For the first time, India imports cashew kernels

Kochi, Jan. 1: 

Cashew exports continued to decline during the current fiscal so far, while imports of cashew kernels are gaining momentum.

Exports during April-November stood at 60,585 tonnes valued at Rs 2,477.42 crore against 74,093 tonnes valued at Rs 3,002.34 crore in the corresponding period the previous fiscal.

During the first eight months of the current financial year, the average unit value increased to Rs 408.92 a kg from Rs 405.21 in the same period a year ago.

However, the unit value fell to Rs 395.60 a kg in November whereas it was at Rs 443.59 in November last year and notwithstanding exports in November fell to 7,549 tonnes valued at Rs 298.63 crore from 9,377 tonnes valued at Rs 415.96 crore in the same month last year.

Availability of other tree nuts at competitive prices coupled with the unfavourable economic conditions prevailing in traditional overseas markets impacted the demand for cashew kernels, export sources told Business Line.

The traditional and other markets overseas were quiet last week, Pankaj N. Sampat, a Mumbai-based dealer, told Business Line.

The domestic market saw some inquiries but not much business was done.

China is reported to be buying selectively in Vietnam but volumes are small, market sources said.

Range of prices remained unchanged and was for W240 from $3.70-3.85; W320 $3.30-3.45; W450 $3.05-3.15; SW $2.60-3.10; SSW $2.40-2.50, splits $2.05-2.20 and pieces from $1.45-1.70 an lb (f.o.b).

Despite limited activity for over a month until week before last, there has not been much change in kernel prices. Some processors offered at the lower end of the range and the offers were quickly picked up.

But, in general, most processors were reluctant to sell at lower levels, as they probably expect to pick up after the holidays, he said.

India has, probably, for the first time according to official statistics, imported 3,245 tonnes of cashew kernels valued at Rs 53 crore at a unit value of Rs 163.38 kg during April-November.

Imports in November stood at 298 tonnes at unit value of Rs194.96 a kg.

According to the Cashew Export Promotion Council of India, import of cashew kernels through ‘mis-declaration’ and under-invoicing has become rampant and that, in turn, has badly affected the domestic industry.

Business Line