Wednesday, April 2, 2014
KOCHI, APRIL 2:
The cashew market witnessed buoyancy in March with reasonable activity in kernels and good activity in raw cashew nut trade, after a sluggish trade in February.
At the end of the month, however, the market was steady with selling interest being lower in the first quarter. The domestic market has also been ruling steady within a narrow range with periodic bursts of activity. It was evident from the shipments in February, when exports dropped to 7,009 tonnes (valued at ₹315.43 crore at a unit value of ₹450.04 a kg) against 7,972 tonnes (valued at ₹298.69 at the unit value of ₹374.67 a kg) in the same period a year ago.
Even though there was a decline in volume, the value realisation increased because of the rise in unit value and the exchange rate, Sasi Varma, Executive Director and Secretary, Cashew Export Promotion Council of India, told Business Line.
Import of cashew kernels has plunged due to the higher import duties.
Last week, the range of offers for the second quarter was W240 $3.60-3.75, W320 $3.15-3.30, W450 and SW320 $2.95-3.05, SW360 $2.75-2.90, SSW $2.45-2.55, splits $2.40-2.55, pieces $1.65-1.75/lb (f.o.b). Offers for second half were a few cents higher.
After a decline in February, raw cashew prices have moved up a tad in the last two weeks. Current prices are at around $850-875 c&f for Nigeria, $950-975 c&f for IVC, $1,075-1,100 c&f for Ghana and around $1,150 c&f for Benin.
These prices are 10-15 per cent higher compared with the same period last year (kernel prices are 3-5 per cent lower, however). Such disparity cannot be sustained – something has to change, Pankaj N Sampat, a Mumbai-based dealer said.
“Shipments of West African raw cashew have started. During April, we will see whether flow from Ivory Coast will be smooth despite restrictions on movements. Initial reports indicate that efforts to enforce quality standards are bearing fruit,” he said.
Traders said that the downside from current levels will be limited. At the same time, there is no reason to expect a big jump in prices, it said.
But, a reasonable and gradual price increase in second half of the year is possible unless the raw cashew prices drop significantly during April-May. Decline in raw cashew prices after May will not have any major impact because that will be accompanied by decline in kernel yields.
Sunday, March 30, 2014
Cashew prices fell further by Rs 10 per kg in the national capital today largely due to subdued demand from retailers and stockists amid adequate stocks.
Fresh arrivals from producing belts also put pressure on the cashew prices.
Cashew kernel (No 180, 210, 240 and 230) prices fell by Rs 10 each to settled at Rs 870-880, Rs 770-780, Rs 650-655 and Rs 540-580 per kg, respectively.
Marketmen said fall in demand from retailers and stockists amid adequate stocks, mainly led to fall in cashew kernel prices on the wholesale dry fruit market here.
The following were today's quotations (per 40 kg):
Almond (California) Rs 17,800 Almond (Gurbandi-new) Rs 7,900-8,100; Almond (Girdhi) Rs 4,400-4,700; Abjosh Afghani Rs 8,000-22,000.
Almond Kernel (California-new) Rs 620-640 per kg, Almond Kernel (Gurbandi-new) Rs 500-550 per kg.
Tuesday, March 25, 2014
KOCHI, MARCH 25:
Indian exports of cashew kernels continued to show the uptrend despite rise in prices while the imports of cashew kernels which were on the rise have shown a significant drop in recent months.
Total shipments of cashew kernel from the country during April-February 2013-14 rose to 1,09,958 tonnes valued at ₹4,624.35 crore at the unit value of ₹420.56 a kg from 93,841 tonnes valued at ₹3,649.50 at the unit value of ₹388.90 a kg. The export earnings have shown an increase of around ₹1,000 crore
“The increase in volumes can be attributed to the growing awareness about the health benefits of consuming cashews coupled with the easing of the economic situation in Europe and the US” Sasi Varma, Executive Director and Secretary told Business Line.
During February, the exports stood at 7,009 tonnes valued at ₹315.43 crore at a unit value of ₹450.04 against 7,972 tonnes valued at ₹298.69 at the unit value of ₹374.67 a kg. The Union Ministry of Commerce and Industry , so as to stop under invoicing, vide its notification dated December 2, 2013 has fixed the minimum price for import of cashew kernal (broken) and cashew kernel (whole) to ₹288 and ₹400/kg respectively.
Earlier in May 2013, the Department of Revenue has raised the import duty of 45 per cent or ₹60 for cashew kernels (broken) and 45 per cent or ₹75/kg for cashew kernels (whole) whichever is higher.
