<p></p><p>The prices of cashew nut exports have decreased dramatically since the end of last year, from $8000 per ton, to $6500 per ton. In the domestic market the price for raw material has halved and is now worth 20,500 dong per kilo.The Vietnam Cashew Association said there has been a lack of transaction with Europe and the US and, recently, China has closed its doors. It is now harvesting season, but businesses do not have the money to collect.</p> <p> “It is very difficult for us to access bank loans,” said Nguyen Thai Hoc, Chair of Vinacas.Commercial banks will not issue loans to cashew companies, because the industry has a lot of unpaid debt.In 2011, since the cashew nut price increased sharply, enterprises tried to seek capital from all possible sources to collect materials, hoping that they would make fat profits when the prices go further. However, in the fourth quarter of 2011, the export cashew nut price unexpected dropped dramatically, from 8000 dollars per ton to 7000 dollar at the end of the fourth quarter of 2011, and to 6500 dollars per ton in early March 2012. </p><p> The prices decreased so rapidly that enterprises could not take any actions to respond. “The material price was 35,000-40,000 dong per kilo on average in 2011. However, no one could imagine that the prices would plunge to 20,000 dong per kilo only,” Hoc said.Exporters now have huge stocks, hundred of thousands of tons, held back whilst the prices are so poor.A senior executive of Vietinbank said that if businesses want banks to restructure the debts and provide new loans, they have to prove the efficiency of their business plans.“In such conditions, I think that cashew companies need to stop loss by selling inventory products,” he said.High interest rates have also been putting pressure on the industry. The rates have been high for a while, but previously exporters could offset the cost of borrowing with the returns they got, but not right now. </p><p> </p><br><p></p>