Cashew exports may not fare well this fiscal too: Analysts
Cashew exports may not be able to sustain the pace seen since the beginning of this financial year because of the slackening global demand, said traders. After plunging to a two-decade low last year, exports may not fare better in the current fiscal, they said. “The recession seen in many countries in the past couple of years is yet to get over. Demand has slowed from all key markets such as the US, Europe and West Asia,’’ said DV Kamath, managing partner at Mangaluru-based Mangala Cashew IndustriesNSE -2.20 %.
Higher global demand and competitive domestic prices led to a 12 per cent increase year-on-year in cashew exports in April-August to 27,144 tonnes, even as there was a 9 per cent decline in value to ₹1,545 crore since the unit price had dropped.
Indian cashew exporters were able to compete effectively with Vietnam, the largest exporter of the nut. Local sales fetched cashew processors ₹700 per kg compared with export earning of less than ₹600 per kg. “Domestic prices may drop to around ₹600 after Diwali but it will be still better than the export price, which will also fall,’’ said Kamath.
Exports got a fillip came after the government fixed the minimum import price for broken and whole cashew kernels in June to curb increasing imports. “That helped push shipments. Good demand in the local market helped exporters subsidise exports,’’ said S Kannan, executive director, Cashew Export Promotion Council of India.