2004 to 695 million kgs in 2008 and again decreased to 640 million kgs in
2011. This is also true in the case of Indonesia, where cashew production
has increased from 69.9 million kgs in 2000 to150 million kgs in 2009 but
decreased to 80 million kgs in 2011. The same trend is experienced in
cashew production in Brazil, where production of cashew in 2000 increased
from 210 million kgs to 300 million kgs in 2005 and it decreased from 300
million kgs in 2005 to 155 million kgs in 2011. Thus, all countries and
regions have experienced ups and downs in cashew production. The
variation in cashew production brings about changes not only in export and
import but also could affect the employment and income of cashew
processing industries. Moreover, such variation in cashew production makes
one country top the other for exports or imports of cashew nut and can also
upset both domestic consumption and international market. The world
estimate of cashew production for the year 2011 is shown in the Figure 2.1.
72
FIGURE 2.1
World Cashew Production in 2011
Among the Asian countries, India stands first in the production of raw
cashew nut and it is followed by Vietnam and Indonesia. It is seen in the
study that India produced 640 million kgs of cashew nut in 2011 and it is
330 million kgs cashew in Vietnam and 80 million kgs in Indonesia. In the
West African region, Ivory Coast is the largest producer of cashew nut and it
produced 385 million kgs in 2011. Guinea – Bissau produced 130 million
Kgs, Benin produced 90 million Kgs and Nigeria produced 85 million Kgs
cashew nut in 2011. Among the Africa East region countries, Mozambique
and Tanzania are the largest producers and their cashew production
increased from 62.8 million kgs and 92.6 million kgs in 2006 to 112 million
kgs and 98.0 million kgs in 2010 respectively. In Latin America, Brazil is
Production
Asia
Africa West
Affrica East
Latin America
73
the largest producer of cashew nut and it produced 155.0 million kgs in
2011. It is very important to note that India is the largest producer of
cashew nut in the world and its total cashew production has increased from
450 million kgs in 2001 to 640 million kgs in 2011. It is the only reason for
India being the largest exporter and the second largest consumer of cashew
kernel in the world.
2.5 CASHEW PRODUCTION IN INDIA
India is the major player in cashew production in the international
level. This is because the Indian environmental conditions are very much
suited for the cultivation of cashew tree. Therefore, cashew production has a
good prospects in India. The trend of cashew nut production from 1993-94
to 2011-12 as presented in Table 2.4 may help arrive at the correct
perspective.
74
TA
BL
E 2
.4
Gro
wth
of
Ca
shew
Nu
t P
rod
ucti
on
in
In
dia
Yea
r
Are
a o
f
Cu
ltiv
ati
on
in
Hec
tors
Cu
mu
lati
ve
Gro
wth
in A
rea o
f cu
ltiv
ati
on
(In
%)
Pro
du
ctio
n i
n
M.T
Cu
mu
lati
ve
Gro
wth
of
Pro
du
ctio
n
(In
%)
Aver
age
Pro
du
ctiv
ity i
n
kg p
.h.
Cu
mu
lati
ve
Gro
wth
of
Aver
age
Pro
du
ctiv
ity (
In %
)
1993-9
4
565420
100
348350
100
694
100
1994-9
5
577200
102
321640
92
631
90
1995-9
6
634970
112
417830
119
720
103
1996-9
7
659000
116
430000
123
835
120
1997-9
8
700900
123
360000
103
740
106
1998-9
9
706000
124
460000
132
800
115
1999-0
0
686000
121
520000
149
900
129
2000-0
1
700000
123
450000
129
710
102
2001-0
2
750000
132
470000
134
710
102
2002-0
3
770000
136
500000
143
760
109
2004-0
5
820000
145
54400
156
810
116
2005-0
6
837000
148
573000
164
815
117
2006-0
7
854000
151
620000
177
820
118
2008-0
9
893000
162
695000
181
778
119
2009-1
0
923000
174
613000
193
695
121
Com
pound
Gro
wth
14.4
9%
13.7
%
14.5
7%
16.2
%
43.7
5%
19.4
%
Sou
rce:
Gover
nm
ent
of
India
, D
CC
D K
och
i
75
Table 2.4 reveals a steady growth in the area of cultivation of cashew
nut during the period from 2000-2001 to 2009-2010, that is 700000 hectares
of land used for cashew cultivation during 2000-2001 and it increased to
923000 hectare during 2009-2010. At the same time, production of cashew
nut has also continuously been increasing from 2000-2001. But, in the year
2009-2010 there was a fall in the production of cashew nuts. However, the
average productivity of cashew nut per hectare increased from 710 kgs in
2000-2001 to 860 kgs in 2007-2008 but the productivity has declined to 778
Kgs in 2007-2008 and has come down to 695 kgs in 2009-2010. Therefore,
the overall growth of cashew nut production in India shows a declining
trend. It calls for increasing import of cashew nut from countries like Brazil,
Vietnam, Tanzania and Mozambique for intents maintaining the potential of
cashew processing units so as to sustain the agribusiness in this field.
2.5 STATE WISE CASHEW PRODUCTION IN INDIA
In India, cashew is grown mainly in Maharashtra, Goa, Karnataka and
Kerala along the west coast and Tamil Nadu, Andhra Pradesh, Orissa and
West Bengal along the east coast. Manipur, Meghalaya, Tripura, Andaman
Nicobar, Island and Madhya Pradesh are also engaged in the production of
cashew to a small scale in linked areas. Production and productivity vary
from region to region in India and therefore cashew nut cultivated area
difference in states of India has been analyzed in this study. The state wise
area under cashew cultivation, production and average productivity is
exhibited in Table 2.5.
76
TA
BL
E 2
.5
Sta
tew
ise
Cash
ew P
rod
uct
ion
in
In
dia
ST
AT
E
2000
-01
2001-0
2
2002-0
3
2003-0
4
2004
-05
A
P
AP
Y
A
P
AP
Y
A
P
AP
Y
A
P
AP
Y
A
P
AP
Y
Ker
ala
100
76
765
100
87
870
100
90
890
101
95
890
102
64
900
Kar
nat
aka
91
42
500
90
40
470
92
40
470
94
46
500
95
43
680
Goa
55
25
500
55
30
590
55
30
660
55
32
690
55
26
660
Mah
aras
htr
a 121
98
1050
143
103
880
148
110
1000
148
120
1100
160
174
1200
Tam
il N
adu
86
59
750
90
46
570
92
50
570
95
51
600
105
53
610
Andhra
Pra
des
h
130
75
650
135
86
720
136
90
740
136
95
750
150
88
840
Ori
ssa
90
59
700
110
59
570
120
70
810
124
71
850
126
74
810
Wes
t B
engal
8
6
900
9
7
780
9
8
890
9
9
760
9
8
800
Oth
er
19
10
750
18
12
760
18
12
760
18
16
790
18
14
800
Tota
l 700
450
710
750
470
710
770
500
760
780
535
800
820
544
810
So
urc
e: D
CC
D O
ffic
e R
eco
rds,
Coch
in
77
ST
AT
E
2005
-06
2006-0
7
2007-0
8
2008-0
9
2009
-10
A
P
AP
Y
A
P
AP
Y
A
P
AP
Y
A
P
AP
Y
A
P
AP
Y
Ker
ala
80
67
900
80
72
900
84
78
900
70
75
1071
72
66
970
Kar
nat
aka
100
45
7000
102
52
700
103
56
710
107
60
561
118
53
730
Goa
55
27
690
55
29
690
55
31
700
55
30
545
55
26
690
Mah
aras
htr
a 160
183
1300
164
197
1500
167
210
1500
170
225
1323
175
198
1300
Tam
il N
adu
121
56
640
123
60
670
123
65
700
131
68
519
133
60
820
Andhra
Pra
des
h
170
92
880
171
99
890
717
107
900
182
112
615
183
99
910
Ori
ssa
120
78
860
125
84
860
131
90
860
137
95
693
143
84
800
Wes
t B
engal
10
10
950
10
10
1000
10
10
1000
11
11
1000
11
10
850
Oth
er
4
4
900
4
4
900
4
4
1000
0
0
0
0
0
890
Tota
l
1100
So
urc
e: D
CC
D O
ffic
e R
eco
rds,
Coch
in.
