Goa's ancient cashew sector in trouble, more and more factories shut down | Goa News

PANAJI: Goa's ancient Cashew industry continues a downward spiral, as many Processing units closed due to strong competition. Added to this plight is the availability of cheaper imported nuts and the effects of Climate change on the local harvest.
Goan cashews are highly prized for their quality and taste, but production has gradually declined. There are several reasons for this: plantations are shrinking due to the real estate boom, stem borer infestation is killing trees and unscientific farming practices are choking the once lucrative, employment-oriented industry. Just a few decades ago, Goa's local production – aided by a small share of imports – was good enough to keep about 60 large and small farms employed at least during the season.
“In the last few years, around 500 cashew processing factories have come up within 100 kilometres of Chandgad in Kolhapur in Maharashtra and Belagavi in ​​Karnataka,” said Madhav Sahakari of the Goa Cashew Growers Association.
“Goa is lagging far behind even neighbouring states like Maharashtra”
In some cases, cashew production in these areas has even increased manifold. Cheaper labor and good quality nuts are boosting these businesses, which serve the retail tourism industry in Goa (and other regions).
“They are getting raw material from Benin, Tanzania, Tonga and other countries at prices ranging from Rs 86 to Rs 88 per kg. In these neighbouring areas, prices are around Rs 100 or less per kg this season.”
The price of raw cashew nuts, which are extracted through unregulated market forces in the tribal areas of Odisha, is about 25 to 30 percent lower than in Goa.
In 2020 and 2021, Goan cashew prices reached a record high of Rs 157 per kg, only to plummet to Rs 111 per kg this season. Moreover, the transportation and drying costs of the nuts make ready-to-process imported nuts more attractive.
At the farm level, cashew farmers face several problems. The fruit trees are vulnerable to attacks by the stem borer. “Once the insect penetrates the tree bark, there is not much we can do,” said a cashew farmer.
The Goan cashew tree yields an average of 1 kg, as opposed to 12 kg in some countries. As a result, most cashew farms in the state are in decline. “Goa is lagging far behind even compared to neighbouring states like Maharashtra when it comes to using new and improved cashew harvesting techniques,” said cashew entrepreneur Vindesh Shirodkar.
Over-reliance on existing trees is affecting production, he said. “These trees are overgrown with creepers and overgrowths and huge manpower is needed to clear the fields. Most of the trees are old and need to be replaced with improved varieties,” he added.
According to the Ministry of Agriculture, nut production is around 27,000 tons. However, according to trade sources, the actual production was only around 23,000 tons and over the years production has dropped to 15,000 tons.
The sale of imported nuts as Goan products indicates the industry's ongoing decline. “With over 60 units at one point, there should have been many brands. But only a few – especially a leading brand that handles processing, retailing, marketing and exports itself – survive,” said Sahakari.
To boost the industry, the government is offering a subsidy of Rs 10 lakh for new units along with other concessions. Chief Minister Pramod Sawant also recently promised to address the problem of import of cheaper nuts.
“However, land prices and labour costs are high in Goa. The minimum wage is Rs 560 per day, compared to much lower wages in neighbouring areas,” said a stakeholder.
The government has taken note of the industry's calls for help and set up a task force some time ago to look into the problems. “Reviving cashew farms for more production was one of the key points, but the situation is still the same,” said a cashew farmer from Goa.
Cheaper imports are flooding the market and have led to the growth of dubious markets in some places. “The government must investigate and address this problem to revive the industry,” said the farmer.