According to industry experts, buyers in Europe, Japan and Australia conduct a major portion of their purchases for the next season during the September-October period. Buyers in the US also stock in advance for festivals like Christmas and New Year.
The pull-down effect on demand for non-essential products has been higher and the market could see a drop. Interestingly, inventories of major US and European buyers are minimal and demand should have been good in normal circumstances, a leading exporter said.
Lesser demand coupled with the higher costs of importing raw cashew kernels has put Indian exporters in a critical situation.
Circumstances have led Indian exporters to cut down on import of raw cashew kernels from African nations. Indian import of raw cashew kernels dropped by almost 20% in October, from 49,430 tonne in October 2007, to 39,188 tonne in October 2008.