78
Table 2.5 shows that the total area used for cashew production
increased from 700000 hectare during 2000-2001 to 923000 during 2009-
2010. Therefore the total cashew nut production also increased from 450000
to 613000 metric tons during the same period. But, the average productivity
of cashew nut has decreased to 695 kgs from 710 kgs per hectare. This is
due to changing cropping pattern in nearby area, climatic environment, poor
quality of seed and pest. It is also evident that the area under cashew
decreased in Kerala from 100000 hectare during 2000-2001 to 72000 hectare
in 2009-2010. So the production of cashew in the state also decreased from
76000 to 66000 matric tones during the same period. The state wise cashew
production is presented diagrammatically in Figure 2.2.
FIGURE 2.2
State wise Cashew Production in 2001 and 2010
0
20
40
60
80
100
120
140
160
180
200
2001
2010
79
During the same period in Karnataka, the area used for cashew
production increased from 41000 to 118000 hectares and its’ total
production also increased from 42000 to 53000 metric tons during the above
period. The table shows that about 55000 hectare of land was used in Goa
for cashew production from 2000-2001 to 2009-1010. But, there is a mild
increase in cashew production, from 25000 metric tons to 26000 metric tons
during the same period there. Maharashtra state is the largest producer of
cashew nut in India.
It is also evident that the total area used for the production of cashew
nut increased from 130000 hectare in 2000-01 to 183 000 hectare in 2009-
2010 in Andhra Pradesh, and cashew production has also increased from
75000 to 99000 metric tons during the same period. In Orissa, the area
under cashew cultivation increased from 90000 to 143000 hectares and
cashew nut production also increased from 59000 to 84000 metric tons in
between 2000-01 and 2009-2010. It was 8000 hectare and 11000 hectares of
land used for cashew cultivation, and the cashew nut produced was 6000
metric and 10000 metric tons in West Bengal respectively during 2000-2001
and 2009-2010. Complete data relating to area of production and
productivity of cashew nut is not available about Gujarat, but from the
available data, from the years 2005-2006 and 2009-2010 it is evident that the
area used for cashew cultivation was very less that is 4000 hectare only. It is
very little when compared to other states of India.
80
As far as productivity of cashew nut per hectare is concerned, there
has been vast variation among the states. Comparatively Maharashtra state
has the highest average productivity of cashew per hectare in India and
Karnataka has the lowest productivity of cashew nut per hectare. It is seen
that the average productivity of cashew nut per hectare in Maharashtra is
1186 kgs tones in 2009-2010, it is 957 kgs tones in Kerala, 461 kgs in
Karnataka 473 kgs in Goa 472 kgs in Tamil Nadu 544 kg in Andhra
Pradesh, 641 kgs in Orissa and 909 kgs in West Bengal.
There is also variation in productivity of cashew nut from year to
year. It reveals that the average productivity has increased from 765 Kgs
2000-2001 to 957 kgs in 2009-2010 in Kerala. In Karnataka, the
productivity of cashew nut decreased from 500 kgs in 2000-2001 to 461 kgs
in 2009-2010. Gao has the experience of 500 kgs productivity per hectare in
2000-2001 and 473 kgs in 2009-2010. But, Maharashtra State has shown an
increased production of cashew nut per hectare, that is, it increased from
1050 kgs in 2000-2001 to 1186 kgs in 2009-2010. The productivity of
cashew nut per hectare decreased from 750 kgs 2000- 2010 to 472 kgs in
2009-2010. It shows that most of the states like Karnataka and Tamil Nadu
indicate a decreasing trend in the productivity of cashew nut per hectare.
This is one of the reasons for the declining trend in cashew production in
India
81
2.7 EXPORTS OF CASHEW KERNEL FROM INDIA
Cashew kernel is the main product of cashew nut industry which has
unique taste and great demand in international market. India is one of the
most leading producer and exporter of cashew kernel in the world. Though
cashew entered the world market towards the middle of 1920’s the total
quantum of the world trade in cashew and the number of countries involved
in it were very limited till the second World War. India was the sole exporter
of cashew kernel and almost all its export has been limited to the United
States. After the second World War, the world trade in cashew increased
rapidly. The total quantum of export of cashew kernel exceeded hundred
thousand tons in 1972, with Canada, Japan and Soviet Union emerging as
important buyers of cashew kernel from Kerala. At the same time,
Mozambique, Tanzania and Brazil started units for cashew processing in
large scale. Hence, Indias monopoly in the market for cashew kernel has
been broken and the share of the other countries in the total world export of
cashew kernel increased to nearly two fifth. The development of cashew
crop in Brazil and manufacturing facilities in East Africa led to competition
in the cashew kernel market. As a result, India’s share gradually has been
reduced to fifty per cent of the global trade. The export of cashew kernel
from India and its value in terms of rupees is displayed in Table 2.6.
82
TABLE 2.6
Export of Cashew Kernel from India
Year Export Quantity
(In M.T.)
Export Value
(In Rupees in
Lakhs)
Export quantity
Cumulative
Growth (%)
Export Value
Cumulative
Growth (%)
1990-91 4987 44224
1991-92 47738 66909 95.71 151.29
1992-93 53436 74549 107.14 168.57
1993-94 69884 104602 140.12 236.52
1994-95 77000 124602 154.38 281.75
1995-96 70334 124050 141.02 280.5
1996-97 68663 128550 137.67 290.67
1997-98 76593 139610 153.57 315.68
1998-99 75026 160990 150.43 364.03
1999-00 92461 245145 185.38 554.32
2000-01 89155 204975 178.76 463.49
2001-02 97550 177680 195.59 401.77
2002-03 104137 193302 208.8 437.09
2003-04 100828 180442 202.16 408.01
2004-05 126667 270924 253.97 612.61
2005-06 114143 251486 228.86 568.66
2006-07 118540 245515 237.67 555.16
2007-08 114340 228890 229.25 517.56
2008-09 137000 293100 274.69 662.76
2009-10 117000 282900 234.59 639.69
2010-11 105755 281939 212.04 637.52
2011-12 131760 439068 264.18 992.82
Source: EXCEL International Journal of Multidisciplinary Management Studies Vol.2 Issue 3, March 2012, ISSN 2249 8834 http://zenithresearch.org.in
Table 2.6 indicates that the export of cashew increased from 49874 to
77000 metric tons. It declined to 70334 metric tons during 1995-1996 and
68663 metric tons in 1996-1997. Thereafter, export of cashew kernel has
been increasing or decreasing slowly. However, India’s export of cashew
kernel has seen a declining tendency due to the competition with countries
like Brazil and Viet nam and increasing demand for cashew kernel for
domestic consumption. The export level of cashew kernel as demonstrated
in Figure 2.3 may throw much light on the trend.
83
FIGURE 2.3
Growth of Cashew Kernal Export
2.8 IMPORT OF CASHEW NUT IN INDIA
The growth and success of cashew industry depends on the
availability of raw cashew nut. India experiences the serious problem of
shortage of raw cashew nut for the cashew processing units. In fact, the
existing production of raw cashew nut is not sufficient to meet the demand
of domestic processing units. In other wards, the volume of raw cashew nut
produced in the states is not sufficient to meet the full requirements of
cashew processing industries in India. Therefore, the Indian cashew
processing industries depend on the purchase of raw cashew nut from other
states and imports from East African countries.5 As a result, India is the
largest importer of raw cashew nut in the world. The import of raw cashew
nut from foreign countries to India increased steadily in response to the
0
20000
40000
60000
80000
100000
120000
140000
1990-1991 2000-2001 2011-2012
M.T
M.T
84
increasing demand for cashew kernel in the world market. In fact, import of
cashew nut has been the main source of raw material supplied to the industry
for the last several years. The import of cashew nuts was regulated by the
Open General License System (OGLS) till 1970. Under the system, any
person could import raw cashew nuts subject to the availability of foreign
exchange. The imports statistics of raw cashew nut from foreign countries
during 1991-2012 is given in Table 2.7.
