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  • India: Dropping demand ruins cashew export market

    Mar 6th, 2012

    <p></p><p>Growers and processors of cashew nuts are hoping for brighter weather and increased consumption of their produce. The cold weather is bad for the crop and declining purchase has seen prices fall. &nbsp;Last year, growers of cashew nuts were offered the highest ever price for their produce - 85-90 per kg. This year the nuts are fetching only 70 to 75 per kg, which is certainly not terrible, but they are expected to continue to fall as a result of slowing interest internationally. Also, African countries are selling the nuts for 45 per kg. </p> <p>Goan growers argue that their nuts are worth the extra money, claiming they are of a higher quality as a result of leaving the apple on the tree to ripen fully and fall under its own weight. &nbsp;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>The higher prices seem to have turned people towards cheaper alternatives, causing the price fall as demand dropped. &nbsp;The stocks are now being sold in the domestic market rather than for export, which has again lowered the value. </p><p>"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: timesofindia.indiatimes.com
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