Export Import News - Higher Domestic Demand and Strong Rupee Slows Down Cashew Export

Higher Domestic Demand and Strong Rupee Slows Down Cashew Export

Strong growth in consumption and consequent demand for cashew kernels in domestic market is turning producers from export to domestic sales. Sharp appreciation of Rupee against Dollar has made the situation even worse where producers make better margin from domestic sale than export. Today, more than 50 per cent of the raw cashew nuts processed in the country are absorbed in the domestic market.

Exports during April-June 2007 stood at 28,876 tonnes valued at Rs 560.57 crore against 29,273 tonnes valued at Rs 608.13 crore in the same period in 2006-07, whereas forex earnings from exports during the first quarter of 2007-08 increased to $135.96 million from $133.74 million.

During April-March 2006-07, the country shipped out 1,18,540 tonnes of cashew kernels valued at Rs 2,455 crore against 1,14,143 tonnes valued at Rs 2,515 crore during the previous fiscal.

Imports of raw cashew nuts have grown substantially during first quarter of current fiscal to 1,58,777 tonnes valued at Rs 412.69 crore ($100.09 million) from 1,20,864 tonnes worth Rs 374.97 crore ($82.46 million) a year ago.

Indian cashew industry has a processing capacity of 12 lakh tonnes a year and almost 50 per cent of the raw nut requirement is met by imports. The indigenous production of raw cashew nuts hovers around 5 lakh tonnes and about 50 per cent of it is used by the unorganised sector for processing and marketing in the domestic market.

August 12' 2007