Cashew exports decline on surging raw nut prices

KOCHI, SEPTEMBER 24: 

Export of cashew kernels continued to show a declining trend while the domestic demand has witnessed an upsurge, of late.

Shipments of cashew during April-August 2014 fell to 46,240 tonnes valued at Rs2,031.05 crore from 52,771 tonnes valued at Rs2,120.04 crore during the corresponding period last year, according to Cashew Export Promotion Council of India (CEPCI) sources.

The unit value during the current fiscal stood at Rs439.24 a kg against Rs401.74 last fiscal, he said. So far during the current fiscal there has been a decline in exports of cashew kernels and allied products, K Sasi Varma, Executive Director and Secretary, CEPCI, told Business Line.

“High raw nut prices resulted in high kernel costs which makes it difficult to sell in overseas markets. Consequently, more quantities are sold to the domestic market,” he said.

Export of salted and roasted kernels dropped to 488 tonnes valued at Rs18.99 crore at the unit value of Rs389.46 a kg from 842 tonnes valued at Rs30.40 crore at the unit value of Rs360.84 during the period under review last fiscal.

Cashew nut shell liquid shipments also fell sharply to 3,095 tonnes worth Rs13.54 crore from 4,023 tonnes valued at Rs14.63 crore in the first five months of last year.

Meanwhile, imports of raw cashew nuts (RCN) have soared to 5,79,215 tonnes valued at Rs3,799.71 crore at the unit value of Rs65.60 a kg during April-January 2014 from 4,86,574 tonnes valued at Rs2,638.01 crore at the unit value of Rs54.22.

KA Retheesh, Managing Director, Cashew Development Corporation, said that Indian annual cashew exports used to be around 1.25 lakh tonnes from the organised sector which sells an equal quantity on the domestic market also. At the same time around 1.25-1.50 lakh tonnes of cashew kernels are marketed in the country by the unorganised sector. The demand is mainly for the pieces while wholes have also good demand. The peak demand season has started and it has already reflected on the prices which have gone up by 25 per cent, he said.

The prices of wholes at present ranges between Rs800 and Rs1,000 a kg whereas in the international market the average price rules at around Rs440.

During the season, RCN prices have gone up by $150-250 a tonne depending on the origin and quality. On an average, RCN prices in 2014 have been 15-20 per cent higher than 2013, Pankaj N Sampat, a Mumbai-based dealer said.

The Hindu