Cashew export earnings dip 10% to Rs 7.5 cr

India's export earnings from cashew kernel fell 10 per cent to Rs 7.50 billion in April-July from Rs 8.37 billion a year ago, an official from Cashew Export Promotion Council said today. Quantity of exports was down marginally to 38,891 tonnes from 39,996 tonnes last year, he said.

Appreciation of the rupee against the dollar and fall in production due to outbreak of fever in the processing regions in Kerala hit the earnings, said exporters.

Average export earnings fell to Rs 192.92 a kg from Rs 209.46. Rising competition from Vietnam also contributed to the fall in exports.

In July, the central government raised rate of duty draw back to 3 per cent from 1 per cent and also cut interest rates for packing credit. Exporters said these measures may help mitigate impact of rupee appreciation.

Import of raw cashew nuts for processing and re-export rose to 258,873 tonnes from 211,544 tonnes. Total cost of importing raw cashew nuts, however, slipped to Rs 6.47 billion from Rs 6.61 billion a year ago, due to fall in raw cashew price.