Cashew export from India drops to $22.71mn in Sep
African countries, especially Guyana, Mozambique, Tanzania and Ivory Coast, are giving tough competition to the Indian exporters ever since the African nations formed the 'African Cashew Alliance' to boost the industry in that continent. Also, demand in export destinations is not much of an issue for declining exports. The main reason is the high cost of processing in India.
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Cashew export from India dropped to $22.71mn in September this year in view of stiff competition in the international markets.
The export of the commodity has been declining since November last year and has shrunk by 38 per cent in the last 11 months, India's Ministry of Commerce said.
Kerala, Tamil Nadu and Karnataka are the major cashew-producing states in India from where cashew is exported to around 80 countries.
The major importing countries include the US, the UAE, the Netherlands, Saudi Arabia, Germany, Japan, Belgium, Korea, Spain, France, the UK, Kuwait, Singapore, Qatar, Greece, Italy, Iran and Canada.
African countries, especially Guyana, Mozambique, Tanzania and Ivory Coast, are giving tough competition to the Indian exporters ever since the African nations formed the 'African Cashew Alliance' to boost the industry in that continent.
According to data from the Agricultural and Processed Food Products Export Development Authority (APEDA), exports were down 25.16 per cent to $113mn during April-August this fiscal.
Official data showed that the exports dipped by 34 per cent in April, about 30 per cent in May, about 6 per cent in June, 26.62 per cent in July and 31.5 per cent in August.
The Indian cashew industry exports different grades and products like cashew kernels (wholes and broken), cashew nut shell liquid (CNSL), cardanol (purified CNSL) and flavoured kernels.
Karnataka Cashews Manufacturers Association Vice President Tukaram Prabhu said that the withdrawal of export incentives under 'Vishesh Krishi and Gram Udyog Yojana', too, was impacting the outbound shipments.
"At present, we have no incentives to push shipments, though there is good demand in global markets. Our quality is much better than Vietnamese cashew. It is also a labour-intensive sector," Prabhu said as he urged the government to consider extending export incentives to boost exports.
According to him, India's edible cashew kernel production stood at 3,50,000-3,70,000 tonnes per year.
A cashew exporter from Kerala said that domestic prices were 15 per cent higher than the export price, so traders were preferring to sell there.
"Demand in export destinations is not much of an issue for declining exports. The main reason is the high cost of processing in India. It is four times more than that of Vietnam, which is a major cashew exporter," he said, adding, Vietnamese exporters are using machines, but here still "we are doing most of (the) things manually".
Roughly, the cost of processing in India is about Rs 3,600 per bag of 80 kilogram, as compared to about Rs 800 per bag in Vietnam, the exporter said. Domestic prices stand at about Rs 630 per kilogram in the wholesale market, while the export price is about Rs 560 per kilogram.
(Subhashis Mittra is a New Delhi-based senior journalist, freelance writer, political commentator and public policy analyst.)
