PRODUCTION AND MARKETING PRACTICES OF CASHEW NUT SHELL LIQUID AN OVERVIEW

PRODUCTION AND MARKETING PRACTICES OF CASHEW NUT SHELL LIQUID AN OVERVIEW Dr. T. SIVAKUMAR Assistant Professor, Department of Commerce, D.B. Jain College, Thoraipakkam, Chennai - 600 097 ABSTRACT Cashew shell liquid is an important by product obtained while processing cashew nuts and extracting the kernels. During the process of roasting, most of the oil in the shell oozes out and this is collected. The shells obtained after shelling are crushed in expellers to separate the oil which is left in the shells. The commercial shell oil obtained by the roasting of cashew nut in a dark brown visconsoil is easily soluble in most of the organic solvents. Although not a glycoside, it is a drying oil with suitable driers. It gives a smooth, shining film of dark brown solour. In India, the oil is used as a water proofing agent and also as a preservative in the painting of boats, fishing nets and light wood work. It is only in recent years, mainly as a result of the investigations of M/s. Heavy and caplan that the oil has attained technical importance and America, Japan and U.K. are now the chief buyers of the oil produced in India. The industrial applications of shell oil are based upon its polymerization to a rubber like material under the influence of acids, and on the formation of a wide range of condensation products with aldehycles. The latter are generally hard, infusible and extremely resistant to the action of chemicals such as acids and alkalis. The cashew shell liquid is now used in the manufacture of break liners, points, varnishes, lacquers and insulators. Key words: Cashew Nut Shell Liquid Oil, Production Process, Marketing Process, Cardanol, Procurement www.apjor.com Vol: I. Issue LVII, November 2017 321

INTRODUCTION Cashew nut shell liquid is the important by product of the cashew nut industry. CNSL is extracted from the cashew nut shell which is used for various purposes. They are widely used for many purpose including automobile break lining, production of paints, resins etc. The cross section of the cashew shows honey comb like structure which hold the phenolic compounds, which form the main constituent of the cashew nut shell liquid. Cashew nut shell liquid (CNSL), a byproduct of the cashew industry, has always been credited with words such as versatile raw material, industrially important material, etc. However, its commercial exploitation has not significantly undergone any drastic changes during the last decade or two. MEANING: Cashew Nut Shell Liquid Oil (CNSL) The shell of the cashew seed yields derivatives that can be used in many applications from lubricants to paints. The species is originally native to northeastern Brazil Today, major production of cashews occurs in Vietnam, Nigeria, India and Ivory Coast. CNSL is traditionally obtained as a byproduct during the process of removing the cashew kernel from the nut. The processes used are mainly hot oil and roasting in which the CNSL oozes out from the shell. The cashew tree is cultivated globally in tropical areas such as East Africa, South and Central America and the Far East. CNSL INDUSTRY Cashew industry was first established in Quilon Kerala (India). It is the place where cashew nuts are converted into cashew kernel. The major processing activities such as Shelling, Peeling, Grading, Packing and Drying are done here. This is one of the agrobased traditional industries in India. PRODUCTION OF CASHEW NUT SHELL OIL The cashew nut industry is located mostly on the west coast of India, the main areas being Quilon, Calicut and Mangalore. The actual production of cashew nut shell oil is about 15,000 tonnes, while the potential is about 60,000 tonnes and the consumption is around 11,000 tonnes by the paints, varnish and chemical industries. Exports of CNSL are around 15,000 20,000 tonnes annually. Out of the several processes used for the manufacture of CNSL, the hot oil process is quiet economical. The other methods are; i) Kiln, ii) Expeller, iii) Drum roasting iv) Solvent Extraction. v) Super Heated steam vi) Dielectric heating Radio Frequency (Rf), These methods have their own advantages and disadvantages and give CNSL different characteristics. The production of CNSL is based on only two methods i) Kiln method and ii) expeller method. PRODUCTION PROCESS Raw material is obtained in gunny bags which are stored for a period varying from 5 days to 3 months