India’s cashew industry has long been a significant contributor to the nation’s economy, with the country being one of the largest exporters of cashew kernels globally. In the fiscal year 2011-12, India exported approximately 131,000 tonnes of cashew kernels, generating foreign exchange earnings of ₹4,390 crore. Notably, about 90% of these export-quality cashew kernels were processed in Kollam, Kerala, often referred to as the “Cashew Capital of the World.”

To bolster this vital sector, the Indian government, in collaboration with the Cashew Export Promotion Council of India (CEPCI), has implemented various schemes and initiatives aimed at enhancing production, ensuring quality, and expanding market reach.

Government Schemes Enhancing Cashew Exports

1. Mission for Integrated Development of Horticulture (MIDH): Under MIDH, the government focuses on increasing domestic production of cashew nuts by promoting area expansion and replacing old plantations with high-yielding varieties in both traditional and non-traditional states. This initiative aims to reduce dependence on imported raw cashew nuts, which currently account for about 50% of the industry’s requirements.
2. Rashtriya Krishi Vikas Yojana (RKVY): RKVY complements MIDH by providing financial assistance to states for the development of agriculture and allied sectors, including cashew cultivation. The scheme supports initiatives like area expansion, rejuvenation of old plantations, and adoption of improved technologies to boost cashew production.
3. Duty-Free Tariff Preference (DFTP) Scheme: To facilitate the import of raw cashew nuts, the government allows duty-free imports under the DFTP scheme from Least Developed Countries (LDCs). This measure ensures a steady supply of raw materials for processing and re-export.
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4. Medium Term Framework (2017-2020): With a financial outlay of ₹60 crore, this scheme aims to mechanize and automate cashew processing units. As of March 2019, ₹5 crore had been released to CEPCI as grant-in-aid under this framework, enhancing processing efficiency and product quality.

CEPCI Initiatives Driving Export Growth

Established in 1955, CEPCI plays a pivotal role in promoting cashew exports from India. The council offers a range of services to its members, including:

• Financial Assistance: CEPCI operates Five Year Plan Schemes of the Government of India, providing financial aid to member exporters for process upgradation, modernization of factories, acquiring new packaging facilities, and implementing international quality standard certifications like ISO and HACCP.
• Market Access Initiative (MAI): Under the MAI scheme, CEPCI receives financial assistance to organize Buyer-Seller Meets (BSM) and facilitate participation in international fairs. These efforts help tap new markets and enhance the branding of Indian cashew products.
• Quality Control and Standardization: CEPCI has established comprehensive quality standards aligned with international requirements. The council operates sophisticated laboratory facilities for quality testing and provides technical guidance to processors, ensuring consistency and quality across the industry.

Impact of Government and CEPCI Initiatives

These concerted efforts have significantly bolstered India’s cashew export sector. The reduction of the Basic Customs Duty on raw cashew nuts to 2.5% and the Goods and Services Tax (GST) to 5% have made raw material sourcing more cost-effective. Additionally, the revision of the Standard Inputs Output Norms (SION) has facilitated better export terms for cashew kernels.

The focus on mechanization and quality enhancement has improved processing efficiency and product standards, making Indian cashew kernels more competitive in the global market. The organization of international trade fairs and buyer-seller meets has opened new avenues for exporters, leading to increased market penetration.

Partnering with Altus Exports for Global Reach

While government schemes and CEPCI initiatives provide a robust foundation, navigating the complexities of international trade requires expertise and strategic partnerships. Altus Exports specializes in assisting Indian manufacturers in exporting their products to global markets.

How Altus Exports Can Assist:

• Market Research: We provide in-depth market analysis to identify the most lucrative markets for your products.
• Regulatory Compliance: Our team ensures that your products meet all international standards and regulations, facilitating smooth entry into foreign markets.
• Logistics Support: From packaging to shipping, we manage the entire logistics process, ensuring timely and efficient delivery.
• Networking Opportunities: Leverage our extensive network to connect with potential buyers and distributors worldwide.

By partnering with Altus Exports, Indian cashew manufacturers can maximize the benefits of government schemes and CEPCI initiatives, ensuring sustained growth in the global market.

For more information on how to collaborate with us, visit our Manufacturer Partnership page.