Sharp rise in cashew kernel prices

As expected by the cashew kernel manufacturers, the price increased by Rs 10-12 a kg on all the grades of cashew kernels at the Palasa market, the largest cashew production centre in the state.

"At present, we are getting Rs 230-240 a kg for 210 grade (210 kernels a kg) as against Rs 220 in mid-December. We were paid Rs 210 a kg for 240 grade kernels, and Rs 90 a kg for low grade kernels as against Rs 80 fifteen days back," said Malla Nooka Raju, the president of Palasa Cashew Manufacturers Association.

The cashew nut price increased by Rs 500-600 a bag due to slowdown in the cashew nut arrivals at the market. The increasing demand for kernels in the local market because of the ensuing festival season is another reason for the sudden hike in cashew kernels price, said Nooka Raju.

"We offered Rs 2,800-2,900 a bag (80 kg of cashew nuts) last month. Now, we are paying Rs 3,400-3,500 a bag. Due to the slowdown in arrival of nuts, we are offering high prices to nut producers. As a result of non-availability of sufficient stocks of nuts in the local market, Palasa manufacturers, for the first time, were compelled to import about 2,000 bags of nuts from Kerala. But as the Kerala nuts are hard, we get high wastage through these nuts. We have stopped importing nuts from Kerala," he added.

According to Nooka Raju, the arrival of nuts to the local market is likely to come down further in the coming days as the current cashew season is due to end shortly. "The manufacturers are ready to pay high prices for nuts, and pile up some stocks. At present, around 1,500 bags of nuts are arriving at the Palasa market every day. This will come down in the coming days," Nooka Raju said.

"The cashew kernel purchases from Kerala traders dropped significantly this year. Kerala traders purchased more than 100 loads, of 10 tonnes each, last season. This year they have so far purchased only 25-30 loads from the Palasa market. The kernel price is slightly high in Palasa market this year, when compared to that in the Kerala market. Due to this reason, several Kerala traders have stopped purchasing kernels from Palasa market," he said.