depending on the prexile sanaia. Technology used in the process is distillation process. CNSL plays a very important part in the paint Industry for the automobile Industries. Production cannot be done throughout the year. Production of refined CNSL is carried out only on the basis of the quantity of order placed. The production capacity of the form is 220 kg of CNSL per day. Regarding the quality maintenance of every batch, a quality maintenance laboratory is also at set up which checks whether the product pertains to 5350 international standard. And the party relies on its earlier lies in buying the product. The refined form of CNSL is filled in bands, sealed well and transported in Lorries. 1. Raw CNSL 2. White paint preparation 3. Cardenol oil 4. Resin EXTRACTION OF CNSL BY KILN METHOD In this method, cashew of shells are heated in a kiln whose construction can rate upto 25,000 35,000 in this 4 cans of 14 its capacity each in 4 shifts per 13/kg cashew shell and the amount of wooden logs required is about ½ ton and mostly cashew logs themselves are used. The total CNSL yield in Indian Cashew varieties is around 30% whereas in foreign varieties, it is 20%. This kiln is destroyed every 10 years because the iron tray inside the kiln gets damaged and it needs to be replaced in time. Even though this is a traditional method, the CNSL yield or recovery percentage is 30, compared to the mechanized method where it is 21. EXTRACTION OF CNSL BY EXPELLER METHOD The covering of the cashew shell is honey comb like structure containing natural phenols in it. This cashew shell is fed into the hopper of the expeller and elevated by a bucket elevator and fed into a steam chamber because the cashew shell is very brittle and when fed into the steam chamber the shells become soft and the steamed cashew shell are passed through the crushing unit which contains a shaft with bowel which crush the shell and extracts oil in CNSL. The following extraction process is followed, www.apjor.com Vol: I. Issue LVII, November 2017 322

Cashew shell unsteamed Steamed cashew shells Passed through the expeller unit Oil is extracted Collected in tanks EXTRACTION OF RED OXIDE Heat 200 kg refined oil and add 60 70% red oxide and it is an exothermic reaction for 200 kg. 7 labours is required for 1 day and 60kg wooden logs are required of which 10 15% CNSL goes as wastage. So the unit cost of production of CNSL (Kiln method produced quantity per year 87,600kg). BY PRODUCTION OF CASHEW PROCESSING Cashew nut shell oil is one of the important by products of the cashew processing industry. The oil known as cashew nut shell liquid (CNSL) is obtained from the spongy mesocarp the part that is the portion between the hard shell and the tests enclosing the kernel. The quantum of oil obtained depends on the extent to which the nuts are roasted in the process of obtaining the kernel lesser roasting gives more CNSL and Vice Versa. CNSL has immense use as industrial oil. Various methods of processing are in use for deriving various chemicals from CNSL, which have got varied uses in a number of industries. They are used in the manufacture of surface active agents used in high temperature boiling in textile industry. They are very good emulsifiers and excellent leveling and die dispersing agents. Break lining is perhaps the most important product in which a large quantity of CNSL is employed. Such brake linings have excellent frictional properties. The USA, Japan, the UK, and Australia are large buyers of CNSL for making brake linings, clutch facings and allied products. The foundry industry, which is basic to the development of all other industries, uses core oil for (1) good surface finish to moulded articles and (2) to give easy collapsibility, that is, to allow the moulded articles to shake out clearly and easily. This core oil is an important by product based on CNSL. The CNSL derivations have been found to be more useful than conventional materials for surface coating in insulation and corrosion resistant varnishings, moulding powders, rubber compounds and fire resistant paints. Considerable researches relating to the utilization of CNSL in various polymer based industries are being made, Earlier, CNSL and its derivatives have been used in a wide range of paints, synthetic resins, insecticides and laminated products and presently a number of products like resins, polyesters, epoxy resins, primers, etc have been derived from CNSL which is widely used in many industries. In India, CNSL is mainly produced in the states of Kerala and Karnataka though they use the roasting method for shelling. It is already seen that in Tamil Nadu shelling is done by the old method without actually roasting the nuts. This method guarantees a high level of CNSL. So, Tamil Nadu can produce larger5 quantities of CNSL, Compared to the small quantity of nuts processed. Where processing of nuts is concentrated, a few processors have taken to the extraction of CNSL from the shells in recent times. 