TABLE 2.7
Cashew Imports to India
Year
Export
Quantity (In
M.T.)
Export Value
(In Rupees in
Lakhs)
Export quantity
Cumulative
Growth (%)
Export Value
Cumulative
Growth (%)
1990-91 82639 13400
1991-92 106080 26668 128.36 199.01
1992-93 134985 37633 163.34 280.84
1993-94 191322 48270 231.51 360.22
1994-95 228109 69094 276.03 515.62
1995-96 222819 76008 269.62 567.22
1996-97 192285 64006 232.68 478.05
1997-98 224968 74400 272.22 555.22
1998-99 181009 68024 211.03 507.64
1999-00 200584 95352 242.72 711.58
2000-01 249318 96080 301.79 717.01
2001-02 356566 96001 431.47 716.42
2002-03 400659 123657 484.83 922.81
2003-04 452898 140093 548.04 1045.47
2004-05 478884 218324 579.48 1629.58
2005-06 565400 216295 684.18 1614.14
2006-07 592604 181162 717.09 1351.95
2007-08 605970 174680 733.27 1303.58
2008-09 614200 267100 743.23 1993.28
2009-10 726000 304800 878.52 2274.63
2010-11 756000 357100 914.82 2664.93
Source: EXCEL International Journal of Multidisciplinary Management Studies Vol.2 Issue 3, March 2012, ISSN 2249 8834 http://zenithresearch.org.in
85
Table 2.7 reveals that India always import raw cashew nuts to meet
both domestic demand and international market. It is understood from the
table that Indian raw cashew nuts import has been increasing from 82639
metric tons in 1990-91 to 249318 metric tons in 2000-2001. After that
Indian imports has also tremendously increased to 756000 metric tons in
2010-2011. As import of raw cashew nuts increased year to year, it can be
observed that India always depends on foreign countries for raw cashew nuts
to meet the internal and international demand. The growth of cashew import
is represented Figure 2.4.
FIGURE 2.4
Growth of Cashew Import in Metric Tonnes
Import from Indonesia decreased from 82.7 million kgs in 2006 to
37.00 million kgs in 2010. On the other hand, the overall import of raw
0
100000
200000
300000
400000
500000
600000
700000
800000
1990-1991 2000-2001 2010-2011
Metric Tonnes
Metric Tonnes
86
cashew nuts from other parts of the world increased from 2.3 million kg in
2006 to 2.9million kgs in 2010. Thus, the statistical information on the
import of raw cashew nut shows that India depends on foreign countries to
operate the cashew processing industries. India’s cashew production,
imports and exports is presented in Table 2.8.
TABLE 2.8
India Cashew Production Imports and Exports (in million kgs)
Sl.No Year Production Import Export
1 2005 544 566 495
2 2006 573 572 489
3 2007 620 599 480
4 2008 665 649 462
5 2009 695 728 446
6 2010 704 739 428
7. 2011 726 756 413
8 2012 718 792 427
Source: Cashew Industry
Table 2.8 displays that there has been a positive trend in production
from 544 million kgs in 2005 to 726 million kgs in 2011. But, the total
export of cashew kernel has been declining from 495 million kgs in 2005 to
446 million kgs in 2011. On the other hand, import of cashew nut has
increased from 566 million kgs in 2005 to 728 million kgs in 2011. Thus, the
data shows that India’s export of cashew kernel is less than its imports in
recent years. The Trend of cashew production, export and import in India is
presented in Figure 2.5.
87
FIGURE 2.5
Trend of Cashew Production, Export and Import in India
Figure 2.5 demonstrates the trend of cashew production in India and
its import from foreign countries and export to other parts of the world. It is
observed from the study that there is increase in import of cashew nuts from
other countries where as internal cashew nut production has not increased.
It also shows that there is decrease in cashew export from India to other
countries. Therefore, it can be concluded that India has been experiencing
decline in cashew production and export but increase in import of raw
cashew nuts. However, India is the largest producer, processor and exporter
and the second consumer of cashew in the world with the annual production
of 6,20,000 million kgs in 2010-2011.
0
100
200
300
400
500
600
700
800
2007 2008 2009 2010
Production
Import
Export
88
2.9 EXPORT OF CASHEW NUT SHELL LIQUID
The raw cashew nut has a shell which has unique content of dark
reddish brown viscos liquid which is called Cashew Nut Shell Liquid
(CNSL). The CNSL is extracted from the hard shell of cashew nut. This is
an important by product of the processing industry which has great demand
in the international market. In fact, the role of cashew nut shell liquid is very
important as it is a valuable material used for the preparation of oil paints
varnishes, adhesive ingredients, type writer rolls, automobiles break lining
and lubricants in aircraft. As it is a commodity of many use its demand is
high in the world. India meets such a demand and it continues to be the
major exporter of cashew nut shell liquid to the rest of the world. The export
of cashew nut shell liquid is displayed in Table 2.9.
89
TABLE 2.9
Export of Cashew nut Shell Liquid (In metric tons)
Year
Export
Quantity
(In M.T.)
Export Value
(In Rupees in
Lakhs)
Export
quantity
Cumulative
Growth (%)
Export Value
Cumulative
Growth (%)
1990-91 5658 556 100 100
1991-92 4542 402 80.27 72.30
1992-93 4258 381 75.25 68.52
1993-94 3625 290 64.06 52.15
1994-95 3807 244 67.28 43.88
1995-96 760 145 13.43 26.07
1996-97 1735 277 30.66 49.82
1997-98 4446 717 78.57 128.965
1998-99 1572 326 27.78 58.63
1999-00 764 184 13.50 33.09
2000-01 2246 3894 39.69 700.35
2001-02 1814 419 32.06 75.35
2002-03 7215 9925 127.51 166.36
2003-04 6926 703 122.41 126.43
20004-05 7474 791 132.09 142.26
2005-06 6405 709 113.20 127.51
2006-07 5589 920 98.78 165.46
2007-08 7214 1290 127.50 232.01
2008-09 6988 1486 123.50 267.26
2009-10 9613 2839 169.90 510.61
2010-11 12051 3377 212.96 607.37
2011-12 13575 5946 239.92 1069.42
Source: zenithresearch.org.in/
Table 2.8 expresses that the total export of cashew nut shell liquid
was decreasing from 5658 metric tons in 1990-91 to 760 metric tons in
1995-96 and there was no steady growth during 1995-96, 2001-2002. Its
export has become very high, that is 7474 metric tons in 2004-2005 and
13575 metric tons in 2011-2012. In fact, the quality of cashew nut shell
liquid exported to foreign countries has been increasing since the year 2003-
2004. However, the overall information on export of cashew nut shell liquid
90
reveals that Indian export increased from 5658 metric tons in 1990-91 to
12051 metric tons in 2010-2011. The list of countries to which India exports
cashew nut shell liquid is presented in Table 2.10.
TABLE 2.10
Export of Cashew Shell Liquid from India during 2011 To 2012
Countries
2010-2011 2011-2012
QTY
(M.T)
VALUE
(Rs.Crs)
QTY
(M.T)
VALUE
(Rs.Crs)
USA 5374 12.05 8011 30.09
China 3142 8.39 1738 7.71
Korea Rep 1697 5.83 1274 6.20
Japan 712 2.16 771 3.87
Taiwan 122 0.80 637 4.92
Slovenia 267 1.13 204 1.30
Indonesia 160 0.46 201 0.60
United Kingdom
0 0.00 123 0.50
Singapore 153 0.99 199 1.04
Iran 0 0.00 112 0.48
Others 424 1.98 385 2.76
Total 12051 33.79 13575 57.38
Source: DGCI and S, Kolkata
Table 2.10 displays that the United States is the first major importer
of cashew nut shell liquid from India and it was 5374 metric tons in 2010-11
and 1738 metric tons in 2011-12. China is the second largest importer of
cashew nut shell liquid from India. It has accounted for 3142 metric tons in
2010-2011 and 1738 metric tons in 2011-2012. Indian export of the cashew
91
nut shell liquid to Korea accounted for 1697 metric tons in 2010-2011 and
1274 metric tons in 2011-12. Thus, the total export of cashew nut shell
liquid has shown increasing trend from 12051 metric tons in 2010-11 to
13575 million tons in 2011-12. As a result, India has earned foreign
exchange of Rs 33.79 crores in 2010-11 and Rs 57.38 Crores in 2011-12. It
can be observed that the contribution of cashew nut shell liquid to the
national income is quite significant in India. The proportion of India’s export
of cashew shell liquid to different countries is expressed in Figure 2.6.
