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Vishweshwar Education Society’s

Indira Institute of Business Management


PROJECT REPORT

ON

“A Study on Cashew Export and Import in Indian Market”


SUBMITTED

TO

INDIRA INSTITUTE OF BUSINESS MANAGEMENT, NAVI MUMBAI


BY

MR. ABIN BABU

Roll No. 2017003

Batch No. 2017-2019

IN PARTIAL FULFILLMENT OF

MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY OF


MUMBAI

SEPTEMBER 2018
DECLARATION

I, Mr. ABIN BABU, hereby declare that this project report is the record of
authentic work carried out by me during the period from 2nd May 2018 to 2nd July 2018
and has not been submitted to any other University or Institute for the award of any
degree / diploma etc.

Mr. ABIN BABU

Date
CERTIFICATE
This is to certify that Mr. ABIN BABU of Indira Institute of Business
Management has successfully completed the project work titled ‘A Study on
Cashew Export and Import in Indian Market’ in partial fulfillment of
requirement for the completion of MMS as prescribed by the University of
Mumbai.
This project report is the record of authentic work carried out by him
during the period from 2nd May 2018 to 2nd July 2018.
He has worked under my guidance.

Prof. UPENDRA MORE,


Assistant Professor
Date:

Counter signed by

Dr. M SREEDHARAN,
Director - IIBM
Date:
ACKNOWLEDGEMENT

I sincerely acknowledge the help received from various people and sources in
collecting data and information in completing with satisfactory project. The
project report entitled ‘A STUDY ON CASHEW EXPORT AND IMPORT IN
INDIAN MARKET’. The entire project owes its credit for the chlorite guidance
and encouragement rendered by my mentor Prof. UPENDRA MORE.
I extend my sincere thanks to GREENSHIP TRADING & LOGISTICS for
selecting and giving me this opportunity to do summer internship with them. I
acknowledge the give and take relation in form of project assigned to me and
pleased to contribute to organization with my efforts and get essential credits for
my profile before I enter the business world.
I also take opportunity to acknowledge my sincere and deep sense of gratitude to
Mr. RONALD THRIAN SYRAIC & Mr. SUMESH RAO, Managing partners,
whose perception and knowledge it was always opened for us.
I would also like to thank our Director for giving me an opportunity to do this
project and for valuable guidance in successful completion of project.
Last but not least I would like to thank my parents, family and Friends for their
kind of co-operation and support throughout the project.

MR. ABIN BABU


MMS (OPERATIONS)
EXECUTIVE SUMMARY

The report is the compilation of work done at Greenship Trading and Logistics (Cochin) as an Intern Trainee
where project on ‘A Study on Cashew Export and Import in Indian Market’.

The study based project was completed using primary and secondary data. A complete analysis of finding is
compiled and classified into appropriate sub-modules. Various interesting findings from the survey with a
sample size of 250 exporters.

Agricultural exports potential is quite high in India. Agricultural are contributing around 18.18per cent to
Indian’s total export earnings and also play a significant role in employment generation, particularly in the
rural sector. Cashew is generally described as ‘poor man’s crop and rich man’s food. The total consumption
of cashew kernels is 2.10 lakh M.T, of which India consume almost one-third and remaining two-third is
shared by the kernel importing countries. The result of the present study is depicting that, there is an increase
in area as well as in production from past ten decades to meet domestics demand and demand from foreign
countries because of its nutritional value. There is an increasing trend in quantity of exports from past ten
decades and transitional probability matrix reflecting that the some of major importing countries like USA,
Netherland and UK has remained as stable in retaining its previous years share from India’s total import in
last ten decades.

India has a creditable record of attaining good foreign exchange by exporting cashew kernels to European,
Asian and Arabian countries. The direction of cashew kernels export has reflecting that Netherlands (70%),
USA (50) %, and UK (50%) remained as moderately stable in retaining its previous years imports from India
and other major importing countries like UAE, Japan, France, Spain, Saudi Arabia and minor importing
countries has remained totally unstable in retaining its previous year share during the year 2012-2017.

There is a declining trend in quantity of cashew kernels export from India to foreign countries. USA is the
major importing of cashew kernels from past five years.

As Greenship Trading and Logistics have provided wide range of logistics service to various customers all
over India, it took really a huge time to study each and every aspect of it, and so primary research was the
best source for conducting research.
TABLE OF CONTENTS

Chapter No. Title Page No.


1 INTRODUCTION 1-5
1.1 Relevance of the Project
1.2 Introduction of the Topic
1.3 Global and Indian scenario
1.4 Objectives of the Study
1.5 Scope of the Study
1.6 Limitations of the Study

2 PROFILE OF THE ORANIZATION 7-19


2.1 History of Company
2.2 Company Profile
2.3 Services of Company
2.4 Company Exporting Producers
2.5 SWOT Analysis

3 REVIEW OF LITERATURE 20-26


3.1 Basic Theories & Concepts of the topic
3.2 Review of Research on the selected topic
3.3 Scope of the Present Study

4 RESEARCH METHODOLGY 27-29


4.1 Period of Study
4.2 Area of Study
4.3 Method of Study

5 DATA PROCESSING AND ANALYSIS 30 – 39


6 FINDINGS 40 – 41
7 RECOMMENDATIONS 42 – 43
8 CONCLUSIONS 44 – 45
9 BIBLIOGRAPHY 46 – 47
List of Tables

No. Title Page No.


Table no.5.1 Export of cashew kernels from India 31
Table no.5.2 Import of Raw Cashewnuts to India 32
Table no.5.3 Export of cashew kernels to different countries from India 33
Table no.5.4 Import of Raw cashewnuts from different countries into India 35
Table no.5.5 Export of Cashew kernels through different ports in India 37
Table no.5.6 Import of Raw Cashewnuts through different ports in India 38
List of Figures

No. Title Page No.


