Exports of cashew kernels in April declined consequent to various unfavourable factors affecting the industry. Speaking to BusinessLine,
K Sasi Varma, Executive Director and Secretary, Cashew Export Promotion
Council of India (CEPCI), said that the closing down of 70 per cent of
the factories in the organised sector from April 1, following a
substantial hike in the wages by the State government; reduction in
incentives for export of cashew in the new foreign trade policy; and
high raw nut prices were the main factors that squeezed shipments of
cashew. During April 2015, the shipments stood at 6,087 tonnes valued at
₹287.95 crore at a unit value of ₹473.07 a kg against 7,395 tonnes
valued at ₹319.53 crore at a unit value of ₹432.09 a kg in the
corresponding month last fiscal, he said. He said there was drop of
around 15 per cent.
Exports last fiscal showed a
significant increase to 1,34,322 tonnes valued at ₹5,545.35 crore from
1,14,791 tonnes valued at ₹5,058.73 crore during 2013-14, he said. The
average unit value stood at ₹412.84 a kg during 2014-15, against ₹440.69
a kg last financial year.
Raw nut imports in April
2015 also slipped to 35,199 tonnes worth ₹284.86 crore from 46,292
tonnes valued at ₹346.43 crore in April 2014, he said. The unit value
has risen to ₹80.93 a kg from ₹74.84 a kg. This, coupled with the
closure of factories, led to the drop in exports, he said.
Imports up
There
was a substantial increase in imports of raw nuts in 2014-15 that stood
at 9,30,458 tonnes valued at ₹6,601.2 crore at a unit value of ₹70.95 a
kg. Imports in 2013-14 were 7,71,356 tonnes worth ₹4,563.99 crore at
the unit value of ₹59.17 a kg, Varma said.
He said
indigenous production of raw nuts continued to remain far below the
annual demand by the processing industry. The prices of raw nuts in the
local markets were hovering at around ₹100 a kg.
Meanwhile,
Mumbai-based trade sources said that “there has been a significant
increase in kernel prices after a very long period”. Prices are
currently in the range of W240 $3.80-3.95; W320 from $3.55-3.75; W450
$3.40-3.50; splits $3.15-3.25; pieces $3-3.15 per lb (fob) with hardly
any offers at the lower end of the range, Pankaj N Sampat, a
Mumbai-based dealer, told BusinessLine.
Domestic market
He
said premium for large wholes and discount for lower grades has
narrowed significantly. Demand for large wholes is limited. Availability
of lower grades is very tight. In fact, in the domestic market, Splits
and Pieces are trading at prices higher than that in international
market for some Whole Grades, which has happened after several years, he
said.
Trade sources said the demand growth in the
domestic market is at around 15 per cent per annum and prices have been
higher than the international market prices. As a result, many of the
processor-exporters were marketing a good portion of their products in
the domestic market at a premium, they said. Over two lakh tonnes of
kernels are absorbed by the internal market, they said.
In
the RCN market, Pankaj said there were reports of lower kernel yields
in many areas. Delays in shipments and fears of further reduction in
yields in later arrivals forced shellers to pay higher prices to secure
supplies of early arrivals.
This is one of the years
in which RCN prices have been going up during the peak harvesting period
of the Northern crops, which contribute to 75 per cent of the world
output. In previous years when this has happened, there have been
reasons like definite short crops or movement issues due to disturbances
in growing areas, he added.
Source : The Hindu BusinessLine
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