Palasa cashew kernel prices rise by Rs 20-25

Drop in cashew nut production this season increases prices

The prices of cashew kernels in Palasa, the state's largest cashew market, have gone up by Rs 20-25 a kg. The price hike is attributed to a drop in cashew nut production this year, even as fresh crop stocks have started arriving at the cashew centre.

"At present, we are selling cashew kernels at Rs 270 a kg (220 count) and Rs 185 a kg (340 count) as compared with Rs 250 and Rs 165 respectively in the beginning of last season. Even low grade kernel prices have also gone up by Rs 20 a kg," B Narayana Rao, former president of Palasa Cashew Manufacturers Association, told Business Standard.

Also, Palasa cashew manufacturers are offering higher prices to nut producers this year. "Last year, at the beginning of the season, we paid about Rs 2,300-2,400 a bag of cashew nuts (each bag contains 80 kg). But now the cashew processing plants are offering Rs 2,700 a bag. In addition to this, the poor quality of nuts due to water shortage, has affected the kernel yielding this season," Rao said.

Normally, cashew processors get 21 kgs of kernels out of a bag (80 kg) of roasted nuts. However, the current kernel yielding is around 20 kgs. "On the one side, we are paying Rs 300-400 extra per bag of cashew kernels, and on the other side the kernel yielding is falling by 1-1.5 kg per bag of nuts. Due to these reasons, the manufactures are forced to increase the kernel prices by Rs 20-25 a kg," Rao explained.

Cashew roasting has commenced in around 50 processing plants in the Palasa area and the remaining 100 plants are likely to begin roasting in the next three to four days.

Every year, around 2.5-3 lakh bags of nuts are processed by Palasa processing plants. Nearly 70 per of nuts come to the plants during the April-June period and the remaining stocks reach them before November.