A study on

Challenges facing by Cashew Industries

With reference to ‘PALASA CASHEW INDUSTRIAL AREA’.

Submitted by
Sharan balabadruni
HT.NO: 1701471002
Bachelor of Business Administration

Under the guidance of

Sri N. L. Srikanth M.B.A, B.Tech, SET, (MCom.), (PhD)
Asst. Professor in Management Studies
Sri S. AJAY RAJ M.B.A, B.Sc.

Lecturer in Management St

Department of Management studies

Kakinada Sri Aditya Degree College

(Affiliated to Dr.B.R.Ambedkar University, Etcherla.)
2017-2020
ABOUT THE COMPANY:

NAME OF THE ORGANIZATION: SAIKRUPA CASHEW INDUSTRY

DATE :26/08/2019
PLACE : PALASA, SRIKAKULAM 532221
INDUSTRY TYPE : FOOD PROCESSING
PROPREITOR : Sri MALLA RAMESHWAR RAO
CONTACT NO : 7013223441

Introduction to cashew industry:

The Cashew Industry is a traditional agro-based industry in India Cashew

nut one of the most delicious and nutritious nuts has been a product of wide
demand all over the world. It is an item of food so rich in protein, fats and
vitamins that it is regarded as delicacy even in the advanced countries of the
world. Botanically, cashew is a Wonder Nut', because it is the only nut which
appears outside the fruit. It is funny looking with its nut snuggling close to its
plump flesh like a kangaroo with its young in it pouch in fact each part of the
fruit is useful to man. The Kidney shaped fruit's Kernel is available to the
Consumers in its purest and natural form: that is why the saying "cashews care
for your health".
Cashew Industry provides employment for more than 3,20 0002 workers
through 1098 cashew factories in the county during the year 1999-2000. The
estimated demand of raw nuts at present is 10 lakh tonnes. The present internal
production is only 4.30 lakh tonnes. India imported raw cashewnuts valued at
Rs.266 crores in 1991-1992 and increased to Rs. 1186 crores in the year 1999-
2000. To minimize the drain of foreign exchange through import of raw nuts
and to sustain the cashew industry, it is essential to enhance the production of
cashew in the country.
 The world demand for cashew kernels is rising steadily. Hence, the
processing of cashews is now a profitable business. Till the early 1970s, India
was enjoying a near monopoly in cashew kernel trade. But, now Vietnam has
emerged as a leader. A cashew processing centre produces two types of
products. The main product is the nut flesh called cashew kernel, which is
creamy white in colour. The other product is 3 cashew nut shell liquid (CNSL)
extracted from the outer shell of the nut. Of course, cashew is a seasonal crop.
Harvesting season commences from January and continues upto May. In the
processing units, over 95 per cent of the workers are women belonging to
socially and economically weaker communities.

PROCESS OF CASHEW KERNELS:

The cashew industry is one in which manual skill achieved by personal

experience is more in use than the technical skill based on scientific approach.
The different stages involved in the processing of cashew kernels are storage,
conditioning, roasting, shelling, peeling, grading and packing

'stages of processing':

 Drying & Storing:

The cashew nut needs for purposes of processing are procured from places far
and near. However, as cashew is a seasonal crop, producers of cashew kernals
try to buy the raw cashewnuts in bulk and store them up in their godowns for
daily use. One of the chief determinants of capacity-utilization of the cashew
industry is undoubtedly the quantum of raw cashewnuts stored. Before storing,
the raw nuts should be, first of all, sun-dried to render them free from moisture.
Then they should be put in jute bags and kept in godowns.

 Cleaning and Conditioning:

Before roasting the nuts, it should be cleaned by passing them through a
perforated rotating drum for conditioning. Nel Then they are soaked in cold
water for 24 to 42 hours. Properly soaked cashewnuts yield more shell liquid
and the maximum number of "wholes", as distinguished from "splits" and
"brokens".

 Roasting

Roasting constitutes the next crucial stage in the production of cashew kernels.
There are different kinds of roasting. The most important among them are, drum
roasting, oil bath roasting and mild roasting.

 Drum Roasting

For drum roasting, conditioning is not necessary. The cashewnuts that are put
in the hot rotating drum get roasted in 3 to 5 minutes. Even after roasting, the
nuts will be burning because of the inflammable shell liquid. The fire is then put
out. Drum roasting is quite easy to accomplish. It is the most commonly used
technique. Those who resort to this technique need not get their raw cashewnuts
soaked in cold water. The raw nuts could be straight away fed into a drum
heated by fire produced by ordinary charcoal and fire-wood. Eight bags of
cashewnut (640 kgs.) could be roasted by this Mel method in an hour. One of
the important draw backs of this methods is that it renders the extraction of shell
oil during the process of roasting, impossible.

 Oil bath roasting

Oil bath roasting of cashewnuts involves several complicated processes. To

start with, the sundried raw nuts should be boiled in shell liquid. This process is
intended to extract shell liquid and to ensure roasting without any damage to the
kernel. Then, the shell liquid is carefully removed and kept in tin or plastic
containers. The roasted nuts, on the other hand, are collected and sent to the
shelling section. As oil bath roasting is more expensive than drum roasting it is
resorted to only during periods when shell liquid has an attractive Price

 Stem roasting

Stem roasting is of recent origin. However, this technique has been in use
among the producers of Coffee powder from very early times. This technique is
useful to produce super fine varieties of kernels. Further, steam roasted nuts
could be shelled with the help of machines, and shells obtained could be used
for the production of shell oil. The shell oil is extracted with 67 the help of
expellers. A maximum of 9 kilograms of shell oil could be obtained from 80
kilograms of raw cashewnuts. Steam roasting is now gaining popularity among
cashew processors.

