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  • Cashew shipments down by 24% in April-June

    Aug 18th, 2016

    Cashew exports from the country continued to experience a sharp decline in April -July 2016 with the shipments falling by 24 per cent in volume and 14 per cent in value from that of the corresponding period last fiscal. Total shipments during April-July 2016 fell to 24,833 tonnes valued at `1,400.74 crore from 32,780 tonnes valued at `1,630.39 crore in the corresponding period last financial year, according to Cashew Export Promotion Council of India (CEPCI). The decline in volume stood at 24 per cent while that of the total value was at 14 per cent.

    The average unit value realised has shown an upsurge of 13 per cent during this period, Sasi Varma, Executive Director and Secretary, CEPCI, said. The average unit value increased this fiscal to `564.07 a kg from `497.37 in April-July 2015, they said. Meanwhile, fall in the unit value of Cashew Nut Shell Liquid (CNSL)/Cardinol has raised their exports to 4,898 tonnes valued at `17.57 crore from 3,697 tonnes valued at `21.75 crore.

    The unit value realised fell to 35.86/kg from 58.83, he said.

    Attributing the consistent fall in exports mainly to non-receipt of parity price for kernel, Sundaram Prabha, Chairman, CEPCI, told BusinessLine that sharp rise Raw Cashew Nut (RCN) prices coupled with closing down of around 80 per cent of the factories in Kerala following hike in wages are also responsible for the decline. Rise in unit value of kernels is also claimed to be a reason for the drop in exports.

    Imports down

    Meanwhile, imports of raw cashew nuts (RCN) has shown substantial fall during the first four months of 2016-17. Total imports dropped during the period by 40 per cent to 3,01,454 tonnes valued at 3,152.23 crore from 5,03,854 tonnes valued at 4,049.54 crore. The average unit value has increased to 104.57 a kg from 80.53 in April-July 2015. Sundaram said high RCN prices coupled with unattainable Standard Input-Output norms (SION) fixed by the DGFT for cashew sector has led to the drop in the raw material imports

    Meanwhile, according to trade sources, cashew markets suddenly picked up steam by middle of July after remaining sluggish in May-June, with the prices for all grades moving up by 10-20 cents per lb in the second half of the month. “Reasonable volume was traded to Europe and the US for shipment up to December 2016,” Pankaj N Sampat, a Mumbai-based dealer told BusinessLine.

    During the week price range for W240 $4.35-4.60; W320 $4.20-4.40; W450 and SW320 from $4-4.20; SW360, Splits and Butts from $3.25-3.40; LP from $3.15-3.25 and SP from $2.90-3 per lb (fob).

    RCN crop decline

    Overall, 2016 cashew crop has been disappointing with reduction in quantity in some areas and decline in kernel yield in almost all areas. RCN prices have been high throughout the season and, in fact, they have increased as season progressed. Current range for African RCN is $1,450-1,850 C&F India/Vietnam. Between 2014 crop and 2016 crop, there has been an increase of 25-30 per cent in average RCN price. From now until March 2017, replacement availability is limited to about 25 per cent of world production.