Cashew kernel exports rise 16% in three quarters

West Asia, Japan emerge as new markets as Europe, US continue to see slowdown

After stagnation in the last financial year, cashew kernel exports are set to hop onto a growth trajectory. For the first nine months of the current financial year, exports have grown 16 per cent to 90,244 tonnes against 77,869 tonnes a year ago.

Exporters earned Rs 3,764 crore in the first three quarters of this financial year, a growth of 24.2 per cent on Rs 3,031 crore a year ago.

The country is likely to close the current financial year with second all-time high export figures. Exports were 131,000 tonnes at Rs 4,390 crore in 2011-12. In 2012-13, those slipped to 100,105 tonnes at Rs 4,046 crore.

“In five years we have seen exports stagnating at a little over 100,000 tonnes except for one year. This year, we have seen a significant change in terms of imports of raw cashew nuts as well as exports of kernels. At the same time, there has been no increase in kernel imports. This shows we have beaten the trend of stagnation,” G Giridhar Prabhu, managing director of Achal Cashews, a Mangalore-based export house, said.

“The healthy trend is the imports of raw cashew nuts came down 10 per cent to 662,795 tonnes between April and December this financial year against a year ago. The average cost of imports is down 23 per cent to Rs 616 crore against Rs 799 crore a year ago with the unit value at Rs 55.8 a kg against Rs 59.3 a year ago.”

Another factor is the rise in the unit value realisation. Exporters have seen a seven per cent rise in unit value at Rs 417 a kg during the nine-month period against Rs 389.3 a year ago. In December, the unit value had increased 27 per cent to Rs 448 a kg against Rs 352.8 a year ago.

“The rupee depreciation has contributed significantly to export earnings. The average exchange rate has gone up to Rs 62 a dollar compared to Rs 54 a dollar a year ago. Another factor could be the small decline in domestic consumption.”

Sasi Varma, executive director and secretary, Cashew Export Promotion Council of India (CEPCI), said continued slowdown in Europe and the US prompted the exporters to diversify to Japan, Saudi Arabia and Dubai.

“Japan accounts for seven per cent of the exports. If the demand sustains over the fourth quarter, we could see exports touching 115,000 tonnes.”