200 to 210 kg of shells is stacked up in drums or kilns made of clay and are slowly heated at the bottom. When this is continued for about 24 hours, the liquid is separated completely form the shell. This shell oil is then collected in separate containers. The remaining shells are sold as fuel to brick kilns. MARKETING PROCESS Marketing of CNSL is similar to other agro processed commodities. It starts with the procurement of raw cashew nut shell from the growers. Processing of the cashew nut shell liquid, storage, marketing of CNSL sold. PROCUREMENT There are many stages of marketing before CNSL reaches the paint industries. Cashew nut shell is handpicked from various units after removing the cashew nut and the households collect them in small quantities and take then to processing centers. The cashew nut shells of the small producers are usually collected by the processors themselves, usually through their cashew nut shell liquid producers. The Cashew nut shells are collected in small processing centers and transported to nearby processing units. It is noticed that there are very few middle men engaged in this collection process. This situation is very peculiar to Tamil Nadu when compared to other cashew nut shell liquid producing states like Kerala and Karanataka. In these states, the marketing of raw cashew www.apjor.com Vol: I. Issue LVII, November 2017 323

nut shells are predominantly controlled by middle men. Usually in the villages, the hawkers go around daily during the season to almost all the cashew nut processing centers and collect the raw materials. The cashew nut shell liquid, so collected is brought from limited units and sold at a popular sandy in that place. Such sellers store the oil for few days and sometimes few weeks depending upon the market price. These sellers take the produce usually in lorry loads to the paint industries or factories. There the produce is sold in bulk to the industries; it is a peculiar feature in Kerala and Karnataka. In Tamil Nadu, such a situation does not exist because the total production itself is very small. The Marketing process is not complicated and hence it is fairly easy for the producers buying the oil one peculiar feature about cashew nut shell liquid is that normally it has no alternative user or alternative seller. In other words, the sellers wield a monopoly over the purchase of cashew nut shell. This is a very unfortunate situation. The producers cannot think of transporting their produce to factories outside the state because enough quantity of the oil is not produced. STORAGE It is well known that in the case of all agricultural products storing is an essential part of marketing. This is undertaken throughout the year of produce. Sine processing is almost throughout the year, it is essential that the available raw products are made available to feed the existing factories. In order to store the CNSL storing facilities are provided, for a period of 15 days 3 months. But, in the case of cashew nut shell liquid this is not that significant in the sense that there is no organized storing facility. This may be due to the relatively insignificant quantum of production. In actual practice what happens is that the sellers who procure the raw nuts from the individual producers take the shells to the processors premises and arrange there it for some sort of storing. If such oil is to be stored, they should necessarily be further dried. Whatever be the price offered to the products, it is difficult to ensure the method of production of the oil. The good CNSL could be packed in tank and stored in ordinary barrels away from moisture. This could easily be performed by all the sellers because what they need would be one or two barrels with proper protection from rain. The storage of CNSL could ensure a stable price and market place. The individual small producers normally do not have power to take advantage of the high prices