KOCHI: Cashew exports from India have taken a hit due to the increasing cost of production and a cut in export incentives, resulting in a 15 per cent fall in shipments in the first six months of the current fiscal.Besides, the steep increase in imported raw nuts neutralised the gain from depreciation of the rupee against the US dollar. At the end of September, exports fell to 48,518 tonnes valued at Rs 2,428 crore. In terms of value, the exports fell 2 per cent.
Cashew exports had been on the rise for several years, touching a record Rs 5,545 crore in 2014. “The last time this happened to cashew ex ports was around 10 years ago,” said P Somarajan, proprietor of Kailas Cashews. “The reduction of export incentive from 5 per cent to 2 per cent has affected the shipments when the price of raw cashew imported from Africa has gone up to $1,800 to $1,750 per tonne from around $1,000,” he said.
India imports about 8.5 lakh tonnes of raw cashew for processing. This is as much as the Indian production. Best quality nuts come from West African countries like Ghana where the season is over. At present, the flow is from Tanzania and partly from Indonesia. Raw nut prices are likely to come down only by early next year when the season begins in West Africa.
“As a result of mechanisation, the cashew processing has gone up 50 per cent globally . This has led to heavy pressure on the supply of raw nuts, making the prices unviable for the processors in India,” said Prakash Rao, managing partner of Mangalore-based Kalbavi Cashews.
