The Hindu Business Line : Cashewnut shell liquid gaining acceptance

Mangalore, Dec. 6 Cashew nut shell liquid (CNSL) – the liquid within the shell casing of raw cashewnut – seems to be gaining acceptance in the international market, especially in the US, if the increase in its export during the first half of the current fiscal is any indication.

The country exported 3,365 tonnes of CNSL to the US during the first six months of this fiscal as against 1,816 tonnes in the corresponding period of the previous year, recording a growth of 85.30 per cent.

Mr G. Giridhar Prabhu, Convenor of India Cashew Federation, told Business Line that CNSL exporters were now getting more queries from the US and the European markets for the product.

CNSL, which is an industrial raw material, is used in friction linings, paints and varnishes, laminating and epoxy resins and foundry chemicals.

Stating that CNSL can generate many phenolic compounds, he said simple phenols from petrochemicals have limitations and hence the ranges of products obtained from them were less.

In addition to this, the increase in crude prices has made importers to look at CNSL, as it is a good substitute for the petrochemicals-based phenols, he said.

At present, CNSL is being marketed at an average price of Rs 12,500 a tonne. However, it is worth Rs 16,000 a tonne, if the petrochemical-based equivalents of this product are taken into account.

On the potential for the product, Mr Prabhu said India had the potential to produce around 1.5 lakh tonnes of CNSL a year. However, only 45,000 tonnes of CNSL were currently being produced in the country.

With the increase in the queries for the product, there is vast potential for its production and export.

The production is now limited to Karnataka, Goa, South Arcot district in Tamil Nadu, and partially in Kollam and Kanyakumari districts.

CNSL producers in Mangalore contribute a major share of around 21,000 tonnes a year.

In Mangalore, CNSL is extracted to the fullest extent as a natural part of cashew processing, he said.

During the first half of the current fiscal, China and Egypt were the new entrants to the export market.