The import of cashew kernels by Japan crossed 7,600 tonnes in 2012.
This figure assumes significance to India, as Japan is the fourth major export-destination for Indian cashew.
The US, the UAE and the Netherlands are the top three destinations for the export of cashew kernels from India.
Of the 7,602 tonnes of cashew kernels imported by Japan in 2012, India’s share was 6,099 tonnes.
QUALITY
Walter D’Souza, Chairman of Federation of Indian Export Organisations (Southern Region), told Business Line that quality Indian cashews have a preference in Japan.
Quality always has a cost, and Japan was one of the first countries to have come to terms with reality.
Many of the Indian exporters command a good premium in prices for the supply of quality consistent with high standards Japan expects from the importers, he said.
G. Giridhar Prabhu, Proprietor of the Mangalore-based Achal Industries (who has been exporting to Japan since 1988), said that Japan prefers good quality cashew of Goa, Maharashtra or Karnataka origins.
K. Prakash Rao, owner of Kalbavi Cashews and cashew exporter, said that the consumption of cashew in Japan is growing slowly, but steadily.
Quoting George Ishiguro of the Japan-based Blaxton Corporation, Rao said that there is increase in the programmes featuring the nutritious effects of nuts in the Japanese television channels.
The consumers have become more selective for healthy and tasty food. (Ishiguro is a Japanese trader of cashew nuts and dried fruits).
The fear of radioactive pollution by the 2011 Japanese Tsunami has made the consumers more safety conscious. They are now looking at chemical free and radiation free food, he said.
VIETNAM ROLE
Prabhu said that though Japan has long favoured the Indian quality, Vietnamese have also made inroads into Japan of late.
While India contributed 80 per cent to the cashew kernel imports in Japan during 2012, Vietnam contributed 18 per cent. D’Souza said that even though Vietnam should have a larger share in the imports into Japan, there has been a dilution in the quality of imports from Vietnam into Japan.
“Indian exporters have been consistent in terms of quality and timely performance. Both these factors weighed heavily in favour of India,” he said.
Prakash Rao said that new comers such as Kenya are also making their entry into Japanese market. Japan imported 95 tonnes of cashew kernels from Kenya in 2012.
However, Kenya exported 86 tonnes in the first seven months of 2013 itself. (The total import of cashew kernel into Japan during the first seven months of 2013 stood at 4,966.3 tonnes. Of this, the share of India stood at 4,219.4 tonnes.)
SCOPE FOR FUTURE
D’Souza said that India can certainly cross the 10,000-tonne mark by 2015, if more Indian exporters are able to raise the bar in terms of Japanese specifications, quality, and performance parameters.
Clarifying that Indian exporters are adhering to the internationally accepted specifications, he said Japan has created its own niche markets of quality and grading standards.
These are much above the general specifications followed by other importing countries, he added.