In volume terms, the state, which is the third largest raw cashew nut producer after Kerala and Goa, is likely to achieve a 60 per cent growth of 18,000 tonnes. According to Prakash Kalbavi, President, Karnataka Cashew Manufacturers' Association (KCMA), the exporters are working hard to make use of the opportunity, which opened up after Vietnam defaulted in meeting its export commitments to the US, Europe and Japan early this year. The rise in export earnings will be driven by high unit value realisation. The prices of W320 variety cashew have gone up to $3.50 per pound in June 2008 compared to $2.20 per pound in the corresponding period last year, a growth of 59 per cent. |
"Karnataka usually contributes about 12-14 per cent of the country's total exports. We hope to maintain that level this year too," Kalbavi said.
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Though raw nut production is expected to fall this year following unseasonal rains in March, the exporters are likely to maintain the higher targets by importing raw nuts.
Processors are expected to import around 60,000 tonnes of raw nuts this year, nearly 30 per cent more than last year.
Raw cashew nuts are mainly imported from East African countries such as Tanzania, Kenya, Mozambique and West African countries such as Ivory Coast, Kalbavi said.
The rising prices in the international market could also push up exports this year, he said. "We expect international prices to touch the magical $4-per-pound mark in the next few days on account of festival season ahead," he said.
Karnataka has 180 cashew processors and 140 exporters. Every year they process around 150,000 tonnes of raw cashew, which is expected to grow by 15-18 per cent during the current year.
While, the state grows around 45,000 tonnes, another 40,000 tonnes is sourced from other states like Goa, Maharashtra and Kerala. The rest is imported from other countries.