Export of Cashew from India

[YAGAY andSUN]

India is the world’s largest producer and exporter of cashew nuts. The cashew industry plays a crucial role in India’s economy, contributing significantly to employment, particularly in rural areas. The export of cashew nuts from India is a key component of the agricultural export sector, with cashews being in high demand globally for use in cooking, confectionery, snacks, and processed foods.

1. Introduction

India is both the largest producer and exporter of cashew nuts, and it has a well-established cashew processing industry. The cashew tree is native to Brazil but has become an important crop in India, particularly in states such as Kerala, Andhra Pradesh, Karnataka, Tamil Nadu, Goa, and Odisha. Cashew nuts are exported to countries around the world, making the Indian cashew industry highly significant in global markets.

India not only produces cashews but also processes a significant portion of the raw cashew nuts to export them as cashew kernels, making the country a key player in the global cashew market.

2. Legislative Framework

The export of cashews from India is governed by several legislative and regulatory frameworks to ensure product quality, hygiene standards, and international trade compliance. These include:

• Foreign Trade Policy (FTP): The Government of India sets out the Foreign Trade Policy, which provides guidelines for the export and import of goods, including cashew nuts.
• Export Import (EXIM) Code: An Exporter Importer Code (IEC) from the Directorate General of Foreign Trade (DGFT) is mandatory for exporters to legally export cashew nuts.
• Food Safety and Standards Authority of India (FSSAI): The FSSAI regulates food safety and standards for products being exported from India. Cashews must meet international food safety standards, and exporters must ensure compliance with FSSAI guidelines.
• Agriculture and Processed Food Products Export Development Authority (APEDA): APEDA is responsible for promoting the export of agricultural products, including cashew nuts. It provides exporters with necessary certifications and standards for international trade.
• Quality Control and Standards: The Cashew Export Promotion Council of India (CEPCI) establishes quality control standards for cashews and ensures that Indian exports meet the expectations of foreign markets.

3. Destination Countries 

India exports cashew nuts to numerous countries worldwide. Key destination countries include:

• United States: The U.S. is one of the largest importers of Indian cashew nuts.
• United Arab Emirates: The UAE acts as both a consumer and a re-exporter of cashew nuts to other Middle Eastern and North African countries.
• European Union: Countries like the UK, Germany, and Netherlands import large quantities of cashew nuts.
• China: An emerging market for cashew nuts, China has seen increasing demand in recent years.
• Vietnam: Though a competitor in cashew nut processing, Vietnam also imports raw cashew nuts from India for further processing.
• Australia, Japan, and South Korea: These markets also show steady demand for high-quality cashew nuts.

The country has exported of Cashew Kernels to the world during the year 2023-24 as follows:

Cashew Types	Export Volume FY24 (MT)	Exported in FY24 (USD Mil)
Cashew Kernels	65808.42	338.88
Cashewnut Shell Liquid	3508.18	1.93
Cardanol	9714.12	7.36

Source: https://apeda.gov.in/cashew

4. Registration/Consents/Approvals/NOC/Permission

Several registrations and approvals are required for Indian exporters to legally export cashew nuts:

• IEC (Import Export Code): As mentioned, an IEC is mandatory for exporting goods from India. This is issued by DGFT.
• FSSAI Registration: Cashew exporters need to be registered with FSSAI to ensure that they meet the hygiene and food safety standards for exporting food products.
• APEDA Registration: Cashew exporters must register with APEDA for the export of agricultural products, as APEDA plays a vital role in ensuring the quality and compliance of products for export.
• CEPCI Certification: To guarantee quality control, exporters often obtain certifications from the Cashew Export Promotion Council of India (CEPCI). This helps ensure the quality and standards of the product being exported.
• Phytosanitary Certificate: A certificate from the Plant Quarantine Authority of India may be required for export to certain countries to ensure that the cashew nuts are free from pests and diseases.
• No Objection Certificate (NOC): An NOC may be required from certain government agencies depending on the destination country and type of export.

5. Procedure

The export procedure for cashews involves several steps:

1. Sourcing & Processing: Cashew nuts are sourced from local farmers, processed (if not already done), and graded based on size and quality.
2. Registration & Documentation: The exporter must ensure all necessary registrations (IEC, FSSAI, APEDA) are in place. Required documents typically include:
   • Invoice
   • Bill of Lading
   • Certificate of Origin
   • Phytosanitary Certificate (if needed)
   • FSSAI or APEDA certificate
3. Quality Control & Inspection: Before shipment, cashew nuts are inspected to ensure they meet both national and international quality standards. CEPCI certification plays a role here.
4. Customs Clearance: The goods are cleared through customs after submitting the necessary paperwork and paying any applicable duties or taxes.
5. Shipping & Export: After customs clearance, the goods are shipped to the destination country. The shipping process typically involves maritime transport, though air freight may also be used for smaller shipments.
6. Receiving in Destination Country: Upon arrival, the consignment is inspected by authorities in the destination country (based on its import regulations), and once it passes inspection, the goods are delivered to the importer.

6. Compliance Requirements

The following compliance requirements must be met for cashew nut exports:

• Food Safety Standards: Compliance with FSSAI and destination countries' food safety regulations is mandatory to ensure that the product is safe for human consumption.
• Packaging Standards: Cashews should be packaged in food-grade materials, which preserve freshness and prevent contamination during transport.
• Labeling: The label must provide information about the product, including country of origin, ingredients, nutritional facts, and certifications.
• Quality Certification: Certification from CEPCI ensures that the cashew nuts meet the expected standards of taste, size, and quality.
• Customs Compliance: Adherence to the customs requirements of both India and the destination country is necessary, including paying applicable duties and taxes.

7. Conclusion and Way Forward

India's cashew industry is poised for continued growth, thanks to its position as a leading producer and exporter of cashew nuts. However, several challenges remain, including the need to improve the sustainability of cashew farming practices, mitigate the impact of climate change, and address logistical issues related to shipping and handling. In the future, India's cashew export industry can improve its global competitiveness by focusing on:

• Sustainability: Promoting environmentally sustainable farming practices and ensuring fair trade certification.
• Branding and Value-Addition: By moving towards higher-value cashew products, such as roasted or flavoured cashew nuts, India can increase its share in the international market.
• New Markets: Tapping into emerging markets in Africa, Latin America, and East Asia will diversify India’s export destinations.
• Technology: Leveraging technological advancements in processing and packaging can help improve product quality and shelf life.

Through consistent policy support, infrastructure development, and a focus on quality and sustainability, India’s cashew export sector can continue to thrive and expand its global footprint.