Figure3.1 Cross sectional view of cashew fruit 21
Figure 5.1 Export of cashew kernels from India 31
Figure 5.2 Import of Raw Cashewnuts to India 32
Figure 5.3 Export of cashew kernels to different countries from India 34
Figure 5.4 Import of Raw cashewnuts from different countries into India 35
Figure 5.5 Export of Cashew kernels through different ports in India 37
Figure 5.6 Import of Raw Cashewnuts through different ports in India 38
Vishweshwar Education Society’s
Indira Institute of Business Management, Sanpada, Navi Mumbai

Chapter 1
Introduction

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Vishweshwar Education Society’s
Indira Institute of Business Management, Sanpada, Navi Mumbai

1. INTRODUCTION
1.1. RELEVANCE OF THE PROJECT
 Internship provides the opportunity to test an interest in a particular career before
permanent commitments are made.
 It can help to develop skills in the application of theory to practical work situations.
 Internships can also provide an opportunity to test their aptitude for a particular career
before permanent commitments are made.
 It helps to develop skills and techniques directly applicable to career.
 Lastly, it can assist in adjusting from college to full-time employment.

1.2. INTRODUCTION OF THE TOPIC

Agricultural exports have been remained as backbone of India’s export and continued to be the backbone for
future export growth. Agricultural exports potential is quite high in India. Agricultural exports are
contributing around 18.18 per cent to India’s total export earnings and also play a significant role in
employment generation, particularly in the rural sector. The low import to export ratio enhances the
significance of agricultural exports. In India, after achieving self - sufficiency in food grain production and
globalization of agricultural trade, production of export-oriented crops is given priority. Presently India is
exporting about 7500 commodities to 190 countries and importing almost 6000 commodities from 140
countries of the world. India is determined to raise its trade share in world trade to one per cent.

My topic of summer intern ship was “A STUDY ON CASHEW EXPORT AND IMPORT IN INDIAN
MARKET.” for getting adequate information I visited number of exporters and importers of these region and
here I come to know that trade facilitation problem is one of biggest problem faced by these exporters and
importers and these problem is affecting their business and my study on cashew export and import in India
market is more in comparison to other countries.

1.3. Global market and Indian scenario

 Cashew nuts have only recently emerged as a global commodity, but are already ranked third in the
US nut market.
 It constitutes 68 per cent of all shelled nut imports in the range of 130,000 tones.
 The European market takes up about 75,000 tones of cashew nut kernels.
 The price of cashew nuts is influenced by some unpredictable factors.

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Indira Institute of Business Management, Sanpada, Navi Mumbai

 Unfavorable weather and civil unrest can influence the global production of RCN, and any shortage
would be passed on to kernel processing, driving up the price.
 India is one of the leading producers, processors and exporters of cashews in the world India
produced approximately 0.72 million tones of raw cashew nuts in2011-12.
 Currently, India has approximately 0.97 million hectares under cashew cultivation. Maharashtra,
Kerala and Karnataka are the primary producers of cashew along with the western coast of the
country, while Andhra Pradesh (AP),Odisha, Tamil Nadu (TN) and West Bengal (WB) are primary
producers along with the eastern coast
 In addition, cashew is also grown in Chhattisgarh, Goa, Gujarat and the Andamanand Nicobar
Islands.

Cashew consuming countries in the world

• United States of America


• European Union
• India

The trade patterns in cashew in the world suggest that 8 to 9 million cartons of cashews are traded in the
world in a year. The main countries that constitute the world cashew exporting are:

• India (4.5 million cartons)


• Vietnam (2.3 million cartons)
• Brazil (1.75 million cartons)
• Tanzania
• Ghana

THE PROBLEM
India is a developing country and to become a developed country it is very important to have a significant
share in the international trade. For the promotion of export and import Government is making different
policies and taking number of measures. But still there are number of problems faced by Indian exporters and
importers and one of the problems is related to custom clearance

This project is going to point out major problems which are faced by the exporters and importers in custom
clearance

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Indira Institute of Business Management, Sanpada, Navi Mumbai

1.4. OBJECTIVES OF THE STUDY

 This project is to know in detail about the export procedure and documentation of shipment.
 To analyze the export growth pattern of Indian cashew.
 To identify the direction of trade in export and import of cashew.
 To determine the problem related to documentation and customer clearance.
 To determine the problems of exporters and importers of cashew.

1.5. SCOPE OF THE STUDY

The research which I have done on the topic “A STUDY ON CASHEW EXPORT AND IMPORT IN
INDIAN MARKET.” can further be used as a secondary data by others. It can be used by different
institutions and companies for various purposes.

 This study will help to know the loopholes in the custom clearance procedure and
documentation.
 To create awareness about the rules & regulations of foreign trade for exporters and
importers.
 To know the role of the freight forwarders in custom clearance.
 How company could sustain in competitive world by providing vast range of cargo handling
through all instruments which are flexible, prompt and innovative in meeting the
requirements of the customers.
 To understand whether exporter follow the process of documentation.

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Vishweshwar Education Society’s
Indira Institute of Business Management, Sanpada, Navi Mumbai

1.6. LIMITATIONS OF THIS STUDY:


 The primary research was restricted only to a particular area.
 Respondents were hesitant in providing information on the topic and answering the
questions.
 There are so many determining parameters for a particular thing or event, considering all
of them at a time is not practically possible.

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Indira Institute of Business Management, Sanpada, Navi Mumbai

Chapter 2
Profile of the Organization

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Vishweshwar Education Society’s
Indira Institute of Business Management, Sanpada, Navi Mumbai

2. Profile of the Organization

2.1. HISTORY OF GREENSHIP TRADING AND LOGISTICS:-


Greenship Trading and Logistics, we are a young team happy to understand the need
of the customer and provide them with optimum solutions so as to minimize costs on
every shipment. Our clients are our greatest motivators and our pillars of strength. We
combine our core products of Air Freight, Ocean Freight, and value added services to deliver globally
integrated, tailor-made end-to-end solutions for our customers. We have our registered office at Cochin and
associated offices all over India

Claim & Recovery

The distinctive feature that greenship trading and logistics provides you is to get your cargo insured
throughout its way. Our aim indeed is to provide you secure business liaison and mutually fruitful
relationship. For any of the losses that you meet with, the insurance company would bear the whole cost.
To facilitate your business we provide services like insurance Law, Claims, Recovery, Surveyor etc.
International Operations (Freight Forwarding): Vietnam, Korea, China, Qatar, Kuwait, USA,
Saudi Arabia.

Clients
We specialize in catering to all your import and export requirements as we are thoroughly experienced and
obtain repeat business from our clients who have diverse requirements. We act as C&F agents who take care
of all your cargo requirements at international level. We have a strong customer base in Vietnam, Korea,
Middle East and Europe. Our clients are the big corporate houses such asRoyalMarineExporters, Blue sea
export pvtLtd., Aqua geno exporters, APG exporters, Keshodeval exporters, NilGai exproters, BlueCrest
exporters.

