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  • Drop in demand hits cashew nut prices

    Mar 6th, 2012

    <p></p><p>Goan cashew farmers and processors are hoping for brighter weather and a rise in consumption of processed nuts. The chill in the morning is bad for the crop and a drop in buyers has hit the prices.The farmers had much to cheer about as the purchase prices of the raw material had increased steadily. Last year, the processors offered the Goan farmers the best ever price of 85 to 90 per kg. But sluggishness in the market due to a decline in demand in the domestic and export market has caused a slump in prices during the current season, sources said. "This year the cashew nuts are fetching 70 to 75 per kg, though it is not so bad," says Madhav Sahakari, president of Goa cashew processors and growers association. But the prices are likely to come down further as the international consumption of processed cashew nuts has declined. "A few African countries, especially Benin, are selling cashew nuts at 45 per kg to other countries like India," A S Kamat, advisor of the cashew processors association, said.</p> <p>But the quality of Goan nuts is better, as farmers allow the cashew apple to ripen on the tree and fall by its own weight.Interestingly, the season had commenced last year with sale of processed nuts at $ 3 per pound (450 grams) in international markets. But after shooting up to even four dollars per pound, the prices slid to the present $ 3.3 per pound. </p><p>Higher prices may have been hard to swallow for those munching the tasty nuts internationally. "This has affected consumption with the result that demand has come down and also affected the season's procurement," Kamat said.The stocks are now being pushed into the domestic market. "Easy availability of processed nuts has only pushed the prices down," a retailer said. The processed nuts which were selling at 500 to 600 per kg a little earlier are now selling at 460 to 480 per kg. "The demand dictates the prices, and lack of it has brought them down by 20% to 25%," Sahakari said.The slump of the mercury has also affected production. "The cashew flowering has been delayed and the ripening also gets affected due to lower temperatures," a farmer said. But they expect an improvement in the crop as the season wears on.<br></p><p></p>


    Source: http://timesofindia.indiatimes
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