Kochi: If the current trend is any indication, exports of cashew during the current fiscal are likely to drop in terms of volume and in rupee terms, although it might show a better performance in terms of value realisation in dollar.
Total shipments during April-February 2007-08 stood at 1,03,139 tonnes valued at Rs 2,033 crore against 1,06,975 tonnes valued at Rs 2,222.15 crore in the corresponding period a year ago. In dollar terms, the value realisation during the first 11 months of current fiscal increased by $15.25 million to $505.14 million from $489.89 million during the same period in 2006-07.
However, exports of cashew nut shell liquid (CNSL) have shown a marginal increase both in terms of volume and value in rupee and dollar categories. Its total shipments stood at 7,138 tonnes worth Rs 10.67 crore as against 6,076 tonnes valued at Rs 10.63 crore during the same period last fiscal.
Industry sources told Business Line that that the fall in exports could be attributed to three major factors: Continuous appreciation of rupee against the dollar which has made “exports not as attractive as it used to be”; a strong domestic market (though there isn’t any statistics on consumption available), which absorbs a large quantity, keeping prices above international levels; and competition from other producers in the international market in terms of value as “our cost of production keeps on rising”.
Better prices in the domestic market than in the international market are said to have enthused exporters to sell more in the local market. The rising prices in the world market coupled with the slowdown in Vietnam and possible defaulting by exporters from there could enhance the chances for Indian cashew kernels to find more demand in the coming months, they predicted.
Call for incentives
Meanwhile, the sources said the cashew industry did not get enough incentive to make up for the losses incurred due to the rupee appreciation. The DEPB rate has been reduced from 3 per cent to 1 per cent, besides taking out cashew from the purview of the Vishesh Krishi Upaj Yojana scheme.
At this juncture, it is important to note that the prices of cashew kernels are controlled by the US market, as more than 50 per cent of the global production of this tree nut is consumed in the US, they said.
The non-availability of indigenously produced raw nuts has, however, continued to push up imports of the raw material, mainly from the African countries. Imports of raw nuts have gone up by 17,367 tonnes to 5,73,092 tonnes during April-February 20 of the current fiscal from 5,55,725 tonnes in the same period last fiscal.
In dollar terms, the imports value has gone up by $21.39 million to $400.59 million from $379.20 million during April-February 2006-07, according to Cashew Export Promotion Council of India (CEPC) sources.
Total shipments during April-February 2007-08 stood at 1,03,139 tonnes valued at Rs 2,033 crore against 1,06,975 tonnes valued at Rs 2,222.15 crore in the corresponding period a year ago. In dollar terms, the value realisation during the first 11 months of current fiscal increased by $15.25 million to $505.14 million from $489.89 million during the same period in 2006-07.
However, exports of cashew nut shell liquid (CNSL) have shown a marginal increase both in terms of volume and value in rupee and dollar categories. Its total shipments stood at 7,138 tonnes worth Rs 10.67 crore as against 6,076 tonnes valued at Rs 10.63 crore during the same period last fiscal.
Industry sources told Business Line that that the fall in exports could be attributed to three major factors: Continuous appreciation of rupee against the dollar which has made “exports not as attractive as it used to be”; a strong domestic market (though there isn’t any statistics on consumption available), which absorbs a large quantity, keeping prices above international levels; and competition from other producers in the international market in terms of value as “our cost of production keeps on rising”.
Better prices in the domestic market than in the international market are said to have enthused exporters to sell more in the local market. The rising prices in the world market coupled with the slowdown in Vietnam and possible defaulting by exporters from there could enhance the chances for Indian cashew kernels to find more demand in the coming months, they predicted.
Call for incentives
Meanwhile, the sources said the cashew industry did not get enough incentive to make up for the losses incurred due to the rupee appreciation. The DEPB rate has been reduced from 3 per cent to 1 per cent, besides taking out cashew from the purview of the Vishesh Krishi Upaj Yojana scheme.
At this juncture, it is important to note that the prices of cashew kernels are controlled by the US market, as more than 50 per cent of the global production of this tree nut is consumed in the US, they said.
The non-availability of indigenously produced raw nuts has, however, continued to push up imports of the raw material, mainly from the African countries. Imports of raw nuts have gone up by 17,367 tonnes to 5,73,092 tonnes during April-February 20 of the current fiscal from 5,55,725 tonnes in the same period last fiscal.
In dollar terms, the imports value has gone up by $21.39 million to $400.59 million from $379.20 million during April-February 2006-07, according to Cashew Export Promotion Council of India (CEPC) sources.
No comments:
Post a Comment