Cashew exports dip 7% in H2; earnings inch up

Domestic cashew exports have suffered a serious setback in the latter half of the current fiscal. Cashew exports have dropped 6.63 per cent or 4,859 tonne, to 68,423 tonne during the April-October period of current fiscal, while export earnings have increased marginally.

According to experts, the setback was mainly due to tough competition from Vietnam, who has a price advantage over India on high productivity levels. Total earnings were Rs 1,538.65 crore, showing an increase of just Rs 38 crore compared to the same period last year.

The marginal increase was mainly because of the increase in unit value realisation which was at the level of Rs 226-228 a kg, while the yearly average in 2004-05 was Rs 213.89.

According to estimates of the Cashew Export Promotion Council of India (CEPCI), in the second half of the current fiscal, export performance was rather weak and in October, kernel exports had decreased by 2,762 tonne. Revenues dropped from Rs 260.26 crore in same month last year, to Rs 195.38 crore.

Cashewnut shell liquid too experienced a setback, as total exports plummeted to 4,384 tonne from the April-October, 2004 period's 5,173 tonne. Value of exports dropped to Rs 4.50 crore from Rs 5.44 crore in 2004.

Domestic exports have shown a promising trend during the first quarter of the current financial year and in April-May, 2005, the country exported cashew kernels to the tune of 21,881 tonne, while this was 18,178 tonne in the April-May period of 2004. Export earnings had increased by Rs 164.54 crore to Rs 497.49 crore, but afterwards, Indian cashew exports had experienced a negative trend.

During the last financial year, India experienced its best export performance. Total exports, valued at Rs 2717.15 crore, had reached the record level of 134,131 tonne. In quantity terms, there had been an increase of 25.63 per cent, while in value terms, there was an increase of 50.14 per cent.

Among agricultural commodities exported, cashew held the second position, contributing 0.66 per cent of the total export earnings in 2004-05.

The sharp increase in prices in the global market contributed much to this commendable performance as the average export unit price had increased to Rs 213.89 a kg in the 2004-05 period, compared to the previous year's Rs 178.96, showing an increase of 19.5 per cent.

The slowdown in production in Vietnam had made the Indian product, a hot cake in the US and European markets, while this is not the case in the current year. Experts said that due to Vietnam's very aggressive stance in the global market and India's blunt edge at present, it had experienced the serious setback.

During the April-October period of 2005, India imported 3,69,502 tonne raw cashew, valued at Rs 1,450.64 crore, while in the same period of 2004, the figures were 3,83,083 tonne, at a value of Rs 1,301.43 crore. Total imports in the January-October period of 2005, dropped by 2,228 tonne at 4,75,514 tonne.

India imported raw cashew to the tune of 578,884 tonne in 2004-05, valued at Rs 2,183.26 crore, as against 4,52,398 tonne in 2003-04. The quantity had increased by 27.95 per cent, while in value-terms, it increased by 55.84 per cent. The average import price had increased to Rs 37.71 a kg from Rs 30.97 in 2003-04.

The slow pace in the increase of domestic production of cashew is really a threat to the export industry said experts. As per the estimates of the directorate of Cashewnut and Cocoa Development, total production in India during the last financial year was 5,44,000 tonne, showing an increase of only 9,000 tonne from the previous year.

As per the installed capacity of the cashew-based industry in India, total raw nut requirement is estimated to be over 12,00,000 tonne per annum, but the availability from internal sources is less than half of it.

Indian cashew exports mainly depends on countries such as Ivory coast, Benin, Guinea Bissau and Ghana for importing raw cashew. India exports cashew products to almost 60 countries and imports raw cashew nut from 22 countries.