APRIL 16, 2013
In the 11 months ended February, India's cashew kernel exports stood at 93,029 tonnes, a fall of 23.5 per cent compared to the year-ago period. According to estimates, exports in March could stand at 12,000-15,000 tonnes. Overall exports in 2012-13 could be 18-20 per cent lower than in 2011-12, when India exported 1,31,760 tonnes of cashew kernels, valued at Rs 4,391 crore (this was 24.6 per cent higher than in 2010-11).
Official data for 2012-13 is being compiled by the Cashew Export Promotion Council of India.
"The fall in consumption across the European Union and the US, key markets for Indian cashew, and consolidation of Vietnam in the global cashew trade have hit India's exports. Also, India's kernel prices are higher compared to Vietnam, owing to higher production costs in India," Pankaj Sampath of Mumbai-based Samsons Traders told Business Standard.
Vietnam has been pushing its kernels at prices lower than India's. The cost of processing in India was 20-30 per cent higher compared to that in Vietnam, as the Indian processing industry largely depended on imported raw nuts, Sampath said. India imports about half its raw cashew requirement. Between April 2012 and February 2013, India imported 8,52,674 tonnes of raw cashew nuts; domestic production during this period was estimated at 5,00,000 tonnes, Sampath said.
Vietnam exports about 1,80,000 tonnes of cashew kernels. Its share in the global export market has risen from 40 per cent about five years ago to 65 per cent. During the same period, India lost its first position in exports.
With consumption of 1,80,000 tonnes, India is the world's largest consumer of cashew nuts. In value terms, India's exports in the first 11 months of 2012-13 stood at Rs 3,636 crore, a fall of 9.5 per cent compared to Rs 4,017 crore in the year-ago period. Average unit value realisation fell 18.5 per cent to Rs 391 a kg, against Rs 330 a kg in the year-ago period.
In dollar terms, exports in April-February 2012-13 were worth $668 million, against $841 million in the year-ago period, a decline of 20.5 per cent.
In 2012-13, net realisation from whole kernels declined. Prices of broken grades also fell, due to a steep rise in the production of broken grades. Sampath said in recent months, the difference in the prices of broken grades and whole kernels had fallen to $0.5.
Source: Cashew india