<p></p><p>Experts blame unseasonal rains during fruit setting period for low productionEven as cashew markets are growing at over 10 per cent not only in India but also in the US, Europe and other countries, the raw cashew nut production in the country declined last financial year and continues to stay below the demand of the sector.Cashew production in the country fell to 7,25,420 tonne in 2014-15 from 7,36,560 tonne in 2013-14, according to the cashew and cocoa development directorate, which is under the Union agriculture ministry. Interestingly, production has fallen despite a rise in the total area under the crop to 10,27,200 hectare in the last financial year from 10,07,695 hectare in 2013-14. The fall in output, according to commodity experts, can be attributed to unseasonal rains during the fruit setting period.There is no alternative to increasing production to keep the industry self-sufficient and to meet the growing global demand, felt the cashew export promotion council (CEPCI). As per CEPCI estimates, India produces nearly 850,000 tonne of raw cashew, and about 375,000 tonne of kernels are produced from the total available raw nut supply of 1.7 million tonne.India used to be the largest producer of raw cashew. But African countries have dethroned India. However, India retains the top position as the largest exporter of processed cashew kernels in the world. Cashew is procured from African countries, processed, sorted and then exported. India’s expertise in this field is unparalleled. <br></p> <p>Vietnam and Brazil are the other major producers of raw cashew. Major importers of cashew nut are the US, the European Union (EU), China and countries in West Asia.India imported Rs 6,571 crore worth of raw cashew nut for processing during 2014-15. But kernel exports during FY15 were valued at Rs 5,433 crore, clocking a forex earning deficit of Rs 1,138 crore.During the first eight months of FY16, Rs 6,000 crore worth of raw cashew nut was imported, but only Rs 2,068 crore worth of kernel was exported, resulting in a deficit of Rs 3,932 crore. Cashew nut is one of the most widely used edible tree nuts in the world. Cashew kernels are classified into several grades according to their size and colour. The evergreen cashew tree is also known for the liquid derived from cashew shell. Cashew nut, over the years, has emerged as a globally traded commodity. <br></p> <p>When it comes to consumption of cashew, India has very recently overtaken the US as the largest consumer, making local sales more profitable than exports. According to experts, although the US continues to be the largest buyer of Indian cashew, processor-exporters are focusing more on the domestic market, particularly as the high cost of the imported raw nut has increased the cost of production for them.Indian cashew sells for $3.35-3.65 (Rs 221.1-Rs 240.9) per pound (0.45 kg) in the international markets, while it retails at around Rs 500 a kg in India, where it is consumed in large quantities by the biscuit and confectionary industry.The festival season in India, which falls between October and November, is expected to lead to a further surge in cashew demand and consumption. The global cashew market is also expected to see more positive changes in the fourth quarter, analysts said. Cashew is one of the 36 products (out of India’s overall export basket of 100) which had shown a compound annual growth rate of 21 per cent against the overall CAGR of 9.56 per cent. <br></p> <p>But cashew exports have taken a hit due to the increasing cost of production and a cut in incentives. Exports have fallen 15 per cent in the first six months of FY16. Besides, the steep increase in imported raw nut prices neutralised the gain from the depreciation of the rupee against the dollar.At the end of September, exports fell to 48,518 tonne, valued at Rs 2,428 crore. In terms of value, the exports fell 2 per cent. Prior to this, cashew exports had been on the rise for several years, touching a record Rs 5,545 crore in 2014. India, according to experts, needs to choose the right blend of technology and ensure that Indian cashew processing has the best food safety standards. Then only both domestic consumption and export volume will pick up.<br></p><p></p>