India: Higher unit value affects cashew kernel exports
While competition from other nuts coupled with rise in kernel prices are attributed to the decline in exports, a higher import duty is pointed out as the reason for the lower imports of kernels, trade sources said.
“A sharp rise in the imported raw cashew nut prices has resulted in a corresponding increase in kernel prices,” Sasi Varma, Executive Director and Secretary, Cashew Export Promotion Council of India, told BusinessLine.
Industry sources at Kollam said the rise in raw cashew prices has pushed the kernel prices up and a parity price from exports is not available. “We have to import to as the indigenous raw cashew production is below 50 per cent of the industry’s annual requirement,” they said.
Between April and July, total exports stood at 34,917 tonnes valued at ₹15.3 billion at an average unit value of ₹437.95 a kg as against 41,502 tonnes valued at ₹16.2 billion at the unit value of ₹389.69 in the same period a year ago. Similarly, shipments of roasted and salted cashew dropped to 278 tonnes valued at ₹111.5 million from 684 tonnes worth ₹240 million last year. There has been a significant rise in the unit value of cashew nut shell liquid and consequently its exports dropped to 2,088 tonnes valued at ₹99.2 million against 2,752 tonnes worth ₹102 million. The unit value this year was ₹47.52 a kg as against ₹37.10. (1Rs= $0.016 USD)
Raw cashew import
In contrast, imports of raw cashew increase during the first four months of the current fiscal despite a sharp rise in prices.
Between April and July this year, 4,25,090 tonnes of raw cashew valued at ₹27.7 billion were imported at an unit value of ₹65.10 a kg. Imports during the same period last year stood at 3,52,203 tonnes valued at ₹19.3 billion at an unit value of ₹54.85 a kg.
According to KA Retheesh, Managing Director, Kerala State Cashew Development Corporation, increased offtake by Vietnam has pushed up the demand for raw cashew. He said nearly 50 per cent of the raw cashew processed in the country is absorbed by the domestic market.
Source: thehindubusinessline.com
