Palasa cashew kernel prices go up by Rs 30 per kg

Cashew kernel prices have increased by Rs 30 per kg on all grades in the last 10 days at Palasa cashew market, the largest cashew kernel centre in the state.

In order to get remunerative prices for cashew kernels and to avoid competition among the cashew processors, the Palasa cashew industry observed bandh from July 12 to 25.

During this period, the cashew processing units gained by Rs 200 on each tin of 10 kg kernels.

"Before the bandh, the cashew manufacturers had around 40,000 tins of cashew kernels with them and the prices ruled at Rs 2,200 per tin (210 grade) and Rs 1,800 (370-380 grade). After the bandh, we have sold almost all our stocks and got an extra price of Rs 200 on each tin, thus covering most of our losses," Malla Nooka Raju, president of Palasa Cashew Manufacturing Association, told Business Standard.

Besides the price hike effected by the bandh, kernel prices again rose by Rs 30 per kg during the last ten days. At present, the cashew manufacturers are selling cashew kernels at Rs 270 per kg of 210 grade and Rs 230 per kg of 370-380 grade kennels.

"For the last 10-15 days several cashew traders from Uttar Pradesh, Bihar and a few other north Indian traders have been coming to Palasa for cashew stocks. This is one of the main reasons for the surge in prices. However, this trend is likely to continue for a few more days only as the Kerala traders are going slow in kernel purchases from Palasa due to higher prices," B Narayana Rao, former president of the association, said.

The cashew nut prices also increased significantly at the Palasa market.

"Last month we paid between Rs 3,100 and Rs 3,300 per bag 80 kg cashew nuts. Now the prices have gone up to Rs 4,000 per bag. We are expecting the prices to go up further due to the fall in nuts production. We also expect some cashew nuts to be imported this month," Narayana Rao said.