Cashew business in Kollam

However high cost of production existing in Kollam due to limited mechanisation and higher minimum wages, stiff competition on the cost front from East Africa and Southeast Asia from an international perspective and Tamil Nadu and East India in domestic perspective are putting a lot of pressure over cashew processing sector of Kollam in recent times.

Cashews were first brought to India by the Portuguese from the native Tupi territory (a Neotropic Divergent Evolutive Zone) in North Eastern Brazil.

[6] By the late 16th century Cashew trees started to spread across Kannur and also to other parts of Kerala with laterite soil such as Kollam with considerable Portuguese influence and Kasaragode.

During the time of the Portuguese, Dutch and British in the Indian subcontinent, Quilon and its old port were major business hubs for Arabian and Chinese traders.

By 18th century the Cashew nuts getting mixed with sand and roasted in open pots (Chattis) became common.

[7] Modern roasting methods were introduced later in 1925 by an enterprising industrialist named Joseph Periera who started first cashew-nut factory in Kollam.

Anderson who set up a business under the name Indian Nut Company in Kollam who made the first exports.

[9] Indian Nut Company's factory was situated near Ashramam airstrip and the goods were transported using waterways to export through Kochi Port.

In early days of exports the cashew nuts that were fried in pans and kernels extracted, processed and sorted (blanched, graded) and packed in wooden tea chests lined with newspaper before shipping it.

In 1954 this method was replaced by storing the kernels in cans infused with carbon dioxide primarily to avoid weevil infestation.

To smoothen the import process and ensure price stability of imports the industry leaders formed a 'Cashew Syndicate' and by 1955 this entity was replaced with an institution that had requisite legal framework i.e. the Cashew Export Promotion Council (CEPC) by Government of India.

In 1960s there were a series of labour law reforms in cashewsector which resulted in shifting of industries to nearby states with lesser regulations.