After a record export of almost Rs 5,000 crore last year, cashew exporters are finding the going tough this year with exports yet to pick up and prices of imported raw cashew ruling high.
Cashew exports have dropped 15% in quantity and 6 % in value for three months ended June 2014 at 25,305 tonne valued at Rs 1,106 crore. India has been out priced by Vietnam in the international market.
This may not be too much of a worry for the exporters right now. What is bothering them is that the during the same three months last year, the raw cashew imports went up 53% to Rs 1,825 crore. In terms of quantity, it was higher by 28% at 2,78,365 tonne.
"Raw cashew nut prices are hovering around $1,300 per tonne. Except for a brief period, the prices of raw nut bought from Ghana and Ivory Coast have remained above $1,000," said Babu Oommen, Chairman of Alphonsa Cashew Industries. At the end of last year, the raw nuts from Tanzania and Mozambique had burned a hole in their pocket at $1,400 per tonne.
The exporters expected the prices to ease when the production from west Africa came into full swing. An export price in the range of $3.50 to 3.75 per pound would justify the high import price, they feel. But the reality is that cur rent Indian prices are around $3.20 per pound. India's cashewnut production Development for 2013-14 is estimated at 7,36,000 tonne by Directorate of Cashew nut and Cocoa. The raw nut import came to over 7,50,000 tonne last year.
"The export is almost entirely dependent on imports. The domestic production mainly goes for processing for the local market," Babu Oommen said.
The Economic Times, 25 July 2014
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