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Goa’s Cashews Are the Best’
(www.navhindtimes.com)

The cashewnut industry is not only agro-based but labour oriented as such it is most ideally suited to the state, says Suresh Zantye, managing partner of Narayan Ganesh Prabhu Zantye and Company, in an interview with Abdul Rauf Beig

What motivated you to enter cashew business?

We are pioneers in cashew processing and exports in the world. We are originally from Malwan in Maharashtra state and have been engaged in cashewnut processing since 1910. In the beginnign we did it in a small way as a cottage industry in Malwan. Initially our activity was limited to de-shelling and packing cashewnuts in gunnybags and sending them to Mumbai and Karachi for sale. This was the beginning of the cashew industry in the world. This continued for a decade till one enterprising gentleman, a Torne from Vengurla, shipped first consignment of our product to the USA. But by the time the consignment reached America’s port in one and a half months there was infestation problem.

You didn’t give up?

Though our first shipment was a failure, it aroused American interest in the new product and American businessmen came down to India and held discussions with us. We, thereafter, shipped consignment of our cashewnut products with American technical collaboration in 1928. This was the time we came down to Goa from Malwan and started cashew processing industry. We were financed by an American food company and we started processing nuts on commission basis as per the requirements of that company. Our exports took off from then on and the cashew processing business activities spread on the west coast of India.


What problems did you face after moving to Goa?

We had problems of not finding labour and that is why the growth of the cashewnut processing industry has been slow. From 1928 till the mining industry came to Goa this was the only industry here. With the arrival of mining industry there was fragmentation of labour which again affected the cashewnut industry.


Do you think cashew industry has not expanded as it ought to have?

This is a labour-intensive industry and earlier we did have problem because of non-availability of labour. With the mechanisation of mining industry we could get back the labour that was required by us. Besides// the growth of cashew crop also helped the industry in expanding. It took a lot of time for industry to grow and it began expanding over the last 10-15 years. I would say that cashew industry is most ideally suited industry for Goa since it is totally agro-based and labour-oriented as well as export-oriented.


Is the raw material requirement of industry met by the locally grown cashewnuts or is it imported from other states too?

With the expansion of processing capacity in Goa we found that local product was not enough. We have started importing raw cashewnuts not only from Maharashtra and Karnataka but also from Tanzania and East and West African countries.

Which cashewnuts are better, the local or those procured from other states or those imported?

The Goa cashewnuts are the best brand in the world. Though Vengurla 4 is a high-yielding variety, the local product is unmatched in its taste. The earlier products like Vengurla 1, 2 and 3 were of smaller size and we found it difficult to find market for them. Other products like Bali 1 and Bali 2 are best suited for Goan soil.


Has the state government satisfactorily promoted export of cashewnuts?

The industry wants the government to rationalise the tax structure. The industrialists involved in cashew processing have to pay multiple taxes, like sales tax for raw materials, customs duties, agricultural market tax. These have to be rationalised. However, there is no restriction as far as exports are concerned. Besides introduction of shipping facilities from Mormugao has helped us a lot as we save a lot money otherwise incurred on transportation of our products for exports to Mumbai. I would say that this type of infrastructure was now improving.

How much processed cashewnuts do you export?

There is continuous growth in our share of exports. Our exports have also been increasing steadily over the years. Our product, Goa Cashew, is a world famous brand. We have a tie-up with a Japanese firm 7-Eleven and our product is sold in 9,000 of its outlets across Japan. For the year 2000-01 our exports were 410 metric tonnes valued at Rs 10.95 crore. For the year 2001-02 they jumped up to 489 MT and were valued at Rs 11.32 crore and for the year 2002-03, so far we have exported 550 metric tonnes of cashewnuts valued at Rs 12.75 crore. We have added value to our products by registering ourselves with a Holland based accreditation body, Skal. We ship our products as exclusively organic product where we get little premium, which we pass on to farmers. Our exports are mainly to Japan, United States and European countries. We have a reputation by delivering to our clients high quality products and maintaining shipment schedules. This has enabled us to get special price for our products.

Has the increase in price of raw cashewnuts affected you?

Not very much, as of now. But I feel that prices should be increased gradually as we have to protect the interest of consumers also. The cashew crop in the world is growing very fast, from 4 lakh tonnes in 1980s to 10 lakh tonnes in 2002. Now with the increase in production we have to see that it is consumed and marketed accordingly. Otherwise there would not be a balance in the price structure and the growers could suffer adversely as happened in the case of coffee growers in recent past. Goans farmers are getting the highest prices for their products as they are of good quality and there is good demand for them everywhere.

What do you expect the government to do in helping production?

The government can help us by bringing more land under cashew plantation and increasing production of cashewnuts and reducing our imports from other states. As of now we are importing 2.30 lakh tonnes from neighbouring states and foreign countries. An increase of one tonne of cashewnuts would provide employment of 75 mandays. This could help us in combatting the rising unemployment particularly in rural areas where the cashewnut processing units are located.