Export of cashew nuts

Presented by:
Gargi Vohra,
R740209037,
MBA – IBM
III – sem
UPES
Introduction…
 upper class nut.
 snack market as a roasted and salted snack.
 Grades / Varieties
Whole grades : W180, W210, W240, W320, W450.
terms are used : White (W), scorched (S) and second scorched (SS).
Grades of Indian Raw Cashew/nut Type No. of nuts
Per Kg.
• Extra special 100
Special 150
Good 160
Fair 180
Indian scenario…..
 India is the second largest producer of cashew nuts after Vietnam,
Vietnam (827000 tons) , India (460000 tons).
• India contributes to over half of the world cashew exports. It annually exports
around 4 million cartons in one year.

• Vietnam gives a tough competition to India in the world market as it is the largest
cashew producing nation of the world but still India is ahead in this scenario.

• Major importing countries of Indian cashew nuts are:-

 Statistics
• Hyperlink
• C:\Documents and Settings\500007032\D
esktop\EXPORT OF CASHEW KERNE
LS FROM INDIA DURING 2007.docx
 Indian scenario…..
 The price for super quality cashew-nut in the national market
ranges from Rs 500 to Rs 550.

 The domestic cashew processing industry requires around 1.2

million tons of raw cashew a year to meet export and domestic
demand.

 Kerala is the highest producer of cashew nut. It is also grown in

Maharashtra, Goa, Karnataka ,Tamil Nadu, Andhra Pradesh,
Orissa , West Bengal, Manipur, Meghalaya, Tripura, Andaman
and Nicobar Islands and Chhattisgarh.
Standard specifications for Indian cashew kernels for
purposes of export have been laid down by the
Government of India under the Export (Quality Control
and Inspection) Act 1963. The Government Act prescribes
33 different grades of cashew kernels. Of these, only 26
grades are commercially available and exported.
Indian scenario…..
 Domestic demand is also growing at a 5.3 per cent annually.

 The export performance and indigenous consumption of cashew kernels has been
growing at the rate of 4% to 10% per annum .

 At present in India there are 1098 processing units with an installed capacity of 1
million tonnes of raw nuts.

 India’s production was around 6.35 lakh ton in 2009-10 as against 6.3 lakh ton In
2008-09.
• The Cashew Export Promotion Council of India (CEPCI) under the aegis of Ministry
of Commerce, Government of India (1955) has been playing an important role in
promoting exports of cashew kernels by undertaking various activities such as:

• Organizing global buyer-seller meets,

• Organizing studies on the nutritional aspects of cashew,
• Assisting cashew festivals organized for promotion of cashew ,
• Promoting setting up of cashew apple extraction units,
• promoting Indian branded cashew packets exploring new markets,
• promoting production of quality raw cashew nuts, etc.
Indian Exporters of Cashew Kernel  
 Aleph Enterprises prathibha
 Allied Cashew Industries
 Alphonsa Cashew Industries
 Ambadi Cashew
 Ebenezer Cashew Co
 Ebenezer Cashew Co. Quilon
 Emgeeyaar Cashews
 Emmanuel Cashew Industries
The major trading centers of cashew nuts
in India are…
• Palasa , Andhra Pradesh.
• Kollam, Tamil Nadu
• Manglore , Karnataka
• Quilon ,Kerala
• Kochi , Kerala
 Storage and handling
 Cashew nut is hand picked and manually handled in various
stages of operation-right from picking at farm level to processing
at factory level and to storage and transportation.

FILLING AND PACKING

 The grated and moisture conditioned cashew kernel are filled in
18Lt/ square tins, (11.34kg) to a tin.

 The Cashew kernel are fed into the vibratory filling machine
through a pneumatic Foreign Matter Segregator (PFMS). 8 Tins
(Leak tested and Tar weighed) are filled at a time.
 Filled tins are then weighed for a net weighed of 11.34 kg plus
or minus 10gm using electronic weighing scale.

 The weighed tins are “Vita Packed”. Vita packing is the

process of vacuumising and injecting inert gas viz. Carbon-
dioxide or Nitrogen into the cashew kernel filled tins. The gas
infused tins is hand-soldered hermetically using lead free
solder.

 Two tins are packed in a unit carton and strapped and stencil
marked for shipment. The consignment is shipped after per-
shipment inspection formalities.
Modern Packaging system - Cashew Kernels can be also
being packed in multilayer flexible pouches; gas flushed and
sealed – 25 pounds net per pouch. All importers in USA and
Europe prefer this system of packing.
Export …..
• It is not included in FMS and FPS.

• HS CODE : Item 14 of the Fourth Schedule.

