Rising Cashew Export Brings Cheers among Cashew Farmenrs
Date : January 16, 2010
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After a dismal 2009 - cashew export shows upward swing during December' 2009. As against 84,079 tonnes valued at Rs 2,316.44 crore in April-December 2008, exports in the same period in 2009 were 82,053 tonnes valued at Rs 2,196.77 crore. The unit value dropped to Rs 267.73 a kg from Rs 275.51, as per Cashew Export Promotion Council of India.
However during December 2009, shipments moved up to 10,136 tonnes valued at Rs 269.27 crore from 8,272 tonnes valued at Rs 225.01 crore in December 2008.
However, imports of raw cashew nuts (RCN) in April-December 2009 increased 1,21,963 tonnes to 6,39,536 tonnes valued at Rs 2,449.89 crore from 5,15,573 tonnes worth Rs 2,208.97 tonnes in the same period in 2008. Thus, the value of imports in April-December 2009 has surpassed the export earnings by Rs 253.12 crore in the corresponding period last year.
The reasons attributed by the industry for the increased imports are increased availability of RCN and the drop in its prices in 2009. The unit value last year was at Rs 38.43 a kg as against Rs 42.84 the previous year.
Compared with $3 at the end of 2009, large processors were quoting around $2.90 (f.o.b.) for W320. Some processors have even sold at around $2.80 (f.o.b.) and there are reports of some sales at as low as $2.75 (f.o.b.).
There was not much change in other grades – W240 around $3.05, W450 around $2.55, SW320 around $2.65 and SW360 around $2.50 (f.o.b.). Brokens continued to be tight with no change in price.
Except for the purchase of 10,000 tonnes of Mozambique/Tanzania RCN by the Kerala State Cashew Development Corporation, there was not much activity in the RCN market in the last 2-3 weeks due to the quiet kernel market. Processors who have bought reasonable quantities during Nov/Dec are looking to make some kernel sales but the buying interest is limited and buyers' ideas are much lower than the prices paid for the RCN.
Overall, feeling is that market will settle in a $2.75-$3 range for 2010, towards the lower end of the range if buyers can refrain from making big purchases till Mar/Apr and tending to the higher end if they have to start buying before that. Any move outside this range will be temporary and can be sustained only if there is something wrong with the upcoming crops or if the upcoming crops are very big.