Following this decision the imports have declined, Varma said. During April-February 2013-14, imports of cashew kernels fell to 4,823 tonnes valued at ₹99.31 crore at the unit value of ₹205.91 a kg from 5,385 tonnes valued at ₹87.31 crore at the unit value of ₹162.13 a kg.
Imports of Raw Cashew Nuts (RCN) dropped sharply to 7,32,478 tonnes valued at ₹4,246.37 from 8,52,183 tonnes valued at ₹5,084.98 crore. “Fall in imports of raw nuts are due to high prices,” Varma said. RCN does not attract any import duty, he said.
Monday, March 24, 2014
KOCHI: Indian cashew exports have reached a new high of Rs4,624 crore, surpassing last year's figure, with one more month to go in the fiscal 2014.
The possibility of exports touching Rs5,000 crore is not ruled out as the exporters could send more shipments in the last month. In 2012-13, cashew exports stood at Rs4,420 crore, which was the highest till now. The fall in rupee value during the year has helped in raising the total value of cashew exports.
Though the volumes have been down in certain months, the value has remained high. For instance in February 2014, the quantity of cashew export is lower by 12per cent at 7,009 tonne. However, the value is up by 6 per cent at Rs315 crore.
The total quantity, too, has almost reached the level in 2012-13 at 1,09,958 tonne at the end of February 2014. In the previous year the total quantity exported touched 1,10,306 tonne.
Higher exports have been achieved despite a 14per cent drop in raw cashew imports at 7,32,478 tonne till the end of February 2014. "Rising prices of raw cashew imported fromTanzania in the last few months have led to slowdown in processing, squeezing the export volumes. As a result many processing factories in Kerala have stopped working,'' said P Somarajan, proprietor of Kailas Cashew Exports. The raw cashew price has eased after touching a high of over $1,400 per tonne.
The raw cashew from east African countries has been traditionally dearer than those from the west African regions, where the harvest has begun. "But this time the prices have been high at the start of the season at $1,150 per tonne. It has declined by $100 now, but is still high,'' he added. India imports 8 to 9 lakh tonne of raw cashew every year.
While the raw nut price remains high, the cashew kernel price has been hovering in the range of $3.15 to 3.20 per pound, a factor which has been worrying the exporters.
"At the price we have been buying raw cashew, we should be getting a minimum of $3.40 per pound. But Indian exporters have been compelled to export at the above price, the rate at which Vietnam, the major supplier in the global market now, sells,'' said Babu Oommen, proprietor of Alphonsa Cashew Industries. Some processors, who had stock of raw cashew nuts from the previous year with them made a killing by selling to other processors. Better domestic production at over 7 lakh tonne helped the exporters to tide over the lower imports to a certain extent.
Friday, March 21, 2014
The Techiman Cashew Dealers Association has appealed to government to support the industry to process the commodity into finished products.
Mr Tony Asare, Managing Director of Techiman-based Rastony Cashew Trading Enterprise, and an executive member made the appeal on behalf of the Association in an interview with the Ghana News Agency (GNA) on Monday at Techiman in the Brong-Ahafo Region.
He said the cashew crop had so many uses and cited that its fruit that is seen as a wasted product now can be processed into alcoholic beverage.
Mr Asare suggested that the Government could through the Public-Private-Partnership (PPP) set up a processing plant at a central location like Techiman, because of the proximity to raw materials, to process the cashew commodity into various valued products.
He noted such a move would expand the avenue of job opportunities in the industry, saying, beside factory workers and other beneficiaries, farmers and casual labourers could to do the fruit picking in the farms.
Mr Asare emphasised that there were more advantages the nation could derive from the industry, citing the injection of foreign cash into the economy by the exporters as well as job creation and income generation for the haulage industry to the warehouses by the wholesalers and retailers as well as to the ports for export.
He stated that Brong-Ahafo was noted for best quality cashew nuts, hence any government support, coupled with low interest rates on loans from the banks to dealers and farmers would make the industry more vibrant in the region.
Mr Asare indicated that one major benefit the region had currently gained from the cashew industry was the reduction of illegal, hazardous migration of the youth to Libya and other foreign countries for greener pastures.
He said the industry had engaged most of the hitherto unemployed youth in the Techiman, Nkoranza and other areas in the region, where the zeal to embark on such dangerous journeys for economic fortunes were rampant.
Wednesday, March 19, 2014
PANAJI: Cashew nut prices have notched another high this year as processors offered the best-ever price of Rs 95 per kg, but farmers are worried fluctuations in weather may scorch their dreams of a good harvest.
