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Rediff News  All News  » Business » Global cashew body to boost trade formed

Global cashew body to boost trade formed

May 08, 2007 18:40 IST

Cashew growers can soon expect some positive changes in cashewnut trade following the formation of a global alliance on this front.

After relentless efforts for over a year, India has succeeded in forming a global alliance on cashewnut along with two other major exporters - Brazil and Vietnam. The trio has agreed to work together to promote the global cashew trade and help each other increase production and consumption.

A memorandum of understanding was signed recently by the three nations at the international convention of Association of Food Industries at Florida.

According to chairman of Cashew Export Promotion Council of India Walter D'Souza, each country will initially contribute $100,000 to set up the body.

The body will meet in Madrid from May 10-12 to decide the roadmap and arrive at a consensus on the name of the global association. It will be formally launched during the international commodity fair at Anuga in Germany in October.

With this MoU, India, Brazil and Vietnam, who together constitute 90 per cent of the global cashew processing capacity, have come

under one umbrella to promote the trade globally. The balance 10 per cent of the cashew trade is spread over the East and West African countries, Indonesia, China, Panama, Cambodia, Thailand and Mayanmar.

All the three nations have agreed to register the global body in a neutral country. They have shortlisted three nations - Britain, Dubai and Singapore - to locate the headquarters of the global body, D'Souza said. It is expected that Walter D'Souza will become president of the organisation. However, other two countries are yet to give their consent for this.

The MoU envisages roping in all stake holders - producers, traders, international brokers, salters, roasters, super market chains, service providers, logistics and shipping companies. A nine-member committee with three nominees from each country will start working on the future course of action.

The major objectives of the global alliance include promotion and marketing of cashew kernels across the world, exchange reliable market information, crop size, government policies in each of the nations and conduct joint research on enhancing the yield per acre.

Commodity Online