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Indira Institute of Business Management, Sanpada, Navi Mumbai

Staff
We are equipped with well qualified experienced trained staff supported and fully computerized
documentation and armed with the latest communication equipment in the customs clearance department
who can guarantee you the best services in this field.

Believe
We at Greenship trading and logistics, believe establishing a long-term relationship. The feedback which we
have received from our clients highlights their enormous satisfaction. We welcome all your suggestions and
would be pleased to answer your queries if any.

Commitment
We are committed to achieve complete customer satisfaction by maintaining a high level of consistency in
providing trustworthy services to our esteemed customers. Our sophisticated system of working backed by
rich resources enables us to provide speedy services and to maintain a lasting business relationship with our
clients

Mission
Understanding the need of customer and providing them with optimum logistics solution.

Vision
To be a leading reliable logistics solution provider by providing practical green technology that will improve
operational efficiency and customer experience.

Values
1. Innovation

We anticipate change and shape it to fit our purposes

• Promote and implement creative and innovative ideas and solutions


• Create ethical, forward thinking solutions to overcome weaknesses
• Identify, develop and deploy leading edge technology

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Indira Institute of Business Management, Sanpada, Navi Mumbai

2. Humility

We have the Humility and Hunger to Learn

• Value openness and curiosity to learn from anyone, anywhere


• Seek and provide honest feedback
• Be open to change and continuous improvement
• Deal with people and issues directly and openly
• Learn from mistakes and successes in equal measure
• Never underestimate our competition

3. Reliability

We Are All Accountable

• Take personal accountability for our actions and results


• Focus on finding solutions and achieving results
• Actively engage in discussions and commit to decisions once they are made
• Keep promises and commitments made to others
• Personally commit to the success and well-being of teammates

2.2. COMPANY PROFILE

COMPANY NAME Greenship Trading & Logistics.

OWNERS Mr. Ronald ThrianSyaric, Mr. Sumesh Rao.


OFFICE Cochin
INDUSTRY Logistics
WEBSITE http://greenshiplogistics.in

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Indira Institute of Business Management, Sanpada, Navi Mumbai

2.3. Services of Greenship Trading and logistics:


At Greenship logistics, we have all solutions to meet your import and export requirements. Here is the brief
synopsis of what we offer to our world-based clientele.
 Customs Clearance
 Import/Export container bookings
 Issuance of licenses under project etc. from relevant ministries
 Freight booking of break bulk parcel cargoes, includes heavy lifts
 Inland Transportation s
 Chartering brokering for container and bulk vessels
 Ocean Freight (FCL & LCL Service)
 Warehousing
 NVOCC Services

2.4. COMPANY PROCEDURES FOR EXPORTING:

In India, ships transport more than 90 percent of the cargo .It is therefore interesting to study the export
processed by ship documentation related to it.

Processing of an export Order:

I. Exporter operation starts with the receipt of enquiry by the exporter from importer .Bar on the
enquiry exporter submits his offer giving complete details of products technical specific price
delivery terms etc.

II. After the process negotiations importer sends a purchase order follow by the letter of credit (if
applicable)

III. The exporter manufactures the goods according to the specification given in purchase order.

IV. As soon as the goods are ready the exporters invites the representatives of export inspections
agency (EIA) for pre shipment inspection and obtain the certificate of inspection.

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V. After that ,the exporter prepares following documents :-


 Invoice
 Packing list
 ARE 1 from excise department
 Marine Insurance Policy
 Copy of Purchase order /L/C

VI. Above those documentation is sent to CHA by exporter.

VII. Based on these documents CHA agent completes the octroi formalities, obtain port permit and
prepare shipping bill which is a custom documents.

VIII. Custom department check the export cargo on the basis of information provided on the shipping bill.
If satisfy then cargo allow to loaded on the board of ship .

IX. The shipping lines gives mate receipt to CHA agents after the payment of ocean freights and port
due obtains the bill of lading (B/L) fromshipping .B/L is a proof of dispatch of cargo and a
negotiable document.

X. After that ,CHA agent send various documents back to exporter which is –
 Custom attested invoice
 Copy of shipping bill
 Full set non board bill of lading
 Copy of ARE1 Form
 SDF form

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XI. After that the exporter submitted above these documents for negotiation to the bank which include :
 Commercial invoice
 Packing List
 SDF form
 Original copy of purchase order
 Certificate Of origin
 Bill of Exchange
 Shipment advice

After that, bank scrutinizes these documents and if found correct make payment to exporter against these
documentation.

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Indira Institute of Business Management, Sanpada, Navi Mumbai

EXPORT INVOICE:

Elements of Export Invoice:

 Exporter
 Consignee
 Invoice No. and date
 Exporter ref.
 Buyer order no and date
 Other reference
 Buyer (other than consignee)
 Country of origin of goods
 Country of final destination
 Terms of delivery and payment
 Pre- Carriage by
 Place of receipt by pre carrier
 Vessel /Flight no
 Port of loading
 Port of discharge
 Final destination
 Marks and no’s /no &kind of pkgs.
 Item code
 Description of goods
 Net weight
 Gross weight
 Quantity
 Rate CIF EURO
 Amount CIF EURO
 Amount in words
 Declaration
 Authorized signature

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STEPS INVOLVED IN EXPORT TRANSACTION:

STEP 1

In the case of first time exporters –importers they need to apply to the director General of Foreign Trade
(DGFT) regional office for getting Importer –Exporter Code (IEC) Number.

STEP 2

The exporter has to register with the concerned export promotion council in order to obtain various
permissible benefits given by the government; they need to get registered with sales tax office and even
Export Credit Guarantee Corporation.

STEP 3

The exporter can now go in for procuring orders by first sending a sample ,if required .The importer sends a
purchase order once both exporter and importer have agreed upon the terms and conditions of the contract
like pricing ,documents ,freight charges ,currency etc.

STEP 4

With export order in hand, the exporter starts manufacturing goods or buying them from other manufacturers.

STEP 5

The exporter makes arrangements for quality control and obtains a certificate confirming the quality of the
goods from inspector of quality control.

STEP 6

Exportable are then dispatched to ports/airports for transit .

STEP 7

The export firm has to apply to an insurance company for marine /air insurance under cost and freight, free
on board etc.

