Libin Chacko Kurian, Mumbai. India produces quality cashewnuts, which enjoy acceptance overseas. However, their export is on the decline, owing to the increase in production costs (which, in turn, has resulted in an increase in the costs of raw nuts), input costs and labour costs; the increasing competition in the international markets, and the restrictions by importing countries.Its domestic consumption has increased significantly, resulting in an increase in its imports and the attention of exporters. With higher profits and a competitive global market, a major chunk of the cashewnuts has got diverted to the local market. G Kannan, managing director, G K Exports, said, “There is a strong demand in the domestic market for various types of cashewnuts. The rising demand makes the Indian market more profitable, so traders don’t have to go overseas.” “But the increase in the input costs, a result of the hike in labour costs in different cultivating states, poses dangers for both producers and exporters. On one hand, the profit margin is higher due to the domestic demand, and on the other, we are losing the international market due to higher prices. Other cashew-producing nations have larger markets, as their production costs are low. But they compromise on quality,” he added.An official of the Cashew Export Promotion Council of India, which looks after the promotion of the nut overseas, stated, “The cashewnut exports are satisfactory, but there is a need for improvement. Exporters are assisted by the promotion council’s programmes. The government is constantly helping both domestic traders and exporters (who are equally affected by the price and production constraints) to expand the market and increase the supply,” he added.The Directorate of Cashewnut and Cocoa Development is the nodal agency for the development of the nut in India.