COMMENTARY
INTERVIEW
SPECIALS
CHAT
ARCHIVES

Reliance seeks Goa's permission to set up massive cashew-based project

Sandesh Prabhudesai in Panaji

If the Goa government grants permission, Reliance Industries Ltd will be the first company to get into horticulture with the country's biggest cashew-related project, to be spread over 9000 hectares of forest land.

The proposal submitted by the Reliance assures a 13-fold jump in cashew production while targeting the export market in the United States, Japan, the Middle East, Europe, and Russia.

Though the Goa government is keen to accept the proposal, it has decided to play it safe by inviting tenders for the joint venture project. The state government will lease out land for 30 years.

The Reliance offer will also derail the government's plans to set up a Goa Forest Development Corporation next year for the purpose of boosting cashew production.

Cashew yield in forest land has dropped to around 300 kilograms per hectare, earning a paltry Rs 10 million per annum. The Goa Forest Development Corporation had planned to replace the old and senile cashew trees the high-yielding Vengurla 4 seedlings at an estimated cost of Rs 26 crore. At 200 trees per hectare, the estimated yield would have been 1200 kg per hectare, increasing its production from the present 1.5 kg per tree to six kg per hectare and an earning of Rs 400 million.

But the GFDC offer is no match for the Reliance offer, which assures a yield of 4000 per hectare, at the production rate of 20 kg per tree within three years, by using state of the art technology for planting and processing. The assured foreign exchange earnings per annum will be Rs 1.3 billion crore while the GDP effect on Goa's economy would be Rs 3.2 billion.

With an approximate investment of around Rs 1.10 billion, Reliance plans to use clonal propagation, mechanised farming, drip irrigation system combined with liquid fertilisers, pesticide spraying, and effective methods like pruning the trees at regular intervals, to boost the yield.

Moreover, Reliance has promised to brand Goa's famous cashew-based liquor feni, which would be then marketed internationally. Besides, 108 million litres of natural cashew juice would also be marketed while the residue of cashew apple would be sold as fodder.

Reliance estimates an annual cashew nut production of around 36,000 metric tonnes and a cashew nut shell liquid production of around 6400 tonnes, which would be widely used in paints and the brake liner industry.

As most of the population involved in the production of cashews would be rural, the Reliance project also envisages employing around 17,000 people, besides assuring infrastructural development, schools, clinics, hospitals and recreational facilities to the people.

The Goa government own experience in running business ventures has been miserable. The state-owned Kadamba Transport Corporation and the different horticulture corporations are all running into heavy losses due to a lack of professional management.