Cash crop

  • 15/11/2008

  • Business India (Mumbai)

It has all the potential to nestle cheek by jowl with international brands such as Dom Perignon, Mexico's tequila and the famed Johnnie Walker Scotch. And realising its huge revenue potential, the government of Goa is pulling all strings to ensure that the cashew industry, both kernel and feni, is protected and given a boost. In January 2007, it applied to the Geographical Indication Registry, Chennai, for registration for cashew feni. Come January 2009, the state will get the certification, which will improve the sales of the alcoholic beverage internationally. For the state government, it is a 'do or die' effort. Chhattisgarh and Jhark-hand have joined six other states in promoting cashew cultivation, posing a threat to Goa's kernel sales and exports. Secondly, distillers from Maharashtra are firming up plans to manufacture feni. In Bangalore, the ub group has been trying to find ways to make this drink a little smoother to suit international tastes, without reducing the 'kick' it is known for. If these efforts bear fruit, then Goa would lose a prize asset. But now, for the 4,000 local cashew feni distillers, the Geographical Indication Registration will bestow some protection under the aegis of the World Trade Organisation. Geographical indication gives exclusive right to a region (town, province or country) to use a name for a product with certain characteristics that corresponds to their specific location. For the industry, gi registration will come as a godsend. For the 20 feni bottlers, 94 wholesalers and 6,589 retailers, in addition to 2,656 licenced distillers and 1,532 certified 'cashew zones', which grow the crop for feni production, the last few years have been difficult. The reason: the entry of Indian-made foreign liquor (imfl), which was eating into its sales. While production of imfl has increased from 1.62 million litres in 1986 to 19 million litres in 2004, the production of feni fell from 11 lakh litres to 8.75 lakh litres during the same time. "The government support is vital to protect this traditional industry from disappearing," says Joe D'Souza, professor in microbiology, Goa University. "Foreigners come for this drink and, to get their approval, we need to maintain international standards of quality," says Reginald Fernandes, a feni-distiller from Pernem. "There should be smart packaging and marketing too; only then we can take on the world." This is what the government of Goa is planning to do now -to bring in international standards similar to Dom Perignon and Scotch. Goa's two main companies - Real Distilleries and Madam Rosa - have achieved international standards and are exporting their brands to some of the Gulf countries, as well as England, Australia and Canada. "Currently, 2,400 cases of feni go to the US," says Mac Vaz, managing director, Madam Rosa. "But I am confident that once the gi comes in, I will be able to increase my exports. There will be international standards laid down and this will benefit all." To give this industry a fillip, the government is targeting a new breed of farmers and investors. The first step increases the area of cultivation, which will ensure there is enough crop for distillation. The second step is to amend the laws and make them more flexible. The government of Goa has already embarked on a massive cashew development programme, with an outlay of over Rs50 crore, to make it Goa's top agro-based industry. To boost production, subsidies for cashew cultivation have been increased from Rs6,300 to Rsl5,000 per hectare. A lot of 6,000 trees per hectare yields 2,500 kg of cashew and, to increase the yield, the government has drawn up plans to enhance the planted area by another 14,000 hectares. "We will do our best for the farmers," assures Vishwajeet Rane, minister for agriculture. Two cashew farmer societies have been set up to revive sick plantations, which will cost Rs3 crore. To get a better variety of cashews, 540 hectares have been bought under cultivation with elite varieties, such as V7, Balli, V4 and V8. The Revenue Act will be amended to allow contract farming over 30,000 hectares of fallow land. And an Agricultural Producers Market Committee Act, which is in the final stages, will also be announced soon. "What is needed now is a little glitz and glamour," says Ashutosh Gaek-wad, marketing consultant. "Synergise the two and this can become the darling of the world - a winner all around."