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STEP 8

The exporter contacts the clearing and forwarding agent (C&F) for storing the goods in warehouses .A
document called shipping bill required for allowing shipment by customs authority is presented by the
forwarding agent.

STEP 9

Once the goods are loaded into the ship a receipt called “Mate” Receipt is issued by the captain to the ship
superintendent of the port.

STEP 10

The superintendent calculates port charges and handover to the exporter /C&F agent.

STEP 11

After making the port payments the C&F agent or exporter gets the bill of lading or Airway Bill from the
official agent of the shipping company or the airline.

STEP 12

The exporter applies to the relevant chamber of commerce for obtaining certificate of origin stating that the
goods originated from India.

STEP 13

The exporter sends a set of documents to the importers, stating the date of shipment name of vessel etc.

STEP 14

Within 21 days after shipment the exporter must present all the documents at his bank which scrutinizes
these documents against the original letter of credit /purchase order.

STEP 15

The exporter’s bank sends these documents to the importers bank which should make the payment on or
before the due date.

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EXPORT DOCUMENTATION:

1) Profoma Invoice :

Profoma invoice as the name suggests s a profoma of the invoice .It is prepared by an exporter and
sent to the importer for necessary acceptance .Its suggests to a buyer what the actual invoice would
look like and is sent to him when he is ready to purchase the goods.

2) Packing List :

This statement gives the packing details of goods in a prescribed format .It is very useful document
for customs at the time of examination and for warehouse keeper of the buyer to maintain a record of
inventory and to affect delivery.

3) Certificate of Origin:

This certificate issued by the local chamber of commerce indicates that the goods which are being
exported are actually manufactured in a specific country mentioned therein. It is ent by the exporter to
the importer and is useful for the clearance of the goods from the customs authority of the importing
country.

4) Shipping bill /Bill of entry

It is a requisite for seeking the permission of customs to export goods. It contains a description of
export goods by sea /air. It contains a description of export goods, number and kind of packages,
shipping marks and numbers, value of goods, the name of the vessel, the country of destination etc.
On the other hand, importers have to submit copies of document called Bill Of entry for customs
clearance .Later a copy has to be given for verification.

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5) ARE 1 Form:

This form is an application for the removal of excisable goods from the factory premises for export
purpose .The ARE 1 form has multiple copies which are distributed to different authorities ,including
customs ,Range office of Excise , Refund office to Excise etc

6) Bills of Exchange ;

It is an instrument in writing containing an order, signed by the maker, directing a certain person to
pay a certain sum of money only to the order of a person to the bearer of the instrument .It is
commonly known as a draft.

7) Inspection Certificate

It is required by some importers and countries in order to get the specification of the goods shipped
attested .The attestation is usually performed by a government agency or by independent testing
organizations.

8) Bill of Lading

This document is issued by the shipping company acknowledging the receipt of the goods mentioned
in the bill, for shipment on board of the vessel.
The B/L is the legal document to be referred in case of any dispute over the shipment.
It contains:
 The shipping company’s name and address
 The consignee name and address
 The port of loading and port of discharge
 Shipping marks and particulars
 Number of packages and the goods
 Gross weight and net weight

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 Freight details and name of the vessel


 Signature of the shipping company’s agent.

9) Airway Bill:

This receipt issued by an airlines company or its agent for carriage of goods is a contract between the
owner of the goods and the carrier. It should indicate freight pre-paid or freight to collect .The first
three digits of the Airway Bill Number represents the code which identifies the carrier.

10) Insurance Certificate :

This document obtained from the freight forwarder is used to assure the consignee that insurance will
cover the loss or damage to the cargo during transit (marine/air insurance)

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2.5. SWOT ANALYSIS:

Strengths:-
 Point of Service Promotion
 Experience marketing team & values are followed
 Strong culture, ethics and values are followed
 Emphasis on providing total customer satisfaction
 Point of Service promotion to increase the business
 Increase service with the help of healthy competition between different companies
 Maintains good employer-employee relation

Weakness:-
 Time billing
 Collection of payment
 General perception
 Lack of customer care management.

Opportunities:-
 Explosion in international business in customs clearance, andfreightforwarding(export and import)

Threats:-
 Change in Government policy.
 Recession
 Fluctuation in exchange rate
 Stiff Competition
 Unorganized logistic sector

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Indira Institute of Business Management, Sanpada, Navi Mumbai

Chapter 3

Literature Review

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Indira Institute of Business Management, Sanpada, Navi Mumbai

3.1 Basic Theories & Concepts of the topic:

Cashew (Anacardiumoccidentale L.) trees appear more like bushes than trees because of their small stature.
They are evergreen trees, with an average height of not more than 30 feet. Cashew trees grow abundantly in
the tropics and are extensively found near the equator, as they flourish in extreme heat. These trees have been
cultivated for food and medicine for more than 400 years. Cashews trees and their products seem to have
served nutritional, medicinal and wartime needs. More recently, they have been used in the manufacture of
adhesives, resins and natural insecticides. The cashew tree has also become a source of valuable oil drawn
from the shell. The cashew kernel is a rich source of protein (21 %), fat (46 %) and carbohydrates (25%) and
a good source of calcium, phosphorus and iron.
It has a high percentage of polyunsaturated fatty acids, in particular, the essential linoleic acid. The tart apple
is a source of vitamin C, calcium and iron. The bark, leaves, gum and shell are all used in medicinal
application.
The cashew nut kernel is constituted of three different portions - the shell, the kernel and the adhering testa
(Figure 3.1). The primary product of cashew nuts is the kernel, which is the edible portion of the nut and is
consumed in three ways: (i) directly by the consumer, (ii) as roasted and salted nuts and (iii) in confectionery
and bakery product.

Figure 3.1 Cross sectional view of cashew fruit

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They compete mainly with other nuts, although chips, salted popcorn and other savoury snacks can impinge
on the nut market. The price of cashew nuts is much higher than that of peanuts or other snacks, so that the
Sale of cashew nuts is based on a strong taste preference by the consumer. Cashew nuts are generally
considered a luxury product, and an element of their appeal may lie in this status.

