Raw cashew nut exports decline 5% in FY11

Strong domestic demand and shortage in raw cashew nuts has led to decline in India’s cashew kernel exports in the 2010-11 financial year. The second-largest exporter of cashew kernels in the world witnessed a marginal drop of five per cent in volume to a little over 100,000 tonnes during the year. In 2009-10, India’s cashew kernel exports stood at 108,120 tonnes.

Though the Cashew Export Promotion Council of India (CEPCI), under the ministry of commerce, is yet to compile export data from customs offices at various ports, industry analysts estimate exports for FY11 at about 102,000-105,000 tonnes. In value terms, however, Indian exporters are likely to register higher earnings by about 10 per cent to over Rs 3,200 crore compared to Rs 2,906 crore in 2009-10.

“The share of Indian cashew in the international market is on the decline for a couple of years mainly due to slackening demand from the US and the European Union. The growth in demand from Japan was steady while it was negligible from Australia. The main growth this year came from West Asia and Arab countries,” Pankaj Sampath, of Samsons Trading Co, a Mumbai-based trader, told Business Standard.

The average unit value realisation was higher by 27 per cent to Rs 350 a kg as against Rs 275 a kg in the previous year for Indian exporters.

Another major reason for drop in exports was due to shortage of raw cashew nuts. “The supply situation is very tight from West African countries. The harvesting of domestic crop has just begun and going by the early predictions, the production could be around 500,000 tonnes,” he said.

The crop in Kerala and Karnataka is reported to be normal this year, while it is below normal in Maharashtra, Goa and Konkan region. The Directorate of Cashew and Cocoa Development (DCCD) expects the domestic crop at around 700,000 tonnes for the year, about 11 per cent more than the last year.

This year, the area under cashew nut has gone up to 920,000 hectares compared to 890,000 hectares in 2010, a growth of 3.3 per cent. The DCCD has been adding around 20,000 hectares under the cashew every year for the past three years.

“The exporters are not much worried with slump in exports as they are generating huge returns from the domestic market. The consumption in the country is on the higher side due to high disposable incomes,” a Mangalore-based exporter said.

Prices of cashew kernels in the domestic market are hovering between Rs 375 a kg and Rs 475 a kg (ex-factory) depending on the grade of cashew. Typically, the W320 grade cashew kernels are currently traded at around Rs 500 a kg (ex-factory).

(Source: http://www.business-standard.com/india/news/raw-cashew-nut-exports-decline-5-in-fy11/432947/)