Cashew exports continue to slip; imports rise

KOCHI, OCTOBER 24: 

Raw cashew nuts imports have increased significantly even as exports of cashew kernels continue to drop in the current financial year.

A strong domestic demand for cashew kernels due to significant rise in consumption without corresponding growth in raw cashew nut production in the country is cited as the reason for the rise in imports.

At the same time, raw cashew nuts are also shipped out of the country, of late, to Vietnam, market sources said.

They said Indian cashew processors having processing facilities abroad might be shipping out from the imported raw nut stocks to their units in Vietnam.

Imports of raw nuts during April-September were 6,86,765 tonnes valued at ₹4,547.74 crore. The unit value of the import was ₹66.22 a kg. As against this, imports in the corresponding period last fiscal were at 5,61,971 tonnes valued at ₹3,051.72 crore at the unit value of ₹54.30 a kg.

Whereas, the country has exported 1,999 tonnes of raw cashew nuts valued at ₹16.39 crore at the unit value of ₹81.99 a kg, according to Cashew Export Promotion Council sources.

Imports of raw nuts during April-March 2013-14 totalled 7,58,111 tonnes valued at ₹4,457.72 crore. While it stood at 8,92,365 tonnes valued at ₹5,331.74 crore in the same period the previous financial year, he said.

The exports during April-September 2014-15 dropped to 55,471 tonnes valued at ₹2,445.42 crore at an average unit value of ₹440.85 a kg from 61,866 tonnes valued at ₹2,520.02 crore at the unit value of ₹407.34 a kg in the same period the previous fiscal, Sasi Varma, Executive Director and Secretary, Cashew Export Promotion Council of India (CEPCI) told BusinessLine.

High prices

“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.

He said an increase in demand is generally noticed during the winter months .

The total shipments during April 1, 2013 – March 31, 2014 increased by over 13 per cent to 1,13,620 tonnes from 1,00,105 tonnes in the corresponding period the previous fiscal. Total value realisation stood at ₹4,975.96 crore, he said.

India has a huge domestic market for cashew kernels, trade sources said.

Domestic demand

Domestic markets can absorb some 2.5 to 3 lakh tonnes of cashew kernels of various grades, KA Retheesh, Managing Director, Kerala State-owned Cashew Development Corporation (CDC), toldBusinessLine.

He said exports are around 1.25 lakh tonnes from the organised sector, which sells an equal quantity in the domestic market.

At the same time, 1.25-1.50 lakh tonnes of cashew kernels are marketed by the unorganised sector. The peak demand season has started and it has already reflected on prices, which have gone up by 25 per cent, he said.

Prices of wholes, currently, range between ₹800 and ₹1,000 a kg and even at this rate there is a strong demand. In the international market, the average price is below ₹450 a kg.

- The Hindu