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  • Cashew prices rise 33% this season

    Jun 21st, 2015

    Cashew nuts and kernel prices have increased 33-35 per cent during the current season in the Palasa market due to shortage of nuts and also led by higher demand owing to Ramzan. Last year , local nuts were available at ` 80 per kg when the season started but this year, they are priced at ` 105-110. Accordingly, kernel prices have also increased to ` 600 per kg for high-grade and ` 250 per kg for low-grade as against ` 450-460 and ` 175 respectively last year, said Malla Srinivasa Rao, president, Palasa Cashew Manufacturers Association, and chairman, Agricultural Market Committee-Palasa.

    Hudhud cyclone and a few other reasons were responsible for lower production this time. Moreover, imported nuts prices too are not attractive. Hence, domestic prices have increased abnormally, he added.

    Due to low availability of domestic nuts, cashew units, which have a processing capacity of about 500 tons a day, are buying them even at higher prices, he stated. Though imported nuts are available in sufficient quantities, the kernel productivity is 10-15 per cent lower compared with domestic nuts. Besides, imported nuts prices have increased 25 per cent over last year's.

    According to him, about 10,000 workers depend on this industry in the Palasa area. Unit operators have agreed to enhance the wages at 15 per cent for men workers and 19 per cent for women workers, for the next two years. This will result in an additional burden of ` 5-6 lakh a day on the unit owners, Rao stated.