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Decline in imported cashew nut and kernel prices has hit the Palasa cashew industry in Andhra Pradesh hard.
Not just the cashew processing operators but also local farmers are incurring heavy losses due to this, said M Srinivasa Rao, president, Palasa Cashew Manufacturers Association.
During April-May about 200 operators in and around Palasa in Srikakulam district stocked more than 100,000 bags (each bag contains 80 kg) for the current year's initial requirements.
"Depending on last year's base price, we purchased nuts at Rs 6,000-6,400 per bag in April and May, but now cashew prices in the international market have declined from $1500 to $800-900 per tonne and are available for Rs 4,300-4,500 per bag in the domestic market.
As a result, we we have lost more than Rs 1,500 on each bag," he said.
Besides, broken kernel prices have also declined as traders are importing them from Vietnam. These are available at Rs 220 per kg in the local market. Till a month ago, domestic traders were selling at Rs 300 per kg but now the same is being sold at Rs 240 per kg. He said some traders were importing kernels in the name of cattle feed to avoid the 30 per cent import duty.
Cashew operators recently met at Kollam in Kerala and requested the Centre to enhance the import duty to 70 per cent to protect the industry and farmers, he said.