FIGURE 2.6
India’s Export of Cashew Shell Liquid
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2011-2012
2011-2012
92
2.9.1 Export of Cashew Kernel Cashew nut Shell Liquid and Import of
Raw Cashew nut
The total export of cashew kernel and cashew nut shell liquid from
India and imports of raw cashew nut from foreign countries have been
increasing for the last two decades. India has earned the foreign exchange of
Rs 290582 lakhs through the export of cashew nut shell liquid.
Simultaneously, India has spent Rs 303735 lakhs to import raw cashew nut
during 2009-2010. The data presented in Table 2.11 shows the comparative
figures of export of cashew nut shell liquid and cashew raw nut.
TABLE 2.11
Export of Cashew Kernel, Cashew nut Shell Liquid (CNSL) and Import
of Raw Cashew nut
(Quantity in MT) Value in Rs.Lakhs
Year Cashew Kernel Export C N S L Export Raw nut import
Quantity Value Quantity Value Quantity Value
1990-1991 49874 44224 5658 556 82639 13400
1991-1992 47738 66909 4542 402 106080 26668
1994-1995 77000 124602 3625 290 191322 48270
1995-1996 70334 124050 760 145 22819 76008
1996-1997 68663 128550 1735 277 192285 64060
1997-1998 76593 139610 4446 717 224968 74400
1998-1999 75026 160990 1572 326 181009 68024
1999-2000 92461 245145 764 184 200584 95352
2000-2001 89155 204975 2246 3894 249318 96080
2002-2003 104137 193302 7251 952 400659 123657
2003-2004 100828 180442 6926 703 452898 140093
2004-2005 126667 270924 7474 791 578884 218324
2005-2006 114143 251486 6405 709 565400 216295
2006-2007 118540 245515 5589 920 592604 181162
2007-2008 114340 228890 7813 1197 605970 174680
2008-2009 109522 298840 9099 2606 605850 263241
2009-2010 108120 290582 9748 2412 752894 303735
Source: Excel International Journal of Multi Disciplinary Management Studies Volume 2, Issue 3 March 2003.
93
Table 2.11 shows that the total export of cashew kernel increased
from 49674 metric tons in 1990-91 to 108120 metric tons in 2009-10. As a
result, Indias export earning increased from Rs 44224 lakhs to Rs 290582
lakhs during the same period. Likewise, the export of cashew nut shell from
India also increased from 5658 metric tons in 1990-91 to 9748 metric tons in
2009-2010 during the corresponding period. So, Indias earnings in foreign
exchange also increased from Rs 556 lakhs to Rs 2412 lakhs during the
above period.
As for as Indian import of raw cashew nut is concerned, there is an
increase from 82639 metric tons in 1990-1981 to 752894 metric tons in
2009-2010. It shows the role and involvement of India in the international
cashew market. Though there has been upward and down ward trends in the
export of cashew kernel and cashew nut shell liquid for last two years,
India’s import of raw cashew nut has been witnessing an upward trend, from
82639 metric tons in 1990-1 to 752894 metric tons in 2009-10. It is evidents
evident that the internal and international demand for cashew kernel is
higher than the local cashew production in India. Therefore, more and more
cashew production only could meet the growing demand for cashew kernel
and cashew nut shell liquid and invariably that only will reduce the
dependency on African countries for raw cashew nuts.
94
2.10 CASHEW PRODUCTION IN TAMIL NADU
Tamil Nadu is one of the leading producers of raw cashew nut in
India. The total area under cashew nut cultivation in Tamil Nadu was 85000
hectares with annual cashew production of 45000 tons during 1999-2000.
The Major cashew growing districts in Tamil Nadu are Perambalur,
Cuddalore and Pudukottai. The district wise area under cashew cultivation
and average productivity is shown in Table 2.12
95
TA
BL
E 2
.12
Ca
shew
nu
ts i
n T
am
il N
ad
u
2004-2
005
2005-2
006
2010-2
011
Dis
tric
t A
rea
(ha)
Pro
du
ctio
n
(Ton
s)
Yie
ld
(Kg/h
a)
Are
a (
ha)
Pro
du
ctio
n
(Ton
s)
Yie
ld
(Kg/h
a)
Are
a
(ha)
Pro
du
ctio
n (
Ton
s)
Yie
ld
(Kg/h
a)
Chen
nai
0
0
0
0
0
0
0
0
0
Kan
chee
pura
m
456
165
362
479
181
378
468
170
369
Thir
uval
lur
234
85
362
365
138
378
312
129
372
Cuddal
ore
29831
26585
891
30150
22952
761
30290
22050
750
Vil
lupura
m
4788
949
198
4797
1163
242
4781
1097
236
Vel
lore
45
16
362
23
9
378
18
12
345
Thir
uvan
nam
alai
12
4
362
23
9
378
2
2
367
Sal
em
595
215
362
25
9
378
21
6
378
Nam
akkal
0
0
0
4
2
378
2
1
340
Dhar
map
uri
1
0
362
1
0
378
0
0
361
Kri
shnag
iri
3
1
362
2
1
378
1
0.5
370
Com
bat
ore
292
106
362
303
115
378
288
110
366
Ero
de
94
34
362
143
54
378
130
48
348
Tir
uch
irap
alli
800
289
362
781
295
378
651
230
359
Kar
ur
56
20
362
50
19
378
45
16
360
Per
ambal
ur
34993
5904
169
35607
7942
223
31080
7258
218
96
Pudukott
ai
10676
2669
250
11041
2584
234
10567
2315
203
Thaj
avur
2451
759
310
2447
364
149
2389
339
217
Thir
uvar
ur
16
6
362
5
2
378
3
1.5
367
Nag
apat
inam
584
211
362
590
223
378
564
200
354
Mad
ura
i 267
97
362
310
117
378
301
108
349
Then
i 4840
1246
257
5520
1413
256
5472
1126
300
Din
dig
ul
555
201
362
589
223
378
610
201
380
Ram
anat
hap
ura
m
261
94
362
375
142
378
376
130
372
Vir
udhunag
ar
72
26
362
375
142
378
79
28
365
Siv
agan
gai
4770
1999
419
6479
1776
386
6015
1650
379
Tir
unel
vel
i 5114
2105
412
5019
3458
689
4950
3117
654
Thooth
ukudi
824
298
362
811
307
378
780
290
358
Nil
gir
is
0
0
0
0
0
0
0
0
0
Kan
yak
um
ari
2029
413
204
1938
337
174
1706
287
169
Tota
l 104659
44497
359.3
6
107938
43858
336.5
3
101899
40922
33.5
3
Sou
rce:
Sea
son a
nd C
rop R
eport
, G
ovt.
of
Tam
il N
adu, 2011
Table 2.12 states that the total area under cashew cultivation in Tamil
Nadu has been decreasing from 104659 hectares during 2004-2005 to
101899 hectares during 2010-2011. Similarly, the total cashew nut
production decreased correspondingly from 44497 tons to 40922 tons in the
same period. Moreover, the yield per hectare has also been decreasing from
359 Kgs in 2004-2005 to 333 kgs in 2010-2011. Thus, the statistical
information shows the declining trend of cashew production and
productivity for the last few years. It is mainly due to the decreasing area
under cashew cultivation, low variety of cashew nut and changing cropping
patterns in nearby lands. Moreover, the yield per hectare also differ from
district to district. It is 751 Kg per hectare in Cuddalore district, where as it
is 167 kg per hectare in Kanyakumari district during 2010-2011. This shows
the poor concentration on cashew production, change in climate and
cropping pattern in Kanyakumari District. It is seen that there has not been
any cashew cultivation or production in Chennai, Nilgris, and Dharmapuri
districts of Tamil Nadu.
