High rates of raw cashew nuts and entry of new processors have kept the global cashew nut prices stable for most parts of the last year. Traders in India feel that the cashew market will rebound this year.
Supply of raw nuts have not grown as desired with only Western Africa producing more nuts. India produces 6-7 million tonne of raw cashews per annum and was until recently the leading supplier of kernels to the global market.
“The market was steady in 2015 and we expect it do better this year. Raw materials are over-priced and entry of new processors in Africa and India have further worsened the market for processors. The demand was quite good in most of the markets except China but the disparity in raw nuts and kernel prices made it difficult,” Pratap Nair of Vijayalakshmi Cashews told FE.
Pankaj Sampat of Mumbai-based Samsons Trading said, “On an average, raw nut prices in 2015 were about 25% higher than 2014 but there was almost no change in kernel prices. This is putting pressure on processor margins.”