Even though the shipments of cashew kernels in August have shown a marginal increase, the overall exports in April-August have dropped by over 5,000 tonnes from that of the same period last fiscal.
However, the domestic market has been buoyant with good demand growth absorbing much of the surplus production of good quality kernels, Kollam-based industry sources told Business Line.
Peak buying season
The peak buying season in the US and other major traditional markets for Indian cashew kernels is August/September for the Christmas and the New Year.
“Hence, the marginal increase in the exports in August does not have any significance”, they said. In August, 10,052 tonnes of kernels were exported as against 9,865 tonnes in the same month last fiscal. There has also been a decline in unit value which has dropped to Rs 269.34 a kg (Rs 283.62 a kg) and that might have also contributed to the marginal rise in the shipments, they said.
Sluggish exports
“So long as the recessionary pressures remained in the market the exports are likely to be sluggish”, they claimed. The consumers are substituting costly snacks items, including tree nuts such as the cashew kernels with “much cheaper items”, they said.
According to Dr K.A. Retheesh, Managing Director, Kerala State Cashew Development Corporation, “in terms of quality, Indian cashew is superior.
There are non-traditional markets where the consumers are familiar only with Vietnamese products and these markets are potential areas for value-added Indian cashew kernels”, he said.
Total exports of cashew kernels during April-August stood at 46,138 tonnes valued at Rs 1,233.97 crore ($292.76 million) at an average unit value of Rs 267.45 a kg. Demand in the domestic market is growing at a significantly high rate.
Rise in imports
Meanwhile, imports of raw nuts have shown a substantial increase during April-August.
As against 3,30,306 lakh tonnes of raw nuts valued at Rs 1,439.09 crore imported in April-August 2008, the imports this fiscal stood at 4,59,028 tonnes valued at Rs1,700.86 crore.
Last year, during April-August, there were various problems including non-availability shipping facilities which had led to the fall in imports, industry sources pointed out.
Another industry source attributed the significant rise in imports to availability of raw nuts at low prices in certain producing countries in Africa such as Ivory Coast and Guinea Bissau.
Source : Business Line