Cashew Industry-with Reference to India Essay Example

and completely free from any foreign matter. Cashew processing can be carried out using one of four methods: Sun Drying, Drum Roasting, Oil Bath Roasting, and Steam Cooking. In Sun Drying method, raw cashew nuts are exposed to sunlight for several days without regulating temperature before their shells are removed. Conversely, in Drum Roasting method, the nuts are subjected to high temperatures while being tossed in a rotating drum before shelling takes place.

The nuts in Oil Bath Roasting are roasted in a bath of cashew shell liquid (CNSL), and the CNSL is also extracted. Steaming is another improved method used in Cashew processing. The nuts are steamed to soften the shell and then cut open to extract the kernel. The roasted or steamed raw nuts are opened either by cutting or using mallets, and the testa is removed after drying in a borma. The peeled kernels are then sorted by size, shape, and color before being packed for export.

The Cashewnut Shell Liquid (CNSL) is a versatile industrial raw material and an effective replacement for scarce and expensive petro chemicals. It is obtained as a by-product during processing and undergoes treatment to remove metallic impurities and traces of sulphur compounds before being used for various applications.

It has a wide range of applications in various industries including the manufacture of friction lining materials, surface coating, lacquer, insulating varnishes, cement, and composite wood. The Government of India has established standard specifications for Indian cashew kernels for export under the Export (Quality Control And Inspection) Act 1963. One of the main challenges in processing cashew nuts is the caustic oil found in the hard outer shell, which can cause

skin burns and release harmful fumes when heated. During the colonial period, mechanized processing methods such as hot oil baths or drum roasting, as well as automated cutting or impact-shelling machines, were preferred and required large investments and a significant workforce. Labor-intensive tasks such as peeling and grading were predominantly carried out by women.

More recently, smaller scale factories have adopted the steaming and cutting method for processing cashew nuts. The process begins with raw nuts being steamed, then cooled and cut using a hand and foot pedal-operated machine. The shells of the nuts are then burned in furnaces to generate steam and heat, which is used for drying the kernels.

With semi-mechanised shelling, workers have increased contact with CNSL. To provide some protection, workers are given oil to cover their hands. However, gloves wear out quickly and are not preferred by workers who are paid based on the amount of work they complete. Gloves can hamper dexterity and slow down the production process.

The newer factories follow a series of processing steps, including: steaming the raw nuts, cooling them, cutting to separate the shell from the kernel, drying the kernel, peeling, sorting the kernels (including separating broken pieces), grading, and finally packing.

Compared to highly mechanized factories, these small and medium-scale cashew processing facilities require less capital investment and employ more workers per ton of processed cashews.

In these factories, kernel breakage rates are significantly lower because people are better than machines at separating the nut from the shell. There are only 26 commercially available and exported grades of cashews. These grades include W - 180, which is known as the 'King of Cashew' due to its larger size

and high price. The W - 210 grade is popularly referred to as 'Jumbo' nuts. W - 240 is an attractive grade that is reasonably priced. The most popular grade among cashew kernels worldwide is W - 320, which also has the highest availability. On the other hand, W - 450 consists of the smallest and cheapest white whole kernels, making it a favorite among low-priced whole grades.

Scorched wholes are a different type of cashew kernels that are slightly brown in color because they are roasted for a longer time. Despite their color, they possess the same characteristics and nutritional qualities as white kernels. Butts, splits, and pieces are lower-priced alternatives that are perfect for cooking, making sweets, and preparing savory snacks. When exporting cashew kernels from India, there is usually a voluntary quality control and pre-shipment inspection process in place.

The examination of cashews is performed through consignment-wise inspection to ensure that the product is processed and packaged according to the prescribed standards. Samples are taken from the finished product for this purpose. Additionally, roasted and salted cashew kernels intended for export are typically subject to voluntary quality control. Cashew kernels in bulk are packed in four gallon prime tins with a net weight of 11. Exporters in India also accept requests for quantities less than a full container load.

Freight is calculated based on volume, with full container load being cheaper than part container load (LCL). Contracts are typically made on FOB or C basis, with pricing in international trade in cashew being in US Dollars per lb.

Council member exporters can offer price quotes in US $ and other currencies if requested. Cashew business transactions

are typically conducted via telephone, telex, or cable due to frequent price fluctuations. India is the leading exporter of cashew kernels globally, with their cashews being popular in over 60 countries around the world. Key markets for Indian cashews include the United States, the United Kingdom, Japan, Netherlands, Australia, Canada, Germany, Hong Kong, Singapore, New Zealand and Middle Eastern nations. The exceptional quality and reputation of Indian cashew kernels contribute to their high regard.

Members of the Cashew Export Promotion Council of India serve as the primary manufacturers and exporters of cashew kernels in India. These Indian cashews are supplied to leading importers in countries such as USA, Canada, Japan, the Middle East, Singapore, Australia, the U.K., and other EEC countries. Regular shipping services are available from India to all global ports, with Cochin port being the main hub for major shipments. Additional ports include Tuticorin, Mangalore, Madras, and Bombay.

Until serious exploration of policies that regulate entire global value chains, the cashew chain will continue to exemplify the failure of the international trading system to enhance the well-being of marginalized groups. In India, cashew is a major export earning crop, generating nearly Rs. 2500 crores in export earnings. This crop supports over 1500 processing units, benefiting 500,000 families in the industrial sector. Notably, 95% of these unit workers are women from low-income backgrounds.

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