Countries like India, Brazil, Vietnam and Nigeria boast of more than 90% of the world’s cashew crop
collectively. As far as India is concerned, the coastal states of India are the main cashew producers. It is 28
grown in Kerala, Karnataka, Goa and Maharashtra along the west coast and Tamil Nadu, Andhra Pradesh,
Orissa and West Bengal along the east coast. In cashew-producing countries, the nut is only one of the
products enjoyed by the local populations.
The cashew nut shell contains a viscous and dark liquid, known as cashew nut shell liquid (CNSL), which is
extremely caustic. It is contained in the thin honeycomb structure between the soft outer skin of the nut and
the harder inner shell. The CNSL content of the raw nut varies from 20 to 25 percent. CNSL is an important
and versatile industrial raw material. There are more than 200 patents for its industrial application; in
particular, it is used as a raw material for phenolic resins and friction powder in the automotive industry
(brake linings and clutch disks).

3.2 Review of Research on the selected topic:

1. Patel et al (2006) investigated the extraction of CNSL using supercritical carbon dioxide (SC-CO2). The
effects of process parameters such as extraction pressure, temperature and flow rate of SC-CO2 have been
investigated, and it was reported that the yield of CNSL increased with an increase in the pressure,
temperature and mass flow rate of SC-CO2. It has also been reported that the oil obtained through super
critical fluid extraction 31 possesses a better quality, compared to the CNSL obtained through the thermal
method.

2. CNSL separation from the fragmented honeycombed cashew shell material without employing thermal
techniques, but with a pressure profile method using SC-CO2 as a solvent has been studied (Setianto et al
2009). An analysis with liquid chromatography of the extract obtained by this method, showed that it

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Contained approximately 50 % anacardic acids, 29 % cardols, and 21 % cardanols including mono-, di-, and
tri-ene constituents.

3. CNSL was evaluated for its potential use as an antibiotic in ruminants, by Watanabe et al (2010). It was
found that the phenolic compounds present in the CNSL were responsible for its antibacterial activity. Hence
it was concluded by the workers, that raw CNSL, rich in antibacterial compound, anacardic acid, can serve as
a potential candidate feed additive with selective activity against rumen microbes.

4. Cheriyan and Abraham (2010) investigated the utility of enzymes, oxidoreductases and proteases for the
bioremediation of CNSL, which contain phenolics, mainly cardanol (60–65%). It was observed that
peroxidase reduces the colour of the CNSL solution by polymerization and precipitation, whereas laccase,
papain, and fungal and bacterial protease degraded the phenolic constituents.

5. Andrade et al (2011) investigated the antioxidant activity of the technical CNSL using the 2,2-diphenyl-1-
picrylhydrazyl (DPPH) scavenging assay and the xanthine oxidase assay, as well as in vivo evaluation by the
Saccharomyces cerevisiae assay. It has been concluded that technical CNSL exerts an important protective
effect against oxidative stress in yeast when used in the 100–500 ȝg/ml concentration range.

6.Properties of CNS oil have been found to be amazingly equivalent to those of petroleum fuels with a
calorific value as high as 40 MJkgí1 , the oil has a low ash content (0.01%) and the water content is limited
to 3–3.5 wt% of oil (Das and Ganesh 2003).

7. Singh et al (2006) studied the fuel properties of cashew nut shell and its feasibility of gasification for open
core down draft gasifier. Cashew nut shell was converted to a producer gas in an open core down draft
gasifier, and its performance was evaluated in terms of the fuel consumption rate, calorific value and
gasification efficiency, at different gas flow rates. It was also reported that the producer gas calorific value
and volumetric percentage of its combustible constituents, along with the gasification efficiency increases
with the increase in the gas flow rate. Studies reveal that cashew nut shells could be used as feedstock for the
open core down draft gasifier.

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8.A study of coconut and cashew nut shells, two typical biomass wastes has been made (Tsamba et al 2006).
Both biomasses were thermally degraded through thermogravimetry, and their characteristics, such as the
devolatilisation profiles and kinetics were analyzed, from 250 to 900 °C, in an inert atmosphere, at two
different heating rates, and compared with wood pellet.

9.Tippayawong et al (2010) investigated cashew nut shells as potential replacement for fuel wood towards
thermal applications in factories. They reported that the direct combustion of cashew nut shells was
troublesome, due to its low efficiency and high smoke emission, and suggested an alternative thermal
conversion of cashew nut shell. It is seen from the results, that cashew nut shells can be successfully used as
feedstock for a gasifier.

10. The different unit operations involved in a small scale cashew nut processing mill in the Konkan region
of Maharashtra, India (70°17ƍ to 74°31ƍE Longitude 15°37ƍ to 20°20ƍN Latitude) was elucidated by
conducting the randomized sample survey of 122 registered small scale cashew processing mills in the region
by Mohod et al (2010). The study revealed that, the small scale cashew nut mills in the Konkan region of
Maharashtra (India) widely followed the steam roasting process due to better control over the process, which
retains the valuable CNSL in the shell, as well as generates a huge quantity of shells for further utilization as
a fuel.

11. Zirconium impregnated cashew nut shell carbon has been studied, to assess its capacity for the adsorption
of fluoride from aqueous solutions by Alagumuthu and Rajan (2010). Field studies were also carried out with
the fluoride containing water samples collected from a fluoride-endemic area in order to test the suitability of
the sorbent in field conditions.

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3.3 Scope of the Present Study:

Almost no significant advancements have been made for the utilization of the cashew nut shell waste as an
adsorbent. There is hardly any literature available, particularly with regard to the removal of heavy metal
ions from wastewater using cashew nut shell, either directly or in its modified form. The present research is
to develop a new low-cost and effective adsorbent from cashew nut shell, an agricultural waste found in
abundance, especially where cashew processing industries are located. The scope of the present investigation
is as follows:

 To prepare cashew nut shells (CNS) and sulphuric acid treated cashew nut shells (STCNS) adsorbents.
 To study the functional groups present in the CNS and STCNS adsorbents, using the Fourier
Transform Infra Red (FTIR) spectroscopy.
 To study the surface morphology of the CNS and STCNS, using Scanning Electron Microscopy
(SEM).
 To select the different heavy metals such as Pb(II), Cu(II), Cd(II), Zn(II) and Ni(II) for the
adsorption study.
 To study the optimum solution pH for the maximum metal ions removal using both the CNS and
STCNS adsorbents. x To study the effect of the adsorbent dose for the maximum metal ions removal
using both the CNS and STCNS adsorbents.
 To study the effect of the contact time for the maximum metal ions removal using both the CNS and
STCNS adsorbents – to calculate the equilibrium time for the adsorption process.
 Adsorption kinetics - to evaluate the adsorption kinetic mechanism that controls the adsorption
process. The pseudofirst order, pseudo-second order, Elovich, intraparticle diffusion and Boyd kinetic
models are to be tested.
 To study the effect of the initial metal ion concentrations for the metal ions removal using, both the
CNS and STCNS adsorbents.

