Chủ Nhật, ngày 04 tháng 12 năm 2016

India: Hike in raw material price, import duty dampen spirit of cashew units

28 October 2016

Steep increase in raw material price and continuation of import duty up to 10 per cent are the twin factors that dampened the spirit of cashew processing units in North Andhra.

The festival season, which generally sees a heavy demand for finished cashew in the local market, has not brought cheer to the cashew processing units.

The price of raw cashew nuts has gone up this time by 40 per cent. The labour problem has further aggravated their woes as many workers are preferring wages under the National Rural Employment Guarantee Scheme.

The season generally starts in September and lasts till Sankranti.

“The finished cashew (high quality) cost has not increased much this time. It has gone up by Rs.50 or so per kg and export quality cashew is available in the market for Rs.800 to Rs.1,000,” Madhav Sure, finance and marketing head of Arle Cashew Pvt. Ltd, which owns a unit at K. Kotapadu, told The Hindu.

Raw material is not available locally in sufficient quantity forcing the processing units to import it from Tanzania, Ghana and other East and West African countries.

There also the prices have gone up abnormally. Moreover, the increase in import duty from 4.36 to 10 per cent sometime ago has dealt a deadly blow to the industry.

High operational cost

North Andhra has 750 to 800 units out of which 500 have shut down their operations due to high operational cost. Units numbering 250, which are functioning, are producing only 30 to 40 per cent of their rated capacity.

Palasa in Srikakulam is the hub of cashew processing units in North Andhra. It is estimated to have an annual turnover of Rs.100 crore. The remaining units are located in and around Visakhapatnam and Cheepurapalli in Vizianagaram.

“The situation is turning from bad to worse and unless the government comes to our rescue it will not be possible for us to operate our units,” says owner of a Palasa-based processing unit.



Vietnam: Ten-month cashew export enjoys robust growth

30 November 2016

Cashew exports in the first ten months of this year posted strong growth, reaching 291,000 tonnes in volume and 2.33 billion USD in value, heard the 8th Vietnam International Cashew Conference in the central city of Da Nang on November 11.

Ten-month cashew export enjoys robust growth

Processing cashew for exports - (Photo for illustration)
The figures presented year-on-year increases of 5.8 percent in volume and over 3 percent in value, respectively.
Vietnam’s cashew export value is forecast to hit 2.7 billion USD in the whole year.
President of the Vietnam Cashew Association (VCA) Nguyen Duc Thanh said the result would help Vietnam continue maintaining its market share of over 50 percent of the globe's cashew nuts trade value (about 55.5 billion USD).
2016 marks the 11th consecutive year Vietnam holds leading position in the world in exporting cashew nuts, he noted.
In the coming time, the sector will enhance product persification and cleaner production, as well as expand domestic market in order to lift its revenue to about 2.9 billion USD in 2017.
The sector targets to produce 600,000 tonnes of raw cashew nuts by 2020.
Promotion programmes will be intensified, aiming to consuming about 30,000 tonnes of cashew in the domestic market by 2020, double that of 2015.
Attention will be paid to building the brand name for Vietnamese cashew through encouraging enterprises to join the National Trademark programme, and foster exports.
Babafemi Oyewole, Managing Director of the African Cashew Alliance said the 128-member organisation wishes to enhance cooperation with the VCA to create high-value products.
Participants to the conference focused their discussions on development strategy of the cashew sector, the international cashew market forecast, and how to improve the cashew quality and boost trade links among Vietnamese raw cashew importers./.

Vietnam cashew exporters to add value with further processing

29 November 2016

Vietnam aims to increase export value of cashew nuts by more extensive processing instead of exporting raw or preliminarily processed products.

Vietnam has been the world’s top cashew nut exporter in the last 10 consecutive years with the export volume, accounting for 50 percent of the world’s total output.
In the first 10 months of 2016, it exported 291,000 tons of cashew nuts, reaping $2.33 billion. It is expected that Vietnam’s total processed output in 2016 would reach 1.4 tons, of which 300,000 tons would be exported to earn $3 billion in turnover. If so, the export turnover from cashew nut would be higher than the rice export turnover.
Six cashew growing areas in Vietnam have soil and climate suitable to cashew plants. Around 300,000 households growing cashew on 310,000 hectares consider cashew as a wild plant. They do not use chemical fertilizer and plant protection chemicals, so Vietnam’s cashew nuts are clean and have high quality.
Besides the cashew variety that has existed in Vietnam fir years, three new varieties bring high yield of up to 2,500-4,000 kilos per hectares in good cultivation conditions.
Vietnam can now make nearly all the machines needed to increase the automation level. It only has to import color sorter machines.
The machinery and tools made by Vietnam are used by over 1,000 cashew nut processing factories and workshops in Vietnam, all of which are privately run, and also for export to Africa.
Vietnam aims to increase export value of cashew nuts by more extensive processing instead of exporting raw or preliminarily processed products.
Vietnam’s cashew nut products always have the appearance and quality meeting requirements set by the choosiest markets such as the US, France, Germany and Japan.
About 80 countries now import preliminarily processed cashew nuts from Vietnam. These include the US which consumes 30 percent, Europe 25 percent and China 18 percent.
Considering the output of all cashew exporters and the high demand which exceeds supply, Vinacas believes the cashew nut price will fall to below $10 per kilo.
Therefore, it believes that expanding the growing area, increasing output, and upgrading quality and processing products more deeply are what Vietnam needs to do.
Though cashew is one of the perennial crops that bring high value, Vietnam still doesn’t have cashew farms. Cashew plants are mostly grown by households, with several hectares for every household.
As the cashew nut price fell in previous years, farmers chopped down cashew trees to grow rubber and coffee. As a result, farmers now do not have enough cashew nuts to sell when the prices go up.
Nam Lich


