Strong rupee Decelerates Cashew Exports In First Quarter

Kochi: Exports of cashew kernels during the first quarter of the current fiscal have fall and the industry has attributed this to appreciation of the rupee against the dollar by over 10 per cent. Industry sources in Kollam, where the cashew industry in the country is concentrated for decades, said that a strong rupee had made Indian cashew kernels uncompetitive in the world market. The major competitors are Brazil and Vietnam. Cost of production/processing in Vietnam is much lower. The latest strategy of the processors is to auction in the domestic market at prices higher than that of the international market. In fact, more than 50 per cent of the raw nuts processed in the country are absorbed in the domestic market. Consequently, many major processor exporters are marketing their branded products in the domestic market through retail outlets. During April-March 2006-07, the country shipped out 1,18,540 tonnes of cashew kernels valued at Rs 2,455 crore against 1,14,143 tonnes valued at Rs 2,515 crore during the previous fiscal. Imports of raw nuts have gone up substantially during the first quarter of the current fiscal to 1,58,777 tonnes valued at Rs 412.69 crore ($100.09 million) from 1,20,864 tonnes worth Rs 374.97 crore ($82.46 million) a year ago. The cashew industry in the country has a processing capacity of 12 lakh tonnes a year and almost 50 per cent of the raw nut requirement is met by imports.