<p></p><p>A heavy inflow of under-invoiced processed cashew kernels from Vietnam and Brazil has hit the chances of Indian cashew processor-exporters to capitalise on the domestic festival demand. Hit by a downturn in shipments, the exporters are banking on the domestic market to stay afloat.Last year, cashew exports had hit an all-time high of over Rs 4,390 crore. As overseas cashew traders under-invoice the goods to evade the import duty of 35%, it results in heavy revenue loss for the government.</p> <p>While the declared prices of imported kernels in the ports of Nhava Sheva, Mumbai and Chennai range from Rs 69 to Rs 125 per kg, the actual value here is between Rs 200 and Rs 500 per kg depending on quality, said K Sasi Varma, executive director and secretary of The Cashew Export Promotion Council of India.The demand for cashew kernels rises by September but this time domestic processors have been experiencing a slump in orders. "When our cashew kernels in the broken grade are sold for Rs 300-Rs 325 per kg, the imported kernels are cheaper by Rs 50 to Rs 70 per kg in the wholesale market," said P Somarajan, proprietor of Kailas Cashew Exports. With exports facing a slowdown, the processor exporters are relying on the domestic market to shore up the earnings. </p><p>"We sell no less than 30% of our production in the Indian market. The broken grades of cashew have a great demand here and are not generally bought by foreign clients," said A Abdul Salam, general secretary of Cashew Manufacturers and Exporters Association.Sasi Varma said considerable quantities of cashew kernels are being imported into India under the guise of cattle and poultry feeds causing a further loss in government revenues.The processor exporters in Vietnam and other countries are able to export at a lower price because of the subsidies, tax exemption and cheap labour available there. These countries were once the suppliers of raw cashew nuts but have now become processors of the commodity and are eating into the export share of India. </p><p>Now, they have found a ready market for broken grade cashews in India and are bent on taking advantage of it.Meanwhile, cashew exports, which showed a drop of around 2,700 tonne till July with a marginal fall in revenue, have slid significantly in the subsequent months, say the exporters."Even for a low rate of $3.10 per pound, there are no buyers," Somarajan said. </p><p> </p><br><p></p>