National Policy on Cashew Nuts Approved

The Cabinet approves the National Policy on Cashew Nuts for 2022-2027. Photo: Prime Minister Hun Sen's Facebook

PHNOM PENH – The National Policy on Cashew Nuts for 2022-2027 has been enacted to increase production and value-added, giving hope to cashew farmers.

The majority of cashew products are exported as raw goods with little added value, government spokesperson Phay Siphan said.

The national policy was essential to maintain a competitive advantage in the local, regional and international markets to promote competitiveness, quality and safe products, he said.

“The National Policy on Cashew has the vision to develop cashew production and market and a competitive environment ensures sustainability and economic diversification,” Siphan said.

“The National Cashew Policy aims to turn Cambodia into a major producer and supplier of cashew products for the local, regional and global markets.”

The primary objectives of the policy are to increase output with competitive quality, promote industrialization, and increase productivity by at least 25 percent by 2027 and at least 50 percent by 2032.

The last goal is to promote exports through market diversification, cross-sectoral linkages in exports, trade facilitation, cost reduction and market superiority.

Uon Silot, president of the Cambodian Cashew Nuts Association, said he was happy that the policy had been approved, claiming these goals were what the Cashew Association wanted.

“If this national policy is well implemented, I think the loss of 100,000 hectares will not affect the cashew sector, because Cambodia can produce an average of up to two tonnes per hectare,” he said referring to the cutting down of 100,000 hectares of cashew trees across the country in the past two years.

Silot said the association planned to encourage farmers to maintain the trees, find more markets for processed cashew products and sign an MoU with the Vietnamese cashew association to directly export the produce without third-party traders.

“We will find the market for the processed produce by attending the World Cashew Conference in Dubai on Jan. 23-25 to attract new investors and markets,” he said.

A Cambodian Cashew Association report showed that in 2022, Cambodia exported 670,000 tonnes of fresh cashew nuts to the international market, valued at $1,077 million, a drop of 34.65 percent. The largest importer of fresh cashews from Cambodia is Vietnam.

In 2019, Cambodia exported 600,000 tonnes of fresh cashew, and 950,000 tonnes in 2020. In 2021, 1.1 million tonnes were exported according to Silot.

Ninety-two percent of fresh cashews were exported to Vietnam and two percent to India. The rest was for domestic use. The main markets for processed cashew products are Europe and Japan.

Phay Siphan said the National Cashew Policy will serve as a roadmap and an effective driving force for enhancing the productivity of cashew production and promoting competitiveness in yield and quality.

Related Articles