When the season started towards the end of February 2014, the first arrivals commanded good value in the market. "Never in the history of cashew farming in the state have prices of Rs 93 to Rs 95 been paid per kg," Goa cashew (processors) manufacturers association advisor A S Kamath said.
A bumper crop in the last 2012-13 season yielded 35% more crop on the west coast from Kerala to Maharashtra. "Though Goa's production had declined from 24,000 metric tonnes to about 18,000 metric tonnes in the last few years the state produced more than 24,000 tonnes last season," Goa cashew processors association president Madhav Sahakari said.
Just as demand controls the price graph, the heavy consumption of the tasty nut boosted utilization of the nuts not only in the country but also globally. "As there is no excess of last year at the beginning of this season, processors have to definitely pay a better price," Kamath said.
Of late, with the season seeing more produce flowing into the market, nut prices have stabilized at Rs 87 per kg. Farmers in the state have nothing much to worry about if the prices go up or down. The Goa government has recently hiked the support price to cashew farmers to Rs 100 per kg from the previous price of Rs 90.
The quality of cashew nuts has been satisfactory, as the weather was favourable during the flowering stage and even up to the seeding stage so far. "The transformation from flower to seed is taking place," Kamath said.
"We are closely watching the weather and the crop," Sahakari said. Bad weather may curtail the crop and trigger a price rise. It may adversely affect production by about 25%. "The price may jump back to Rs 90 per kg, but the crop may suffer. If the crop is good, it may stabilize at Rs 75 per kg," Kamath pointed out.
The soaring mercury may not affect the crop negatively, but dew at night can give rise to pests. "Foggy and cloudy conditions are harmful as it boosts tea mosquito bug which damages the crop," agriculture director P Tufani said.
Goan cashews are valued for their taste, as local farmers gather the produce from the ground instead of plucking it prematurely from the tree.
Production during last four seasons varied between 21,000 and 24,000 metric tonnes
Production is inadequate for the 40-odd cashew industries to sustain activity round the year
Raw cashew nuts are imported from west and east African countries like Tanzania, as well as Indonesia
In 2012-13, prices started between Rs 80 and Rs 82 and settled at Rs 68 to Rs 70 as compared to Rs 92 and 95 this season
Foggy conditions boost growth of tea mosquito insect, which damages the cashew crop.
Tuesday, March 18, 2014
THIRUVANANTHAPURAM: The finance inspection wing of the government has detected irregularities in the functioning of the state cashew development corporation (KSCDC) and accused its board and managing director of lack of transparency in procurement and sale.
The report, submitted to the industries department, accused the corporation of flouting all business norms in procurement of raw material and sale of products. It says the corporation had invited open tenders for procurement of cashew kernels but favoured a Kottayam-based company as vendor. In the sale of the product, the corporation accepts an advance amount promising to sell the product based on the buyer's demand and this becomes a liability for it even if there is a rise in market price of the product.
KSCDC managing director K A Retheesh, however, termed the report as baseless. "Any business policy is based on contract rates aimed at making profits. KSCDC would prefer the export of cashew to an Indian company if it is assured of immediate benefits. The bill clearance for export to a foreign company will happen after packing, shipping and receipt, which will take about 50 days," he said. "A government official had written to the National Investigation Agency (NIA), saying that the KSCDC had imported arms and currency notes along with raw cashew kernels. If the company has such criminal antecedents, the home department should investigate it. Such false allegations are aimed at defaming the company, which is struggling for survival," he said.
Retheesh said the corporation has no working capital as against an accumulated loss of Rs 979.33 crore. However, from being a company on the verge of closure in the 90s, with only 20 working days a year, the corporation offers 288 working days a year now. "The company has suffered owing to political high-handedness and false allegations. Its turnover has come down to Rs 125 crore in 2012-'13 from Rs 275 crore in 2011-'12." The corporation has 30 cashew factories, with around 20,000 employees, and it is forced to ensure employment irrespective of loss or profit as a public sector unit.
An official with the industries department said on condition of anonymity that running a public sector company in Kerala was tough. "The company will have to face allegations of misappropriation if it tries to make profits despite odds while those heading it will have to be held responsible if it shuts down. The system is designed to fail," he said.
Monday, March 10, 2014
Cashew exports in the first three quarters are seen higher by 28% in value realisation, and 20% in volume compared with the performance in the same period last year.
Value realisation for the first nine months of the fiscal has already touched R3,888.8 crore and likely to exceed last years performance by a handsome margin. In the last fiscal, cashew exports totalled 1,03,645 tonne with a value realisation of R4,046 crore. India is the world's largest consumer of cashew nuts with trade estimates of consumption ranging from 1,70,000 to 1,90,000 tonne. It is also one of the largest processor and exporter of kernels.
