The Hindu Business Line : Cashew exports decline by over Rs 50 cr in Q1

INCREASED availability in the international market and the consequent drop in prices have led to decline in exports of cashew kernels from the country by over Rs 50 crore during the first quarter of the current fiscal.

The total exports during April - June 2003 stood at 21,192 tonnes valued at Rs 392.26 crore as against 23,770 tonnes worth Rs 443.29 crore in the corresponding period in 2002, Cashew Export Promotion Council of India (CEPC) sources told Business Line.

There had also been a drop in the exports of cashew nut shell liquid which fell to 1,894 tonnes valued at Rs 1.94 crore from Rs 2,443 tonnes worth Rs 2.98 crore in April - June 2002.

However, imports of raw nuts increased to 66,280 tonnes worth Rs 190.96 crore from 62,027 tonnes valued at Rs 163.69 crore.

The main reasons attributed to the fall in exports are increase in supply from other processing countries leading to drop in international prices and the appreciation of value of rupee against the dollar.

Cashew industry sources at Kollam sai the April- June figures could not be taken as an indicator of the trend in cashew demand overseas as this period was considered as lean season.

"Increased shipments take place in August, September and October for the Christmas season," they said.

CEPC has set a target of 1.1 lakh tonne valued at Rs 1,970 crore for the current financial year.

They said at there had been substantial demand from the domestic market and given the better price realisation here some of the exporters were channelling part of their production into the internal market.

On the other hand, they alleged, around 40 per cent of the "unorganised processor exporters " in the "organised sector" had resorted to illegal means to keep their cost of production at low levels so as to undercut prices.

This had also negatively affected the exports.

Besides, the non-cooperative attitude of various segments in the Government was also hurting the industry.

This had led to delays in clearing the consignments of raw material from the ports. For instance, two consignments were detained at Mangalore port, they said.

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Cashew exports decline by over Rs 50 cr in Q1