2.11 PRICING TREND OF RAW CASHEW NUT IN DIFFERENT
STATES
Cashew is one of the most important commercial goods. The selling
of cashew nut kernel is done at a large level in states like Karnataka, Tamil
Nadu, Andhra Pradesh and Goa. The price of raw cashew nut too varies
from state to state in India. So, attempt is made to study the price pattern of
167
raw cashew nut per kilogram in different states. The price pattern of cashew
nut in different state is exhibited in Table 2.13.
TABLE 2.13
Price of Cashew nut in Different States (price Rs/ kg)
Year Kerala Karnataka Andhra
Pradesh
Tamil
Nadu Goa
1990 12.25 14.50 13.00 13.19 16.75
1991 14.50 19.75 17.50 21.25 23.00
1992 22.00 25.50 20.75 23.51 29.13
1993 20.63 19.50 19.50 19.60 24.13
1994 20.50 21.50 23.20 22.80 29.50
1995 25.00 26.00 25.50 27.50 32.30
1996 29.00 29.00 29.00 29.00 30.15
1997 26.40 21.50 30.00 24.00 33.10
1998 30.60 25.00 30.00 24.00 33.10
1999 42.30 27.50 33.75 25.00 47.00
2000 42.00 27.00 34.50 34.50 34.50
2001 26.75 28.00 28.25 29.00 33.50
2002 25.00 28.00 34.50 34.50 34.10
2003 29.75 31.50 28.00 35.00 35.50
2004 28.50 30.00 28.75 35.63 35.10
2005 37.88 35.20 38.10 47.75 45.20
2006 31.20 30.55 28.75 36.60 37.50
2007 29.80 30.50 29.40 36.25 37.70
2008 34.00 33.50 30.00 36.50 47.20
2009 42.15 37.20 33.10 38.50 47.20
2010 48.30 41.50 37.50 41.00 49.30
2011 49.50 43.00 40.50 42.50 51.00
Source: DCCD Statistical Data Base.
Table 2.13 reveals that price of raw cashew nut per kilogram has been
increasing in the above five states. But, the rate at which it is bought and
sold differ from state to state. In Kerala, the price of raw cashew nut has
increased from Rs 12.25 in 1990 to Rs 49.50 per kilogram in 2011. It has
168
moved from Rs 14.50 in 1990 to Rs 43.00 in 2011 in Karnataka. In the case
of Andhra Pradesh price of cashew nut fluctuated from Rs 13.00 in 1990 to
Rs 40.50 in 2011. It has gone from Rs 13.19 in 1990 to Rs 42.50 in same
period in Tamil Nadu. In Goa, the price of raw cashew nut has increased
from Rs 16.75 in 1990 to Rs 51.00 in 2011. It is seen that the price of raw
cashew nut per kilogram is higher in Goa (Rs 51 per Kilo) than that of
Kerala, Karnataka, Andhra Pradesh and Tamil Nadu.6 This is because Goa is
one of the most important tourist centre, frequented by people from other
states and foreign countries. So, the demand for cashew kernel is high and as
a result, the price of raw cashew nut also is very high in Goa compared to
other states.
2.12 HISTORICAL BACKROUND OF CASHEW INDUSTRY
The role of cashew processing industry is important in converting the
raw cashew nuts in to cashew kernel. It is as a result of enterprising
enterprenures in India. In fact, the development of the cashew processing
industry in India is quite interesting. In the early days, people merely
regarded the cashew tree as a tree with yellowish and reddish cashew fruit.
The cashew apple had the kidney shaped nut sticking to its bottom. The
children ate the ripe apple and threw the cashew nuts away. As years passed
by, people become curious of the content of the cashew nuts. They cut the
hard shell open and found a kernel inside the cashew nut. But, the outer shell
was full of corrosive liquid (CNSL). It burnt their skin and cloths, but they
169
did not give up their effort and tried burning the nut in open fire. Allowing
the harmful liquid in the shell complely in tire or burst away, they removed
the britle shell and found the cashew kernel inside. They ate it and found it
tasted intensively delicious. Thus has dawned the day of cashew as food in
India.
The economic and commercial value of cashew nuts came to be
recognized slowly and during the twentieth century its value came to be
realized completely. So people processed cashew nuts in their own houses
on a small scale basis. The method of roasting adopted in the cottage
industry was primitive and crude, namely pan roasting. However, the
cashew industry in the modern sense owes its origin to the innovative
aptitude displayed by one Joseph Pereira of Kerla. He conceived the idea of
processing the raw cashew nuts on a large scale in a factory and marketing
the finished cashew kernel on a commercial basis. Joseph Periera and
Narayana Rao started the business at Quilorn (Kollam) in Kerala some time
before 1925.7 The availability of adequate raw cashew quality of and cheap
labour in the suburban Quilon prompted them. Moreover, the existence of a
rail link and a small port in the vicinity and the pionerring spirit of the first
entrepreneur considered major factors responsible for the birth and growth
of cashew industry in Kerala. The cashew trade continued to flourish during
the depression of the 1930’s and huge profit was realized. Due to the growth
of cashew industries in 1930’s, the city of Quilon has became the centre of
170
cashew industry in (Travancore) India.8 As a result, cashew kernel became
the second largest export commodity in 1938, representing 15 per cent of the
country’s total exports.
Export of a few tons of cashew kernel to the North American Market
in 1925 could indeed be said to have laid the foundation of cashew
processing industry in India. Thus, cashew processing industry has been one
of the most important agro-based traditional industry in the country. In fact,
the growing demand for cashew kernel in the American market and the
availability of cheap labour, especially women labourer in Kerala and Tamil
Nadu were the two important factors for the rapid growth of cashew
processing industry in India. However, cashew processing industry was
highly localized in Quilon District of Kerala and Kanyakumari District of
Tamil Nadu.9 The statistical information shows that nearly 90 per cent of the
total world exports of cashew kernel was processed, by the factories in
Quilon till the middle of 1960’s. According to the enumeration done in 1972
by the Cashew Corporation of India (CCI), there were 415 industries in the
country. Out of 415 industries more than 50 per cent were located in the
Quilon district of Kerala and about 25 per cent in the adjacent Kanyakumari
District of Tamil Nadu. The number of cashew processing industries in India
has increased from 273 in 1966 to 1417 in 2011.
171
2.13 CASHEW PROCESSING UNITS IN INDIA
Cashew processing is the recovery of cashew kernel from raw cashew
nuts by manual or mechanical means. India has been a pioneer in cashew
process in the world. In fact, the growing demand for cashew kernel in the
international market, the availability of cheep labour mainly of women and
the need for only very ordinary skill are the important factors for the rapid
growth of cashew processing industry in the country. Generally, cashew
processing involves Drying, Retainning, Shelling, Peeling, Grading and
Packing. But, the predominance of manual labourer for Shelling, Peeling,
Grading and Packing has lead to the establishment of more and more cashew
industries in rural areas. The statistics of cashew processing units in India is
presented in Table 2.14.
