India’s cashew kernel exports have showed an overall drop of a marginal 4 per cent to 1,07,496 metric tonnes during the calendar year 2009 compared to the previous year. During the period January to December 2009, the value of kernel exports was marginally lower by 2.2 per cent to Rs 2,869 crore as against the year ago period.
The drop in exports was mainly attributed to a sharp rise in domestic consumption. The exporters had to draw down to meet the domestic demand than export commitments. The local consumption is pegged at around 1,30,000 tonnes for the year.
According to Kochi-based Cashew Export Promotion Council of India (CEPCI), the unit value realisation was up by 2 per cent to Rs 266.87 per kg in the export market during 2009.
However, there was a ray of optimism for the Indian exporters during the month of December 2009, when the exports registered a robust 22.5 per cent growth at 10,136 tonnes compared to the year ago period. In value terms, the exports were up by 20 per cent to Rs 269.89 crore compared to the same month a year ago. The unit value realisation was lower by 2 per cent at Rs 266.27 per kg year-on-year.
“Recession fears from buyers’ side and lack of parity for Indian exporters were not conducive for driving export during the whole of last year. Another reason could be attributed to aggressiveness on the part of Vietnam in the international market,” G Giridhar Prabhu, a Mangalore-based exporter said.
Vietnam accounted for 1,77,000 metric tonnes during the year. During 2009, supply from Northern crops was normal (despite some reduction in India and Vietnam) whereas supply from Southern crops was short (extent of shortage in Brazil still not known).
At this time, indications are that 2010 Northern crops should be okay unless something dramatic happens with weather in coming weeks.
“We do not have actual figures for retail offtake in USA & EU in last quarter but general reports are that it was “not bad” to “normal”. There was definitely good growth in Asia. In most other markets, there was reasonable growth,” said Pankaj Sampath, a Mumbai-based exporter.
He said cashew market opened in 2010 with a soft tone - since there is very little activity (it has been quiet for more than three weeks now), there were trades at lower levels from some processors in India and Vietnam. Price range widened with W240s being traded from $3.05 to $3.15 per pound FOB (freight on board), W320 from $2.80 to $2.90, W450 from $2.55 to $2.65 FOB (depending on who the seller was).
India was not offering broken grades as domestic demand and prices continue to be good. Not much change in Vietnam price for Splits/Butts but their prices for Large white pieces/Large pieces (LWP/LP) came down a few cents, he added.
Due to the prolonged dullness in kernel market, raw cashew nut (RCN) prices also came down a bit but there is very little quantity available now in Indonesia and East Africa. Bulk of the Tanzania and Indonesia crop has been bought at very high prices. Unless they are able to make some kernel sales, processors will be reluctant to take any big positions when new crops start in India, Vietnam and West Africa.
“Outlook for 2010 is unchanged. If market remains quiet for 2-3 weeks more, some processors will start offering at lower prices (at least for the nearbys),” Sampath added.
The processors from India imported 7,27,814 metric tonnes of raw cashew nuts during the year 2009, a growth of 12.1 per cent over the previous year. The value of imported nuts witnessed a marginal rise of 4.3 per cent to Rs 2,873.33 crore. In terms of unit value the processors were beneficial as the price of imported nuts came down by 7 per cent to Rs 39.48 per kg compared to the previous year.
Source : Business Standard