Cashew business in Kollam

Last updated

The Cashew business in Kollam is based in the eponymous city, which is known as the Cashew Capital of the World. [1] Kollam is the largest processed cashew exporter in the world. As of 2011 there were more than 600 cashew processing units in the city. About 800,000 tonnes of raw cashews are imported to the city for processing every year. [2] 80% of India's export quality cashew kernels were prepared in Kollam. [3] [4] Kollam has remained the cashew capital of the world since the 1930s.

Contents

Nila Cashew packets displayed in a Supermarket at Paravur near Kollam Cashew @ Paravur.jpg
Nila Cashew packets displayed in a Supermarket at Paravur near Kollam

However high cost of production existing in Kollam due to limited mechanisation and higher minimum wages, stiff competition on the cost front from East Africa and Southeast Asia from an international perspective and Tamil Nadu and East India in domestic perspective are putting a lot of pressure over cashew processing sector of Kollam in recent times.

History

Cashew processing in Old Ages, Relief in Ashramam, Kollam Ashramam Relief, Old age Cashew Processing.jpg
Cashew processing in Old Ages, Relief in Ashramam, Kollam

Cashews were first brought to India by the Portuguese from the native Tupi territory (a Neotropic Divergent Evolutive Zone) in North Eastern Brazil. Portuguese planted them along the coasts of Goa to prevent erosion. [5] Cashew came to Kerala in 1505, when Kolathiri king permitted Portuguese to build a fort in Kannur. The Portuguese, called Paranki in Malayalam planted cashew trees around the fort. Hence cashew trees are also called Parankimaavu in Malayalam and cashew nuts are called Parankiyandi. [6] By the late 16th century Cashew trees started to spread across Kannur and also to other parts of Kerala with laterite soil such as Kollam with considerable Portuguese influence and Kasaragode. During the time of the Portuguese, Dutch and British in the Indian subcontinent, Quilon and its old port were major business hubs for Arabian and Chinese traders. The trees that were brought from Brazil adapted very well to their new home. In the course of time, India became the main centre of cashew cultivation along with other nations in Asia and Africa.

By 18th century the Cashew nuts getting mixed with sand and roasted in open pots (Chattis) became common. The processing in commercial basis of cashew started in Mangalore. In Kanara and Malabar region the business was monopolised by Messers Pierce Leslie and Co. Ltd.

But by 1920s the business was started in Kollam in Kerala State which later became the centre of the trade. As per available written records, in early days the Cashew industry in Kollam was overwhelmingly Cottage Industry. The development of industry in Kollam as industrial units were pioneered by Roch Victoria an Anglo-Indian who migrated from then Ceylon with the assistance of a Swaminathan from Madras State. [7] Modern roasting methods were introduced later in 1925 by an enterprising industrialist named Joseph Periera who started first cashew-nut factory in Kollam. In 1920 itself Kollam entered into world cashew exports market with export of kernels mainly to United States. [8] As per available records it was W.T. Anderson who set up a business under the name Indian Nut Company in Kollam who made the first exports. [9] Indian Nut Company's factory was situated near Ashramam airstrip and the goods were transported using waterways to export through Kochi Port.

In early days of exports the cashew nuts that were fried in pans and kernels extracted, processed and sorted (blanched, graded) and packed in wooden tea chests lined with newspaper before shipping it. This packing reduced shelf life of cashew and hence soon wooden containers were replaced with metal tin containers. This tin cans were vacuumed using hand operated vacuum pumps and were sealed. In 1954 this method was replaced by storing the kernels in cans infused with carbon dioxide primarily to avoid weevil infestation. This method, known as "Vita Packing", is still in use. [10] The health benefits and value of cashew nut were discovered much later. This increased fortunes of cashew in global markets.

By late 1930s the volume of processed cashew, processing capacity and international demand rose manifolds. This necessitated the imports of raw cashew from East Africa to Kollam. To smoothen the import process and ensure price stability of imports the industry leaders formed a 'Cashew Syndicate' and by 1955 this entity was replaced with an institution that had requisite legal framework i.e. the Cashew Export Promotion Council (CEPC) by Government of India. At this time Kollam wielded a monopoly over cashew processing in India. As per Centre for Development Studies a report on an Enquiry into Conditions of Labour in the Cashew-nut processing Industry in India made in 1954 highlights that 75% of cashew factory workers and 72% of cashew factories in India were concentrated at Kollam. During this period the cashew factories had lesser regulations and the workers had to spend long working hours at lesser wages.

