India’s cashew industry is a significant contributor to the country’s agricultural exports, employing over 10 lakh people across farms and processing facilities. At the heart of this thriving sector is the Cashew Export Promotion Council of India (CEPC), a government body that has been instrumental in transforming India into a global leader in cashew exports since its inception nearly seven decades ago.
Table of Contents
- Origins and establishment of CEPC
- Key functions of CEPC
- Facilitating trade connections
- Quality control and assurance
- Technical and financial support
- Dispute resolution
- India’s cashew export landscape
- Government initiatives supporting cashew exports
- Membership benefits and eligibility
- Challenges and future outlook
Origins and establishment of CEPC
The Cashew Export Promotion Council of India was established by the Government of India on 17th August 1955, with the active cooperation of the cashew industry. The primary objective behind its formation was to promote exports of cashew kernels and cashew nut shell liquid (CNSL) from India.
CEPC is headquartered in Mundakkal, in the city of Kollam, Kerala-a region often called the “Cashew Capital of India.” This strategic location places the council at the heart of India’s cashew processing activity. The council also maintains offices in Kochi and Mangalore to better serve exporters across key cashew-producing regions.
Operating as a non-profit organization under the Ministry of Commerce and Industry, CEPC provides the necessary institutional framework for performing different functions that serve to intensify and promote India’s exports of cashew kernels, CNSL, cardanol, and allied products.
Key functions of CEPC
The council performs several critical functions that collectively strengthen India’s position in the global cashew market.
Facilitating trade connections
One of CEPC’s primary responsibilities is creating a bridge between international buyers and Indian exporters. The council maintains a database of credible Indian exporters and global importers, facilitating meaningful business connections. Trade enquiries received from foreign importers are circulated among council members, helping connect buyers with appropriate sellers.
CEPC organizes global buyer-seller meets, trade delegations to various importing countries, and coordinates India’s participation in international food and agricultural trade shows. These activities help Indian cashew exporters establish direct business relationships with overseas buyers.
Quality control and assurance
Maintaining high-quality standards is crucial for sustaining India’s reputation in the global market. CEPC implements a rigorous quality assurance system through consignment-wise inspection, where every export consignment undergoes mandatory inspection to ensure compliance with international standards.
The CEPC Laboratory and Technical Division was established in 1997, fully funded by the Government of India for ensuring the quality of cashew kernels and allied products exported from the country. This laboratory offers testing and certification services not only to the cashew industry but also to the entire food processing industry in India and abroad.
The laboratory is equipped with specialized departments in microbiology, chemistry, and biotechnology, and holds NABL accreditation meeting ISO/IEC 17025:2017 requirements. It is also an FSSAI-notified laboratory, adding credibility to its testing and certification services.
Technical and financial support
CEPC operates various schemes of the Government of India that provide financial assistance to member exporters for process upgradation and modernization of factories, acquiring new packing facilities, facilities for value addition, and implementing international quality standard certifications like ISO and HACCP.
The council also disseminates trade information, statistics, and market intelligence to help exporters make informed business decisions. Member exporters receive free participation in the council’s stalls at international fairs and can join trade delegations to various importing countries.
Dispute resolution
International trade occasionally encounters disputes related to shipment delays, quality discrepancies, or payment issues. CEPC extends its good offices in settling complaints amicably in matters of exports or imports arising on account of quality or variation in fulfillment of contractual obligations. This mediation role has significantly reduced friction in international cashew trade.
India’s cashew export landscape
India holds a prominent position in the global cashew market. According to India Brand Equity Foundation (IBEF), India is the largest cashew exporter with more than 15% of the world’s export share. The country primarily exports cashew kernels and small quantities of cashew nut shell liquid.
In FY24, India’s cashew exports by value stood at US$ 339.21 million. India exports cashews to over 60 countries worldwide. The UAE was the largest importer of Indian cashews in FY23, valued at US$ 127 million and accounting for 34.9% of overall exports. The Netherlands and Japan were among the top three importers, each with a 10% share of exports.
The cashew processing industry, once concentrated in Kollam, Mangalore, Goa, and parts of Andhra Pradesh, has now spread across many states. India has emerged as a global processing hub, with the cultivation covering approximately 0.7 million hectares of land and producing over 0.8 million tonnes annually.
Government initiatives supporting cashew exports
The Government of India has undertaken several initiatives to support the cashew industry’s growth. In 2018, the Basic Customs Duty on raw cashew nuts was reduced from 5% to 2.5%, and the GST on raw cashew nuts was reduced from 12% to 5%. These measures have made raw materials more affordable for processors.
The government has also extended financial assistance to CEPC for organizing buyer-seller meets and participation in international fairs under the Market Access Initiative (MAI) scheme. Other supportive measures include revision of standard input-output norms for cashew exports, approval of schemes for process mechanization and automation of processing units, and duty-free import of raw cashew nuts from least developed countries.
Membership benefits and eligibility
CEPC membership is open to individuals or companies involved in the production, processing, or export of cashew nuts and related products. There are over 200 registered cashew exporters as council members, with the majority based in Kollam.
Members enjoy numerous benefits including access to market intelligence, participation in international trade fairs, technical support, and financial assistance schemes. The Registration-cum-Membership Certificate issued by the council enables exporters to avail other government benefits.
Challenges and future outlook
Despite its successes, the Indian cashew export sector faces challenges including competition from other producing countries like Vietnam and Ivory Coast, fluctuating raw material prices, and changing market dynamics. Labor costs and availability also remain concerns for the industry.
CEPC addresses these challenges through initiatives promoting mechanization, supporting technology adoption, and exploring new market opportunities. The growing global demand for healthy snack options and increasing awareness of cashew’s nutritional benefits create opportunities for market expansion.
The council continues to support research and development activities focused on value-added products, by-product utilization, processing efficiency, and sustainable practices. These efforts help maintain India’s competitive edge in the global cashew market while ensuring the industry remains economically viable for all stakeholders.
What do you think? How can India’s cashew industry balance the need for modernization and automation with the employment needs of the millions of workers, particularly women, who depend on traditional cashew processing for their livelihoods?
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