Cashew exports continued to
decline in May 2015 compared with the same period last fiscal. Nearly 70 per
cent of the factories in the organised sector have their shutters down from
April 1, following substantial increase in the wages of workers by the state
government, industry sources in Kollam said. The Kerala Government had hiked
the wages of workers by 35 per cent from March 1.
“This, coupled with reduction in
incentives for export of cashew in the new foreign trade policy and prevailing
high raw nut prices, are the main reasons for the decline in exports”, K Sasi
Varma, Executive Director and Secretary, Cashew Export Promotion Council of
India (CEPCI), told BusinessLine.
During May 2015, India exported 7,407 tons of cashew valued at `354 crore at an average unit value of `498.11 a kg as against 8,928 tons valued at `391.35 crore at unit value of `438.34 a kg in the same month in 2014, he said.
Total exports during Apr-May 2015
stood at 13,194 tons valued at `641.95
crore at the average unit value of `486.55
a kg. In the same period last fiscal it was 16,316 tons valued at `710.89 crore at unit value of `435.70 a kg. However, shipments of
salted and roasted kernels and Cashew Nut Shell Liquid (CNSL)/Cardanol have
shown an up trend during the first two months.
A total 117 tons of roasted and salted kernels were shipped out as against 101 tons in the same period last year. Exports of CSNL/Cardanol have shown a substantial increase from 1,022 tons to 1,471 tons in April-May 2015.
Trade sources said that the
demand growth in Indian domestic market is 15 per cent per annum and the prices
have been above the international market prices.
As a result, many of the
processor-exporters were marketing a good portion in the domestic market at a
premium, they said. A good percentage of the domestic demand of over two lakh tons
of kernels is met by supplies from the unorganised sector, they said. Imports
of raw cashew nuts (RCN) have also dropped in Apr-May this year to 1,54,962 tons
valued at `1,232.94 crore at
a unit value of `79.56 a kg.
As against this, imports in the
corresponding period last year were at 1,65,364 tons valued at 1,118.10 crore
at the unit value of `67.61 a
kg. Industry sources said shutting down of the factories and the high RCN are
the reasons for the fall in its imports. He said the indigenous production of
raw nuts continued to remain far below the demand of the processing industry.
The prices of raw nuts in the local markets were hovering at around `100 a kg.
According to Pankaj N Sampat, a
Mumbai-based dealer, reported lower kernel yields, and delays in shipments
appears to have forced shellers to pay higher prices to secure supplies of
early arrivals. Consequently, unlike in the past RCN prices have been going up
this year in the peak harvesting period of the Northern crops, which contribute
75 per cent of the world output, he added.