172
TABLE 2.14
Cashew Processing Units in India
Source: DCCD Statistical Data Base
Table 2.14 displays, that Andhra Pradesh is the only state having the
experience of a declining trend of cashew industries from 30 units in 1991 to
7 units in 2011. More than 50 per cent of the cashew processing industries
are found in Kerala. This is due to the fact that Kerala has been the centre of
export and import of cashew. Moreover, the cost of cashew processing in
Kerala has been cheaper than in Mozambique, Tanzania and Brazil. This is
mainly because of the availability of women labourer in the state for lesser
wages. It is important to note that the decrease in the number of cashew
processing units from 446 in 2000 to 375 in 2006 and 363 in 2011 shows the
declining growth of the industry in Kerala too. Moreover, the number of
cashew processing industries is slowly increasing in Karnataka, Goa,
States 1951 1966 1972 1995 2000 2006 2011
Kerala 170
(100) 211
(77.29) 214
(51.56) 271
(31.18) 446
(39.96) 375
(32.75) 363
(27.56)
Karnataka N.A 7
(2.56) 8
(1.92) 56
(6.44) 74
(6.63) 82
(7.16) 91
(6.91)
Goa N.A 5
(1.83) 9
(2.16) 52
(5.98) 67 (6)
70 (6.11)
83 (6.30)
Maharashtra N.A 8
(2.93) 15
(3.69) 28
(3.22) 41
(3.67) 55
(4.80) 69
(5.24)
Tamil Nadu N.A 12
(4.40) 107
(25.78) 290
(33.37) 378
(33.87) 417
(36.06) 540
(41.00) Andhra Pradesh
N.A 30
(10.99) 37
(8.92) 95
(10.93) 18
(1.61) 9
(0.79) 7
(0.53)
Orissa N.A N.A 25
(6.05) 40
(4.60) 47
(4.21) 52
(4.54) 58
(4.40) West
Bengal N.A N.A N.A
37 (4.28)
45 (4.03)
80 (6.99)
102 (7.74)
Total 170
(100.00) 273
(100.00) 415
(100.00) 869
(100.00) 1116
(100.00) 1140
(100.00) 1313
(100.00)
173
Maharashtra, Tamil Nadu, Orissa and West Bengal. However, the increase
in total number of cashew processing industries shows the good prospective
for cashew processing and cashew market in India. The list of statewise
cashew processing units are presented in Figure 2.7.
FIGURE 2.7
State wise Cashew Processing Industries
2.14 CASHEW PROCESSING UNITS IN TAMIL NADU
The cashew processing industry in Tamil Nadu was started in 1960
by the cashew factory owners from Quilon, Kerala. They established many
cashew factories in the State after 1970, with the objective of earning huge
profit from cashew processing as the wage rate was very low in Tamil Nadu
compared to Kerala. The salient feature of cashew processing industry in the
0
100
200
300
400
500
600
2000
2006
2011
174
state is that it is monopolized by private sector. In fact, the government of
Tamil Nadu has comparatively less interference in cashew industry.
Moreover, there are no cashew factories under the government sector or in
the co-operative sector in Tamil Nadu. At the same time, there is no strict
factory licensing system under implementation in the state. It is interesting
to point out that nearly 90 per cent of the cashew industries of the state are
concentrated in Kanyakumari district.
2.15 WAGE DISPARITY
One of the main reasons for shifting cashew industry from Kerala to
Tamil Nadu is wage differentiation and lack of awarness of labour welfare
schemes on the part of workers in Tamil Nadu. After the implementation of
the Minimum wage Act, the wages paid to cashew workers increased
tremendously in Kerala. As a result, cost of cashew processing increased in
Kerala. The wage rate prevailed in Kerala is higher than that in Tamil Nadu.
Hence an attempt is made to find out the wage differentiation in the two
states. Table 2.15 depicts the wage rate in Tamil Nadu and Kerala.
175
TABLE 2.15
Wage Rate in Tamil Nadu and Kerala
Cashew Processing Tamil Nadu Kerala
Roasting Rs. 150 per day Rs. 200 per day
Breaking- Cutting - Shelling Rs. 12.86 per Kg. Rs. 12.86 per Kg.
Rs. 22.36 per Kg. Rs. 22.36 per Kg.
Borma Rs. 150 per day Rs. 200 per day
Peeling Rs. 15 per Kg. Rs . 200 per Kg.
Grading Rs. 94.40 per work Rs. 180 per work
Supervision- Male - Female Rs. 150.00 per day Rs. 132.50 per day
Rs. 200.0 per day Rs. 185.00 per day
Source: DCCD Statistical Data Base
Table 2.15 indicates the comparative wage structure of cashew
workers in Tamil Nadu and Kerala. The study shows that wage difference is
found in all stages of cashew processing in these states. While a worker gets
Rs 150 per day in Tamil Nadu, it is Rs 200 per day for roasting raw cashew
nut in kerala. The payment for Shelling is 12.86 per kg in Tamil Nadu
whereas it is Rs 22.36 per kg in Kerala. For borma Rs 150 per day is given
in Tamil Nadu and Rs 200 per day in Kerala. Similarly, the price of Peeling
per kg is Rs 15 in Tamil Nadu and Rs 28.44 in Kerala. A cashew worker
gets Rs 94.40 per day in Tamil Nadu whereas it is Rs 180 in Kerala. There is
also found a vast difference in wage rate difference between male and
female workers in Tamil Nadu (Rs 150 for male and 132.50 for female per
day) and Kerala (Rs 200 for male and Rs 185 for female per day) for
supervising the cashew workers. Thus, it can be concluded that the cost of
cashew processing in Kerala is higher than that in Tamil Nadu. Such wage
176
differentiation constitutes a major reason for shifting cashew industries from
Kerala to Tamil Nadu.
2.16 GROWTH OF CASHEW INDUTRIES IN TAMIL NADU
Due to these factors, the number of cashew processing industries has
been on the increase day by day. The growth of cashew industries in Tamil
Nadu is depicted in Table 2.16.
TABLE 2.16
Cashew Industries in Tamil Nadu
Sl. No Year No of Industries
1 1951 N.A
2 1966 12
3 1972 107
4 1995 290
5 2000 378
6 2001 394
7 2002 401
8 2003 406
9 2004 411
10 2005 415
11 2006 417
12 2007 421
13 2008 431
14 2009 437
15 2010 506
16 2011 540
17 2012 511
N.A Not Available Source: DCCD Office Records, Cochin.
177
Table 2.15 reveals that number of cashew industries has been on the
increase from the initial period. There is a steady increase from 12
processing units in 1966 to 540 processing units in 2011. It shows the
continuous growth and future prospect for cashew industries in Tamil Nadu.
2.16.1 District Wise Cashew Industries in Tamil Nadu
According to Cashew Industries Report 2011, there were 540 cashew
industries in Tamil Nadu which is presented in Table 2.17.
TABLE 2.17
District- wise Cashew Factories in Tamil Nadu during 2011-12
Sl. No Name of the
District
No. of
Factories Percentage
1 KanyaKumari 462 85.55
2 Thirunelveli 5 0.93
3 Tuticorin 6 1.14
4 Sivagangai 4 0.74
5 Theni 7 1.3
6 Pudukottai 16 2.96
7 Perambalur 6 1.12
8 Thiruvarur 2 0.37
9 Thanjavur 3 0.55
10 Cuddalore 15 2.78
11 Thiruvannamalai 7 1.3
12 Ariyalur 7 1.3
Total 540 100
Source: Memo graph of Maxist Communist Party Office, Kuzhithurai,
178
Table 2.16 displays the district wise distribution of cashew industries
in Tamil Nadu. Out of the total number of cashew industries in the state,
about 85.5 per cent industries are found in Kanyakumari District. This is so
because, the district was part of Kerala before 1956, now bordering the state
and people of the district are conversant in both the languages. Moreover,
women labourers are abundant in the district. The remaining 15.5 per cent
cashew industries are found in other districts of Tamil Nadu. It is seen that
2.96 per cent in Pudukottai District and 2.78 per cent in Cuddalore District.
A very less number of cashew industries are found in (0.34 per cent)
Thiruvarur District. The statistics reveals that only 10 per cent of cashew
industries are concentrated in other districts. Thus, Kanyakumari District has
been the most important centre of cashew processing industries in Tamil
Nadu.
2.17 REASONS FOR SHIFTING CASHEW INDUSTRY FROM
KERALA TO TAMIL NADU
During the early 1970’s, the entrepreneurs of the cashew processing
units in Kerala shifted some of the existing units to the neighboring district
of Tamil Nadu. They also started more number of new processing units in
Tamil Nadu. The major reasons for shifting cashew industries from Kerala
to Tamil Nadu are:
· The frequent revisions of the MW Act (Minimum Wage Act) and the
consequent increase in the existing wage rate in Kerala.
