Seasonal demand pushes up cashew exports in October

KOCHI, NOVEMBER 24: 

Strong winter demand appears to have resulted in an upsurge, after a continuous decline for about six months, in exports of cashew kernels and other cashew products in October.

The country shipped out 11,325 tonnes of cashew kernels in October this year valued at ₹526 crore at an unit value of ₹464.44 a kg against 10,439 tonnes of cashews worth ₹434.68 crore at ₹416.40 a kg same period last year.

However, the total shipments during the first seven months of the current fiscal continued to be far below exports during the same period the previous financial year.

The country shipped out 68,719 tonnes of cashews in April-October 2014 valued at ₹3,000.29 crore at an average unit value of ₹436.60 a kg.

In the corresponding period last year it stood at 72,230 tonnes valued at ₹2,954.58 crore at the average unit value of ₹409.05 a kg.

Raw nut exports

Interestingly, Indian export of raw cashew also soared during the period under review.

Export of raw nuts in October rose to 10,572 tonnes valued at ₹91.64 crore from 989 tonnes valued at ₹5.84 crore in the same period last year. The unit value realised in October this year was ₹86.68 a kg (₹59.09).

India shipped out 11,130 tonnes of raw cashew nuts during April-October this year valued at ₹114.35 crore at the unit value of ₹102.74 a kg against 3,063 tonnes valued at ₹17.89 crore at the unit value of ₹58.39.

Much of the shipments of raw nuts were to Vietnam, where Indian cashew processors have established processing facilities.

They are believed to be shipping out from the imported raw nut stocks to their units in Vietnam, trade sources said.

Imports soar

Imports of raw nuts during April-October stood at 7,63,548 tonnes valued at ₹5,172.59 crore and the unit value paid was at ₹67.74 a kg.

Imports in the corresponding period last fiscal were at 6,02,298 tonnes valued at ₹3,279.04 crore at the unit value of ₹54.44 a kg, Sasi Varma, Executive Director and Secretary, Cashew Export Promotion Council of India, told BusinessLine.

He attributed the rise in exports of cashew kernel, of late, to the demand for winter/Christmas and New Year season.

Price outlook

Meanwhile, Pankaj Sampat, a Mumbai-based dealer, said that cashew continued to be the most reasonably priced nut moving in a relatively narrow range when compared with other nuts.

Therefore, “it would be reasonable to expect prices to remain in this range and maybe even move up a bit – depending on buyer behaviour. The cashew kernel prices are likely to in the range of $3.40-3.70 for next 3-4 months and maybe more,” he said.

Source:  The Hindu