Cashew Exports Fall 22% in Q1 on Higher Raw Nut Prices

The downtrend in cashew exports continued with shipments during the first quarter of the current fiscal falling by 22 per cent from the corresponding period last fiscal.

Total shipments during the April-July period fell to 18,419 tonnes, valued at Rs. 1,026.50 crore, from 23,579 tonnes valued at Rs. 1,165.89 crore in the corresponding period last financial year, according to the Cashew Export Promotion Council of India (CEPCI).

The decline in volume stood at 22 per cent while that of the total value was at 12 per cent. The average unit value realised has shown an upsurge of 13 per cent during this period, Sasi Varma, Executive Director and Secretary, CEPCI, said. The unit value increased this fiscal to Rs. 557.30 a kg from Rs. 494.46 in April-June 2015, he said.

Meanwhile, the fall in the unit value of Cashew Nut Shell Liquid/Cardinol is said to have raised their exports to 3,394 tonnes valued at Rs. 13.01 crore from 2,698 tonnes valued at Rs. 15.76 crore. The unit value realised fell to Rs. 38.33 a kg from Rs. 58.41 a kg, he said.

Attributing the consistent fall in exports mainly to non-receipt of the parity price for kernel, Sundaram Prabha, Chairman, CEPCI, told BusinessLine that the sharp rise Raw Cashew Nut (RCN) prices coupled with closing down of around 80 per cent of the factories in Kerala following a hike in wages is also responsible for the decline.

Imports take a dive

Meanwhile, imports of raw cashew nuts have declined substantially fall during the first quarter of 2016-17.

Total imports dropped during the period by 47.5 per cent to 1,71,478 tonnes valued at Rs. 1,764.70 crore. The average unit value has increased to Rs. 102.91 a kg from Rs. 79.36 in April-June 2015.

The unattainable Standard Input – Output Norms (SION) fixed by the DGFT is said to be behind the sharp drop in imports.

Industry sources say that per DGFT norms, if RCN worth Rs. 100 is imported, the value received from export of the kernel recovered should be Rs. 115, which is not attainable as recovery of export-grade kernels would come to only around 7 per cent.