Imports hit Palasa cashew producers

Cashew producers of Palasa, who are already bogged down by a number of problems including closure of units due to stricter pollution control norms, now have another problem. This time, imported cashew nuts are cutting into profits.

"Imported nuts are available at cheaper prices in the local market due to rupee appreciation and this has brought down the purchasing prices of nut significantly this season," M Nooka Raju, a senior cashew processing operator, told Business Standard. He said processing operators were not keen on buying nuts from local farmers.

Traders from Kerala are importing nuts from other countries and selling them in Srikakulam district.

Currently, local farmers have priced their product at Rs 32-34 per kg, but Kerala traders are offering imported nuts at Rs 24 per kg. He said this might lead to a further fall in the prices in the coming days.

There are about 200 units with a processing capacity of about 2,000 bags (each bag contains 80 kg cashew nuts) a day in Palasa, Andhra's largest cashew market, and its surrounding villages like Kasibugga, Haripuram, Patatekkali, Pundi, Chepara Sompeta and Mogilipadu in Srikakulam district.

During the 2006-07 season, operators purchased nuts at Rs 3,600-4,000 per bag. But the rates have dropped to Rs 3,000 per bag in the current season.