Cashew prices soar to all-time high

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.
Nutty facts
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.

India Times