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REGISTERED NO. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section I

PUBLISHED BY AUTHORITY

No. 28] NEW DELHI, TUESDAY, MARCH 23, 1965/CHAITRA 2, 1887

Separate paging is given to this Part in order that it may be filed

as a separate compilation

MINISTRY OF COMMERCE

RESOLUTION

CASHEW

New Delhi, the 23RD March 1965

No. 13/25/64-EP(Agri).—In pursuance of the recommendation made by the Board of Trade at its 11th meeting held in Calcutta in February, 1964, the Government of India in the Ministry of Commerce set up in April, 1964 a Study Group on Cashew to look into the question of cashew exports and cashew produc- tion and to advise the Government on the steps to be taken for achieving the targets fixed for cashew kernel exports in the Third and Fourth Five-Year Plans, and for ensuring the raw nut supply required tor these exports The composition of this Study Group was as follows

Chairman

1. Dr P. S. Lokanathan. Director-General, National Council of Applied Economic Research

Members

2 Shri B P. Patel, Chairman. State Trading Corporation of India Ltd 3. Shri S. Hamid, Joint Secretary. Ministry of Commerce 4. Dr. D. K. Ghosh, Director (Foreign Exchange) Planning Commission 5. A representative of the Ministry of Food & Agriculture

( 153 )

Secretary

S. Shrl G R. Kadapa, Deputy Secretary, Ministry of Commerce

2. Th" terms of reference of the Study Group were as follows:—

(a) Review of the step3 now being taken to develop the production of raw

cashew nuts within the country;

(b) assessment of the future requirements of Indigenously produced raw cashew nuts for the Indian cashew processing industries having regard to:—

(1) possibilities of increased exports of cashew kernels;

(li) possibilities of increased domestic consumption of cashew kernels* (iii) possibilities of reduced availability of raw nuts from foreign source¹;

(c) suggesting measures for Increasing production of raw nuts for meeting

the estimated requirements;

(d) indication of the regions in which increased production could he

achieved;

fe) study of the adequacy of the present arrangements for storage of raw nuts and their transportation to processing factories and suggesting measures for their improvements; and

(f) making such other recommendations as may be considered necessary to maintain optimum supplies of domestic raw nuts to the cashew Industry.

3. The Study Group, after detailed discussions with the leading cashew growing Stales in India (namely Kerala. Mysore, Madras and Andhra Pradesh), with the Government of Maharashtra which has embarked on an ambitious programme of tww cashew cultivation and with organisations concerned with export and pro- duction of cashew, submitted its report to the Board of Trade in November, 1964. The Board of Trade considered the report of this Study Group at its 13th meeting held in Madras on the 7th December, 1R64 and generally endorsed the recom- mendations of the Study Group. A summary of the observations and recom- mendations of the Study Group is given in the Annexure to this Resolution.

4. Government take note of the observations made by the Study Group at S. Nos, 1, 2, 3, S. 6, 7, 9 and 10 in the Annexure.

5. Government generally agree with tho recommendations of the Study Group as contained in S. Nos, 4. 8. 11, lfi, 17. 18 and 19 in the Annexure. The question of improving and perfecting methods of collection has to be further gone into in greater detail by an Expert Comjnittee, which will also consider storjs that have to be taken to put a restraint on excessive consumption of cashew within the country, Government agrees that raw nut Imports bv cashew exporters should be regulated In such a way that there is the least disturbance to cashew exports from India The suggestions made by the Study Group for publicising and popularising cashew In the countries abroad, including opening of foreign offices of the Cashew Export Promotion Council, will be criven due consideration. Gov- ernment also agree with the recommendation of the Study Groun that until adequate Indigenous supplies are available, tho rashow exporters should be assisted with import licences for tinplates, etc; this problem is constantly under review, and the exporters are given every facility in their export promtion effort

6. The Study Groim has recommended that the ceiling on land under the Land Reforms Act should be lifted to provide sufficient Inducement to cultivators to bring more land under cashew production (S. No. 12); that the terms and condi- tions of loans offered to cashew cultivators should be liberalised (S. No. 13): and that the cashew cultivators should be assisted in thr matter of soil fertilization by free distribution of a special mixture and that the cost of this mixture should be shared equally by the Centre and the State Governments (S. No. 14). Govern- ment will give due consideration to all these recommendations

7. The Study Group has recommended at Recommendation No. 15 that a pro- vision of Rs. 19 38 exores should be made in the Fourth Plan towards expenditure on cashew research and development and towards grants and loans to cashew cultivators. Efforts, are being made to make a sultahle provision in the Fourth plan for this purpose.

