Kochi, June 25 Economic recession in major consuming countries continues to impact the Indian cashew exports, which have shown a decline during the first two months of the current fiscal.
Indian shipments in April and May stood at 17,035 tonnes, valued at Rs 456.23 crore, as against 20,008 tonnes, valued at Rs 487.32 crore, in the same period the previous financial year. However, the unit value realisation was on the higher side because of the weakening of the rupee against the dollar. Unit value this fiscal was at Rs 267.82 a kg as against Rs 243.56 a kg in April-May 2008.
Exports in May 2009 was down to 8,696 tonnes valued at Rs 234.68 crore from 10,516 tonnes valued at Rs 259.86 crore in the corresponding month last year.
Luxury item
The US is the major market for Indian cashew kernels and the recession has severely impacted this market, industry sources told Business Line. However, lifting of the ban on import of agricultural commodities, including cashew kernels by the Russian Government recently, is likely to pave the way for opening up the channel for export of the commodity, they said. Shipments of cashew kernels to Russia are 1,000 tonnes a year. Meanwhile, a high-level delegation from the Kerala State Cashew Development Corporation is on its way to Russia to explore the possibility of marketing value-added cashew nut products manufactured by the corporation in that country. As part of exploring the potential for marketing its value-added products in emerging economies and non-traditional markets, the delegation had visited China and the response has been overwhelming, Dr K.A. Retheesh, Managing Director of the corporation, told Business Line.
Exploring markets
Much of the exports to the traditional markets are in the bulk form and “we are trying to break this tradition by introducing value-added products in both traditional and non-traditional markets”, he said.
While the demand for cashew kernels has been showing a declining trend, export of cashew nut shell liquid (CSNL) has been showing significant growth, probably because of its increased application in various sectors overseas.
During April-May, 1,246 tonnes of CNSL valued at Rs 2.6 crore were shipped out against 790 tonnes valued at Rs 1.65 crore in the first two months of last fiscal.
Import needs
Imports of raw nuts continued to show an upward trend due to non-availability of indigenous raw material in sufficient quantity. In April-May this fiscal, 1,32,810 tonnes of raw nuts valued at Rs 493.16 crore was imported at a unit value of Rs 37.13 a kg as against 82,544 tonnes valued at Rs 315.01 crore at unit value of Rs 38.16 a kg in the same period the previous fiscal.
The country’s dependence on imported raw cashew nuts appears to have become a perpetual phenomenon because of the lacklustre approach to increase the indigenous production of this raw material. The industry requires an estimated 12 lakh tonnes of raw nuts; as against this the country’s production is around six lakh tonnes a year, industry sources pointed out.
Source : Business Line