Revenue from cashew exports dropped by 10% during the first four months of the current fiscal compared to the same period last year. Appreciation of the rupee and the viral fever that swept the state contributed to the downfall, traders said. India exported 38,891 tonne of cashew kernel during April-July 2007, compared to 39,996 tonne during the same period last year.
According to the figures of the Cashew Export Promotion Council, the value realisation for the period was Rs 750.29 crore as against Rs 834 crore during the same period last fiscal.
Viral fever affected the cashew industry and exporters were forced to renege on contracts as processing of raw kernels dropped to alarming levels during June and July. Many leading exporters had to renege on their June-July contracts. Processing of raw cashew kernels is done in factories spread over the districts of Kollam, Allepey, Thiruvananthapuram and Pathanamthitta, which were the worst affected of the lot. Import of raw cashew kernel for processing and re-export rose to 2,58,873 tonne during the period as against 2,11,544 tonne. The unit realisation from exports dropped to Rs 192.92 per kg compared to Rs 209.46 a year ago. Sources said, ?Lesser demand from the major market of the US and competition from Vietnam is also a cause for the drop.?
The US is the major market for India and is followed by the Netherlands and the UAE. India exported 1,18,540 tonne of cashew valued at Rs 2,455.15 crore in FY06-07 while it managed to get Rs 2,514.86 crore in 2005-06 for exporting 1,14,143 tonne.