Cashew kernel exports stagnate in 2009-10

Slackening demand from the US and European Union nations due to the global economic slowdown and increasing competition from Vietnam in the international market pulled down India’s cashew kernel exports during 2009-10.

The provisional numbers worked out by the Cashew Export Promotion Council of India (CEPCI) for 2009-10 show a marginal decline of 2 per cent in India’s cashew kernel exports to 107,500 tonnes, as compared to 109,522 tonnes in the previous financial year.

In value terms, the exports fell 6.2 per cent to Rs 2,800 crore compared to the previous financial year. This was mainly on account of a 2 per cent drop in unit value realisation, which stood at Rs 268 per kg, as against Rs 273 per kg in the international market, for W320 grade kernel. The appreciation of the rupee against the US dollar added to the fall.

The demand from the US, a major importer from India, has come down considerably, which is battling recession since December 2007. Cashew exports to US stood at 30,000 tonnes in 2009, a drop of 26 per cent compared to 40,500 tonnes exported in 2008. Exports to the European Union also declined by a marginal 3 per cent to 32,000 tonnes.

However, the West Asian market saved the day for exporters. Cashew exports to West Asia rose almost 22 per cent to 28,000 tonnes in 2009, as against 23,000 tonnes in 2008. No significant growth was seen in the Australian and Japanese market. However, the export share of Turkey, Syria and Jordan has been steadily increasing.

“The major trend seen last year was a shift in buying patterns of the US and European Union. The dealers in these countries bought kernels for shorter duration. The demand from West Asia, however, increased considerably compared to the traditional markets of US and Europe,” Pankaj Sampat of Samsons Trading Co, a Mumbai-based trader, told Business Standard.

He added, Vietnam has now emerged as a major threat for India in the export market. According to estimates, Vietnam’s exports during the last financial year were in the order of 150,000-170,000 tonnes.

As far as import of raw cashew nuts are concerned, Indian processors imported 726,095 tonnes, a rise of 23 per cent for the first 11 months of the financial year ended February 2010. In value terms, the imports were to the tune of Rs 2,908 crore, a jump of 13.6 per cent over the same period a year ago. The unit value realisation was down 7.7 per cent to Rs 40 per kg during the 11-month period.