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Cashew sector foresees a troublesome 2023 on drop in exports, demand 

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With falling exports, the cashew business fears a difficult 12 months forward amid international hunch and excessive uncooked materials costs.

Trade sources identified that the disruptions in manufacturing and provide chain are nonetheless persevering with and so they attributed the explanation to the affect of Russia-Ukraine battle, inflation and recession.

J Rajmohan Pillai, chairman of Beta Group, the house owners of NutKing model, informed businessline that diminished spending on discretionary objects like cashew nuts has hit the business badly. China was a serious cashew market and its zero Covid coverage adopted final 12 months disrupted shipments there. “Final 12 months was difficult and the state of affairs is predicted to proceed this 12 months”, he stated.

Excessive costs

The sector is now going through a state of affairs with larger costs for uncooked cashew, surging processing price and declining export costs. The value for W320 grade cashew nuts is now within the vary of $2.5-2.6 in opposition to $2.95-3.1 final 12 months. The uncooked nut value is now within the vary of $1,240 per tonne in opposition to $1,200 final 12 months.

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There has additionally been a delay in receiving shipments of uncooked cashew. Often, in the beginning of the 12 months, companies signed contracts for at the very least till the third quarter. However this 12 months, most importers within the US and EU don’t plan to import cashew till the top of the second quarter, Pillai stated.

Amid decrease demand and export costs, he stated the processors and allied companies are in no rush to import uncooked cashew particularly when its costs stay excessive.

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Pratap Nair, Managing Director, Vijayalakshmi Cashew Firm stated Indian home consumption of cashew nut is true now encouraging whereas the worldwide situation is just not so conducive, particularly in Europe, as a result of Ukraine battle. The rising state of affairs has resulted in declining disposable earnings resulting in waning precedence for cashew nuts amongst customers.

Coupled with that is the delayed crop in Africa and in India resulting from climatic adjustments. The delayed crop might result in a brief crop and it needs to be seen whether or not the costs will probably be steady or not this 12 months. Nair stated cashew costs have bottomed out and there’s no likelihood for taking place additional as all of the adverse elements have already factored into it.

RK Bhoodes, former chairman of Cashew Export Promotion Council of India, pressured the necessity for reinstating incentive schemes for exports to stay aggressive in West Asian market, a serious purchaser for Indian cashew. Resulting from lack of funds, the sector is just not taking part in abroad gala’s. The Council is taking part by mobilising its personal method, he added.

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