Cashew nut prices have climbed to record levels ahead of the festival season due to higher demand and lower availability.
The prices are so high that they are bound to upset the calculations of even the bulk buyers. Speaking to ET, Mr Madhukar Tikade, materials manager, Haldiram Foods International, said the “prices have gone too high”.
The company’s annual requirement is more than 100 tonne. He said that because of the price rise, the company would keep its requirement at the regular level. He said the cashew processing industry’s estimate of higher festival demand could be correct as the industry had a better picture of market requirement.
Cashew processors expect the demand, which has been rising steadily over the past few years, to witness a 20% increase in the current year. “The feedback from the market this year is that the demand will be robust,” said Mr Babu Oommen, Chairman of the Kollam-based Alphonsa Cashew Industries. The country consumed close to 1.3 lakh tonne of cashew nuts last year, according to rough estimates by the industry. The prices have touched `7,000 per carton for lower white pieces and `8,000 per carton for splits. They stood at `5,000 and `6,000 respectively last year.
The prices have seen a similar increase in the global market mainly due to the fall in the production of raw cashew. The industry estimate of a fall in the production of raw cashew in the country is close to 40%. In West Africa, the leading producer, the extent of fall in production is around 20%. “But our estimates of production and the official estimates do not match,” said the spokesman of a cashew exporter.
The industry’s import of raw cashew has been slightly higher in the January-June period of this year. In 2009, it stood at 7.27 lakh tonne, higher than the 2008 figure of 6.48 lakh tonne. Cashew is also coming into the country through illegal import, say industry spokesmen.
The Economic Times, 17 September 2010
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