usually prevailing during the season. In addition, there are only few sellers who can claim to posses fairly satisfactory storing facilities. If, the individual producers can hold the produce from the market during the period or season, they would certainly be able t take advantage of the relatively high price during the season. FINANCING Though financing is an important marketing function, there is not much of financing by organized financial agencies as for as the sold in CNSL is concerned. In other words, the sellers could easily manage the amount. MARKETING OF CNSL Today, India is considered to be one of the most cost effective and high quality destinations to source CNSL and other products related to cashews. As India s foremost online sourcing platform specializing in the cashew industry, we assist organizations worldwide in finding the most suitable Indian vendor for cashew kernels and cashew derivatives such as CNSL and cardanol. PRODUCT / SERVICE DETAILS CNSL (for cashew nut shell liquid) is a natural resin found in the honey comb structure of the cashew nut shell. This resin is derived from the cashew nut shell, after the shell is separated from the cashew kernel during cashew processing. CNSL is a highly useful resin, for it contains cardanol (main constituent), cardol of anacardic acid. Cardanol finds a variety of applications, chiefly to produce friction dust. This is used in disc pad brakes and drum linings friction particles (also called friction dust) are used as stabilizing agents in brake linings. These particles, owing to their resilient nature, cushion the engaging property of a piece of lining. In addition, they decompose on the surface of a lining at high temperatures, this controlling the wear and offering a protective device. CNSL is an important industrial raw material for resin manufacture and the shells can be burned to provide heat for the decorticating operations. The liquid contained within the shell casing of the cashew, known as CNSL has a variety of Industrial uses which were first developed in the 1930s CNSL is fractionated in a process similar to the distillation of petroleum, and has two primary products, solids that are pulverized and used as friction particle for brake linings and an amber colored liquid that is animated to create phenalkamines curing agents and resin modifiers. Phenakamine are primarily used in epoxy coatings for the marine and flooring markets, as they have intense hydrophobic properties and are capable of remaining chemically active at low temperatures. COST EFFECTIVE MODERN MATERIALS In the search for the cost effective modern materials, CNSL and its products have a significant role to play. Being renewable, it offers much advantage over synthetics. Its versatility stems from its innumerable applications in many areas. Recent research has shown that the constituents of CNSL possess special structural features for transformation into specialty chemicals and high value polymers. This involves a value addition of many orders of magnitude and the chemical transformation provides 100% chemically pure products. Thus, CNSL offers vast scope and opportunities for the production of specialty chemicals, high value products and polymers. ADVANTAGES OF CNSL BASED POLYMERS Improved flexibility and reduced brittleness Solubility in organic solvents Improved processability Low fade Characteristics for friction Resistance to Cold wear. Good electrical resistance www.apjor.com Vol: I. Issue LVII, November 2017 324

Better water repellence Improved alkali and acid resistance Compatibility with other polymers Anti microbial property Termite and insect resistance Structural features for transformation into high performance polymers. POLYMERIZATION CHARACTERISTICS OF CNSL CNSL can be polymerized by a variety of methods. Addition of polymerization through the side chain double bonds using cationic initiators such as sulphuric acid, diethylsulphate etc. Condensation of polymerization through the phenolic ring with aldehydic compounds. Polymerization after chemical modification to introduce speciality properties. Oxidative polymerization Various combinations of the above. INDUSTRIAL SIGNIFICANCE OF CNSL Low cost phenol Versatility in polymerization and chemical modification Possibilities for development of high performance polymer Property advantage over pheolics in certain applications such as impact resistance, flexibility, faster heat dissipation, etc. REACTIVITY