“Following a reasonable growth in usage in all markets in 2013, there are signs that usage will be good in 2014 as well due to the high prices of other nuts and relative stability of cashew prices at the lower end of range of last few years,” Pankaj Sampat of Mumbai-based Samsons Trading said.
“We believe the market may see some volatility between till May 2014 depending on news about the crop progress. After that, it should stabilise and move in a narrow range for rest of the year. If there is any strong kernel demand from the US and EU in March-April, the raw nut prices will not come down and will remain firm,” he added.
Cashew is probably the only nut for which prices have remained steady for two years in a row.
Pratap Nair of Vijayalakshmi Cashews, who is also the ambassador of the International Nut & Dried Fruit Council (INC) feels the consumption of cashew nuts is likely to increase due to a rise in the awareness level of health benefits.
Saturday, March 8, 2014
Vietnam has over taken India in Cashew exports. Vietnam exported 257000 tonnes of cashew nuts in 2013, up 15.8% year-on-year, presenting the 8th consecutive year the country has topped the world’s cashew nut exports.
Raw Cashew nut production in India has more than doubled in the last two decades, according to the experts.
Thursday, March 6, 2014
Vietnam's cashew trading in the first two months of this year declined as increased prices of raw material for cashew nut caused difficulties for companies in production and exports, Xinhua reported.
A report by Vietnam's Ministry of Agriculture and Rural Development shows that the country imported 28,000 tons of raw cashews at USD36 million in the first two months.
The figure represents a 36.4 percent decreased in volume and a 20 percent decreased in value when compared to the corresponding period a year before.
The US was the largest importer of Vietnamese cashew nuts accounting for 20 percent of the total. China came next at 20 percent of total cashew nut exports.
The National Cashew Association of Nigeria (NCAN) said the country produced about 120,000 metric tons of cashew nuts yearly.
NCAN’s National Publicity Secretary, Mr Sotonye Anga, told newsmen in Lagos that the production was huge. Anga said that as a result of the production, there was the need for the federal government to strengthen the cashew value chain. He, however, noted that an unaccounted amount of the production was exported illegally to neighbouring countries.
“Nigeria produces about 120,000 tons of raw cashew nuts yearly and they are mainly exported as raw nuts to India and Vietnam. However, due to the porous nature of our borders, so much unaccounted for and illegal exported raw to neighbouring countries.
“This illegal trend of cashew export is also weakening the nation’s export potential of the crop,’’ Anga said.
Wednesday, March 5, 2014
Kochi, March 5:
Cashew exports during the current fiscal have increased significantly in volume and value. If the trend continues, total shipments will be a record high.
However, Vietnam has overtaken India in cashew exports. For the past eight years, the Far-East nation is the top shipper of cashew.
“We expect record shipments this fiscal. The exchange rate has been favourable for exporters,” Sasi Varma, Executive Director & Secretary, Cashew Export Promotion Council of India, told Business Line.
During April 2013-January 2014, total shipments of cashew increased to 1,00,477 tonnes valued at ₹4,206.26 crore at a unit value of ₹418.63 a kg against 85,879 tonnes valued at ₹3,350.81 crore at the unit value of ₹390.18 a kg.
Export of cashew nut shell liquid rose to 8,260 tonnes valued at ₹40.03 crore against 7,334 tonnes valued at ₹24.29 crore during the period, he said.
Raw nut imports
On the other hand, the exchange rate is unfavourable for some exporters who have to import raw cashew nuts. The volatile exchange rate due to swinging rupee coupled with high (non-parity) prices have dragged imports of raw nuts. This could affect exports at a later stage, he said.
Imports of raw nuts decreased during the period to 6,90,526 tonnes valued at ₹3,896.69 crore from 8,04,425 tonnes valued at ₹4,802.62 crore in the same period a year ago, he said. Though raw cashew nut production India has more than doubled in the last two decades, poor yield is still a cause for concern compared to competitors such as Vietnam.
According to official estimates, raw cashew output in 2012-13 is around 7.3 lakh tonnes (lt) from an area of over 9.8 lakh hectares. This is against 3.48 lt from 5.65 lakh hectares in 1993-94 and 5 lt from 7.7 lakh hectares in 2002-03. Vietnam at the top
The yield in other global producing nations such as Vietnam is lower, official sources told Business Line. Total raw cashew production in Vietnam in 1993 was 1.86 lt from 69,100 hectares. It shot up to 12.73 lt from a total area of 3.31 lakh hectares in 2011, according to the latest FAO statistics. The yield from a hectare is currently 3.8 tonnes in Vietnam against India’s 772 kg.
