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  • Cashew exporters upset as traders take a neat cut

    Dec 23rd, 2015

    Cashew exporters are upset over what they claimed the efforts of some traders to make a killing on the surge of global raw cashew prices. This is happening at a time when the high cost of production is resulting in a slowdown in cashew shipments from the country.

    The cashew export trade, concentrated principally in Kerala, has been hit as many processing factories have downed shutters because exports have become unprofitable for them. "Traders who are not related to the industry are importing raw cashew from Africa and stocking it in their warehouses for selling at a higher price to local processors and exporters. This is happening in Mumbai and other metros," said P Sundaran, chairman of the Cashew Export Promotion Council of India (CEPCI). India imports around 8.5 LT of raw cashew annually, most of which are processed and exported as cashew kernels. Most of the processing factories for exports are located in Kerala's Kollam district. The domestic output of around 7 LT is hardly sufficient to meet the processing demand.

    Import of raw cashew is duty-free if it is meant for export after processing. Exporters say they are often forced to buy from the traders at high prices as sufficient stock may not be available in the world market.

    CEPCI has brought this to the notice of the commerce ministry. Meanwhile, with an increase in domestic consumption of cashew, processing of the nut has started in many states in India and, according to industry players, Kerala is comparatively in a position of disadvantage because of high wages.


    Source: www.economictimes.indiatimes.com/