The Indian Institute of Foreign Trade (IIFT), which has conducted an Export Potential Survey in China and Russia for Kerala State-owned Cashew Development Corporation (KSCDC)'s valued added cashew products, has found these two non-traditional markets as new opportunities for the Indian cashew.
Expansion of KSCDC's exports into these new markets will “facilitate in establishing 'India Brand of Cashews' in these two major emerging economies, said Mr K.T. Chacko, Director, IIFT, while presenting the report to Mr P.K. Gurudasan, Kerala Minister for Labour and Cashew industry at a function in Kollam on Wednesday.
He said the survey found “China and Russia provide new opportunities for growth in exports to KSCDC” besides providing “opportunities to develop new trade channels and establish its own brand of cashew products”.
The study, fully financed by the Union Commerce Ministry involving Rs 50 lakh, was done by Prof Sunitha Raju of the IIFT. Mr Gurudasan told Business Line that he hoped the Union Commerce Ministry would assist KSCDC in implementing the recommendations of the IIFT study in the interest of the cashew industry.
Cashew consumption in China increased from 7,000 tonnes in 2003 to 18,000 tonnes in 2007. It is expected to increase to 25,000 tonnes in 2010. Domestic production of cashew kernels is low in China and accounts for about 2 per cent of the demand, the study said. Such dependence on imports is very high particularly for meeting the rising demand for cashew kernels.
In terms of value, import of cashew kernels has increased from $1.4 million in 1996 to $18.3 million in 2007, it said. According to the survey KSCDC's three products found acceptance in the Chinese markets and they are plain and roasted cashew kernels, Cashew Vita and Cashew soup.
The potential market space for Indian cashew products is primarily in South East China. The target cities are Shanghai, Beijing and Guangzhou, the report said.
Meanwhile, Russia is one of the fastest growing emerging markets in the world. One of the beneficiaries of this high economic growth has been the Russian consumer whose disposable income has increased at an average annual growth of 11 per cent which is more than that of the GDP, it said.
This has given rise to demand in the snacks industry where salty nuts are emerging as an important snacking option. Therefore, the potential for developing cashew as a snacking option is very high in Russia, the report said.
Source : Business Line