Cashew nuts prices have increased by Rs 700-800 per bag (each bag contains 80 kg) over the last one month in the Palasa-Kasibugga market due to weakening of rupee against dollar and low availability of domestic nuts.
“Since the last three months, processing operators have been going for imported nuts due to severe shortfall in the domestic market and falling rupee. As a result, we are paying Rs 4-5 extra on each kg of imported nuts,” Malla Srinivasa Rao, president of Palasa Cashew Manufactures Association, told Business Standard.
About 200 cashew processing units operate in the Palasa-Kasibugga area in Srikakulam district.
Imported nuts prices now are at Rs 7,500 per bag as against Rs 6,600 in August. However, domestic nuts cost Rs 8,000 per bag, and this is making operators go for imported nuts, he added.
Besides, cashew kernel prices have increased by Rs 20-40 per kg as compared with last year. About 23 kg kernel is generated after processing a bag of cashew nuts.