Chapter 8: Edible Fruit and Nuts; Peel of Citrus Fruit or
Melons.
 ITC HS CODES OF CASHEW

ITCHSCode Product
08013100 Cashewnutsinshell
08013200 Cashewnutsshelled
08013210 Cashewkernel,broken
08013220 Cashewkernel,wholes
08013290 Cashewnutsothers
08135010 Mixturesofnuts
Cashewnutroasted,saltedorroast
20081910
ed&salted
Nutsotherwisepreparedorpreserv
20081930
ed
Cashewnutshellliquid(CNSL),cru
13021920
de
13021930 Purified&distilledCNSL(cardanol)
 License requirement
• It does not require license, comes under the freed
item list.

• Requires documents like phytosanitary

certificate issued by the exporting country.

• The inspection conducted by inspection authority

and fumigation.
• Custom duty on cashew nut is 35 % .
• Duty drawback rate is 4%.
• On an average exporter earns rs 10 to 12
per kg above the price.
Quotation sent by an Indian exporter to South Africa importer of
Cashew Nut -Fortium Global Cote dIvoire SARL.

 Type: Cashew Nut

Cultivation Type: Common
Processing Type: Roasted
Style: Fresh
Grade: W320
Use: Eatable
White: Whitish
Port: Kolkata
Minimum Order Quantity: 5 Metric Ton/Metric Tons.
TECHNICAL CHARACTERISTICS

• Max Nut Counts per kg: From 160 to 180 max

• Max Defectiveness: 0.5% max
• Max Moisture%: 7% max
• Crop Year: Current
• PACKAGE: Jute Bags of 80 Kg/Net
• LOADING: 1 x 20´ Dry - FCL Container (18 MT)

• mode: mainly through sea as sent in bulk.

 Quality Control and Pre-shipment
Inspection
• Exports of cashew kernels from India are normally
subject to voluntary quality control and pre-shipment
inspection. Inspection of cashews is being conducted
under the consignment-wise inspection. It is ensured
that the product is processed and packed as per the
standards prescribed, by drawing samples from the
finished product. Export of roasted and salted cashew
kernels are also normally subjected to voluntary
quality control.
 Packing and Standard Weight
• Cashew kernels in bulk are packed in four gallon prime
tins with a net weight of 11.34 Kg (Or 25 lbs) in each
tin. The filled tins are then vacuumised and filled with
carbon-di-oxide gas and sealed. Two such tins of the
same grade are packed in a carton for export. The net
weight of each carton is thus 22.68 Kg. (50 lbs.). Some
manufacturers also pack in tins of 10kg net to suit the
requirements of buyers in certain markets.
Recently,some exporters have started using flexible
packs instead of tins as many buyers opt for new
generation flexible packs.
 Shipping Specifications

• The overall dimensions of a carton are about:

• Length 
•  490mm
• Breadth
•  240mm
• Height
•   350mm
• Overall volume
•    0. 041 Cu. M/Carton.
•  
• Cashew shipments from India are mainly in 2Oft.
containers which carry about 650-700 cartons.
Requests for less than a container load are also
accepted by exporters in India. Freight is charged per
Cubic Metre on volume basis. Freight for full container
load is fixed and the same is cheaper than the freight
for part container load (LCL).
 Contract Terms

• Contracts are normally made on FOB or C&F basis.

• Pricing in international trade in cashew is in US Dollars per lb.
Current and forward price quotations in US $ and other
currencies are available on request directly from member
exporters of the Council.
• Business in cashew is done on an offer and acceptance basis
between buyers and sellers by telephone, telex or cable, since the
prices are subject to frequent fluctuations.
• The cost of insurance is borne by the buyer.
• At the time of contract, the month of shipment, grade, price
etc., are to be clearly indicated. Sometimes, exporters offer
commodity for shipments upto six months in advance.
• Export dealings are usually finalised on the basis of the opening
of 100% irrevocable Letter of Credit by the buyer in favour of
the shipper. The LC is opened immediately on execution of
contract or one month prior to shipment.
• SHIPMENT DOCUMENTS REQUIRED.

a. Bill of Loading (B/L).

b. Original Invoice.

c. Sanitary Certificate.

d. Fumigate Certificate

e. Certificate of Origin.

f. Certificate of Inspection.

10. PAYMENT TERMS: Bank Transfer for 30% of Total Amount

at moment of Close/Confirm ORDER and 70% balance against
presentation of Confirmed / Irrevocable LC, Payable at sight
against Export Documents presentation.
The cashew nuts shall conform to certain basispecification based on different
parameters which are more fully described below :

• Count : indicated by the number of Raw Cashew nuts per Kg. The Number of
counts usually ranges from 140 nuts per kg- 240 nuts per kg.

