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  • Crisis-ridden cashew industry gets a breather

    Mar 21st, 2016

    <p></p><p>The cashew industry here heaved a sigh of relief after the Ghana government on Friday lifted the ban on the export of raw cashew nuts from that country.The ban had been imposed early this year. Crisis had loomed large on the cashew sector in the country after many West African countries had begun considering such a ban to boost cashew processing in those countries.The raw cashew nut season in the West African countries is from January to June, with trade peaking during April and May.India annually imports about 6 lakh tonnes of raw cashew from these countries. Under the ban orders imposed by the Ghana government, traders could purchase raw nuts from January, but exports would be permitted only after May 31. <br></p> <p>Ghana produces about 68,000 tonnes of raw nuts annually. The order says that while kernel production through processing in Ghana had increased from 4,250 tonnes in 2009 to 17,600 tonnes in later years, last year it dropped to less than 2,500 tonnes. “This implies that the processing industry was operating at just 5 per cent of its installed capacity.”Ghana had shut down 11 of its 12 processing companies owing to non-availability of raw nuts due to exports. But with the ban in force, huge quantities of accumulated raw nuts had begun to rot since the single processing company had capacity limits when it came to purchasing raw material.In the wake of strong protests by farmers, the Ghana government lifted the ban, cashew traders from here stationed in Ghana told The Hindu .Meanwhile, though Ivory Coast, a major raw nut supplier to India, has not imposed a ban, it has banned the movement of raw nuts outside the country through land borders. Raw nuts used to be smuggled out of the country in this manner by traders resulting in huge tax revenue loss to Ivory Coast.Export is now possible only through the through ports of Abidjan and San Pedro. Ivory Coast produces about 6,25,000 tonnes of raw cashew nuts annually and processes only about 1,50,000 tonnes. The rest is exported and a good portion comes to India. But now owing to the restrictions, Indian importers will have to pay more for raw nut from Ivory Coast by paying taxes.Ghana govt. lifts ban on export of raw nuts, which was imposed early this year.<br></p><p></p>


    Source: www.thehindu.com
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