PANAJI: Goa’s age-old cashew industry continues its downward spiral, as many processing units shut down due to stiff competition. Adding to this distress is the availability of cheaper imported nuts and the impact of climate change on the local crop.
Goan cashew nuts are highly prized for their quality and taste, but production has gradually been falling.There are various reasons for this — plantations are shrinking due to the real estate bo om, stem borer infestation is killing trees, and unscientific farm practices are choking the once gainful, employment-oriented industry. Even a couple of decades ago, Goa’s local produce was good enough — aided by a small proportion of imports — to keep around 60 big and small units busy, at least during season.
“In the past few years, around 500 cashewnut processing factories have come up in a 100km radius around Chandgad in Kolhapur in Maharashtra, and Belagavi in Karnataka,” said Madhav Sahakari of the all Goa cashew growers association.
‘Goa lags far behind even states in neighbourhood, like Maharashtra’
In some cases, cashew production has also increased multifold in these areas. Cheaper labour and nuts of good quality serve as a boost for these units, that cater to the retail tourist market in Goa (as well as other regions).
“They source raw material from Benin, Tanzania, Tonga, and other countries at rates ranging from Rs 86-88 per kg. In these neighbouring areas, prices are around Rs 100 or less per kg this season.”
The price of raw cashew tapped by unregulated market forces in Odisha’s tribal areas is around 25-30% lower than in Goa.
In 2020-2021, prices of the Goan cashew nut hit a record Rs 157 per kg, only to plunge to Rs 111 per kg this season. Additionally, transportation of nuts and drying costs make ready-to-process imported ones more attractive.
At the farm level, cashew farmers are bogged down by several issues. The fruit trees are vulnerable to attacks of the stem borer. “Once the insect penetrates the tree bark, there is little we can do,” said a cashew farmer.
The Goan cashew tree gives an average yield of 1kg, as opposed to 12kg in some countries, and hence, most cashew farms in the state are on the decline. “Goa lags far behind compared to even neighbouring states like Maharashtra in tapping new and improved cashew harvesting techniques, ” said cashew entrepreneur Vindesh Shirodkar.
The over-reliance on existing trees is impacting production, he said. “These trees are choked with creepers and overgrowth, and massive labour is needed to clear farms. Most trees are old and need replacement with improved varieties,” he added.
As per agriculture department figures, nut production is around 27,000MT. But trade sources said that it was actually around 23,000MT, and has dropped to 15,000MT over the passing years.
The sale of imported nuts as Goan produce indicates the industry’s progressive decline. “With over 60 units at one stage, there should have been many brands. But only a few — especially a leading brand which does processing, retailing, marketing and exports of their own — survive,” said Sahakari.
In an attempt to boost the industry, govt offers a Rs 10 lakh subsidy for new units, as well as other sops. Chief minister Pramod Sawant also recently promised to tackle the problem of imports of cheaper nuts.
“However, land rates and labour costs are high in Goa. The minimum wage is Rs 560 per day, as compared to much lower wages in neighbouring areas,” said a stakeholder.
Taking cognisance of the industry’s pleas for help, govt set up a task force some time ago to study the problems. “Rejuvenation of cashew farms for more production was one of the major points, but the same state of affairs continues,” said a Goa-based cashew farmer.
Cheaper imports flooding the market has triggered the growth of dubious outlets in some places. “Govt needs to study this problem and tackle it to revive the industry,” the farmer said.
