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  • Raw cashew nut prices hit all-time high by crossing Rs 100 per kg mark

    Mar 10th, 2015

    <p></p><p>Good days seem to have come for cashew nut growers as raw cashew nut prices have hit an all-time high of Rs 102 per kilogram for the first time in select markets of Goa and Kerala. This is the highest ever season opening price in the history of cashew nut trade in the country, traders said.During the beginning of last year, raw cashew nut prices were ruling in the range of Rs 95 and went down to Rs 83 per kg. Compared to last year, the prices have risen 22 per cent owing to short supply. In Kerala, farm gate prices are ruling between Rs 94 and Rs 97 per kg. <br></p> <p>"This is the highest ever season opening price for raw cashew nuts. Normally, prices will be high at the beginning of the season and decline as harvesting progresses. But, this year, it is unlikely to see a big fall as there is a shortage of material even in Tanzania and West African markets," G Giridhar Prabhu, former vice chairman, Cashew Export Promotion Council of India (CEPCI) and exporter from Mangaluru said.Even the landed price for nuts from Tanzania was ruling at Rs 92 per kg this year. The crop in Tanzania was also at lower side this year, which resulted in higher price for Indian importers. However, in April, the prices are expected to go down by at least Rs 10 per kg, he said. <br></p> <p>India imports around 750,000 tonnes of raw cashew nuts every year to meet the requirements of processing units. The domestic production varies between 400,000 tonnes to 550,000 tonnes. India exports around 120,000 tonnes of cashew kernels annually.The crop is delayed for the current season due to prolonged monsoon rains last year, which lasted till November in many growing regions off west coast, Prabhu said.According to him, the flowering as well as fruit setting in cashew orchards was delayed and as a result the crop harvesting is yet to start in many areas. It is delayed by almost one month and is likely to begin in April across Karnataka, Maharashtra and parts of Goa. In the recent days, unseasonable rains in many growing regions has come as a positive to an extent because the crop, which is otherwise delayed will get better growth. <br></p> <p>"The shortage of raw material is a huge problem for processing units this year because the 2014 crop is exhausted. In the last four years the carry over stock was left unprocessed. This year, however, due to expansion of processing units and lower crop, the industry is likely to face shortage," Prabhu said.He said raw nut prices have doubled in the last seven to eight years compared to Rs 45-50 per kg in 2007-08. "In fact, prices have grown 100 times in the last 42 years. In 1972, raw cashew nut was sold at Rs 102 per quintal by farmers," Prabhu recalled.As a result of rise in raw cashew nut prices, the processed cashew nut (kernels) prices in the retail market are currently ruling in the range of Rs 800-1,000 per kg in super markets.<br></p><p></p>


    Source: www.business-standard.com
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