 Shelling

Shelling is the next important process of extracting the cashew kernels. As

shelling is purely a manual work, which has to be done with care and dexterity,
the cashew factories, by large, employ only women for this purpose. They form
at least 40 per cent of the work force in the cashew factories. It is usually done
by breaking the shell with wooden hammer specially designed for the purpose.
An agile and careful person can produce 7 to 12 kilograms of kernels in eight
hours. A shelling machine has been introduced quite recently. But its
mechanical advantage calculated in terms of kernels produced per hour is much
less than the manual method. Further, it could be used to shell only nuts which
are partially roasted. Consequently the kernels produced contain traces of shell
liquid which seriously tells upon their taste. The shelled kernels are now sent to
Borma.

 Borma

Borma means mild roasting in the jargon of the cashew industry. This process
is quite indispensable to remove the thin skin (husk) covering the kernel. It
requires the kernal to be gently heated for three to four hours. Very great
caution has to be exercised during the process of heating the kernels. Otherwise
the kernels will loose their colour and weight. Once this stage is gone through
successfully, the kernels could be sent for peeling.

 Peeling

The process of removing the husk covering the kernels is called peeling. Peeling
is mostly done by hand. The cashew factories generally employ women for this
task. They do the peeling either with sharp bamboo sticks or with small knives.
Of the total workers in a cashew factory about 40% are employed here.

 Grading

After peeling, the kernels are subject to a process of grading. The categories
into which the kernels are divided at the outset are "wholes". "splits" and
"brokens". They are fl4rther categorised into "white wholes", "scorched
wholes", "brown wholes", "scorched buds", "splits", "scorched splits", "pieces",
"desert pieces", "vellakedu" "kattal podi", "Gurunu", "scorched piece", "white
scorched", "piece", "scorched small piece", "kara nirm", "raja wholes",
"periwal" and "kurupalpodi". Finally the kernels thus graded are brought into
two categories namely export quality and local quality. The export quality is
usually comprised of American quality wholes and American quality pieces.
The local quality, on the other hand, includes Indian quality wholes and Indian
quality pieces.

 Filling and Packing

The end product is checked for quality and reconditioned whenever necessary.
They are usually packed in 25 pounds (11.3 kg) tins after removing the air in the
tins. After filling the tins with carbon-di-oxide they are closed and sealed before
being sent for sale. Packing could be done in tins or plastic containers of various
types for sale in the local and overseas markets.

Purpose of Study:

Many researchers have recognized cashew and cashew board for their
assignments. But studies on then problems faced by cashew exporters seemed to
be missing to fill this vacuity , the present study is carried out . the outcome of
the study will certain extended a helping hand to the government

Objectives:

 To Study the Indian cashew industry.

 To offer suggestion to overcome the difficulties and to enhance the
growth of cashew industry. To examine the problem faced by cashew
exporters
 To know the Present challenges of Cashew industry
 To understand the problems facing by industry.
 To provide employment to un-skilled semi-skilled and skilled labour
 To increase the sales by at least 15% annually by providing variety of
flavors to the customers.

 To maximize the use and cashew nut through innovation of flavors as

well as maintaining the quality of product that is satisfying to the
customers.

Methodology:
The present study uses only primary data. Primary data have been collected
through direct observation and Personal interaction with all employees and
workers present in organization.

DATA INTREPRETATION & ANALYSIS

 How your cashew reached to consumers?

o Manufacturers to wholesalers to retailer to consumers
 What factors influencing in pricing of product?
o Processing method, importing raw material, tax system
 Which type of packing you follow?
o Primary packing
 Is there any GST imposed to cashew customer?
o yes
 Yes Where did you get the raw material (cashew seeds)?
o Cashew seeds are imported by Indonesia and some are from near
surroundings
 What makes you different from other competitors ?
o Maintaining better quality and methods
 Who are your main customers?
o Vijayanagaram, vizag, local customers
 Which layout you have to make more productivity?
o Cellular layout
 Did you export your product to other state or country?
o No. only in India
 Along with production, did you provide any service?
o Production and packing of cashew and supply to middleman’s
 What rate of depreciation you apply to machinery?
o At 10% depreciation on machinery
 Is there any effect to environment by our company?
o For boiling process , there is not much effect to environment
FINDINGS:

 Shortage of raw cashew nuts: due to shortage of cashew seeds , import

seeds from Indonesia and adversely affects on export of cashew nuts
 Exchange rate fluctuations: it directly affects the probability of
exporting companies
 Infrastructures: poor infrastructure of cashew industry leads to low
production and affects to meet demand
 Competition: our India has not meet customer requirement and having
major competition with other countries like Vietnam.
 Financial problems: cashew industry has not sufficient of financial
capacity. Banks and financial institution are ask for high securities and
not giving this loans and advances at correct time. This leads to shortage
of production.

SUGGESTIONS:

 Develop cultivations of cashew nuts to meet consumer requirements and

demand
 Need to provide medical facilities to workers
 Develop production and post-harvest technologies to improve product
quality and minimize environment impacts.
 Focus on ensuring the nutritional security .
 Evolve varieties with durable resistance to pests ,heat ,drought with
biotechnology
 Need to encourage eco friendly approaches.

CONCLUSION:

Plantation crops like coconut, cashew etc is emerging as important sector of

horticultural crops. These crops including cashew nut being high and low in
volume have provided opportunities to farmers in utilizing marginal land have
added value to environment through diversification. the techn636g5es deve36-
ed based on new research strategies would help in enhancing the productivity of
cashew resulting in increased production and lesser dependence on import of
raw cashew nuts there is need to develop and disseminate technologies to help
cashew farmers in terms of realization of higher returns intensification of study
will definitely add value =for optimization and effective utilization of this crop.