The Hindu Business Line : Unit value realisation of cashew export increases

Mangalore, July 31 The first three months of the current financial year have augured well for the Indian cashew exporters with cashew kernels recording a growth of more than 31 per cent in unit value realisation.

The country, which exported cashew kernels at a unit value of Rs 194.13 a kg during the first quarter of 2007-08, earned Rs 254.98 a kg in the corresponding period of 2008-09.

Mr K. Prakash Rao, President of Karnataka Cashew Manufactures’ Association, told Business Line that there was a quantum jump in rates more than volume.

Undelivered contracts

“Vietnam heavily defaulted of its commitments to the US and Europe on account of which, they (US and Europe) were forced to buy from India. When they bought from India, the value realisation went up and quantity is also going up,” he said.

India exported 30,578 tonnes (28,876 tonnes) of cashew kernel valued at Rs 779.69 crore (Rs 560.57 crore) during the first quarter of the current fiscal.

Mr G. Giridhar Prabhu, Convener of India Cashew Federation, said buyers came back to reliable Indian shippers and also bought on spot market heavily, following the news of undelivered contracts from Vietnam.

Further, he said, raw cashew from Indonesia and Tanzania were done at high prices. Brazil had a 35 per cent drop in production for season 2007 (September to December), and 40 per cent of Indonesian crop was washed off.

World buyers have to pay prices which producers pay for raw cashew nut. Even the un-seasonal rains ruined the crops in Indian west coast. All these factors added to the increase in the unit value realisation of the exported cashew kernels.

Promotional Measures

Exports in quantity increased also due to price increases and promotional measures by Cashew Export Promotion Council of India (CEPCI) and the Government of India, he said.

Asked if Vietnam and Brazil pose a tough competition to India in the export market during this fiscal, Mr Prabhu said Vietnam can make volumes in export but India will remain the market leader. Stating that Brazil has never been a serious competitor to India, he said India is truly a global player and will remain so.

“We will retain and regain global leadership in production, manufacture, export and consumption,” he added.

Asked about the likely exports of cashew kernels from India during the current fiscal, Mr Rao said industry projects the exports of cashew kernels to reach 1.25 lakh tonnes (1.14 lakh tonnes) valued at Rs 3,250 crore (Rs 2,288 crore).