Cashew exports volume declines 15% in first quarter

Written by fe Bureau | Kochi | Updated: Aug 1 2009, 04:48am hrs
Supply crunch in the cashew producing nations has caused a decline in cashew exports during the first quarter of the current fiscal. Shipment has fallen in volume terms by 15% and in value terms by 11.5%, when compared to the performance of the same period of the last fiscal.

However, unit value realisation on a kilogram of cashew exports reflect the lower global production, as it was ahead for the quarter by Rs 10 as against Rs 255.17 per kg during the Q1 of 2008-09.

Traders are expecting the market to rebound in the coming months on the backdrop of a supply crunch. Higher inventory by the processors and exporters also point to a revival, sources said. Cashew market is seen firming on lesser availability of cashew kernels in the global market due to restrictions on export by Kenya, Mozambique and the problems faced by the Vietnamese cashew exporters.

During the month of June exports fell by 16% in volume and 20. 2% in value as against the performance of June 2008. According to export figures provided by the Cashew Export Promotion Council for 2008-09, export volumes fell by 5.4%, however, value increased by 28.9% when compared to the previous fiscal.

Big volume buyers are seen cutting short volumes and surviving on the bare-minimum inventory, industry sources said. Cashew being a premium commodity has been the worst hit in the global recession with buyers slowing down on consumption.

Import of raw cashew by the Indian processors has, however, increased during the period in volume and value.

During the three months of 2009-10, imports of raw cashew increase by 35.4% to touch 2,44,485 tonne valued at Rs 879.46 crore. For the first two months of the current fiscal, the import of raw cashew is seen higher by almost 61% when compared to the corresponding period of the last fiscal. Interestingly, the unit cost of importing raw cashew has taken a dip after several months. The unit cost of importing has come down to Rs 35.87 per kg as against Rs 38.44 during Q1 of 2008-09.