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 Adsorption isotherms – to calculate the adsorption capacity of the CNS and STCNS adsorbents and
also to know the type of adsorption process using the Langmuir, Freundlich, Temkin and Dubinin-
Radushkevich adsorption isotherms. x Batch adsorber design – to calculate the amount of the
adsorbent required to treat a known volume of effluent using the best fitted adsorption isotherm data.
 To evaluate the thermodynamic parameters and also to know the type of adsorption process
(exothermic or endothermic).
 Desorption studies - to elucidate the nature of the adsorption process, and recycling the spent
adsorbent and the metal ions.
In the present study, the CNS and STCNS materials have been used as adsorbents for the removal of metal
ions such as Pb(II), Cu(II), Cd(II), Zn(II) and Ni(II) from their aqueous solution

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Chapter 4
Research Methodology

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4.1 PERIOD OF STUDY:


The study covers a period of 2 month i.e. 2nd May 2018 to 2nd July 2018. The data collected, opinion and
expectations revealed pertain to the same period.

4.2 AREA OF THE STUDY:


The area of the study was Kollam District in Kerala since this place is familiar and well known for cashew
processing and export. The Cashew Export Promotion Council (CEPC) and Kerala State Cashew Promotion
Corporation are located at Kollam

4.3 METHODOLOGY
This section portrays the research methodology adopted for carrying out the study. The method of
data collection, sampling procedure, framework of analysis and definition of terms used in the study are
explained.

A) Data and Sources of Data:-


The present study uses both primary and secondary data. Primary data have been collected
with the help of structured questionnaire. A pilot study was conducted with 30 cashew exporters to ascertain
the relevance of questions. Secondary data have been collected from monthly release called “Cashew
Bulletin” from the Cashew Export Promotion Council of India, The Kerala State Cashew Promotion
Corporation, books, magazine, journals, and newspapers and through web sites.

B) Sampling Design:-

The study was conducted in Kerala state of India. The exporters list was collected from the official
website of the Cashew Export Promotion Council of India. The present study is carried out with the exporters
who are registered with the Cashew Export Promotion Council of India promoted by Government of India in
Kollam District. There are 250 exporters in Kollam District, which comprises of both merchant exporter and
manufacturer exporter registered up to 2015

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(i) Selection of District:-


In India, Cashew is grown nearly in eight states namely, Kerala, Karnataka, Goa, Maharashtra, Tamil
Nadu, Andhra Pradesh, Orissa, West Bengal. Out of these, Kerala is deemed to be the ‘Land of Cashew’.
Next to Kerala, the major stakeholder in cashew production is undoubtedly Karnataka. In Karnataka, cashew
is densely cultivated in many districts. In Kollam district, the Cashew Export Promotion Council of India
tracks the entire business of manufacturer exporter and merchant exporters. Though the manufacturers of
cashew are more in other districts in Kerala, they operate their export business through Merchant exporters in
Kollam. Hence, the Kollam district has been chosen for the present study.

(ii) Selection of Cashew Exporters:-


The list of both merchant and manufacturer exporters of cashew industry in Kerala state is portrayed below.
On the overall, it is seen that the merchant exporters are more in and around Kollam. When the manufacturer
exporters are traced, it clearly signifies Kollam district, Mangadu, Cheerancavu are the key area where
abundant of cashew nut are cultivated. It is clearly depicts the majority of cashew exporters belong to Kollam
district and hence it induced to make an attempt in Kollam District.

(iii) Selection of Sample Respondents:-


The total cashew exporters in Kollam District are 250. During the data collection, it seemed to be conditional
to meet all the exporters because some of those are not cooperative for the study and thus it made to go for
sampling method. A sample of 96 respondents has been determined as per the Krejcie and Morgan’s Law,
1970 and those respondents were contacted by adopting convenience sampling method.

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Chapter 5
Data Presentation, Analysis & Interpretation data

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EXPORT OF CASHEW KERNELS FROM INDIA


Qty Growth Value Growth Value Growth
YEAR (M.T) %(+/-) (Rs.Crs) %(+/-) US$Mls %(+/-)
2012-2013 100105 -23.51 4046.23 -7.7 746.81 -18.44
2013-2014 114791 14.67 5058.73 25.02 836.15 11.96
2014-2015 118952 3.62 5432.85 7.4 888.59 6.27
2015-2016 96346 -19 4952.12 -8.85 756.4 -14.88
2016-2017 82302 -14.58 5168.78 4.38 771 1.93

Table no. 5.1(Export of cashew kernels from India)

Figure 5.1: Export of cashew kernels from India

Interpretation:
The above table shows the data for export of cashew kernels from 2012-2013 to 2016-17.
As we can see in the table the export of cashew kernels had a great quantity in the beginning. The highest
exporting quantity was occurred in the year 2014-2015 (118952 M.T). After the year 2014-2015 the quantity
of exporting cashew kernels declined from 118952 M.T to 96346 M.T in 2015-2016 and it kept on declining
till the year 2016-2017.

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IMPORT OF RAW CASHEWNUTS TO INDIA


Qty Growth Value Growth Value Growth
YEAR (M.T) %(+/-) (Rs.Crs) %(+/-) US$Mls %(+/-)
2012-2013 892365 10.19 5331.74 -0.13 984.08 -11.61
2013-2014 771356 -13.56 4563.99 -14.4 754.38 -23.34
2014-2015 939912 21.85 6570.93 43.97 1074.74 42.47
2015-2016 958339 1.96 8561.01 30.29 1307.62 21.67
2016-2017 770446 -19.61 8839.42 3.25 1317.94 0.79

Table no. 5.2(Import of Raw Cashewnuts to India)

Figure 5.2: Import of Raw Cashewnuts to India

Interpretation:
The above table shows the data for import of raw cashewnuts to India from 2012-2013 to 2016-17.
As we can see on the table the import of raw cashewnuts to India had a good quantity in the beginning (2012-
2013). In 2012-2013 the quantity decreased in 2013-2014 from 892365M.T to 771356M.T. After the
decrease in 2013-2014 the quantity of raw cashewnuts to India increased for the next two years (2014-
2015:939912M.T, 2015-2016:958339M.T). After the rise in quantity for the years 2014-2016 the import of
raw cashewnuts declined from 958339M.T to 770446M.T. As we can see in the graph the quantity of raw
cashewnuts to India keeps fluctuating.

