Cashew export earnings down by 2.4%

For the second year in a row, the country's cashew kernel exports have declined in value terms. The country exported 118,540 tonnes of cashew kernels valued at Rs 2,455.15 crore during 2006-07, a fall of 2.37 per cent in value terms over the last fiscal. However, in terms of quantity, the exports went up 3.85 per cent.

The decline was mainly on account of the appreciation of rupee against the US dollar and low unit value realisation. The exporters have achieved a unit value realisation of Rs 207.12 a kg of cashew kernel during the year compared with Rs 220.33 in the previous financial year, Walter D'Souza, chairman, the Cashew Export Promotion Council of India (CEPCI), said. In dollar terms, the country exported cashew kernels worth $542.58 million during the period.

During the fourth quarter of the financial year 2006-07, the country's cashew kernel exports were substantially higher than those of the first three quarters of the year. The exports went up by 4.37 per cent to 28,954 tonnes (valued at Rs 588.52 crore) compared with the corresponding period last financial year.

However, during the year, the country imported 5,92,604 tonnes, an increase of 4.8 per cent over the previous financial year. In value terms, the imports declined by 16.22 per cent. The total raw nut production in the country in 2006-07 went up by 5.33 per cent to 5.73 lakh tonnes. The cashew kernel export registered an all-time historic growth with export worth Rs 2,700 crore in 2004-05, a rise of 50 per cent over the previous year.

However, over the last two years, the industry has been witnessing decline in exports due to various factors. The main reasons for the downward trend include emergence of Vietnam as a big exporter of kernels and appreciation of rupee against the dollar. The exporters have realised approximately Rs 42 a dollar towards the end of the last financial year compared with an average Rs 44 in the beginning of the last financial year, D'Souza said.

Another factor responsible for the fall in exports is absence of export incentives by the commerce ministry. In 2004-05, the government extended a 5 per cent duty exemption to exporters under Vishesh Krishi Yojana. The scheme was, however, withdrawn last year.

For the current financial year, the CEPCI has set an export target of 1.25 lakh tonnes of cashew kernels, a growth of 5.5 per cent over FY07.

The focus areas would be West Asia and CIS countries. The CEPCI is also planning to start organised exports to Pakistan this year. "Although there has been export of cashew to Pakistan in the past, there has not been any official attempt made towards this cause. We have been waiting for a right opportunity to export to Pakistan," D'Souza said, adding that the council is planning to take an official trade delegation later this year.