• Moisture : Cashew nuts inherently contain moisture. The moisture can range from
5% to 14%. However, a higher content of moisture is likely to increase defective /
rotten / damaged nuts even in transit. It is  advised that the moisture content shall be
to a maximum of 10% at the time of loading but the optimum would be between 6%
and 8%
• Admixture : Cashew nut being a horticultural crop is likely to have
admixture. The seller  shall specify clearly what percentage by weight
shall be the maximum admixture of the consignment at destination. It
is advisable that nuts are cleaned  thoroughly after collection and dried
before bagging.

• Packing :  Cashew nuts shall be packed in sound jute gunnies,

preferably new or once used and should withstand the conditions of
transportation by sea. Any form of insecure packing is likely to lead to
spillage in-transit which will result in  loss of weight as also damage to
the nuts.
.
• Fumigation Certificate : As Cashew nut is a horticultural produce, it needs to be
fumigated before dispatch.  The recommended fumigant is Aluminum Phosphide.

• Payment Conditions : Payment is usually by irrevocable Letter of Credit. Buyer will

specify whether payment will be on sight or on usance basis. The seller may offer
credit for 30  - 180 days depending on his ability to do so
•
Packing List : A Packing List should be available indicating number of packages,
marks thereon which will clearly  identify the Cargo to the buyers. Particular care
about this should be taken if the shipper has more than one consignee at the
destination port.
• Phytosanitary Certificate  : As Cashew nut is a horticultural product, it is
essential that a Phytosanitary Certificate from the country of origin is
available which is issued by a Government Authority. Phytosanitary
certificates are issued to indicate that consignments of plants, plant products
or other regulated articles meet specified phytosanitary import requirements
and are in conformity with the certifying statement of the appropriate model
certificate.

• Certificate of Origin : Certificate of Origin is required from a competent 

authority as a part of the documents.
• Weight Certificate : Weight Certificate duly authenticated by a  competent authority
as insisted on by the buyer is an important document required at the time of export of
Cashew nuts.
• CITES Certificate - A Cites certificate must be applied for, to permit re-export of any
articles bought by a client, regardless of the quantity of bags or their dimensions.
This certificate is temporary, that is, it is issued in the name of the purchaser of the
product and is valid only for this one sale. So the buyer would have to apply for a
new certificate before re-selling the product for commercial purposes.
• Certification :  Certification of quality at port of loading is essential. Usually, the
well accepted Certifying agency is SGS international agency

• Insurance :  Insurance is usually covered by buyers. However, if insurance is

offered by sellers, then claim should be specified clearly including surveyor at 
destination and the office which settles the claims.

• Other standard documents like Commercial Invoice, Bill of Lading as specified in

the Letter of  Credit, Certificate about shipping line etc., will be informed at the time
of  opening of Letter of Credit.
Export promotion schemes…..

• Export Prospects Against the backdrop of endowment of various

favorable factors such as availability of cheap labor and the huge
demand for cashew both in the domestic and overseas markets for
cashew, India offers tremendous potential for increasing its
production and exports.
To tap full potential, India has to formulate a cohesive export
strategy. Some of the points which merit attention of the
policy makers include:

 Increasing the indigenous production of raw cashew nuts so

as to make the country self sufficient in the production by
applying advanced technologies in the cultivation of cashew
developed by various research bodies.

 Launching of vigorous publicity campaign about the quality

of our cashew abroad.
In The Eleventh Year Plan
The Govt. of India, Department Of Commerce has
accorded approval to    the Export Promotion Scheme of
the Cashew Export Promotion Council of India to
implement a scheme titled “Modernization &
Diversification Scheme ” with the following four 
components under Eleventh Plan. 
• PROCESS UPGRADATION/ MODERNIZATION OF 
CASHEW PROCESSING UNITS
• SETTING UP FACILITIES FOR VALUE ADDITION/
CONSUMER PACKING OF CASHEW KERNELS
• ADOPTION OF NEW PACKAGING SYSTEMS 
• IMPLEMENTATION OF INTERNATIONALLY
ACCEPTED QUALITY SYSTEMS   LIKE ISO,  HACCP,
Developing an efficient export marketing network
to optimize the production and exports.
 Setting up of more quality control laboratories for
testing the quality of cashew
 Intensifying export promotion efforts in major
markets on the one hand and exploring new
markets for exports, on the other.
With the implementation of the above steps, exports
of cashew from the country are set to make a
breakthrough in the coming years.
Conclusion
• As India has good climatic conditions and
cashew nuts demand is very high in
international market , India should revive
its position of the largest producer and
exporter of cashew nuts and export it to
other countries as it is a good source of
generating foreign exchange.
Thank you