In 1960s there were a series of labour law reforms in cashewsector which resulted in shifting of industries to nearby states with lesser regulations. This outward shift reduced Kerala's share in cashew production significantly. However within he state Kollam continued to enjoy its dominance.

Even today many of the cashew businesses in Kollam are family owned and run. [11] The legendary businessmen from Kollam like Thangal Kunju Musaliar were associated with the cashew industry. Nila Cashews, MARK, CDC etc. are some prominent business players currently.

Cashew exports

CEPCI Headquarters in Kollam CEPCI Headquarters, Kollam.jpg
CEPCI Headquarters in Kollam

India is the largest exporter of cashew kernels and cashew nut shell liquid (CNSL). Foreign exchange earned by the country through the export of cashew kernels during 2011-12 reached Rs.4,390 crore based on statistics from the Cashew Export Promotion Council of India (CEPCI). 131,000 tonnes of kernels were exported during 2011-12. 90% of these export quality cashew kernels are prepared in Kollam. [12] CEPCI and the Kerala State Cashew Development Corporation Limited work in Kollam city to promote exports of cashew kernels and cashew nut shell liquid from India. They also protect the interest of workers and attempt to provide maximum employment to the industry's workers and give them statutory benefits such as minimum wages and bonuses. [13] [14] [15]

The industry provides a livelihood for about 600–700 thousand employees and farmers. In Kollam district alone there are more than 250,000 employees directly involved in the industry, which is about 10 per cent of the population of the district. 95 per cent of these workers are women. [16] There are more than 600 cashew processing units in Kollam with about 800,000 tonnes of raw cashews imported annually to the city for processing. [17] An average of 130,000 tonnes of processed cashews are exported to various countries worldwide every year. [18] As a result, Kollam is known as the "Cashew Capital of the World". [19] CEPCI is expecting a rise in exports to 275,000 tonnes by 2020, growth of 120 per cent over present exports. [20]

Packing materials industrial supplies for the purpose of exports of cashews are fulfilled by different agencies like Golina agencies.

Largest importers of cashew kernels from Kollam

CountryExported QuantityValueYear
USA 47,611 tonnesRs.1,470.47 Crore2011-12
UAE 14,173 tonnesRs.606.11 Crore2011-12
Netherlands 11,517 tonnesRs.365.57 Crore2011-12
Japan --Rs.237.45 Crore2011-12
Saudi Arabia --Rs.207.01 Crore2011-12

CEPCI registered cashew exporters

Related Research Articles

<span class="mw-page-title-main">Cashew</span> Species of flowering plant in the family Anacardiaceae

The cashew tree is a tropical evergreen tree native to South America in the genus Anacardium that produces the cashew seed and the cashew apple accessory fruit. The tree can grow as tall as 14 metres, but the dwarf cultivars, growing up to 6 m (20 ft), prove more profitable, with earlier maturity and greater yields. The cashew seed is commonly considered a snack nut eaten on its own, used in recipes, or processed into cashew cheese or cashew butter. Like the tree, the nut is often simply called a cashew. Cashew allergies are triggered by the proteins found in tree nuts, and cooking often does not remove or change these proteins.

<span class="mw-page-title-main">Kollam</span> City in Kerala, India

Kollam, also known by its former name Quilonpronunciation (sometimes referred to by its historical name Desinganadu), is an ancient seaport and city on the Malabar Coast of India bordering the Laccadive Sea, which is a part of the Arabian Sea. It is 71 km (44 mi) north of the state capital Thiruvananthapuram. The city is on the banks of Ashtamudi Lake and the Kallada river. Kollam is the fourth largest city in Kerala and is known for cashew processing and coir manufacturing. It is the southern gateway to the Backwaters of Kerala and is a prominent tourist destination. Kollam is one of the most historic cities with continuous settlements in India. The Malayalam calendar (Kollavarsham) is also known so with the name of the city Kollam. Geographically, Quilon formation seen around coastal cliffs of Ashtamudi Lake, represent sediments laid down in the Kerala basin that existed during Mio-Pliocene times.

