Lower cashew nut prices to spike dry fruit business

The 7.5 per cent VAT cut, higher demand and optimum production will be a boon for traders

Cashew nut prices have gone down by 20 to 30 per cent in the last few days after the state government reduced its VAT by 7.5 per cent. Traders at APMC market in Navi Mumbai are anticipating an increase in the demand of dry fruits in the next few months after experiencing a slowdown in business for over a year.

Sunil Chabbria, a trader and member of Federation of Associations of Maharashtra (FAM) said, "We were demanding a decrease in VAT on cashew nuts for a long time, as the high prices hampered the dry fruit business.

Now the cut from 12.5 to five per cent will increase their demand cashew nuts. Consequently, the demand for other dry fruits will also increase, which already have five per cent VAT on them."

According to traders, the demand for dry fruits was at its lowest in the APMC market during last Ramzan and Diwali, reportedly due to scorching inflation.

However, they anticipate an increase in business this year due to optimum production of dry fruits, especially of cashew nuts. They are hoping that the items will be available at cheaper rates for atleast a year.

Source: http://www.mid-day.com/news/2012/apr/010412-Lower-cashew-nut-prices-to-spike-dry-fruit-business.htm