Cashew exports to US declined from FY14 to FY18 as Vietnam stole the show

Exports to the UAE, Japan and Saudi Arabia have seen growth, both in terms of volume and value

The country’s exports of cashew kernels to the US has declined from 33,898 metric tonnes (MT) at Rs 15.05 billion in 2013-14 to 13,179 MT at Rs 9.06 billion in 2017-18. 

During 2013-14, the US was the largest destination for cashew kernels exporters from India. The decline has also been evident in European countries and in other traditional strongholds, with competitors like Vietnam offering the same quality products at a lower rate. 

The Cashew Export Promotion Council of India (CEPCI) has said that it is looking at marketing strategies to recapture the lost share in these traditional markets.

Exports of cashew kernels to the US was around 33,898 MT at a value of Rs 15.05 billion in 2013-14, which has come down to 13,179 MT at Rs 9.06 billion in 2017-18. Exports to the Netherlands, the third largest export destination for India, has also declined in volume from 9,918 MT to 8,650 MT in 2013-14 and 2017-18, respectively, while in terms of value, it has grown from Rs 4.23 billion to Rs 5.84 billion during the period.

However, exports to UAE, Japan and Saudi Arabia have seen growth, both in terms of volume and value. The UAE, US, Netherlands, Japan and Saudi Arabia were the top five markets for Indian cashew kernels during 2017-18. 

Export of cashew kernels recorded an increase of 2.5 per cent in quantity and an increase of 14 per cent in value realisation as compared to 2016-17, according to the CEPCI.

“It’s a matter of serious concern that we are losing our market share in the traditional markets like the US, Europe and Japan. We should put in place proper marketing strategies to recapture our lost share in the traditional markets and also increase exports to other emerging markets while fully catering to the requirements of the domestic market,” said R K Bhoodes, chairman of CEPCI, in the recent annual general meeting of the organisation.

The overall exports, in terms of quantity, has come down from 1,14,791 MT in 2013-14 to 84,352 in 2017-18. In terms of value, it has grown from Rs 50.58 billion to Rs 58.71 billion during the period.

There has been an increase of 2.5 per cent in quantity, 14 per cent in terms of rupee and 18 per cent in terms of dollar when compared to the previous year (2016-2017), which recorded an export of 82,302  MT of cashew kernels valued at Rs 51.68 billion ($771 million).