<span class="mw-page-title-main">Kerala backwaters</span> Lagoon network in India

The Kerala backwaters are a network of brackish lagoons and canals lying parallel to the Arabian Sea of the Malabar coast of Kerala state in south-western India. It also includes interconnected lakes, rivers, and inlets, a labyrinthine system formed by more than 900 km (560 mi) of waterways, and sometimes compared to bayous. The network includes five large lakes linked by canals, both man made and natural, fed by 38 rivers, and extending virtually half the length of Kerala state. The backwaters were formed by the action of waves and shore currents creating low barrier islands across the mouths of the many rivers flowing down from the Western Ghats range. In the midst of this landscape there are a number of towns and cities, which serve as the starting and end points of backwater cruises. There are 34 backwaters in Kerala. Out of it, 27 are located either closer to Arabian Sea or parallel to the sea. The remaining 7 are inland navigation routes.

<span class="mw-page-title-main">Ashtamudi Lake</span> Lake in India (Gateway to the backwaters)

Ashtamudi Lake, in the Kollam District of the Indian state of Kerala. It possesses a unique wetland ecosystem and a large palm-shaped water body, second only in size to the Vembanad estuary ecosystem of the state. Ashtamudi means 'eight braids' in the local Malayalam language. The name is indicative of the lake's topography with its multiple branches. The lake is also called the gateway to the backwaters of Kerala and is well known for its houseboat and backwater resorts. Ashtamudi Wetland was included in the list of wetlands of international importance, as defined by the Ramsar Convention for the conservation and sustainable utilization of wetlands.

<span class="mw-page-title-main">Kollam district</span> District in Kerala, India

Kollam district, is one of 14 districts of the state of Kerala, India. The district has a cross-section of Kerala's natural attributes; it is endowed with a long coastline, a major Laccadive Sea seaport and an inland lake. The district has many water bodies. Kallada River is one among them, and the east side land of river is East Kallada and the west side land is West Kallada.

<span class="mw-page-title-main">Puthoor</span> Village in Kerala, India

Puthur is a small town located 26 kilometers (16 mi) from Kollam City in Kollam District, Kerala, India.

<span class="mw-page-title-main">Rajmohan Pillai</span> Indian businessman (born 1964)

J. Rajmohan Pillai is an Indian businessman, and is currently the chairman of Beta Group.

Karunagappally is a municipality in the Kollam district of Kerala, India. It is 24 km north of Kollam and 60 km (37 mi) south of Alappuzha. Karunagappally taluk consists of Alappad, Ochira, Adinad, Karunagappally, Thazhava, Pavumba, Thodiyoor, Kallalibhagom, Thevalakkara, Chavara, Neendakara, Clappana, Kulasekharapuram, Thekkumbhagam, Ayanivelikulangara, Panmana, Ponmana and Vadakumthala. The taluk is bound on the north by Kayamkulam, on the east by Kunnathur taluk, on the south by Kollam and on the west by the Arabian Sea. It is one of the fastest developing towns in Kerala and is part of Kollam metropolitan area.

<span class="mw-page-title-main">National Waterway 3</span> National waterway of India

The West Coast Canal or National Waterway No 3 is a 205 km (127 mi) long inland navigational route located in Kerala, India, which runs from Kollam to Kottapuram. It was declared a National Waterway in 1993. In addition to the main stretch, Champakara and Udyogmandal canals are navigable and connect the industrial centers of Kochi to Kochi port Inland Waterways Authority of India (IWAI) under the Ministry of Shipping is coordinating the task for developing, monitoring and administering national waterways. It is the first National Waterway in the country with 24-hour navigation facilities along the entire stretch. It has been extended to Kozhikode by the National Waterways Act, 2016. The National Waterway 3 mainly passes through the previous Thiruvananthapuram–Shoranur canal.

