In most countries the 'cashew apple' is wasted or discarded.' In Africa, despite the fruit's very high nutritional properties, the 'apple' is used primarily to make alcoholic beverages. In contrast, both in India and Brazil the 'apple' is widely used, contributing to increased farmer incomes and increased employment and value-added in Industry. In India, a carbonated beverage and several types of alcoholic drinks are made from the 'apple'; in Brazil, a wider Industry has developed which uses the 'apple' to produce juices, jams, chutneys, etc.

# World Trade Trends

Cashews are one of the many varieties of edible nuts traded worldwide. World trade in edible nuts has experienced relatively rapid growth, averaging about 2.7% per year since the early 1970s and increasing in value from $1.94 in 1980 to $2.84 billion in 1990.9 Only seven varieties of nutsgroundnuts, a nonds, cashews, brazil nuts, desiccated coconut, hazelnuts, and walnuts-account for 90% of international trade in edible nuts. While international trade in CNSL is not insignificant, the discussion here focuses on trade in raw cashew nuts and kernels.

International trade in raw cashew nuts has traditionally involved shipments from East Africa to India. India was the first country to build up a processing industry. Domestic production has been unable to meet the requirements of that country's hundreds of small-to-medium-scale factories. State-level restrictions on internal movements of cashew nuts further constrained raw material supplies and necessitated imports from the emerging East African industries during the 1950s and 1960s. Peak levels of Indian raw nut imports were reached in the early 1970s at levels exceeding 175,000 tons per year. The imports, generally concentrated over the December to May period, complemented the local harvest which begins in May and continues until July. Indian processors could thus operate over an extended period without having to maintain very large stocks of raw nuts.

This trade subsequently declined as a result of reduced production in East Africa and periodic constraints on access to foreign exchange by Indian importers. Raw nut imports fell to as low as 20,000 to 30,000 tons/year during the early 1980s. Since then, import levels have increased due to greater supply availability, particularly from Southeast Asia. For example, in the first six months of 1992, imports totalled over 80,000 tons, with largest supplies coming from Vietnam, Indonesia, and Tanzania."<sup>0</sup> While Tanzania once obtained premium prices over those of other suppliers, this has not generally been the case in recent years due to growing uncertainty about the quality of Tanzanian shipments."1 World trade ir. cashew kernels is far better documented than is the trade in raw nuts. According to Gill and Duffus, world imports in 1990 totalled over $500 million, ranking cashews second (behind almonds) among dessert nuts. India has long been the world's largest supplier of kernels with its prices and quality setting the benchmarks or standards for the industry. At least in Europe, India has been the preferred supplier, with long-standing trading relationships based on confidence in product quality and on fast and regular deliveries. India has more than 150 cashew kernel shippers, many of which have offices in the United States and Europe.

sRosengarten (1975) claims that **_95%_** of cashew apple production is wasted world-wide.

9 Such figures are for world exports as reported in United Nations, Yearbook of International Trade Statistics. '°The Cashew, October-December 1992 (Indian trade magazine).

**"As** reported by international cashew brokers and as indicated in the Indian import data.

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