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Vietnam has taken up a large amount of raw nuts from Africa for processing and may ruin India’s idea of increasing cashew exports. The cashew export of India is falling since last two years. The cashew export fell to 82,302 tonnes last year from 1.2 lakh tonnes in 2014-15. The price of imported raw nuts is on a rise and exporting prices of processed nuts is decreasing making cashew exports uneconomical for Indian traders. India gets more than 60% of its raw nuts from other countries for processing.
P Sundaran, Chairman of Cashew Export Promotion Council of India told about rising raw nut prices, “Vietnam has been buying raw nuts from West Africa at a higher price to meet its export requirement. As a result, the raw nut price has escalated to $2450 per tonne.”
The exports were good for India in first two months in this fiscal but then the figures dropped. Vietnam has selling rate much lower than Indian rates due to their lower processing charges. Sundaran also added that “The US and Europe have started buying from Vietnam as its cashew is cheaper though our cashew is superior in quality. We need support from the government through incentives for export.”
Vietnam’s pricing and aggressive selling strategy are pushing down the prices of cashew in the market to $ 4.8 per pound from more than $ 5 rate before. The industry sources tell that Vietnam has large export targets and so the country is busy buying and stocking on raw nuts.
India is looking towards Indonesia and East Africa to buy raw cashews that would be better in quality. The harvest is expected in August and September. Indian production is also expected to improve. The festive season is starting in Indian from August so the local demand will start rising and the cashew industry is all prepared for it.
The cashew stock of most traders is finished after GST and so they will start buying. The current prices in the local market are Rs. 810 per kg. The export market prices are only Rs 725 per kg which is much less. The prices may increase once the festive season starts off.
India is consuming about 3 lakh tonnes of cashew annually and is the largest consumer market for cashews. The rate of consumption is increasing about 5% every year. The consumption is more than two times the exports.