179
· The interference of trade unionism in the state created problem for the
smooth running of the processing units
· The Kerala Cashew Factories Act 1974 forced entrepreneurs in the
cashew sector to move processing units in to Tamil Nadu.
· The restrictions imposed by government of Kerala in respect of
licensing of new units also has discouraged the entrepreneur to start
new units in Kerala.
· The introduction of monopoly procurement Act in Kerala in 1981
created the problem of shortage of raw cashew nuts in the state.
· Strict adherence of the provisions of the Factories Act in respect of
Health and safety measures of workers also enabled the entrepreneurs
to establish more units in Tamil Nadu.
· In addition to these factors, the circumstances, prevailed in Tamil
Nadu during that period was favorable to the entrepreneurs in Kerala.
The important factors among them are,
· Availability of abundant labourer force at low wage rate.
· Adequate availability of raw nuts and lack of restrictions on the part
of Tamil Nadu relating to procurement, movement and shortage of
raw material also.
· Absence of trade union interference in the cashew sectors.
· Liberal policy of the government of Tamil Nadu in respect of
licensing new units.
180
· Easy accessibility of other infrastructure facilities like cheap land for
construction of building of processing units, low construction cost
and transport facilities enabled the entrepreneur of Kerala to establish
new units in Kerala.
2.18 METHODS OF CASHEW NUT PROCESSING
The earliest shipments of cashew kernels sent abroad were neither
peeled nor graded. The pioneer exporters used to buy the kernels from the
local markets, dry, pack and then ship them. The exporter’s role was that of
a trading company, using the existing system of production. With the
expansion of the export market in the 1920s and 1930 s, these companies
introduced a cottage industry system of production. Their reason was
probably the need for larger quantities and a continuous flow of the product.
The raw nuts were distributed under a contract to cottagers, who returned the
roasted and shelled nuts to the factory for further processing.10 In
Mangalore, the contracted roasters were obliged to carry out their work in
special areas far from the town. Since the smoke was such polluting and
noxious that town councils passed legislations against processing in
populated areas. These special sites for Roasting and Shelling were called
‘establishment’ and in 1931 Peirce Leslie and Company, had seventeen such
places in the vicinity of Mangalore. Travancore having more lenient
legislation differed from Mangalore because it allowed pan roasting in the
densely populated areas. The resulting smoke was experienced as a general
181
health problem by people living nearby. In letters to the authorities, they
complained about the fumes and the generally unhealthy conditions (lack of
latrines). However, no legislation against the roasting of nuts was introduced
until implementation of the Factory Act of 1948. Moreover, government
permission was not required to set up cashew nut factories in Travancore at
that time. Thus, it was not only labourer laws that were weaker in the
Princely States than in British India, but other regulations, as well.11
The open pan method was abandoned in Mangalore when Peirce
Leslie (an engineer named Jefferies) invented a new machine for roasting in
1932 called the drum roaster. The drum roasting process rests on the same
principle as the pan roasting method, but without the nuisance of the copious
smoke, which is lead up warks through large chimneys into the atmosphere.
The first drum roaster required six persons to operate and consisted of a
cylindrical iron drum manually rotated on an axle. At one end, two men fed
the slightly tilted drum with raw nuts, while another man rotated it from the
other end. A fourth man attended a furnace in which cashew shells were
used as fuel under the drum. One person then removed the roasted raw nuts,
by tilting them out after a few minutes. The sixth man in the crew managed a
water barrel that sprinkled water to cool down the roasted raw nuts.12
Drum roasting was inaugurated in Travancore much later than in
British India as in 1940’s the open pan roasting method was still the most
prevalent one. The fact that the newer procedure was not introduced in
182
Travancore, where the open pan method was conducted in centralized
factories because the main reason for installing drum roasters was to control
the work process, not to increase the output per worker. However, the
economic incitement for introducing drum roasting may not have been
totally absent in 1944. It was asserted that there was a saving in wages when
roasters used the drum method. In a publication on cashew processing,
printed in 1954, the open pan-roasting method was not even mentioned, and
obviously the majority of the factories in Travancore had switched over as
pan roasting having been banned in 1948.13
During the first few decades of the twentieth century, the Roasting
and Shelling of cashew nuts was a small-scale family enterprise. There, the
producers controlled everything- raw material, equipment and working time.
The processing was farmed out, and subsequently switched over to a factory
system in which the means of production as totally under capitalist control.
However, the Roasters and Sellers were a powerful group in the early days.
They were much too poor and the wages have been far too small for them.
But, with increasing demand for cashew kernels, the trade became so
lucrative that the exporters wanted to control the entire process themselves.
The Swedish Historian, Per Nystrom has identified three main areas of
controlling in connection with shift from handicraft. This is due to
production to a capitalist manufacturing system: control over production
(aiming at a homogeneous product); control over working efficiency with
183
the intention of achieving production without disturbances and interruptions.
In the case of cashew production, the “property” was the precious raw nuts
distributed to contractors in the cottage system. The risk that the Roasters
and Sellers might spoil, or even steal the raw nuts and thereby waste the
capital of the exporters was always there. So, the cashew exporters followed
the centralization of production in factories, In Travancore, where no
restrictions against pan roasting was implemented prior to 1948, the
introduction of drum roasting was delayed until the law put an end to the old
method. Thus, it was possible for factory owners to exercise the desired
control and centralize production without investing in new machinery.
The drum roaster was a very simple machine and it did not require
electrical power, As a result, the cashew manufacturers enjoyed great
economic advantage. The same type of drum roaster was in use until 1990’s,
in most factories.14
But this system of roasting is found in many factories in
Kanyakumari District. The objective of Shelling is to produce a clean,
cashew kernel as Roasting leaves the raw nuts black and coasted with the
sticky, and corrosive oil. Shelling has often been described as extremely
dirty and unpleasant work. Workers squat on the floor with a wooden mallet
in one hand and a block of wood between their feet. Every raw nut is placed
on the piece of wood, where it is held between the thumb and the middle
finger with the line of cleavage facing the Sheller. Three or four deft strikes
184
are delivered with the wooden mallet while the seller rotates the nut with the
aid of the index finger. The roasted nut originally shoots open along the line
of cleavage and the kernel is extracted. To protect the palms from the
corrosive cashew shell oil, workers continuously duck their hands with
wood ash from a tin beside them. This method had been in use in India since
the very beginning of the production of cashew kernels, and it was still in
use in the late 1990’s. Thus, it is obvious that Shelling is a highly
monotonous and stressful work.
Efforts have always been made to speed up the Shelling process. In
the 1940s, General Foods Company invented a machine (a hand and foot
driven semi- mechanized tool) called a cracker, but it was reported to be not
very successful. The cracker was tried in a few factories in Bombay and in
one factory in Mangalore. It consisted of two knives shaped like the contour
of half a nut and placed opposite each other in a manner resembling a pair of
scissors. The machine was operated by two people. One operated the knives
with one foot and one hand, and cut the raw nut. The other person then
picked it up and separated the shell from the kernel.15 General Foods
patented the machine. But the machine was discontinued after some years.
There may have been several reasons for abandoning it. For one thing, the
variety in size of the raw nuts rendered the process difficult. It could only be
used for Indian nuts, as those were too small. As, India became more and
more dependent on the imported raw nuts, the machine lost its’ significance.
185
Moreover, it had not increased productivity, and the quantity of broken
kernels also far exceeded the number resulting from the manual method.16
It would have been possible to improve the machine so that varieties
other than Indian nuts could be processed. In the 1960’s semi- mechanized
Shelling machines were used in such parts of the world as Brazil,
Mozambique and Tanzania. More than thirty years later, semi- mechanized
Shelling machines were introduced in a few of the larger private factories in
Kerala.
The process of using a semi- mechanized machine is called cutting.
