Cashew exports remain subdued.

Kochi: Cashew exports are a bit subdued at the start of the new fiscal and because of which processors are also cutting down on imports of raw cashew.

Export volume for April 2010 was down by 7.4% when compared to the same month of 2009 and in value terms is was lower by 6.15% over the same period.

Indian cashew industry had a bad year in 2009-10 with exports falling by 2.7 % in value terms and 1.2 % in volume terms when compared with the performance of 2008-09. However, things had started to look up in the first three months of 2010 calendar year with exports picking up, sources at Cashew Export Promotion Council (CEPC) said.

In March, volume of exports was higher by 3.2% and value higher by 5.38% over the same period last year. Experts said buyers are not committing large volumes and long-term contracts because of the credit squeeze in the aftermath of global economic slow down.

Trade dynamics in cashew has changed with recession. Big retailers are not only keeping lower inventory, they are covering lesser time. This would lead to increased volatility in 2010 due to mismatch of buying and selling needs”, sources added.

World cashew production in 2009 was more or less unchanged compared to 2008. Despite fears of large drops in consumption, there are no large inventories in origins or importing countries.

“The pattern of periodic activity will keep the market swinging in a range. Lower processing and shipments in April and May might lead to supply tightness in US and Europe for some time,” Pankaj Sampat of Samsons Trading told FE.

The number of players in the raw cashew market has increased this year resulting in a wider price range. At higher levels, buying interest is limited.

“Raw cashew pricing will depend on this (number of players) and the trend in kernel activity in the next eight weeks. If kernel market is quiet, processors will be reluctant to buy at higher prices,” Pankaj said.

Indian imports of raw cashew are dropped as compared to the same period last financial year. In April, India ‘s imports of raw cashew fell by 45%. In 2009-10 imports were higher by 15 % in value terms and 24% in volume terms.

Source : Financial Express