CNSL undergoes all the conventional reactions of phenols. Cardanol differs from phenol only in the C 15 side chain. It undergoes the well known for maidenhead condensation reaction of phenols that give rise to phenolic polymers. Moreover, it can be polymerized through the instauration in the side chain although the bulky nature of the side chain restricts the molecular weight attainable to oligomers. One of the significant advantages of the cardanol is its amenability to chemical modifications to effect desirable structural changes so as to get specific properties for making tailor made polymers of high value. Thus structural changes could be effected at the hydroxyl group, on the aromatic ring and on the side chain. CARDANOL Distillation of CNSL under reduced pressure gives cardanol. The residue will be rich in cardanol generally known as residol which is conveniently used in the preparation of friction dust for brake linings, and also in rubber compounding formulations. Table 1 ISI Specification of the untreated CNSL is 840 (1964) Specific gravity / 30 0 C 0.950 0.970 Viscosity at 30 0 C Cps, Max 550 Moisture % by weight, Max. 1 Matter insoluble in toluene % by weight, Max 1.08 Loss in weight on heating, % by weight, Max. 2 Ash % by weight, Max. 1 Iodine Value, Min 1 1. Wiji s method 250 2. Catalytic method 375 Polymerization time Time in minutes, Max 4 Viscosity at 30 0 C, Cps. Min 30 Viscosity after acid washing at 30 0 C cps. Min 200 Color shall be not deeper than dark brown when viewed by transmitted light Source: www. Cashew inida.com (marketing of CNSL) www.apjor.com Vol: I. Issue LVII, November 2017 325

SPECIFICATION FOR TREATED CASHEW NUT SHELL LIQUID The cashew nut shell liquid as extracted has a strong vesicant dermatitis action. Before this liquid is utilized for preparation of resins, it requires treatment to get rid of metallic impurities as well as traces of sulphur compounds. The liquid thus treated is known as Treated cashew nut shell liquid. The specification of treated cashew nut shell liquid is a follows. Table 2 SPECIFICATION Specific gravity at 25 0 C/24 0 C 0.955 0.975 Viscosity at 25 0 C (max) 800 cps Iodine value (min.) 240.00 Ash (max) 1 % Moisture (max.) 0.5% Acid value (max.) 14 Source: www. Cashew inida.com (marketing of CNSL) OIL EXTRACTION No documentation of commercial oil extraction has been identified. Oil, however, can readily be extracted with simple presses and expellers. Table 3 OIL EXTRACTION Palmitic acid 4.1 17.3% Straric acid 1.5 11.2% Oleic acid 68.2 80.4% Linoleic acid 0.21 7% Source: www. Cashew inida.com (marketing of CNSL) The oil is light Yellow, Sweet, odorless and can be stored for long periods without becoming rancid. BY PRODUCTS The press cake as a byproduct from the extraction process would be suitable for use in human and animal feed. EQUIPMENT Roasting baths/ drums with troughs to catch the CNSL, water spraying equipment for cooling, and shelling machines. There is a lack of identifiable information in the following areas: Agricultural Aspects, planting period, oil extraction, processing methods, nomenclature of products and equipment. Marketing : The refined CNSL is marketed to paint and resin in industries. Packing : Packaging is done for easy transportation, usually, barrels are used for packaging. Transportation : The refined CNSL is transported by Lorries. TOP 5 COUNTRIES FOR PRODUCTION OF CASHEW NUTS (WITH SHELL) It is interesting to note that cashew spread within these countries with the aid of elephants that consumed the cashew fruit along with its nut. As the nut was too hard to digest, later, the undigested nut was expelled with the droppings and that resulted in the spurt of cashew plants throughout these countries. Subsequently, the tree spread to a number of countries in Africa, Asia, Latin America and West Indies. The Portuguese traders thus introduced the cashew tree into India and Africa to prevent soil erosion. Cashew is now widely cultivated for its kernel, fruit, cashew nut shell liquid and other products. However, it is mostly found in the coastal regions of South Africa, Madagascar, Tanzania, and in South Asia, from Sri Lanka to the Philippines. In 2015, the following countries got the top five positions. www.apjor.com Vol: I. Issue LVII, November 2017 326

