Success Story of Safalam Cashew Processing Society - Sales of Rs 1 crore through cashew processing

The Safalam Cashew Processing Society of Kasaragod district of Kerala is one of the successful groups of Kudumbashree women who had reaped success through their unity and self-confidence. 12 cashew processing units and 1 grading-packing centre is functioning under Kasaragod Safalam women cashew Processing Society. 74 women from 12 Grama Panchayaths are the members of the society. They are producing cashews of 21 grades, cashewnut pickle and cashew syrup as well. They are making sales of Rs 1 crore. The cashewnut is being sold under the brand name ‘Paranky Nuts’.

Evolution of Safalam Cashew Processing Society

The Safalam Cashew Processing Society was launched during 2008-2009. The society was started under the leadership of Kudumbashree Kasaragod District Mission.  Safalam Project implemented in Kasaragod involves the collection and processing of cashew nut grown in the district by the local rural women, who are the members of Safalam Women’s Cashew Processing Society. The society operates and manages 13 cashew processing units, which includes one Central Grading and Packing Centre at Chattanchal and twelve primary processing units, spread across 12 Grama Panchayaths, which function in a hub and spoke format.

The units are functioning in Ajanur, Bedaduka, Enmakaje, Kallar, Karaduka, Kayyur Cheemeni, Kodem Belur, Kuttikol, Panathadi, Pallikera, Pilikode, Pullur Periya and Chemnad Panchayaths of Kasaragod. Samagra, Dhanam, Keerthi, Unity, Aishwarya, Mathruka, Udayashree, Dhanashree, Aishwarya, Safalam, Menma, Gramashree and Thejas are the units functioning under Safalam Cashew Processing Society.

Kudumbashree Mission had given Rs 50,000 to every unit as subsidy. Apart from that, Rs 17,500 was given as revolving fund.  Rs 33 lakhs was given to Safalam Cashew Processing Society by Kudumbashree Mission from National Rural Livelihood Mission (NRLM). Along with that, a pickup van was also given for helping them in their sales purposes.

Cashew nut being available in plenty and being familiar to the works related to the cashew nut production encouraged the members to launch such an enterprise. Most of the women in the units had received basic education only and are from financially backward families. To help the units, a consortium of Safalam units was opened in Chattanjal Mini Industrial building. The Consortium is registered under Charitable Societies Act, 1860. The units work under this consortium and through the consortium crisis management fund was also given to them.

 A consortium is a group made up of two or more individuals units in the same sector that work together toward achieving a chosen objective. The consortium/societies have been established to deliver a host of services to Kudumbashree units, through establishing backward and forward linkages and instituting a professional management structure. The consortium is owned by Kudumbashree women entrepreneurs, and run with professional support. The consortiums in Kudumbashree Mission are legally registered under Charitable Societies Act. A charitable organization is a type of Non-Profit Organization (NPO). Its goals are social wellbeing of the units and its members. 

The consortiums are organizational forms that will improve the bargaining power, net income and quality of micro entrepreneurs, contribute to the scale of production, helps in cost reduction by collective raw material purchase and organized marketing. This helps in collective action and reduces the chances of defunctioning of member units. Also if some member units/members come to a crisis they financially support from the pooled funds. The consortiums take all licenses and other legal requirements.

How Safalam Cashew Processing Society works?

The units procure the cashew nuts from the cashew nut farmers. Each unit has a secretary and president. After procuring the cashews they dry it and bring it to the unit at Chattanjal along with the bill. The dried cashews would be procured and the units would get a commission of Rs 3 per kilo for drying the cashews. The units bring the cashews by grading it into 10 types and later at the grading and peeling unit the cashews are graded into 21 different types viz., W180, W210, W240, W320, SW, RW, DW, RW2, FW, KW, JH, SPLIT, SPLIT2, K, LWP, SWP, SP, DP and BB. After grading the cashew nuts are packed. The workers would get Rs 45 for cutting each kilogram of cashew and Rs 60 for peeling. A worker could earn upto Rs 350 per day. The first grade cashew is available in 1 Kg and half Kg packs. The cashews are also available in 1 Kg, 500 gm, 250 gm and 100 gm packs as well.

The product of Safalam cashew is available in the market under the brand name ‘Paranky Nuts’. 1 Kg of Paranky Nuts costs Rs 1000. Paranky Nuts is also available in 500 grams and 250 grams’ packet. Paranky Nuts is receiving huge demand from the bakeries in and around Kasaragod district. It is also on sale in wholesale rate at places like Payyanur, Cheruvathoor, Kanjangad and Thaliparambu. The same is also sold through Kudumbashree melas and regional trade fairs. The cashews have shelf life of 6 months.

The unit members of Safalam Cashew Processing Society are getting an average of Rs 9000 as monthly income from the initiative. The Safalam Cashew Processing Society in Kasaragod had been making notable interventions by being the notable brand in the market. The Safalam cashews are also getting calls from exporters as well. The cashews are being sold in nearby places like Kasaragod, Payyannur, Cheruvathoor, Kanhangad, Thaliparambu etc.

Safalam Cashew Processing Society in Kasaragod was started during 2008- 2009. After 10 years of working, Safalam processing unit has turned out into an initiative that could change the lives of many common women. The District Mission of Kasaragod has helped Safalam Cashew Processing Unit to become one of the successful initiatives in the state. Kudumbashree Mission would extend to any women groups who wish to launch this kind of societies.