The newly introduced cutting tools are very similar to the old crackers of the
1940s. They are said to have increased workers productivity a strong
argument in support of this method. There is also the fear that it will
become more and more difficult to get labourers for the manual Shelling
process because of the dirty and unpleasant nature of the work. However,
the new method does require steam to soften the shell, whereas roasted raw
nuts generate a much higher per centage of broken nuts. The main reason
for the factory owners not investing in cutting machines and the ancillary
equipment for steam processing has been said to be the fact that it is only
from profit amount capital investment has to be used thus, lessening the
profit. In countries other than India, advanced, fully-mechanized Shelling
machines were introduced in the 1960s. Thus, at the world-market, the
186
Shellers of India do compete with machines, resulting in labourer coasts
being controlled wherever mechanized factories yield higher profits.17
Drying
It is necessary to dry kernel before Peeling. This process reduces the
moisture and allows the kernel shrink so that the surrounding thin, brown
skin can easily be removed. The earliest and most primitive way of drying
the kernels was to ‘sun-dry’. In Travancore, this method prevailed up to
the1940s, when ovens were introduced in almost every factory. In the first of
Peirce Leslie’s cashew factories in Mangalore, the flues of the factory boiler
were used to dry the nuts by putting the nuts on racks inside the flue. Very
soon, a common oven for drying the kernels was identified. It was a simple
steel chamber containing a rack on which ten to twenty trays with cashew
kernels could be spread out. Below the steel chamber was fire that was fed
with cashew nut shells. Workers had to move the trays from the bottom to
the top every thirty minutes to avoid scorching the kernels, while they dried
for six to eight hours. These ovens in India are called ‘bormas’. Usually only
a few individuals in any given factory work this process. This method has
undergone marginal changes during the last fifty years. A few of the larger
factories in Kerala use electric bormas to facilitate the control of
temperature.
187
Peeling
Peeling is the operation of removal of skin from the kernels. After
being cooled, the kernels are peeledia process which has always been
conducted the same way everywhere in India. The thin brownish skin
covering the kernel is manually removed with fingernails or with the help of
a small knife. The pre-graded kernels have to be further graded by size and
colour by peelers after they have removed the thin skin. These workers have
several baskets at their work station. The number of different grades vary in
different factories, the smaller factories having less. The Peeling operation
has the same characteristics like the Shelling process, It is also monotonous
and stressful. One person can easily peel about 10 Kg kernels / day. The
average output per workers ranger from 7 kgs to 18 kgs per day in
Kanyakumari District.
Grading
The peeled nuts should be carefully handled and sorted out
mechanically according to the size and colour and ‘wholes’, ‘splits’ and
‘bits’. The Cashew Export Promotion Council (CEPC) conforms grade
specification and recognizes twenty four different grades of cashew kernels.
The final Grading, like Shelling and Peeling, is a totally manual process.
Early shipments of cashews were not graded, but very soon American firms,
who were the main buyers, demanded that kernels be graded and checked for
188
quality. They returned considerable amounts of cashew kernels when the
quality was considered to be poor, In the last part of the 1940s, a system of
Grading, the so-called American Standard of Quality was adopted by most
of the exporters. It was further strengthened in 1963 when the Government
of India implemented compulsory quality control on all exported kernels.
The evaluation system recognizes six main grades and 24 sub categories
based on size and colour. Each worker is responsible for one or two main
groups. Since, the pre graded kernels, normally have to be separated into
four to eight different kinds, the workers have to train their eyes to estimate
size quickly to sort the nuts with considerable speed. The process of Grading
cashew kernels has remained the same since the introduction of the new
Grading system in the 1940s.
The main four grades accounting to the size and quality on the basis
of visual characteristics are,
v First Grade – Whole good, big sized kernels of export quality.
v Second Grade – Whole, good, medium size kernels of export quality.
v Third Grade – Halved and broken sized sold locally.
v Fourth Grade - Rejected and spoiled sold locally.
Packing
Cashews were originally exported in mango-wood cases, but very
soon more uniform, better-protected kernels came to foreign markets. The
problem of infestation by weevils was serious and several methods of
improving the packing were tried. One satisfactory system was to pack the
189
kernels in vacuum- sealed tins of 25 Lbs (11.34 Kg) each, which kept the
kernels sound and intact for about a year. In the 1920’s, the General Foods
Corporation invented a new method of packing, the so-called Vita pack-
method. This involved removing the air in the tin and substituting carbon
dioxide gas by means of an electrically operated machine. A lid placed on
the bung-hole of the tin was manually sealed by soldering. The method was
patented by General Foods and only their contractors in Travancore and
Mangalore were allowed to use it. The method was highly covered by
others, who had to pay a royalty of five per cent of the gross value of goods
exported in carbon dioxide to the United States.18 Some exporters tried to
evade the royalty by using a small hand- driven machine to inject the gas. In
1932 firms using the latter method were prosecuted. Only after expiration of
the patent in 1950 the method was adopted by a majority of the factories.
Many processors send their kernels to special packing centers. The same
type of tins are still used for exports and only after 1990 some of the larger
factories started to pack cashew kernels in consumer packages.
The work process has not changed very much during the period under
consideration. It is worth nothing that only small technological improvement
occurred since the industry’s inception. It is still, by and large, a manual,
labourer intensive process. The main innovation in the field was the drum
roaster, invented in 1932 and introduced into most factories during the
1940s. Two of the work tasks, Shelling and roasting are especially
190
hazardous and unpleasant due to the corrosive nature of cashew shell oil. It
has not been possible to find quantitative information on the distribution of
workers in different processing operations for the period prior to 1952.19 The
fact that processing of cashew nuts has remained essentially unchanged
suggests a similar pattern during the early decades of the industry, a fact
which has been corroborated by interviews with factory owners and trade
union leaders active in the 1940s. In 1952 a survey of forty-two cashew
factories showed that more than 94 per cent of all workers were engaged in
Shelling, Peeling or Grading. The flow chart showing the processing of
cashew nut is presented in Figure 2.8.
191
FIGURE 2.8
Cashew Nut Processing Technology
Flow Chart
Raw nut from store
Soaking and pre - treatment
15-20% moisture
Roasting Process
Crude CNSL Oil Centrifuging
Manual decortications
Shell Kernel
Extraction Drying
Waste shells 3% moisture
Residue fuel) Peeling of tests
Moisture conditioning Tannin 5% moisture extract Selection $ Grading Residue Rehumidification and
packaging (12.5% Kg tin) The above flow chart displays different stages cashew nut processing
from storing to packaging of cashew kernel.
192
REFERENCES
1. Nair, K.G., Cashew : A crop with Unlimited Potential, The Cashew,
pp. 16-18.
2. Red River Food. Inc, Richmond Virginia, U.S.A., pp. 4-7.
3. Ibid., pp. 7-9.
4. Krishnaswamy, L., The Indian Cashew Industry, Cashew Bulletin, Vol.
XVII, No.2, February, pp. 6-8.
5. Bala Subramanoam, D., India Cashew, Indian Cashew Journal, Vol.
13, No.1, p.8.
6. Venugoapl. P, Vijayalakshmi Cashew Factory Office File, Kuzhithurai,
Kanyakumari District, pp. 23-27.
7. John, Op.cit., p. 87.
8. Rachel James (1980), Op.cit., pp. 38-39.
9. Singarayan, Memograph, Communist Party Office File, Kuzhithurai,
Kanyakumari District.
10. Pillai, Travancore Manual, Vol. III, pp. 527-528, Government of India
Report on the Marketing of Cashew nuts in India.
11. Lindaberg, Anna, Op.cit., pp. 97-99.
12. Government of India, Report on the Marketing of Cashew nuts in India,
pp. 10-12.
13. Ibid., p. 5.
193
14. Mandel, R.C., Op.cit., p. 148.
15. Ohler, Cashew, A study on Cashew Factory in Kerala, p. 7.
16. Pillai, Op. cit pp. 55-58.
17. Lindberg Hina, Op.cit., pp. 108-111.
18. Ohler, Op.cit, p. 213.
19. Ibid., p. 27.