Rise in prices hurts cashew shipments this year

Cashew exports fell 20 per cent in April 2015-February 2016 against the previous year period. Imports of raw cashew nut (RCN), however, continued to show an upsurge during the year. The rise in unit value is seen as the reason for the continuous decline so far this fiscal, Cashew Export Promotion Council of India sources told BusinessLine.The average unit value this fiscal increased to ₹513.92 a kg from ₹429.18 last year. Meanwhile, the world kernel market was steady in January and February this year and is expected to be so this month also, Mumbai-based dealer Pankaj N Sampat told Business Line. Looking at recent decline in the prices of other nuts, there is a feeling that cashew prices should also soften. Kernel prices, in fact, did not move up when the prices of other nuts soared in the last two years. Cashew kernel prices have been steady in a narrow range for the last four years even though RCN prices moved up significantly in the last couple of years. Even though the introduction of 9.55 per cent duty on RCN imported into the country from this month may not make any significant impact on the cashew kernel market, it would certainly make things difficult for the shellers here, who are already burdened with higher processing costs and lower RCN availability indigenously.Impact will be more for shellers catering to domestic market but exporters will also be adversely affected, as it is not easy to operate with duty exemption/refund schemes. Strong efforts are being made for reconsideration but the outcome is uncertain, market observers said. Kernel prices Current kernel prices are for W240 from $3.75 to $3.95, W320 from $3.50 to $3.70, W450 from $3.45 to $3.50, Splits from $3.10 to $3.25 and Pieces from $2.90 to $3.10 per lb.The RCN prices have come down from the highs of January/February but are still not in parity with kernel prices, Pankaj said. Source: http://www.thehindubusinessline.com