Tuesday, January 1, 2013
For the first time, India imports cashew kernels
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.
Source: Business Line
Cashew declines on subdued demand
Increased arrivals from producing belts also put pressure on the cashew prices.
Cashew kernel (No 180, 210, 240 and 230) prices fell by Rs 5 each to settle at Rs 700-755, Rs 675-695, Rs 595-615 and Rs 515-565 per kg, respectively.
Marketmen said fall in demand against adequate stocks mainly led to a fall in cashew kernel prices in the wholesale dry fruit market here.
The following are today's quotations (per 40 kg): Almond (California) Rs 13,950 Almond (Gurbandi-new) Rs 7,000-7,600; Almond (Girdhi) Rs 3,200-3,800; Abjosh Afghani Rs 8,000-20,000.
Almond Kernel (California) Rs 487-502 per kg, Almond Kernel (Gurbandi-new) Rs 350-425 per kg.
Source: financialexpress.com
Vinacas drives cashew nut exporters to death?
Only 50 percent of invited members were present at the eighth conference of Vinacas held on December 21. It was a burning conference, where participants quarreled noisily, a signal showing that the members were in serious divergence.
After the speech delivered by Vinacas’ Chair Nguyen Thai Hoc, former Deputy Chair of Vinacas Nguyen Van Lang made participants thunderstruck when denying all the achievements reported by Hoc.
“The business result in 2009-2012 showed the low capability in the management and forecasting of Vinacas’ leaders, Vinacas’ Chair in person and of the 'G20 group',” Lang said.
The 2011-2012 crop was described as a “disaster” to the cashew industry, when the cashew nut price dropped dramatically from US$10,000 per ton to $7,000. A lot of enterprises incurred loss and many have been on the verge of bankruptcy, including the "G20 group", considered the group of the most powerful cashew exporters.
Vinacas once predicted that the failure of the cashew crop would lead to the increase of the cashew nut prices. However, what happened in reality was quite different. Hundreds of thousands of tons of raw cashew nuts lied idle in storehouses and were not put into processing because of the unsalability.
The long storage time made the cashew nut quality degrade. Meanwhile, more than a half of processed products were low grade which could not be sold. Cashew exporters, who bought tens of thousands of tons of materials from domestic sources and importers at the exorbitant high prices of US$1300-1500 per ton, could not sell products to get back money.
The managers of Vinacas have been accused of deliberately misinterpreting the instruction of the Prime Minister.
In April 2008, the Prime Minister decided that the state budget would prop up $35,000 to Vinacas, so that the association can join forces with other founding members (Cepci from India and Sindicaju from Brazil) to set up the world’s cashew association.
The Instruction of the Prime Minister said that Vinacas was allowed to collect one dollar from every tone of cashew nut exported from Vinacas’ members. The money would be used to pay the yearly dues to the world’s cashew association whose Vietnam is a member.
However, Nguyen Thai Hoc, Vinacas’ Chair, affirmed that Vinacas collects one dollar from every ton of cashew nut exported to raise funds for the activities to be organized.
As such, over the last many years, the money raised from cashew nut exporters has been used for “the re-investment activities of the cashew sector.”
Vinacas’ leadership has been accused of setting up the G20 group which comprises of 29 enterprises, the “big guys” in the cashew industry. The G20 enterprises have been making the corrupt use of their positions in the association to put smaller enterprises under coercion.
In early October 2012, for example, Vinacas proposed the government to list cashew export as a type of conditional business branch without consulting with the member companies.
Under the proposal, enterprises would be allowed to export cashew nuts if they have at least one processing workshop with the capacity of 2,500 tons at least.
Vu Thai Son, Director of Thanh Son Company, said that if the proposal is approved, hundreds of small and medium cashew enterprises would go bankrupted, because they don’t have money for such heavy investments.
Lao Dong
