Vietnam entry mars cashew exports

Cashew exports in November 2005 has dropped by 1,167 tonne, according to the latest estimates of Cashew Export Promotion Council of India (CEPCI). Exports during the eight-month period from April to November dipped to 77,521 tonne from 83,546 tonne during the same period in 2004.

Exports for the eight-month period has been valued at Rs 1,735.06 crore a marginal increase of Rs 2 crore.

Export of cashewnut shell liquid has plummeted to a mere 32 tonne in November 2005, from 2,127 tonne in the same month of 2004. During April-November 2005 total exports stood at 4,703 tonne, at a total value of Rs 5.06 crore, down from 7,299 tonne, valued at Rs 7.63 crore, in the first eight months of 2004. During November alone total export earnings registered a fall of Rs 36.58 crore at Rs 196.41 crore.

Experts believe that the current pace last year's export figures can not be matched.

India had exported highest ever quantities of cashew-based products last financial year at 1,26,667 tonne, valued at Rs 2,717.15.

The first quarter of the current financial year started on a promising note. Total exports in April and May was to the tune of 21,881 tonne which was 18,178 tonne in the same period in 2004. However, the second quarter saw exports drop to 59,627 tonne from 61,724 tonne, although earnings increased by Rs 102.8 crore. By October the gap widened further, finally ending the quarter in October with a decrease of 68,423 tonne.

Competition from countries such as Vietnam is one of the major factors behind the fall in exports, although there is a slight improvement in the unit value realised in the current year. Exporters say that increase in domestic consumption is also a reason for the drop in exports.

High domestic consumption figures are seen from the increase in raw cashewnut import. During November 2005 imports increased to 40,648 tonne from 29,421 tonne in the same month in 2004.

In April-November 4,10,149 tonne of raw cashewnut, valued at Rs 1,611.13 crore, was imported. The corresponding figure for the last year was 4,12,504 tonne.

The country imported 30,296 tonne cashew kernels from the US during April-November. 11,856 tonne was imported from the Netherlands, followed by 4, 918 from UAE, and 4,575 the UK.

Cashew shell liquid to the tune of 4,307 tonne from the US, followed by Korea with 365 tonne. Import of raw cashewnut from Ivory Coast stood at 1,39,464 tonne, from Guinea Bissau at 89,954 tonne, and from Benin at 59,591 tonne.