India: Raw cashew imports fall on high prices
Raw Cashew Nut (RCN) imports declined during the first quarter of the current fiscal due to rise in…Raw Cashew Nut (RCN) imports declined during the first quarter of the current fiscal due to rise in prices in the West African growing countries.
Increased offtake by Vietnam, which has overtaken India in cashew processing and exports, of late, following setting up of more highly mechanised units, coupled with emergence of new processing units in the producing countries such as Tanzania, Ivory Coast, is creating a squeeze in availability of the raw nuts, Chandran Prabha, Vice-Chairman, Cashew Export Promotion Council of India (CEPCI), told BusinessLine.
He said, consequently, the prices of raw nuts have turned firmer and currently ruling at $1,650 a tonne. “The landed cost comes to around ₹110 a kg. Add to this, is the high processing cost here and the withdrawal of incentives for export. Meanwhile, the government has hiked the wages for the workers by over 35 per cent with effect from April 1, last. All these factors have raised the kernel prices,”Chandran claimed.
Rise in RCN prices led to a decline in its imports during April-June this year to 3,07,734 tonnes valued at ₹2,472.02 crore at an average unit value of ₹80.33 kg from 3,12,780 tonnes valued at ₹2,042.27 crore at the unit value of ₹65.29 a kg in Q1 last year.
He said 25 per cent of processing factories in Kerala remained fully closed from April 1 while 70 per cent of the remaining is functioning partially. Consequently, the kernel production has dropped significantly which is reflected in the country’s Q1 exports that have tumbled 17 per cent from that of the first quarter last fiscal, he pointed out.
Sasi Varma, Executive Director and Secretary, CEPCI, told BusinessLine that “a strong domestic market, where the prices rule much above that in the overseas markets, has made it attractive given the high cost of production”.
Total exports during April-June 2015 stood at 22,598 tonnes valued at ₹1,118.77 crore at the average unit value of ₹495.07 a kg.