From Africa for processing Vietnam has taken up a lot of raw nuts which will ruin India’s idea of increasing cashew exports. Since last two years, there has been seen in falling in the price of the cashew export of India. In 2014-15, last year from 1.2 lakh tonnes, the cashew export fell to 82,302 tonnes. Making cashew exports uneconomical for Indian traders, exporting prices of processed nuts is decreasing and the price of imported raw nuts is on a rise. From other countries for processing, India gets more than 60% of its raw nuts.
The Indian Cashew Export Promotion Council Chairman P Sundaran told that from West Africa at a higher price Vietnam has been buying raw nuts to meet its export requirement and this is the reason for rising raw nut prices. So the per tonne the raw nut price has escalated to $2450.
In this fiscal, for first two months the exports were good for India and after this, the figures dropped. As the Cashew processing charges are lower than other countries, so in comparison with Indian rates, the selling rate of Vietnam is much lower. As the cashew of Vietnam is much cheaper and high in quality than India, so the US and Europe have started buying cashew from Vietnam. Through incentives for export, we need support from the government.
The main reason for pushing down the prices of cashew in the market is Vietnam’s pricing and aggressive selling strategy. Before it was more than $ 5 rate and now it is $ 4.8 per pound. Vietnam has large export targets as per industry sources and so the country is busy buying and stocking on raw nuts.
To buy raw cashews India is looking towards Indonesia and East Africa and the cashew must be better in quality. In August and September, there has been expected of harvesting. From August the festive season is starting in India. So due to this, there will be an increase in local demand and the cashew industry is ready to meet the local demands.
After GST, the cashew stock of most traders is finished and so they will start buying. Now Rs. 810 per kg is the current prices in the local market. Only Rs 725 per kg is the export market prices and it is very less. Once the festive season starts off, the prices may increase.
Annually there is a consumption of 3 lakh tonnes of cashew and in the market, it is the highest consumption. Every year about 5%, the rate of consumption is increasing. It has been seen that more than two times is the consumption compared with the exports.