The Hindu Business Line : Cashew prices up on rising global offtake

From April onwards, there has been an upward trend and the prices of superior grade W-320 have increased to Rs 230-235 kg from around Rs 190 last year. Cashew exporters in Kollam, where the industry is concentrated, told Business Line that nut consumption in the US has gone.

However, they are of the view that if the prices continue to rise unabated, then the consumers might switch over to other cheap nuts as "it is not an essential commodity".

According to them, the world supply had gone up considerably in recent years and correspondingly, the demand has started catching up.

World raw cashew nut production in 2003 is estimated at 11 lakh tonne. The production of cashew kernels is around 11,800 cartons of 50 lb each. Of this 8,950 cartons were exported, while 2,850 cartons of kernels were absorbed by the domestic markets in the producing countries. India exported an estimated 4,500 cartons of kernels in 2003.

The US market trend, of late, has shown an upswing for dried fruits and nuts due to the growing concern for healthier "on-the-go snacks", the industry sources pointed out.

On the other hand, there were rumours that Vietnam had defaulted in supplies, which "appears to be quite possible as they were increasing exports leaps and bounds", they said.

According to market sources, the prices of cashew kernels could up to the prevailing price of almonds in the US. The almond price in the European Union market is Rs 210-Rs 235 a kg and it would be less in the US as it is the major producer of almonds.

If the current trend continued throughout the year, there is a possibility that the exports in 2004-05 would go up by 15 per cent in terms of value and cross Rs 2,000 crore from the previous year's about 1,900 crore, the industry sources said.