The Hindu Business Line : Rise in cashew exports to US

EXPORTS of cashew kernels to the US has shown a substantial increase during the current fiscal so far, while the overall exports during April-October 2004 has recorded an increase of 17,720 tonnes in volume and Rs 499.38 crore in value from that in the same period last fiscal.

The US continued to be the main market for Indian cashew. Exports up to October this fiscal went up to 35,234 tonnes valued at Rs 711.94 crore against 26,246 tonnes worth Rs 483.19 crore in the corresponding period last fiscal.

Consumption of cashew in the US continued to rise and is expected to continue with positive health reports and beneficial diets, according to the US market sources. "Many attribute this increase to health reports published advising consumers that cashew may reduce the risk of heart disease by 30 per cent," they said.

Similarly, exports to the UK went up to 4,647 tonnes, valued at Rs 100.84 crore, from 3,611 tonnes worth Rs 64.03 crore in April-October 2003. Exports to the UAE also increased from 3,071 tonnes, valued at Rs 50.27 crore, to 3,527 tonnes worth Rs 71.27 crore in April-October 2004, Mr Sasi Varma, Secretary, Cashew Export Promotion Council of India, told Business Line. He said the average unit value also went up to Rs 204.58 a kg from Rs 179.62 in April-October 2003.

Another positive factor is that the prices of cashew and almonds in the US and the EU currently are almost at par and, hence, the preference for cashew has picked up this year, said Mr Varma.

"From April, there has been an upward trend and the prices of superior grade W320 has gone up to Rs 230-235 kg from around Rs 190 last year," exporters in Kollam, the epicentre of the cashew industry said. Nut consumption in the US went up in recent months, "as there is a perception among the consumers that it was a healthy nut," they said. However, they say if the prices crossed a certain level then the consumers might switch over to other cheap nuts as "it is not an essential commodity."

Though cashew is `America's favourite nut', almond still holds a predominant position among the tree nuts in the US market. Therefore, parity in the prices of both these nuts is inevitable to sustain the demand for cashew, they said.

If the current trend is any indication, the exports during the current fiscal could cross Rs 2,200 crore from Rs 1,804.43 crore in 2003-04 and 1,933.02 crore in 2002-03, industry sources said.

Import of raw nuts during April-October 2004 went up to 3,83,083 tonnes, valued at Rs 1,293.75 crore, compared to 2,82,795 tonnes worth Rs 838.42 crore in the corresponding period last fiscal. The unit value has been shown as Rs 33.77 a kg of raw nut against Rs 29.65 last year. Thus, imports went up by Rs 455.33 crore.

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