Cashew nut prices up 20 per cent

Cashew nut prices in the Palasa-Kasibugga market have increased by over 20 per cent during this season as compared with the last season.

This is mainly due to a shortfall in raw material from both domestic and international markets. Cashew nuts are normally available from April till June 15 in the domestic market and during March and April in the international market.

“Last season, we purchased nuts at '3,800-4,200 per 80 kg bag, whereas this season cashew processing operators are paying Rs 4,600-6,000 per bag,” said Malla Srinivasa Rao, president of the Palasa Cashew Manufacturers Association.

He said production dropped by more than 30 per cent in some districts of Andhra Pradesh due to bad weather. The average nut production last season was 2.5 tonnes per hectare, which has declined to 1.5 tonnes in most parts of the state.

This apart, political unrest in the Ivory Coast and in some African countries, which are the main cashew nut exporting countries, impacted exports. This led to a rise in the cost of imported nuts.

“During last season, we imported nuts at '2,800-3,00 per 80 kg bag. Now the same bag costs '5,000-5,600,” he said.

Morevover, cashew kernels yielding has also dropped significantly. “Usually, we get 22-23 kg cashew kernels by processing 80 kg nuts. But this year, the yield has reduced to 19-20 kg per bag of nuts as bad weather affected the crop,” he said.

At Palasa-Kasibugga in Srikakulam district, there are about 200 cashew processing units, which require 250-300 tonne nuts per day. On average, these units operate about 250 days in a year.