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  • Cashew exporters fear US shutdown will hit business

    Oct 7th, 2013

    <p>Cashew exporters are in a dilemma as the international markets anticipate the aftereffects of the US partial shutdown. The ` 4,450 crore cashew industry also faces a crisis with export giants turning their attention to India, badly affecting indigenous cashew production.</p> <p>&ldquo;Presently, we have orders from the US, but in course of time, the orders could be cancelled due to the US financial shutdown. As US cuts down its imports, other cashew exporting countries will seek out one of the largest cashew consumers, India, for their markets.</p> <p>These countries have sophisticated mechanised processing and can deliver good quality kernels at a low cost, which in turn affects our indigenous cashew business,&rdquo; said A Abdul Salam, Cashew Exporters Association.</p> <p>In the financial year 2011-12, India earned foreign exchange worth ` 4,450 crores by exporting 1,31,760 tons of kernels and 13,575 tons of cash&shy;ewnut shell liquid worth ` 59.46 crores, according to the Cashew Export Promo&shy;tion Council of India.</p> <p>US is the largest impor&shy;ter with 47,611 tons worth ` 1,471 crores, followed by UAE, Netherlands, Japan, Saudi Arabia, and UK. However, the market also faces a price hike in raw cashew imports when compared to last year&rsquo;s prices.</p> <p>&ldquo;The cashew industry is also affected by the lesser availability of raw cashew and higher price compared to last year, with the price increasing to $1350 from $1200.</p> <p>Meanwhile, the uncertainties in the US along with the depreciation in the value of the rupee have contributed to the &ldquo;devaluation&rdquo; of money during exports and imports. Lack of mechanisation and lesser availability of labour also add to the woes,&rdquo; said Shaji V, Commercial Manager of Kerala State Cashew Development Corporation.</p> <p>&nbsp;</p>


    Source: http://www.deccanchronicle.com
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