India: Cashew exporters explore new markets on global economic worries

KOCHI: Cashew exporters are exploring new markets with volumes shipped to the US and Europe facing a slump. Global economic worries and an appreciation of the dollar against other currencies have shrunk cashew exports since December.

The economic slowdown, currency fluctuation and good harvest have driven down the prices in the major markets of Europe and the US. Prices have plunged from $4.65-4.70 per pound to $3.25-3.30 per pound, hitting the exporters hard.

A team of exporters and processors under the auspices of Cashew Export Promotion Council of India is touring New Zealand and Australia, considered to be promising markets.

"We feel that there is a scope to sell more Indian cashew in these markets. Iran is another country with a potential to absorb more Indian cashew. A currency arrangement between India and Iran could lead to more exports from here," said Kailas Cashew Exports proprietor P Somarajan, a team member of the delegation.

At present, a large volume of Indian cashew is being re-exported from Dubai, which has become a gateway to the Middle East. But the weakening of currencies against dollar in the Gulf has cut short the re-exports. "In the last two to three months, exports have dropped from around 100 containers a month to 25," he said.

Source: http://economictimes.indiatimes.com/news/economy/foreign-trade/cashew-exporters-explore-new-markets-on-global-economic-worries/articleshow/12063112.cms