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EXPORT OF CASHEW KERNELS TO DIFFERENT COUNTRIES FROM INDIA


2014-2015 2015-2016 2016-2017
COUNTRIES QTY VALUE QTY VALUE QTY VALUE
(M.T) (Rs.Crs) (M.T) (Rs.Crs) (M.T) (Rs.Crs)
U.A.E 23904 1104.86 18537 963.55 18556 1216.7
U.S.A 30643 1408.85 22661 1149.53 17515 1102.9
Saudi Arabia 6636 306.6 7535 390.75 7441 474.34
Japan 7413 351.94 7826 420.76 6434 399.41
Netherlands 9349 417.9 6236 312.39 4891 296.27
Germany 4724 214.42 2720 142.55 2449 150.39
Belgium 2601 116.96 2597 135.2 2362 142.8
Korea rep. 3193 147.4 2777 144.4 2271 140.08
Spain 2384 108.95 2296 117.84 2140 139.27
France 2958 131.02 2916 154.37 1907 118.63
U.K 2766 124.76 1780 90.59 1674 104.41
Kuwait 1329 63.28 1706 91.22 1658 107.19
Singapore 1490 65.97 1145 58.65 1199 76.85
Qatar 781 35.69 797 42.5 843 54.31
Greece 1252 57.37 1000 51.33 770 47.07
Italy 1201 53.5 839 38.85 756 42.06
Iran 927 41.52 1133 60.71 687 46.09
Algeria 1356 52.67 602 27.59 685 39.26
Jordan 617 31.87 363 20.31 660 41.68
Malaysia 707 30.8 953 48.67 648 40.35
Turkey 782 35.19 797 38.77 482 28.05
Trinidad 588 25.56 524 25.63 464 27.76
Canada 793 33.91 449 20.89 361 21.37
Israel 668 31.6 734 37.34 316 19.94
Others 9890 440.26 7423 367.73 5133 291.6
TOTAL 118952 5432.85 96346 4952.12 82302 5168.78

Table no. 5.3(Export of cashew kernels to different countries from India)

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Figure 5.3: Export of cashew kernels to different countries from India

Interpretation:
The above table shows the data for export of cashew kernels to various different countries from India 2014-
2015 to 2016-2017.
The highest export of cashew kernels has taken place in U.A.E & U.S.A from India. In 2014-2015 U.A.E
had an export of 23904M.T & 2014-2015 U.S.A had an export of 30643M.T. The lowest export of cashew
kernels has taken place in Israel & Trinidad. In 2014-2015 Israel had an export of 668M.T & Trinidad had an
export of 588M.T. As we can see in 2014-2015 the export of cashew kernels kept declining in all the
countries till the year 2016-2017.

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IMPORT OF RAW CASHEWNUT FROM DIFFERENT COUNTRIES INTO INDIA


2014-2015 2015-2016 2016-2017
COUNTRIES QTY VALUE QTY VALUE QTY VALUE
(M.T) (Rs.Crs) (M.T) (Rs.Crs) (M.T) (Rs.Crs)
Ivory coast 341642 2130.73 338201 2724.56 210108 2175.22
Tanzania 140346 1261.8 116572 1282.58 136657 1954.52
Guinea Bissau 123834 964.09 122895 1289.93 120548 1405.91
Benin 125503 852.63 146049 1222 78182 831.6
Ghana 71895 417.67 68825 565.9 41429 450.24
Mozambique 6062 51.89 11802 114.53 38967 449.94
Nigeria 25851 150.84 46683 350.33 36577 351.31
Senegal 33375 237.54 20076 192.72 30233 343.56
Burkinafaso 5670 32.5 12742 98.26 24027 254.99
Ghambia 27156 201.31 17309 179.32 22235 266.24
Guinea 17719 109.7 17795 149.71 16174 169.39
Indonesia 10966 98.15 24976 276.94 6334 91.4
Togo 7924 48.53 10549 84.15 5551 58.06
Mali 47 0.23 0 0 1471 15.16
Madagascar 1398 9.87 2909 23.13 1179 13.4
Others 524 3.47 956 6.95 774 8.5
TOTAL 939912 6570.95 958339 8561.01 770446 8839.44

Table no. 5.4(Import of Raw cashewnuts from different countries into India)

Figure 5.4: Import of Raw cashewnuts from different countries into India

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Interpretation:
The above table shows the data for import of raw cashewnuts from various different countries to India 2014-
2015 to 2016-2017.
The highest import of raw cashewnuts is from the continent of Africa to India. Ivory Coast is the biggest
importer of raw cashewnuts to India. In 2014-2015 Ivory Coast imported 341642M.T raw cashews nuts to India.
The lowest import of raw cashewnuts is from Mali to India. In 2014-2015 Mali imported 47M.T to India. As we can
see in 2014-2015 the import of cashew kernels keeps increasing and decreasing from all the countries to India till the
year 2016-2017.

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EXPORT OF CASHEW KERNELS THROUGH DIFFERENT PORTS IN INDIA


2014-2015 2015-2016 2016-2017
PORTS QTY VALUE QTY VALUE QTY VALUE
(M.T) (Rs.Crs) (M.T) (Rs.Crs) (M.T) (Rs.Crs)
Cochin 68150 3098.75 50652 2579.49 38054 2415.32
Tuticorin 22169 1015.79 17503 899.62 14032 872.05
Mangalore 15479 723.93 13272 695.26 15533 1008.72
Vishakapatanam 7648 355.28 9783 500.52 8937 539.2
Chennai sea 1833 80.51 1383 70.25 1322 85.2
Marmagos sea 968 53.13 718 44.37 623 43.02
others 2705 105.46 3035 162.61 3801 205.27
TOTAL 118952 5432.85 96346 4952.12 82302 5168.78

Table no. 5.5(Export of Cashew kernels through different ports in India)

Figure 5.5: Export of Cashew kernels through different ports in India

Interpretation:
The above table shows the data for export of cashew kernels through different ports in India 2014-2015 to
2016-2017.
The highest export of cashew kernels was from Cochin port (68150M.T) in 2014-2015. As we can see the
export from Cochin port is declining year by year due to various conditions. According to the above table the
export of cashew kernels is declining from the year 2014-2015 to 2016-2017