Varma, who is currently in Japan to participate in Foodex, said: “Japan has always been a favourable market for Indian cashews and our participation in Foodex Tokyo will further strengthen our ties.”
Vietnam reportedly exported 2,57,000 tonnes of cashew nuts in 2013, up 15.8 per cent year-on-year, presenting the eighth consecutive year the country has topped the world’s cashew nuts exports. On the report of record Vietnamese reports, Sasi Varma said, “the difference is that they do not have any domestic market whereas in India, domestic sale is estimated to be more than double of our exports.”
HANOI, March 5 (Xinhua) -- High import prices of raw material for cashew nut has brought difficulties for Vietnam's companies in production and exports, causing declines in the commodity's trading in the first two months of 2014.
According to a report by Vietnam's Ministry of Agriculture and Rural Development, Vietnam imported some 28,000 tons of raw cashews worth 36 million U.S. dollars in the first two months, down 36.4 percent in volume and 20 percent in value year-on-year.
Meanwhile, Vietnam earned 169 million U.S. dollars from exporting 28,000 cashew nuts in the first two months, down 0.1 percent in volume year-on-year.
The United States, China and the Netherlands remained Vietnam's large cashew nuts importers during the period, accounting for 26, 20 and 9.8 percent of Vietnam's total export revenue of the commodity, said the ministry.
Nguyen Duc Thanh, chairman of Vietnam Cashew Association ( Vinacas), said on Vietnam Industry and Trade Information Center's website on Wednesday that import price for raw cashew stays at over 1,000 U.S. dollars per ton, 150 to 200 U.S. dollars higher than that of 2013.
If Vietnamese companies imported raw materials at that price for export processing, they will suffer from loss, said Thanh, adding that these companies should prioritize on buying domestic raw materials for production demand.
According to Vinacas, in 2014, Vietnam's export revenue of cashew nuts, shell oil and processed cashew nut products is forecast to hit 2.2 billion U.S. dollars.
In order to realize the target, Vietnam must import some 650, 000 tons of raw cashews from West Africa, East Africa and Southeast Asia as domestic cashews output is estimated to be 350, 000 tons.
In 2013, Vietnam imported some 651,000 tons of raw cashews worth 621 million U.S. dollars, up 96 percent in volume and 83 percent in value year-on-year, Vinacas statistics showed.
Vietnam pocketed 1.66 billion U.S. dollars from selling 264,000 tons of cashew nuts to world market, up 13 percent in volume and 19 percent in value year-on-year. If included shell oil, and processed cashew nut products, the total export revenue of Vietnam 's cashew sector hit 1.9 billion U.S. dollars in 2013, said Vinacas.
Tuesday, March 4, 2014
COTONOU, March 4 (Xinhua) -- Benin's government and stakeholders in the cashew nut industry have decided to sell a kg cashew nuts at 200 CFA Francs (30 U. S. cents) during the 2013- 2014 season, an official source said on Monday.
A study conducted recently by the Agriculture Ministry revealed that cashew nuts represent the second agricultural export product.
The study found that the export of cashew nuts from Benin to the international market, especially towards China, Indonesia, Vietnam and the European Union, has increased greatly in the recent years, moving from 19,174 tons in 1997 to 69,357 tons in 2006.
Monday, March 3, 2014
HO CHI MINH CITY, Feb 27 (Bernama) - Vietnam's cashew sector aims to earn US$1.8 billion (RM5.8 billion) from exporting 180,000 tonnes of nuts this year, Vietnam News Agency (VNA) reported.
The Vietnam Cashew Association (VINACAS) estimated that nut shell oil and other processed products would contribute to total export revenue of US$2.2 billion (RM7 billion).
VINACAS has set a target of buying 350,000 tonnes of raw cashew nuts from domestic farmers and import 650,000 tonnes from West African, East African and Southeast Asian countries this year.
VINACAS president Nguyen Duc Thanh said Vietnam's agricultural exports including cashew nuts continue to face barriers from its major importers, such as the Food Safety Modernisation Act of the US Food and Drug Administration.
He proposed that the state design policies to encourage businesses to invest more in cashew processing and produce auxiliary products, and to diversify foodstuffs to serve both domestic and foreign markets.
From January to February this year, Vietnam exported 28,000 tonnes of cashew nuts totalling US$169 million (RM541 million), representing a year-on-year decrease of 0.1 percent in volume and a rise of 2.4 percent in value.
The US, China and Holland are the country's largest importers of nuts.