The Hindu Business Line : Global cashew body may begin operations in July

Behind the move
The main objective behind this global alliance is to accord an impetus to the growth of cashew economy.
The alliance needs $10 million to implement
its various proposed programmes.

G. Srinivasan

New Delhi, Dec. 26 Though cashews remain the world’s favourite nut, they are the least promoted among all tree nuts and a global cashew alliance (GCA) involving India, Brazil and Vietnam is in the making with the Cashew Export Promotion Council of India (CEPCI) spearheading the move.

Representatives’ meet

Official sources told Business Line here the main objective behind this global alliance is to accord an impetus to the growth of cashew economy in the world through accelerated and orderly approach to the development of cashew as it is in need of concerted promotional and marketing efforts of world class in the major consuming pockets.

Even as a memorandum of understanding (MoU) for such a global alliance has been under consideration of the various cashew associations the world over, the sources said the representatives of the three cashew majors of the world, viz., Brazil, India and Vietnam would meet at a common place in February 2008.

Purpose

This meeting is convened to complete the formalities of the proposed formation of the new body so that the association could start functioning from July 2008.

The sources said India was by far the largest producer, processor and importer of raw cashewnut in the world. It was also the largest exporter of cashew kernels and cashew nut shell liquid in the world. Hence, it was important that India takes a lead role in this initiative, the sources said adding that as per the estimates the new body would need about $10 million to implement the remit.

The CEPCI is of the view that since the concept has been the brainchild of India, New Delhi could bankroll initially in order to enlist other two countries to fork out their share for the launch of the new alliance.

Seeking finance

When contacted on CEPCI plea for financial assistance to launch the new initiative, the Minister of State for Commerce Mr. Jairam Ramesh said he was given to understand that a MoU between India, Vietnam and Brazil has already been reached for setting up the Global Cashew Alliance (GAC). He further stated that he has written to the Union Finance Minister, Mr P.Chidambaram, for considering an initial grant of around $1.5-2 million as India’s contribution to kick-start the GCA. He said this would trigger similar contributions from other two countries.

The sources said the MoU was signed at the annual convention of the American Food Industries (AFI) at Florida, USA in April where Mr. Walter D’Souza from India was unanimously elected as the convenor of the new body. The MoU, among others, proposes to set up mechanism for regular exchange of information between the associations on crop prospects, production, import and export data, reliable market information, government policies affecting industry.

It also proposes to initiate studies on nutrition in cashews and get the results validated by credible global organisations and commence multilateral efforts to promote consumption of cashews for the healthy development of the global cashew economy.