<span class="mw-page-title-main">Chandanathope</span> Town in Kerala, India

Chandanathope is a town located in Kollam district, Kerala. It lies 23 kilometres (14 mi) from Paravur town and 8 kilometres (5.0 mi) from Kollam city centre on the Kollam–Thirumangalam National Highway 744. In Malayalam, the name denotes a place with sandalwood plantations. It is also known for cashew processing and its exports two major cashew exporters of Kollam namely VLC Cashews and MARK has their facilities in the town.

<span class="mw-page-title-main">Kollam Port</span> Port in India

Kollam Port is one of the historic ports situated 4 kilometres (2.5 mi) away from Downtown Kollam ,14 km north of Paravur and 24 km north of Varkala Town It is the second largest port in Kerala by volume of cargo handled and facilities. Located on the south-west coast of India, under the name of Quilon Port it became one of the country's most important trade hubs from the ninth to the seventeenth centuries. Kollam was one of the five Indian ports visited by Ibn Battuta.

<span class="mw-page-title-main">Mundakkal</span> Neighbourhood in Kollam, Kerala, India

Mundakkal, also spelt Mundackal, is an important residential area and industrial hub situated in the city of Kollam, Kerala, India. The place is considered as the capital of India's cashew processing activities. Kerala State Cashew Development Corporation Limited(KSCDC) and Cashew Export Promotion Council of India(CEPCI) are headquartered at Mundakkal in Kollam city. It is an important tourist place in the city and a part of Downtown Kollam which gained in significance because of the presence of a flourishing beach. During 'Karkidaka Vavubali', thousands of devotees arrive on the beach to perform the Vavubali Tharpanam. Vavubali is an important ritual observed by Hindus in Kerala in the month of Karkidakam. The ritual involves people offering Bali to the departed souls. The ritual is performed by men, women, and children.

<span class="mw-page-title-main">British Residency</span> Building in Kollam city, India

The British Residency, also known as the Government Guest House or Residency Bungalow, is a two-storeyed palace situated at Asramam in the city of Kollam in the Indian state of Kerala. It lies close to the site of the old Kollam Airport situated at Asramam in the city and was built by Colonel John Munro between 1811 and 1819. It is a noted Kollam landmark like the Chinnakada Clock Tower.

<span class="mw-page-title-main">Cashew Export Promotion Council of India</span> Board promoting food exports

The Cashew Export Promotion Council of India or CEPC or CEPCI was established by the Government of India in 1955, with the active cooperation of the cashew industry with the object of promoting exports of cashew kernels and cashew nut shell liquid from India. It is headquartered in Mundakkal in the city of Kollam, Kerala. The Council serves as an intermediary between importers of cashew kernels and exporters who are members of the council. The council is also supposed to deal with any disputes on exports or imports arising on account of quality standards, breach of contractual obligations, etc. It undertakes numerous activities, such as organizing global buyer-seller meets, organizing studies on the nutritional aspects of cashew and providing support to cashew processors and exporters for improving infrastructure.

<span class="mw-page-title-main">Kerala State Cashew Development Corporation Limited</span>

The Kerala State Cashew Development Corporation Limited or KSCDC is a model employer in the field of cashew industry mainly to protect the interest of workers and to provide maximum employment to its workers and to give statutory benefits like minimum wages, bonus, etc. prevailing in the cashew industry. It is headquartered in Kollam city, called "Cashew Capital of the World". The head office is situated at Cashew House, Mundakkal in Kollam City, Kerala. KSCDC was incorporated in July 1969 and started Commercial activities in the year 1971 as a company fully owned by the Government of Kerala. Corporation has now more than a turn over of Rs. 2.50 billion. A Central Export Promotion Council for Cashew, Cashew Export Promotion Council of India (CEPCI) is situated at Kollam city.

<span class="mw-page-title-main">Economy of Kollam</span>

Kollam or Quilon is an old seaport and a city on the Laccadive Sea coast in Kerala, India, on Ashtamudi Lake. The city remains notable as the ancient commercial capital of Kerala and the southwestern Indian coast, in addition to its fame as the "Cashew Capital of the World". The Kollam Municipal Corporation has the second largest budget in Kerala in terms of revenue and expenditure.

