New Delhi | Kochi: Prices of casheware expected to firm up from the current lows, considering lower domestic crop this year and a likely increase in exports and domestic consumption, traders and exporters said.
“In 2019-20 we target to increase cashew exports to 85,000-90,000 tonnes from the current year export of 60,000 tonne,” said RK Bhoodes, chairman at the Cashew Export Promotion Council of India. “This will ensure that farmers get good prices which are currently rock bottom.”
From a peak of Rs 150-160 per kg last year, farmers are now getting Rs 125-130 per kg, said traders. While the prices are likely to remain weak in the short term as new crop is being harvested across Maharashtra, Kerala, Karnataka and Andhra, traders say they will increase in the coming months.
“This year the industry is planning to promote the Indian cashew brand globally, which will give fillip to the trade,” said Dinesh Pai, a broker of cashew from Mangalore. “In the short term when the crop harvesting is going on prices may be subdued, but will then pick up on the back of good exports.” Pai attributed the current low prices to a drop in exports due to increased competition in the global market from Vietnam, Brazil and Africa.
Besides a spike in exports, the cashew industry also expects increased demand from the domestic market which has been growing 8.3 per cent a year, almost at double the pace of exports demand, growing 4.2 per cent. “The current export price is about Rs 600 to Rs 630 per kg as the market is dull and quiet. The domestic price is in the range of Rs 700 to Rs 800 per kg,” said Pankaj N Sampat, director at Samson Traders.
Source: economictimes.indiatimes.com