Back home, the cost of raw nuts rose to Rs 41.94 a kg between April and June compared with Rs 33.84 in the same period of 1998. Processed cashew kernels at present, fetch Rs 240.32 for a kg compared to Rs 193.93 a kg last year. Domestic production -- which is the highest in the world -- is expected to be lower this year around three lakh tonnes from the estimated 3.5 lakh tonnes. Production in the last fiscal was also lower 10,000 tonnes nuts at 3.50 lakh tonnes compared with 3.6 lakh tonnes in 1997-98.

Vietnam, the third largest producer, was expected to produce 1.20 lakh tonnes of raw nuts but the country's crop this year is estimated at a mere 70,000 tonnes. Poor agriculturepractices have lowered cashew harvest in Vietnam in the last two years. This has resulted in the country importing an estimated 20,000 tonnes from east and west African sources as well as from south-east Asia in last year.

Import of raw cashew nuts for Vietnam became pertinent to keep the 60 processing plants running, which have a capacity of processing 2.20 lakh tonnes of raw nuts. Brazil, the second largest producer, again has a lower crop due to drought. The conditions have forced Brazilian processors to import 8,000 tonnes from Africa in the last two months. India, has already imported an estimated 60,000 tonnes of raw nuts during the first quarter of this fiscal. Traders are expected to imports of 40,000 tonnes this quarter and another 60,000 tonnes by the last quarter of the fiscal.

The country imported 1.81 lakh tonnes of raw nuts in 1998-99 as against 2.47 lakh tonnes in 1997-98. Despite the imports, the country still falls short of meeting the installed processing capacity of eight lakh tonnes.Cashew kernal exports during the first three months of this fiscal fell by over 1000 tonnes while in value terms, it was up 16 per cent compared to the previous April-June figures.

A quantity of 17,315 tonnes valued Rs 416 crore are estimated to have been exported during April-June 1999 as against 18,491 tonnes worth Rs 358 crore during the same period last year. Raw cashew nut imports during April-June 1998 was 34,124 tonnes, while 56,510 tonnes were imported during April-June of this fiscal. Prices of the popular Indian cashew grades have gone up by four per cent in dollar terms. Offers were firmer till the raw nut imports flooded the market to ease the price a little. Buyers are lying low as they expect prices to drop further. But, according to trade sources, business will pick up between July and November as the world shortage will become quite apparent.