<span class="mw-page-title-main">Transport in Kollam</span>

Transport in Kollam includes various modes of road, rail and water transportation in the city and its suburbs. State-owned Kerala State Road Transport Corporation buses, private buses, Indian Railways, state-owned Kerala State Water Transport Department boats & ferry, taxis and auto rickshaws are serving the city of Kollam. The city had a strong commercial reputation since the days of the Phoenicians and Romans. Ibn Battuta mentioned Kollam Port as one of the five Indian ports he had seen during the course of his twenty-four year travels.

<span class="mw-page-title-main">Cashew production in Tanzania</span>

Tanzania is one of the largest cashew producers in Africa, with exports providing 10-15 percent of the country's foreign exchange. The country is the eighth-largest grower of cashew nut in the world and ranks fourth in Africa. The country provides 20% of Africa's cashew nut and only trails in production of Nigeria, Cote D'Ivoire, and Guinea-Bissau, according to figures released in 2012 by United Nations Food and Agricultural Organisation (FAO). The country has been engaged in the production of the cash crop since before independence in the years 1960s however, poor regulation and lack of reliable payments to farmers have posed significant challenges to the Cashew Nut farming industry in Tanzania. Guinea-Bissau, a country a tenth of the area of Tanzania's, has a significantly greater yield.

Waterways have always been an important mode of transport in Kerala. The total length of navigable route in Kerala was 1,900 kilometres and the navigable rivers constitute about 54 per cent of the waterways. The 41 West-flowing rivers together with the backwaters are an integrated part of the inland navigation system in Kerala. In Kerala water transportation through these channels are mainly small distant passenger services, informal country boats, freight transportation to PSU's such as Fertilisers and Chemicals Travancore, Kochi etc.

References

  1. "Kollam no more cashew capital". Deccan Chronicle. Retrieved 4 December 2017.
  2. Kollam, Ashtamudi Lake - great alternatives to Kochi, Vembanad Lake
  3. "Kerala's cashew industry survives on foreign nuts". commodityonline. Retrieved 14 November 2014.
  4. "Cashew sector in a tailspin". The Hindu. Retrieved 24 June 2016.
  5. K. P. Prabhakaran Nair (2010). The Agronomy and Economy of Important Tree Crops of the Developing World. Elsevier. p. 27. ISBN   978-0-12-384678-5.
  6. "A Quick Guide to Kannur". Outlook Traveller. Retrieved 9 September 2020.
  7. "History of cashew trade". Swathy Enterprises. Google Sites. 2009. Retrieved 7 September 2021.
  8. "Jayalaxmi Enterprises - Varieties of Cashew Kernels in Different Grades - History of the Cashew Trade in India". jayalaxmi.co.in. Retrieved 15 September 2020.
  9. Sajithkumar, G. "National Cashew Day: Export celebrates 100 years; first export done from Kollam". Mathrubhumi. Retrieved 15 September 2020.
  10. T. Pradeepkumar (2008). Management of Horticultural Crops. New India Publishing. p. 499. ISBN   978-81-89422-49-3.
  11. "Cashew Nut - Nature's Vitamin Pill". Dulce Rodrigues. Retrieved 14 November 2014.
  12. "Rise in earnings from cashew kernel exports". The Hindu. 14 September 2012.
  13. "Archived copy". Archived from the original on 14 October 2014. Retrieved 14 November 2014.{{cite web}}: CS1 maint: archived copy as title (link) CEPCI
  14. CEPCI - BS
  15. "Mechanisation can save cashew business, say experts". Deccan Chronicle. Retrieved 5 December 2017.
  16. Cashew Industry in Kerala – Problems and Potentials – Thesis to CUSAT
  17. "കൊല്ലം തുറമുഖത്തെ കസ്റ്റംസ് ക്ളിയറന്‍സുകള്‍ ഓണ്‍ലൈന്‍ സംവിധാനത്തിലേക്ക്| madhyamam". Archived from the original on 22 October 2014. Retrieved 14 November 2014. Online Customs Clearance Facility for Kollam Port to be ready in a month
  18. Rise in earnings from cashew kernel exports – The Hindu
  19. Kollam, Ashtamudi Lake – great alternatives to Kochi, Vembanad Lake
  20. CEPCI – Kollam
  21. "Expoters Directory - Cashew Exports Promotion Council of India". Archived from the original on 20 December 2014. Retrieved 20 December 2014.