Cashew association asks for big loan to support exporters

Cashew association recommended the government should instruct banks to offer preferential measures to help exporters buy raw cashew nuts from the upcoming harvest season.

Cashew producers need large amounts of capital to buy raw materials for this year production (Photo:english.vovnews.vn)

Dang Hoang Giang, general secretary of the Vietnam Cashew Association (Vinacas) warned cashew exporters would have to cope with many difficulties this year, including high interest rates, a shortage of power, and a lack of raw materials.

Giang expected in 2011, nearly 300 cashew producers would buy 380,000 tons of raw cashew nut from local farmers and 450,000 tons from abroad, of which 80 percent from Africa.

Up to 190,000 tons of cashew worth US$1.5 billion would be sold in both domestic and foreign markets this year, mainly in the US, EU, Australia and China, he estimated.

Vinacas also proposed that the government should ask lenders to offer cashew producers a medium- and long-term loan of VND24.2 trillion ($1.21 billion).

Of the amount, VND9.5 trillion will be allocated to buy the entire amount of 380,000 tons of raw cashew nuts from local farmers.

Moreover, banks should offer a preferential foreign exchange rate of VND11,700 for one dollar to local exporters in order to import 450,000 tons of raw cashew nuts, the association said.

Agricultural products exporter Hamyco is set to buy 25,000 tons of raw cashew nuts this year to produce 5,000 tons of cashew.

Of the amount, 3,000 tons will be exported to Australia, England, Japan and China, while the remainders will hit store shelves in local market.

Hamyco general director Nguyen Thi My said the firm will need VND1 trillion ($50 million) to buy raw cashew nuts for this year production.

However, the working capital of the company is only 30 percent of the required amount, she said, adding the firm has to borrow the remainders from banks.

Another agricultural products exporter My Le also planned to buy 10,000 tons of raw cashew nuts from farmers in Binh Phuoc Province, which provides the best quality cashew nut around the country.

My Le will produce around 2,000-3,000 tons of cashew for export from the amount, said Le Tan Minh, head of the import-export and accounting department.

Minh said the firm would spend nearly VND300 billion ($15 million) to buy materials. The amount came from bank loans with common interest rates.

Minh Doan Ltd. is going to buy around 7,000 tons of raw cashew nuts from farmers, using the firm’s capital and a loan of VND20 billion ($1 million), said director Truong Minh Doan.

(Source: http://www.saigon-gpdaily.com.vn/Business/2011/3/90096/)