exporting Cashew can be lucrative business indeed !

1. M.SundaraRajan
www.primaryinfo.com
Exporting Cashew

2. About Cashew
 Cashew nut kernels are produced by shelling raw
cashew nuts (RCN), which grow at the end of cashew
apples.
 Cashew nut kernels are primarily judged on their size,
colour and moisture content.
 Whole cashew nut kernels are the standard, as
broken kernels are seen as a quality deterioration.
These characteristics form the basis of cashew nut
kernel grades.
 Whole kernels of an ivory colour represent the highest
quality grade and the larger the kernels, the higher
the price

3. Cashew Trade @ a glance

4. Cashew Cultivation in India
 India is one of the leading producers, processors and
exporters of cashews in the world
 Currently, India has approximately 0.97 million hectares
under cashew cultivation with productivity of 770 kilograms
per hectare.
 Maharashtra, Kerala and Karnataka are the primary
producers of cashew along the western coast of the
country, while Andhra Pradesh (AP), Odisha, Tamil Nadu
(TN) and West Bengal (WB) are primary producers along
the eastern coast
 In addition, cashew is also grown in Chhattisgarh, Goa,
Gujarat and the Andaman and Nicobar Islands

5. Key Markets and Export Destinations
 India accounts for about 65 per cent of the world's
total exports
 India exports kernels to more than 60 countries
across the world
 In 2013-14, India's exports of cashew and cashew-
based products were worth US$ 0.82 billion
 In 2013-14, India exported
113,620 metric tonnes of cashew shipments which
also constituted
9226 metric tonnes of cashew nut shell liquid (CNSL),
Generating revenues US$ 825.89 million and US$
6.18 million respectively

6. The Cashew Export Promotion
Council of India (CEPC)
 The Council provides the necessary liaison for bringing
together foreign importers with member exporters of
cashew kernels. The enquiries received from the foreign
importers are circulated amongst Council members
 The Council also extends its good offices in settling
complaints amicably in the matter of exports/imports either
on account of quality and /or variation in fulfilment of
contractual obligations
 Publish Cashew Bulletin
 Membership in the Council is required
 Publicity and Promotion Abroad, Participation in
Exhibitions,

7.  The schemes are :
1. Process Mechanization and automation of
Cashew Processing units
2. Quality up gradation and Food Safety
Certifications
 Grants are provided
 Funds Released
 KAJU INDIA 2015
KAJU INDIA 2015, International Buyer Seller Meet
– check with CEPC

8. EXPORT OF CASHEW KERNELS FROM INDIA DURING 2010-2011 TO 2011-2012
2010-2011 2011-2012
Countries QTY VALUE QTY VALUE
(M.T) (Rs.Crs) (M.T) (Rs.Crs)
U.S.A 35236 911.31 47611 1470.47
U.A.E 12295 393.31 14173 606.11
Netherlands 11178 289.02 11517 365.57
Japan 5944 159.16 7054 237.45
Saudi Arabia 3386 107.53 5136 207.01
U.K 2798 71.76 3717 109.45
France 3623 90.12 3461 109.10
Spain 2634 69.14 3397 111.45
Germany 1739 41.54 2813 90.39
Belgium 2986 72.47 2463 85.25
Singapore 1692 41.31 1892 57.51
Italy 1194 29.11 1771 55.76
Greece 1311 35.36 1496 50.91
Thailand 733 21.57 1477 46.93
Australia 1356 32.70 1408 44.98
Russia 484 13.53 1378 40.88
Canada 678 16.53 1226 35.88
Kuwait 1001 31.19 1147 50.26
Egypt 1184 37.72 1137 50.60
Algeria 221 6.33 1055 42.15
Turkey 1346 36.56 1051 28.84
Korea Rep. 717 20.25 992 34.92
Jordan 1093 31.07 867 36.71
Norway 727 19.09 844 26.04
Syrian Arab
Rep
850 25.87 822 33.84
HongKong 530 15.14 823 26.07

9. Analysis of Imports of raw cashew nut
 India imported raw cashew nut worth USD 1,182,735,980
with total quantity of 1,135,306,473. Cote D Ivoire is the
largest supplier of raw cashew nut accounting for imports
worth USD 340,657,348 followed by Tanzania and
Guinea Bissau which exported raw cashew nut worth
USD 233,971,273 and USD 204,067,124 respectively.
 Tuticorin Sea accounted for 52.8% of imports followed by
Cochin Sea and Mangalore Sea which account for 31.3%
and 10.1% of imports respectively.
 Average price of raw cashew nut per unit is USD 1.04 and
average value per shipment is 118,487
 During Jan2013 till March2015

