Cashew export earnings down 8.5%

The country's exports earning from cashew nut came down 8.50 per cent to Rs 2,033 crore in 11 months ended February compared with a year ago, an official at the Cashew Export Promotion Council of India said on Wednesday.

Total quantity of exports fell to 103,139 tonnes in April-February from 106,975 tonnes a year ago, he said.

Average exports earning declined to Rs 197.13 a kg from Rs 207.73 a year ago, he said.

The appreciation of rupee against the US dollar and competition from Vietnam were the main reasons for fall in value and quantity of exports, dealers said.

Quantity of raw cashew nut imported for processing and re-export moved up modestly to 573,092 tonnes from 555,725 tonnes a year ago. The rupee rise has, however, helped to cut import cost to Rs 1,612 crore during the period from Rs 1,72 crore a year ago.

Although overall export has registered a fall in value as well as quantity in the first 11 months of the current financial year, recent developments in Vietnam could improve prospects of exports, dealers said.

According to information available with exporters here, cashew industry in Vietnam, India's major competitor in global markets, is facing difficulties as many exporters there have defaulted on their international commitments.

Fall in Vietnam's export earnings was due to the dollar weakening against the Vietnamese currency as well as the rise in cost of raw cashew-nut, dealer said.

Vietnam Cashew Association acting Chairman Nguyen Duc Thanh said many processors were struggling to fulfil their contracts with international buyers, according to a report in a Vietnamese newspaper few days ago.

"Cashew processors need to honour their contracts with foreign buyers to preserve Vietnam's reputation as a reliable supplier," he was quoted in the report.