A global rally in cashew prices due to supply constraints has seen Indian cashew exports surge in the first month of the current fiscal after a disappointing performance in the last fiscal.
Indian cashew exports have increased by 35% in value terms and 14% in volume terms, according to figures provided by the Cashew Export Promotion Council. Global prices of cashew have increased by 50% on year-to-year basis based on reports of supply problems in Vietnam, traders said. The small surge in dollar with respect to the rupee and the inclusion under the Vishesh Krishi Aur Gram Udyog Yojana (VKGUY) has also brought encouraging results, traders said.
For the month of April 2008, India exported 9,493 tonne of cashew kernel valued at Rs 227.46 crore as against 8,312 tonne valued at Rs 168.24 core in April 2007. The dollar value also showed a remarkable increase to $56.82 million from $39.91 million on 2007. India imported 21,995 tonne of raw cashew kernels for processing valued at Rs 85.66 crore for last month, as against 9,024 tonne valued at Rs 25.22 crore in April 2007.
Export performance was disappointing for the last FY with exports dropping by 6% in value terms and almost 4% in volume terms when compared to 2006-07. 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. Strengthening of the Indian rupee and cheaper competition from new origins, particularly Vietnam, contributed a lot to the poor performance.