"Though cost of operation is less in Vietnam as the factories are mechanised, they too were affected to some extent, " said R Bhoodes, chairman of Cashew Export Promotion Council of India (CEPCI). India's competitive edge in cashew has been blunted by the influx of cheaper Vietnam cashew in major consuming countries like the US, though former has superior quality. Since India and Vietnamare currently the two major cashew exporting countries, CEPCI is looking for areas of cooperation for the survival of both.

CEPCI has signed an MoU with Vietnam Cashew Association this month to cooperate and jointly work in the areas of common interest of cashew industry particularly on undertaking market promotional activities, dissemination of price and market information, price fixation and on other matters connected with the development of the industry.

They have also agreed to send mutual delegations to Vietnamand Kollam in Kerala, the cashew hub of India.The cashew export from India has shown a 35% fall for the nine months ended at 50, 078 tonnes.

However, the raw nut import has gone up by 41% to7, 70, 193 tonnes for the period."There were imports for processing for local consumption. Besides, the raw nut prices have dropped in the last few months.

Around 3 lakh tonnes of raw cashew is piled up in Tanzania as the country's efforts to sell them at a high price failed, " said P Somarajan, proprietor of Kailas Cashew Exports.