10. 08013100 : In shell
Description Duty
Basic Duty 30.00
Education Cess 2.00
Secondary Hiigher
Education Cess
1.00
Contravailing Duty (CVD) 0.00
Additional Contravailing
Duty
0.00
Additional Cess 0.00
National Calamity
Contigent Duty (NCCD)
0.00
Abatement 0.00
Total Duty 30.90
Customs Import Duty of raw cashew
nut under HS Code 08013100

11. Classification codes for cashew
nut kernels
 Harmonised System (HS) codes: within the EU /
EFTA, the following HS codes for cashews exist:
 0801.31: Fresh or dried cashew nuts, in shell
(RCN)
 0801.32: Fresh or dried cashew nuts, shelled
(cashew nut kernel)

12. International grading standards
 Various grading standards exist for classifying cashew
nut kernels. Additionally, buyers have their own
specifications. International grading standards
include:
 Association of Food Industries (AFI)
 United Nations Economic Commission for Europe
(UNECE)
 Cashew Export Promotion Council of India (CEPC)
 Refer to African Cashew Alliance (ACA) Cashew
Grades document for more details and photos of the
various cashew nut kernel grades.

13. Buyer Requirement
 Buyer requirements are all the requirements you can
expect from your potential European buyer(s).
 They can be divided into two groups: legislative and
additional non-legislative requirements.
 Legally, contamination in cashew nut kernels is the
main issue and exporters need to take extra care in
preventing it.
 Non-legislative requirements allow exporters to add
value to their product and/or access specific market
segments.

14. Legislative requirements
When it comes to food products such as cashew nut kernels,
the main focus of European legislation is food safety. The
EU has introduced legal requirements that focus on
hygiene and traceability, emphasizing that players can
guarantee hygiene throughout the chain – from farm to
fork.
 At the international level, the Codex Alimentarius adopted
a Code of Hygienic Practice for Tree Nuts in 1972
(CAC/RCP 6-1972). This code applies specifically to
almonds and walnuts, but is generally applicable to
cashews as well.
 The European Food Safety Authority

15. Non-legislative requirements
 Main issues are contract fidelity, buyer quality specifications, packing
and shelf life of cashew nut kernels.
 Buyers are looking at product quality but also placing emphasis on
quality management and transparency along the chain.
 Certifications on general quality and food safety management systems
from recognised and trustworthy sources demonstrate the supplier’s
commitment to high and consistent quality and safety.
 Reliable delivery (in terms of time and quantity).
 Exporters must make sure to provide type samples, i.e. samples which
represent the grade, quality and packaging material of the product
which will be delivered.
 Buyers will usually require the supplier to replace the non-compliant
delivery with products corresponding to contract specifications

16. Markets - Europe
 The Netherlands is the largest European importer
of cashew nut kernels, accounting for around
43% of imports in 2013 (36 thousand tonnes).
 The UK, accounted for 14% of European imports
(11 thousand tonnes)
 Germany, the third largest importer of cashew nut
kernels in Europe (10% of imports: 8.5 thousand
tonnes)
 France is the fourth largest importer of cashew
nut kernels in Europe,

17. Suppliers of cashews to Europe
 The main DC suppliers of cashew nut kernels to
Europe are Vietnam and India, followed by Brazil.
 These three largest suppliers accounted for 93%
of supplies in 2013 (77 thousand tonnes).
 The rest of DC supplies stemmed from other
countries in Africa and Asia

18. The Netherlands
 As the largest importer and re-exporter in Europe,
the Netherlands is a highly relevant market for
cashew processors in West Africa. The country is
the main distribution centre for cashew nut
kernels in Europe and has the highest share of
imports sourced directly (93% in 2013).

19. Competition in the Market
 The European market for cashew nut kernels relies
heavily on supplies from Vietnam and India. The
cashew processing industries in these countries are
developed and have gone through years of
consolidation
 Quality of processing of RCN is pivotal in determining
quality of cashew nut kernels. This is also where
Vietnam and India are ahead of West African
countries
 Vietnam has obtained its competitive position over
India with the help of mechanised processing.