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IMPORT OF RAW CASHEWNUTS THROUGH DIFFERENT PORTS IN INDIA


2014-2015 2015-2016 2016-2017
PORTS QTY VALUE QTY VALUE QTY VALUE
(M.T) (Rs.Crs) (M.T) (Rs.Crs) (M.T) (Rs.Crs)
Cochin 213106 1390.08 157905 1353.01 86821 977.79
Tuticorin 463279 3302.55 451593 4054.49 385301 4367.78
Mangalore 187546 1375.57 227439 2076.62 205729 2463.14
others 75981 503 121402 1076.89 92595 1030.71
TOTAL 939912 6571.2 958339 8561.01 770446 8839.42

Table no. 5.6(Import of Raw Cashewnuts through different ports in India)

Figure 5.6: Import of Raw Cashewnuts through different ports in India

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Interpretation:
The above table shows the data for import of raw cashewnuts through different ports in India 2014-2015 to
2016-2017.

The highest import of raw cashewnuts has taken place in Tuticorin port. In the year 2014-2015 Tuticorin port
got an import of 4632 79M.T. From the above table we can see Cochin and Tuticorin ports show a decline in
import from the year 2014-2015 to 2016-2017.The import of raw cashewnuts in Mangalore and other ports
are showing fluctuating results from the year 2014-2015 to 2016-2017.

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Chapter 6
Findings

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MAJOR PROBLEMS FACED BY THE CASHEW EXPORTERS

1 Shortage of Raw Cashew Nuts: -


Shortage of raw cashew nut adversely affects the export of cashew products. In India Domestic
production of cashew has been fluctuating during the recent year. This is mainly due to the inclement
weather and aging of cashew tree. This would drop the productivity. Apart from the use of hybrid variety
new systematic and scientific method should be used. The idea of re-plantation programme and organic
cashew farming can enhance the domestic productivity. Now, India’s domestic productivity is around 7 lacks
tones. While their processing capacity is about 14 lacks tones. So India has to depend on imported raw
cashew nuts.
2 Exchange Rate Fluctuations: -
The exchange rate fluctuation directly affects the profitability of the exporting companies. Since the
invoicing is done by the companies against an assumed fixed rate. When the domestic currency weakens
against the foreign currency the profitability is eroded. The purchase agreement is signed for a period of
three to five years. For the firm most of the contracts are fixed for term of three years.
3 Infrastructures: -
The export of cashew product requires shipments from airport and sea ports. The Poor infrastructure
in the Indian Scenario creates logistical problems. The warehousing and storage facilities are not adequate
and the standards are very poor when compared with international parameters.
4 Competitions: -
Indian exporters face stiff competition from countries like Vietnam and Brazil. Productivity
of these countries is much better compared to productivity of India. These countries use new modernized,
systematic and scientific methods. This is because the usage of high yielding variety crop, adequate
harvesting techniques, storage and ware house facilities. Vietnam is a major exporter of raw cashew at
competitive pricing. The Govt. of these countries gives various subsidies to the cashew export community.
5 Financial Problems: -
The cashew industry is not financially sound. The Banks and financial institutions are
providing lesser amount of loans and advances at high rate of interest. At the same time, they ask for a higher
security and on top of it the loans / advances which are approved are not given at the right time. Some banks
unnecessarily delaying for opening Letter of Credit (L\C). This impact the overall productivity of the cashew.
Financial institutional rules and procedure are very risky to operate in this business. As the cost of production
is very high, exporter’s required higher amount of finance the business. Especially the small exporters faced
this problem. The overall spending by government for the Cashew industry is not at all sufficient for the
growth in India.

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Chapter 7
Recommendations

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1) Evolution and valuation of genetic resources and development of Cultivators which can fit into achieving
vertical growth and can sustain climate change and meet consumer’s requirement towards ensuring
nutritional security. We can improve the production through the resistance to pests, heat, drought with high
level of bioactive compounds, having high nutrient and water use efficiency.

2) Canopy management system for efficient utilization of nutrients, air, water and sunlight to optimize
production with resources.

3) Develop production and post-harvest technologies to improve product quality and minimize
environmental impacts. Mechanization of operations, and use of non-conventional energies. Technological
innovations value chain management for reduction of losses and enhancement of quality.

4) Inter institutional mechanisms to network and review the ongoing program of biotechnology, cost
effective production technologies, post harvest technologies, farm mechanization, transfer of technology and
organic farming for optimization.

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Chapter 8
Conclusion

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We can observe that the export and import of Cashew is taking place in India. As per data presentation,
analysis and interpretation data the export of Cashew Kernels and import of cashewnuts is from the year
2012-2013 to 2016-2017.The highest export of cashew kernels is from the year of 2012-2013 which exported
100105 M.T and the highest import of cashewnuts is from the year 2012-2013 which imported 892365 M.T.
As you can see the export of cashew kernels shows a decline after 5 years in the year 2016-2017 it only
exported 82302 M.T and import of cashewnuts also show a decline in the year 2016-2017 it only imported
770446 M.T.

The main reasons for decline in export and import of cashew are because of:

 Shortage of raw cashew nuts


 Exchange rate fluctuations
 Infrastructures
 Competitions
 Financial Problems
 Labour Issues

The fluctuation in the currency is affecting cashew in international market. We have to find out solutions to
protect cashew from fluctuations of currency. This is to ensure maximum price to the farmers and maximum
wages to the employees and desirable profit to the industry. Nearly 20 per cent of population in India can
afford to purchase cashew for their consumption. So sufficient campaign should be done to make them
purchase cashew nuts.

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CHAPTER 9

BIBLIOGRAPHY

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BOOKS:
 Justin Paul, Professor, Nagoya University of commerce and Business, Japan & Rajiv Aserkar, Professor, S P
Jain Center of Management, Dubai. Export Import Management. OXFORD UNIVERSITY PRESS.

WEBSITES:

1) http://www.cashewindia.org/

2) https://www.tryfleet.com/blog/2017/06/07/whole-shipping-process-step-step

3) https://www.eximpulse.com

4) http://greenshiplogistics.in

5) http://epratrust.com/articles/upload/24.Dr.G.Chandrasekaran%20&%20M.R.Jeyakumar.pdf

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