India’s cashew exports declined by 38 percent in September due to stiff competition in international markets.
Cashew nuts are exported from India to more than 80 countries including USA, United Arab Emirates, Singapore and France. Kerala, Tamil Nadu and Karnataka are leading cashew export states respectively.
In this case, due to the fierce competition in the international markets, the export of cashew nuts decreased from November last year, while the export of cashew nuts decreased by 38 percent in September to 22.71 million US dollars, according to the Ministry of Commerce. Cashew exports declined by 34 per cent in April, around 30 per cent in May, around 6 per cent in June, 26.62 per cent in July and 31.5 per cent in August, it said.
Tukaram Prabhu, Vice President of Karnataka Cashew Growers Association said,
Withdrawal of export promotion scheme under ‘Vishesh Krishi and Gram Udyog Yojana’ affecting exports. Currently, despite good demand in world markets, there are no plans to boost exports. Our cashew quality is much better than Vietnam cashew. It is a labor intensive field. Also, the government should consider extending export incentives to boost exports. India’s cashew production is 3.5 lakh to 3.70 lakh tonnes per annum.’
This is what he said.
According to a cashew exporter from Kerala,
As the price in India is 15 percent higher than the export price, the traders prefer to sell here. Another major reason is the high expenditure on cashew processing in India.
This is four times more than the leading exporter of cashews, Vietnam.
In Vietnam they mostly use processing machines. But we are still doing it through human labor. On an average, an 80 kg bag of cashews costs Rs 800 in Vietnam, while the cost of processing in India is around Rs. 3,600. In the wholesale market, the domestic price is Rs.630 per kg and the export price is Rs.560 per kg.
According to data from the Agricultural and Processed Food Products Export Promotion Authority, exports declined by 25.16 percent to USD 113 million during the April-August period of the current financial year. Besides Vietnam, Indian exporters face stiff competition as African countries including Guyana, Mozambique, Tanzania and Ivory Coast have formed the ‘African Cashew Alliance’.
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