20. Marketing Strategy
 Follow a market-oriented pricing strategy, whereby
they closely follow global market developments and
establish a solid price information system within their
company. Such a system will allow them to make an
educated decision when negotiating prices with their
buyers.
 ITC Market Insider provides market information on cashew
markets which might be useful in terms of price information
 Sources for price information are The Cashew Export
Promotion Council of India (CEPCI),
Cashew World and Cashew Week. Moreover, by joining
the Cashew Club, you subscribe to a monthly market
report on cashews.

21. Marketing & Promotion
 Promotion is an important step for exporters to
access the cashew nut kernel market
 The goal of promotion is to gain exposure for the
product, bring seller into contact with potential
buyers and convince them of seller capabilities
and quality.
 Personal selling increases the chances to create
strong relationships with buyers, and can be
supported by promotional material
 Participating in the Trade Fairs

22. Exporter’s Web Site
Well-defined products
 Trade names / grade designation
(international standard)
 Colour / product characteristics
 Count / lbs size description
 Max moisture %
 Broken max %
 NLSG (Next Lower Size Grade),
NLG (Next Lower Grade) max %
 Microbiological & Mycotoxin
properties
 Certification
 Uses
 Availability
 Packaging
Strengths of your company:
 Certificates: mention the year of
certification and explain how it
contributes to sound products
and services.
 Certificates can be related to
quality management (BRC, ISO
22000, IFS, etc) or
ecological/social aspects (e.g.
organic, fair trade).
 In terms of social responsibility,
certificates such as BSCI and
OHSAS should also be displayed
clearly.
 Other sustainability certificates,
such as the ACA Quality and
Sustainability Seal, should also
be highlighted.

23. Trade Structure & Channels ..
 In the most common market structure raw cashew nuts (RCN)
from West Africa are shipped to India and Vietnam for shelling
and further processing, without local value addition.
 Raw cashews are sold to either local traders or buying agents of
Indian/Vietnamese companies, and then transported by sea to
the facilities of Asian processors.
 In these facilities, raw cashew nuts are shelled (and sometimes
roasted), packaged and shipped to international markets such as
North America and Europe, or are consumed locally.
 The domestic market in India is much larger than the one in
Vietnam, where the cashew industry is mostly export-oriented.

24. Trade Structure & Channels …
Trade channels
 The main point of entry of cashew nut kernels into Europe is the
Netherlands (via the port of Rotterdam), which is a trading hub
for cashew nut kernels and other edible nuts. Other important
ports for the European cashew trade are Hamburg (Germany)
and Felixstowe (the UK).
Importers
 Cashew nut kernels are often imported directly by large
European snack companies such as Intersnack, without the
intermediate role of traders
 The cashew market has one large multinational, Olam, which is
involved in multiple steps of the value chain
 Agents and brokers , Roaster/packer , Wholesalers , Food
manufacturers ,
 Retail – AHold @ Netherlands, Metro @Germany ,
Tesco @ U.K

25. Trade Portals: Trade Leads
 Trade India
 Global Online
Buyers
 India Trade
Zone
 Trade Turkey
 British Buyers
 Australia Trade
 Global Net

26. Trade Links ….
 3F Group Global Trading
Head Office 7/2 Pycrofts Garden Road, Nungambakkam Chennai 600006, India
Ph +91 44 28281777 Email – cashew@3fg.co
 St. John Freight Systems Limited
C-98, Sipcot Industrial Complex,
Harbour Express Road,
Tuticorin - 628 008.
INDIA
Phone: 0461-2342500
Fax: 0461-2340311
Email: stjohn@stjohngroup.net
 Vink Corporation Middle East (FZC)
P.O.Box 120707, SAIF Zone
Sharjah,
UAE
Phone: +971-4- 3370440
email: vink.corporation@etisalat.net.ae

27. Trade Link ….
 Foretell Business
Solutions Private
Limited
#146, 1st & 2nd Floor,
Gopal Towers, Ramaiah
Street,
HAL Airport Road,
Kodihalli, Bangalore -
560 008. India
Tel : +91 80 2527
6152/53, Fax : +91 80
2527 6154
Email: info@cashewinfo.com
 International Nut and
Dried Fruit Council
Carrer de la Fruita Seca,
4 Polígon Tecnoparc -
43204 REUS
Spain
: +34 977 331 416-
inc@nutfruit.org

28. Further questions
mailto:primaryinfo@gmail.com
Thank you