<p></p><p>Demand for cashew nuts is likely to increase given the sharp correction in kernel prices, traders said. Buyers are active in the market but waiting due to reports of good crop in India and West Africa. Traders expect consumption to be on the higher side in the current year.“Cashew kernel prices have corrected sharply from the high achieved in 2011. Cashews are the snack-nut consumers’ distinct favorite. We expect demand to pick up at this level and expect a positive year in nut trade,” Cashew Export Promotion Council of India chairman Hari Krishnan R Nair, said. Prices of W 320 grade touched $ 4.50 per pound in 2011 but have declined to $ 3.40 during February 2012. “Consumption of snack nuts fell by 11% in US during 2011. Nut consumption was actually growing by 2-3 % annually,” he said. While the USA and Western Europe remain large markets, West Asia has emerged as a third big export market for India. Other growing markets are the Mediterranean region, Eastern Europe and China, he added.</p> <p>Pankaj Sampat Samsons Trading feels that the current market has factored in lower usage due to the high prices and the prospects of better supplies in 2012, compared to 2011. “Any deviations from this will affect the movement of the market. Asian usage can be expected to be better than 2011 with the current prices. Our feeling is that total 2012 usage cannot be lower than 2011 unless there is some dramatic development in external factors,” he said.“Some export contracts for near-term shipments happened in the month of February. But buyers are reluctant to enter into long-term contracts due to the volatility in the market. They expect further correction in prices,” Hari Nair said. Supply is expected to be better in the current season. Climate has been conducive in India and reports suggest that supply from Western Africa is also likely to better, he added. </p><p> “There is some interest for April forwards but no significant trades reported as buyers ideas are at the lower end of the range. Indian market was reasonably active but there was no increase in prices as buyers were only plucking the low lying fruit, as there is no supply concern, there is no pressure to build inventory and they continue to buy when needed” Pankaj Sampat said. India exported 91,559 ton of cashew kernels valued at R2,598 crore in FY 2010-11.<br></p><p></p>