Through a notification dated 27 October 2017, the FSSAI has issued directions regarding exemption from FSSAI clearance for the import of raw cashew nuts. In the order, the FSSAI has stated that a large number of raw cashew nut consignments are referred to FSSAI by Customs for FSSAI clearance. The Customs refers these consignments because raw cashew nuts have been listed under Chapter 8 of the Indian Tariff Code which has an ITC HS Code – 08013101.
Raw cashew nuts are not directly edible but need to be processed in the cashew processing units prior to consumption. Raw cashew nuts are regarded as a raw material and therefore do not require FSSAI clearance presently. Till the standards for raw cashew nuts are framed FSSAI cannot detain import consignment for inspection and such cashews only fall under plant quarantine. However, FSSAI can inspect the processing units as there are standards for all processing units.
About Cashew Nuts
India is not only a major producer of cashew nuts but also a major processor. However, India is unable to meet the domestic demand for cashew nuts and so it imports raw cashew nuts from African and Asian countries. Africa is the largest producer of cashew nuts and produces more than 40 percent of cashew nuts in the world. Most of India’s cashew nut processing capacity would remain largely underutilized with just domestically produced cashew nuts if there were no imports of raw cashew nuts. Ivory Coast, Tanzania, Benin, Guinea Bissau, Ghana, and Nigeria contribute 85-90 percent of total cashew imports in India.
Raw cashew nuts imports have been increasing because of strong domestic demand for cashews. Consumption of cashews has increased significantly but there has not been a corresponding rise in production in India. There is no dearth of raw cashew nut importers in India because demand is alive almost throughout the year and Indian harvest gets over in just three months. Without raw cashew imports, India would not be able to cater to the rising demand domestically. India also exports processed cashew nuts to other countries in North America and Europe.
Leave a Reply