[PART 1-SEC. 1] THE GAZfcTTfc Ot tNbtA titTRAOkDlNARV 155

8. Government wish to place on record their great appreciation of the very valuable work dona by the Study Group in preparing a concise report on cashew exports and cashew production and for their studied recommendations and observations.

ODDER

Ordered that the Resolution be published in the Gazette of India and a copy thereof communicated to all concerned.

ANNEXURE

SUMMARY OF OBSERVATIONS AND RECOMMENDATIONS

I. Cashew is one of our major foreign exchange earners today, ranking among the ten top export earners and the second biggest dollar earner for India.

2 Cashew kernel, cashew apple and cashew shell have all their distinctive uses an, 1 they all possess rich potential, commercially as well as industrially.

3. Since only one-third of the total quantity of 1,35,000 tonnes of raw nuts pro- duced in the country is going into the export market by way of kernels, nearly 90,000 tonnes of raw nuts are either consumed or wasted due to inadequate collection facilities, thereby making it imperative for this country to rely on large-scale import of cashew nuts to maintain our cashew kernel imports.

4. The question of improving and perfecting the methods of collection, trans- portation and processing of raw nuts should be further gone into by the Govern- ment, There should also be restraint on excessive consumption of cashew within the country.

5. Any wastage of this precious nut or undue consumption of it within the country is detrimental to the interests of our export promotion.

6. It is heartening to see that there is awareness for stepping up cashew pro- duction in all the States.

7. By the end of the Fourth Five-Year Plan, India should be able to produce 3,28,000 tonnes of raw nuts and thus count on the availability of 1,78,000 tonnes of indigenous raw nuts for processing and export after making allowance i ">r 1,50,000 tonnes towards wastage and indigenous consumption.

8. We consider that we should not cut our raw nut imports in anticipation nf the estimated reduction in the import ot raw nuts by 1970-71 but on the basis of actual increase in the Indigenous production and the actual availability of indi- genous raw nuts for export.

8. We are convinced that BO far as cashew nuts are concerned, the world market, especially the U.S.A., West European countries and the USSR, can absorb A very much larger quantity than we are planning to export during the Fourth Plan.

1U. Any undue reduction in our raw nut imports from our traditional supplier* might drive them to a certain policy which may not be favourable to India In the long run.

II. Since much will depend on the performance of Maharashtra, Mysore and Orlasa which have embarked on ambitious programmes of cashew cultivation during the Fourth Plan, we suggest that the joint Consultative Committee of the Ministries of Food & Agriculture and Commerce should watch the progress of cashew cultivation in these States and review the programmes from lime to time.

12. At least in the initial stage, the Government will have to offer sufficient inducement to cultivators to brinn more land under cashew production. One important step towards the measure would be to lift the ceiling on land under the Land Reforms Act, as is already done in the case of tea and rubber.

13. Since the present financial assistance offered to cashew cultivators is far too inadequate, we sufigest that such cultivators be offered an advance of Rs, 200 per acre, of which 25 per cent may be an outright grant and the remaining 75 per cent may be treated as a loan The interest on such loans, which should not be more than 6 per cent should not be charged for the first 5 years. The repay- ment of loans should be in 8 annual instalments starting from the sixth year or even later.

14. By way of assistance to cashew cultivators in the matter of iaoil lertilisa- tion, a special mixture should be got prepared for free distribution to culvlvators— the cost of preparing this mixtuie being shared equally by the Centre .and the State Governments.

15. Considering that 9,38,000 a*_res ot additional land JS proposed to bt brought under cashew cultivation durmji the Fourth Plan, a provision of Rs. 10 38 crores. will have to be made in the Fourth Plan towards the expenditure on cashew retedrch and development and towards grants and loans to cashew cultivators

Ifi In order to maintain additional outlets, for our ca=hrw exports and to enlarge them fiom venr to year we rhould increase cmr efforts in publicising and popularising cashew m countries jl>road.

17. While congratulating the Ministry oL Coin merer and the Cashew Export Promotion Council on thp good work that they have done in publicising cashew In foreign markets and in setting up a Cashew Promotion Office in Europe, we consider thnt there is need for a similar office in the United States where there are vast possibilities for expanding our cashew exports.

IS. In order to entuie J good name for our cashew In foreign markets,, the pre-shipment quality control instituted by the Cashew Export Promotion Council should be vigorously enforced.

19. In order to offer better packaging and merchandising facilities to cashew exporters in India, the Government ahould assist them with quota/Import licences for tinplates, cardboard cartons craft lining etc. until such time as our country is In a position to produce and supply theie items indigenously and In sufficient quantities.

D. N. BANER.TEE, Jt Secv.

[PART 1-$EC. 1) THfc GAZfcTTfc OF INDtA fcXTRAORDlNARY 157

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