Cashew exports from the country are on a declining trend with the drop evident in value, volume and unit realisation. Exports have fallen by 6% in value terms and almost 4% in volume terms during fiscal 2007-08, as compared to 2006-07. Strengthening of the Indian rupee and cheaper competition from new origins, particularly Vietnam, are seen affecting the Indian cashew industry.
During 2007-08, India exported 114,340 tonne of cashew valued at Rs 2,288.90 crore as against 118,540 tonne valued at Rs 2,456.15 crore in 2006-07. The dollar realisation increased marginally to $568.53 million from $542.58 million. During 2005-06, India exported 114,143 tonne valued at Rs 2514.86 crore ($568 million)
The most worrying factor has been the persistent drop in unit value realisation over the years. In two years, the unit realisation for exporting one kg of cashew has come down by more than 10%. In 2007-08, the unit value realisation stands at Rs 200.18 per kg as against Rs 207.12 of 2006-07. In 2005-06, the unit value realisation stood at Rs 220.33 per kg.
India also saw declining exports to traditional major markets like the US and the Netherlands, while witnessing marginal gains in new markets like UAE, Saudi Arabia and France. Indian exports to the US declined by 7.6 % in 2007-08 as compared to the previous fiscal. Exports to the Netherlands registered a decline of 29% in just one year.
Exports from India suffered in 2007-08 due to the appreciation of the Indian rupee and the outbreak of viral fever in the processing centres of Kerala during June-August. At one stage, exporters were reluctant to take commitment with rupee appreciating rapidly.
and losses mounting to Rs 15,000-20,000 per container of exports.
In the last three months, cashew exports have recouped some of the losses in trade with reports of supply shortage in Vietnam firming up the market.