Glut brings down Palasa cashew prices

This Diwali proved to be a season of discontent for the traders of Palasa cashew market, the largest cashew centre in the state.

Generally, cashew traders make a killing during this festival by jacking up the prices as cashew is one of the important contents of dry fruit gift boxes.

Normally, cashew prices increase by Rs 15-Rs 25 a kg during this time, but the situation was different this festival season as prices came down by Rs 10-Rs 20 a kg, Malla Nooka Raju, president, Palasa Cashew Manufacturers Association, told Business Standard.

Ten days before Diwali, 200 count cashew kernel price was Rs 270 while 250 count variety commanded Rs 210. Later, the prices dropped to Rs 250 and Rs 195 per kg respectively. Nooka Raju laments that this is the first time that the prices crashed during the festival.

One of the main reasons for the trend was glut following large-scale arrival of cashew from other centres like Vetapalem in the district. Consequently, the local traders have been left with large stocks of cashew kernels this time (about 5000 tins; each tin contains 10 kg).

On one side, kernel prices have been slipping by the day and on the other, cashew nut prices are on the rise due to shortage of nuts.

"Currently, Palasa cashew processing operators have very little stock of cashew nuts, which can meet only one month's requirements of Palasa cashew units. As the cashew season is coming to an end, the arrival of nuts have slowed down. Owing to this, we are paying Rs 3,800 per bag (each bag contains 80 kg) of nuts," he said.