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  • Raw cashew nut prices rise 14% to Rs 85 per kg

    May 21st, 2014

    <p></p><p>Raw cashew nut prices are on the upward curve this year as the domestic crop is estimated at least 30% lower. The prices have gone up 12-14% to touch a high of Rs 85 per kg in several growing regions in Konkan, Maharashtra and Karnataka following the reports of short crop this year. The prices are ruling in the range of Rs 80-85 per kg in Konkan and Maharashtra region and Rs 65-70 per kg in coastal Karnataka and Kerala, where cashew nuts are grown in big quantity.</p> <p>While the prices are more or less same as last year in coastal Karnataka and Kerala after hitting a high of Rs 80 in March, the prices in Konkan and Maharashtra are still ruling at a high of Rs 85 per kg after unseasonal rains damaged the grown up crop in these areas in April and early May. </p><p>Earlier, last year, Phailin cyclone damaged the cashew orchards in about 50,000 hectares in Ganjam district of Odisha and Srikakulm district in Andhra Pradesh. The unseasonal rains between April and May this year affected the harvesting in the west coast areas. Overall, the crop loss is estimated at 30% over the last years production of 750,000 tonnes. Initially, the prices were high in Karnataka and settled down as the harvesting season progressed. In Maharashtra and Konkan region, the prices are still high at Rs 80-85 per kg. </p><p>Currently, the sentiment is low because of the unseasonal rains that damaged the grown up crop. We expect this years crop to be shorter by 30% over the last year, said Walter DSouza, former chairman of Cashew Export Promotion Council of India and a processor of raw cashew in Mangalore. He said the current year crop could come down by at least 200,000 tonnes due to the unseasonal rains. </p><p>Agreeing with him, G Giridhar Prabhu, Mangalore-based cashew processor and exporter said, Weather changes are having a bearing on cashew flowering and fruit set is influenced by weather changes. Prices are usually lower in May in any region for the last quarter of the harvesting season. But this year, due to unseasonal rains, the crop is damaged. The harvesting of the crop for this year is nearing completion in most of the growing regions in East and West coast states. </p><p>However, the Directorate of Cashew and Cocoa Development (DCCD), government of India has estimated that the new plantations would compensate for the loss of orchards in Andhra Pradesh and Odisha due to cyclone. The new orchards planted after the year 2000-01 have started yielding the nuts, said Venkatesh N Hubballi, Director, DCCD. </p><p>The cashew tress that were damaged due to Phailin cyclone were old and were low yielding. It was not a very big loss in terms of output. We had planted new trees from 2000 onwards, which are now bearing the fruits. We estimate the current year production to in the range of 700,000 metric tons, about 6-7% less than last year, he said. </p><p>Indian cashew processing industry requires about 1.4 million tonnes of raw cashew nuts annually and it imports about 50% its requirement. For the year 2013-14, India imported 758,111 tonnes valued at Rs 4,458 crore.<br></p><p></p>


    Source: Business-Standard.
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