Compared to this, India's cashew nut exports were worth over Rs 40 billion in 2011 and some 300 containers were exported.
And the country has another reason to be concerned – there has also been a sharp decline in the yield over the past twelve months.
According to Anu Prasad, general manager, The Kailas Cashew Exports, Kollam, Kerala, the main reason for the drastic drop in cashew nut prices is the entry of players who were not engaged in the cashew business, in the fray, “merely because they thought it was profitable.”
He also said, “Bigger competitors in the cashew supply chain have tried to monopolise the market, and if a company starts dictating terms, not only does it adversely affect the price and demand in the local market, but also our credibility in the international market.”
“The United States, for instance, does not trust Indian cashew exports, and prefers to import from Vietnam,” Prasad stated, categorically. Vietnam, incidentally, is the market leader in the production of the nut, and Indonesia, Brazil and a few African countries round off the top ten.
“We had to import raw cashew nut (RCN) from Africa at a much higher price per ton, and to avoid a loss, the sellers were about to inflate prices, but could not do so because the market crashed at that point,” he said.
Like everything else, cashew nut exports were also not spared by the weakening of the rupee. While there was a sharp drop in the same, there was a massive hike in the unit value. Even in the local market, Prasad said retailers are selling it in the range of Rs 500-Rs 600 per kg.
All this is bound to intensify our labour turnover issues at every level as well. However, Prasad said sales will hopefully pick up in the next couple of months, which is a festive period across India.
