In a surprising turn of events, India has witnessed a significant dip in the export of processed cashews, plummeting by more than 50% from $873,66 million in the financial year 2017-18 to $332,87 million in the financial year 2022-23. This decline, echoing in Indian currency, marks a drop.
UAE Tops the Charts in 2022-23
The United Arab Emirates (UAE) emerged as the primary buyer of Indian cashews in 2022-23, importing cashew nuts worth a staggering $126 million. Following suit, Holland imported cashews worth $3,64 million, and Japan trailed closely with cashew imports valued at $3,523 million.
Meanwhile, Vietnam has witnessed a surge in cashew exports, reaching $2,95 billion in the first ten months of the current year (January-October 2023). This reflects a remarkable 16% increase compared to last year. The Vietnamese government has set an ambitious export target of cashew nuts worth $3,10 billion for 2023, confident in the current pace of exports.
Global Scenario – India vs. Vietnam in Cashew Production
Once a leading producer and exporter of cashew nuts, India now faces tough competition from Vietnam, which has outpaced its Indian counterpart. The significant factor lies in the size of the domestic market. At the same time, India boasts a massive domestic market consuming most of its cashew production, while Vietnam, being smaller, exports 90-95% of its total cashew production.
Despite the affordability of Vietnamese cashews due to a successful modernization and mechanization campaign supported by the United States in 2002, the quality of Indian cashews remains superior. Foreign importers, however, often lean towards Vietnamese cashews due to their cost-effectiveness.
Odisha’s Triumph – A Beacon of Hope in Cashew Exports
Among the broader export challenges, Odisha shines as a beacon of hope. The Agricultural and Processed Food Products Export Development Authority (APEDA) has played a pivotal role in facilitating the export of cashews from Odisha. The state recently sent its first consignment of premium-quality cashews to Bangladesh, a significant achievement highlighting economic relations and the strength of women-led businesses.
The exported cashews from Odisha are sourced from Passion Garment, a progressive female entrepreneur. This not only showcases the economic power of women in the state but also signals a positive trajectory for women-led businesses, fostering economic development and empowerment.
Perspective on Progress – A Balancing Act in Global Trade
As the dynamics of cashew exports transform, balancing affordability, quality, and market dynamics becomes crucial. The decline in India’s cashew exports necessitates a strategic reevaluation to regain lost ground. The success story of Odisha provides a glimpse of how targeted efforts, especially those empowering women entrepreneurs, can create ripples of positive change. In a complex world of global trade, these nuanced efforts prove instrumental in understanding challenges and shaping a more resilient future for Indian cashew exports.
The declining trajectory of India’s cashew exports is undoubtedly a cause for concern, reflecting the evolving trends in the global market. The emergence of Vietnam as a formidable competitor underscores the need for strategic recalibration in India’s cashew production and export approach. As India treads the cashew seas, the challenge lies in striking a balance between the superior quality of its cashews and the affordability that competitors offer. It’s a delicate competition where economic considerations, quality standards, and global preferences intersect. The coming years will determine how India steers in the ever-evolving cashew trade landscape.