The Hindu Business Line : Brazil likely to join global cashew alliance

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Mangalore Jan. 30 Brazil - one of the major cashew producers and processors - is likely to join the global cashew alliance by April. Already, India and Vietnam have signed a memorandum of understanding (MoU) in this regard.

A press release by the Chairman of the Cashew Export Promotion Council of India (CEPCI), Mr Walter D'Souza, said here on Tuesday that the bilateral MoU signed between CEPCI and Vietnam Cashew Association (VINACAS) will be sent to the Association of Cashew Producers (SINDICAJU) of Brazil for its formal endorsement with corrections, if any.

"It is expected that the tripartite MoU will be entered into and signed by the heads of the three organisations in Florida in April. Mr John Petersen, Chief Executive of Kraft Foods, the world's single largest importers of cashew, has promised all help for this initiative. Other cashew importers, international brokers and service providers in many countries have also pledged their cooperation," Mr D'Souza said.

The MoU between India and Vietnam is the first ever entered into by the CEPCI at the international level. The MoU with Vietnam is significant to Indian cashew industry, as India accounts for over 65 per cent of the total processing in the world. India has been the leader in the industry accounting for the largest crop size of about 5.5 lakh tonnes and processing about 11 lakh tonnes. Vietnam's production is put at 3.5 lakh tonnes and Brazil at 2.5 lakh tonnes.

As per estimates, the global cashew production is expected to be of the order of about 30 lakh tonnes by 2020.

The release said that importers of cashews throughout the world had voiced their concern about the absence of systematic promotion and marketing to match the projected supply and had urged the CEPCI to take up the leadership in this direction.

In response to the repeated requests from all stakeholders, Mr D'Souza gave a call at the International Tree Nut Convention in Montreal last May for the formation of a global cashew alliance with the above mandate.

Mr Antonio Jose Carvalho, President of SINDICAJU, endorsed this. The CEPCI was requested to initiate talks with Vietnam.