India: Crunch time for cashew sector as demand falls

02 December 2016

KOCHI: The cashew industry is facing a double whammy as it grapples with shrinking consumption due to liquidity crunch while it is unable to cash in on the depreciation of rupee due to the fall in global prices. India is the largest consumer of cashew in the world, but consumption has taken a hit owing to the liquidity crunch following demonetisation.“Sales have dropped, which could be temporary . Since it is the marriage season, it could pick up some time later,'' said Hari Krishnan R Nair, managing director of Western India Cashew Co.The industry was hoping to take advan tage of the depreciation of rupee through exports. But cashew kernel prices have fallen after ruling high for several weeks, putting paid to the industry's hopes.Cashew prices, which were at around $4.90 per pound, have dropped to $4.50 per pound. It makes exports unviable since the raw nuts have been bought at high prices,'' said Pankaj N Sampat, director of Mumbai-based Samson Traders. More than 60% of the raw nuts required for processing are imported mostly from African countries.With active purchases by Vietnam, the prices had shot up to a historic $2,450 per tonne a few months ago. At that rate, the exporters needed to get over $4.80 to $4.90 to break even.


Thứ Sáu, ngày 02 tháng 12 năm 2016

Tanzania: Embassy Wades Into Cashew Nut Transport Dispute

Photo: The Citizen
Mtwara port was build during the colonial era.
Dar es Salaam — The Vietnamese embassy has asked the government to allow traders to transport cashew nuts by road to Dar es Salaam Port to enable them meet their obligations to customers and lenders.
The appeal came after a Vietnamese company, Starnuts, failed to transport 3,700 tonnes of cashew nuts because the vessels used to ferry the commodity to Dar es Salaam were reportedly booked until January.
The Mtwara regional administration has banned the transportation of cashew nuts by road for various reasons, including ensuring that traders pay all the requisite taxes and levies.
Traders buying cashew nuts in Mtwara Region are required to transport the commodity by sea through Mtwara Port.

Thứ Năm, ngày 01 tháng 12 năm 2016

Mozambique: Nut factory cracks export market as well as community development

30 Nov. 2016

Award-winning journalist, Nikiwe Bikitsha, visited Sunshine Nut Cashews Company while exploring the business and investment opportunities in Mozambique.

The company, which was founded in 2011, has struck a balance between developing the local community and breaking into international markets for business success.

Cashew nuts remain one of Mozambique's biggest export items, sold across various markets globally.

Speaking to Prescila Canotilho while on a tour of the factory, she also discovered that the company reinvests up to 90% of its proceeds towards transformation initiatives.

Click here to access the Africa Connected portal or click below to watch Nikiwe's full interview with Prescila Canotilho...

In an earlier interview on the John Robbie Show, Nikiwe also highlighted how the manufacturing sector fairs in the economy.

The big market for the cashew nuts is aboard for countries like the US, Asia and South Africa... There's not much local demand.
— Nikiwe Bikitsha, award-winning journalist

Thứ Tư, ngày 30 tháng 11 năm 2016

India: Best Date for GST Implementation is April 1, 2017

30 November 2016

There is slight uncertainty about GST in India after the demonetization of Rs 500 and Rs 1000 denomination currencies. But the GST has already become a law which only needs rules for procedures, rate fixation and a date for introduction.
Traders and service providers will face many problems if the implementation date differs from the first day of the new fiscal year -
1) They will have to maintain two different sets of books of accounts for a financial year.
2) They should be ready for two assessments from two different tax authorities.
3) Different tax rates and changes in the input and output tax credits from one system to another system
4) Opening and closing stock valuation again in the middle of the year when the system changes.
- Instead of all these problems, selection of the first day i.e April 1, 2017  is certainly better for the new beginning.