Cashew kernel imports come down on duty hike

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.

The Hindu