Table 4 TOP 5 COUNTRIES (IN 2015) COUNTRY Production MT (Metric Tons) VIETNAM 1,110,800 NIGERIA 950,000 INDIA 753,000 IVORY COAST 450,000 BENIN 180,000 World Total 4,439,960 Source: Cashew Hand Book 2014 Chart 1 TOP 5 COUNTRIES (IN 2015) Production MT (metric tons) 45,00,000 40,00,000 35,00,000 30,00,000 25,00,000 20,00,000 15,00,000 10,00,000 5,00,000 0 VIETNAM NIGERIA INDIA IVORY COAST BENIN World Total VIETNAM NIGERIA INDIA IVORY COAST BENIN World Total EXPORT OF CNSL From the economic point of view, cashew has many advantages. Cashew is an export oriented commodity that earns foreign exchange, provides employment opportunities to lakhs of people and generates income to a large level. So, it is a boon to the development of cottage and small scale industries. It is the backbone of rural economy. It is the only industry mostly requiring women labourers. India earned so for Rs 439068 lakhs through the export of cashew kernel to United States, Japan, Russia and European countries and Rs 5946 lakh through selling cashew nut shell liquid. Table 5 EXPORT OF CNSL COUNTRY PRODUCTION ( IN TONES) PERCENTAGE USA 6550 87.64 Indonesia 384 5.14 spain 213 2.85 korea 125 1.67 japan 154 2.06 china 32 0.43 maxico 16 0.21 Total 7474 100.00 Source: Cashew Hand Book 2014 www.apjor.com Vol: I. Issue LVII, November 2017 327

Chart 2 EXPORT OF CNSL Production MT (metric tons) USA Indonesia spain korea japan china maxico 2.85% 1.67% 2.06% 0.43% 0.21% 5.14% 87.64% RAW CASHEW NUT IMPORTS INTO INDIA The cashew tree, Anacardium occidentale, belongs to the Anacardiance family of plants. This tree has spread from Brazil to other parts of the world. As a result, today cashew is planted in 32 countries and mainly found in 28 countries. However, the major producers are Cambodia, India, Indonesia, Sri Lanka, Thailand, Vietnam and Korea in Asia, Benin, Ghana, Guinea-Bissau, Ivory Coast, Nigeria, Senegal and other small producers of West Africa, Kenya, Madagascar, Mozambique and Tanzania in East Africa and Brazil, Peru and other small producers in Latin America. The following table is clearly explained the projected raw cashew nut of major countries like India, Vietnam, Brazil, Ivory Coast and World Production. Table 6 RAW CASHEW NUT IMPORTS INTO INDIA YEAR QUANTITY VALUE 1990-91 83 1340 1991-92 106 2667 1992-93 135 3763 1993-94 191 4827 1994-95 228 6909 1995-96 223 7601 1996-97 192 6406 1997-98 225 7440 1998-99 181 6802 1999-00 201 9535 2000-01 249 9608 2001-02 356 9600 2002-03 401 12366 2003-04 452 14009 2004-05 579 21832 2005-06 565 21630 2006-07 586 18116 2007-08 606 17468 2008-09 606 26318 2009-10 753 30374 2010-11 504 24795 2011-12 809 53378 2012-13 892 53311 2013-14 771 45640 Source: Cashew Hand Book 2014 www.apjor.com Vol: I. Issue LVII, November 2017 328

Axis Title Asia Pacific Journal of Research Chart 3 RAW CASHEW NUT IMPORTS INTO INDIA 60000 50000 40000 30000 20000 10000 QUANTITY VALUE Linear (QUANTITY) Linear (VALUE) 0-10000 0 5 10 15 20 25 30 Axis Title CONCLUSION CNSL industry is a suitable industry for the rural unemployed youth. It is the best way to promote rural village industry in cashew nut producing areas. Indians live in villages and depend on agriculture and its allied activities. As we know agriculture as a seasonal and unpredictable work, the output could not fulfill the farmer s wishes. In these situations, the CNSL business is the only way to promote rural economy and increase the standard of living of the rural people. In short, CNSL industry, promotes employment of the rural youth, income of rural areas, national and international trade and finally the standard of living of the rural people. A strong team of labours have to be brought in for successful implication. However, loans are available for the capital and a present day model involves lot of revision thus resulting in saving of unnecessary expenses. A very good produce always fetches good price in the market and we can set up our own demand in the near future if we perform well. REFERENCES: 1. Misra, S.K. and Puri, V.K., Indian Economy (Himalaya publishing House, 2004) 2. Giriappa, S., The Role of Plantation Crops in Agricultural Development. 3. Singh, H.P., Balasubramanian, P.P. and Habballi, V.N. (Eds) Indian Cashew Industry, Directorate of Cashew nut and cocoa Development, Kochi 11 4. Castro Dantas T.N., Novel antioxidants from cashew nut shell liquid applied to online stabilization, fuel 82 (2003), p.1465-1469. 5. Kharana, P.K., Export Management, (Fourth Revised Edition) 6. www.cardolite.com 7. www.sciencedirect.com 8. www.cashewindia.com www.apjor.com Vol: I. Issue LVII, November 2017 329