April 19 - 24, 2010
Volume 11 Issue 17
CASHEW WEEK
A Product of
CashewInfo.com
CONTENTSMarket Commentary FOB Price Movement Forex Rates Rupee
outlook Exporters' Guide News Highlights Domestic prices of nut
Trade Events
SPECIAL COVERAGE:Cashew once meant for export loosing its
way
Contact: Foretell Business Solutions Private Limited#146, Gopal
Towers, 1st floor, Ramaiah street, Airport Road, Kodihalli,
Bangalore - 560 008, Tel: +91-80-25276152/153, Fax: 80-25276154,
Email: [email protected], [email protected]
A Product of www.CashewInfo.com
Market Commentary
Market Commentary from experts :Sri. Pankaj Sampat, SAMSONS
TRADING CO, Mumbai After a quiet beginning, there was some activity
in the market in the second half of week 16. Some quantities were
traded to USA (and a little to Europe and other markets as well).
Prices moved up a few cents with sales for W240 at 3.05-3.10, W320
at 2.80-2.85, W450 at 2.70-2.75 FOB. Splits / Butts moved up to
about 2.35 FOB but offers were scarce. Indian domestic market
continued to be quiet. RCN market is steady. First shipments of WA
RCN have started arriving in India. Most of the Benin crop has been
sold. IVC is trading around US$ 800. In March, most of the sales
were to Vietnam but now both India & Vietnam are buying. There
have been some speculative sales by RCN traders for GB but real
situation will not be known till mid May. There is a reasonable
quantity of RCN still to be traded from IVC + GB (and its smaller
neighbours) but it is difcult to judge the price trend. On the
demand side, rst quarter offtake seems to have been good (although
there are reports of declines in some markets). Outlook for coming
months is not clear but there are no reasons to expect any decline.
If prices for other nuts do not come down, retailers in USA &
Europe might be inclined to put more cashews & mixed nuts/dried
fruits on the shelves to meet the nut category demand. Inventories
are low (and might be tighter in Jun/Jul due to lower shipments
from origin in Apr/May). Some buyers have been buying portion of
their forward requirements in the last few weeks, but many buyers
continue to buy for nearbys only as they do not see anything on
horizon for prices to increase too much. On the supply side,
despite crop concerns in some areas & delays in some others,
overall availability for 2010 seems to be comfortable. But due to
the uncertainty of RCN prices, processors are reluctant to make any
large forward sales. Unless the RCN prices come down in May/Jun,
they will not be inclined to take on any big commitments they will
continue to
Indian Cashew Market Commentarysell small volumes when they have
to because the regular demand will keep things moving. Periodic
dips have been opportunities for buyers to cover some volume and
periodic spikes have been inducing processors to make some sales.
This trend is likely to continue and keep the market within current
range until we reach a tipping point either a big change in RCN
prices or a big bunch of buying or selling interest in a short
period. Sri. Giridhar Prabhu, Achal Cashews Private Limited,
Mangalore There is news of rmness in cashew kernel market. It was
range bound at 2.75 to 2.80 and now there is news that business has
been done at 2 .90. This rmness at this time is an indicator of
progressive buying matched with a limited inclination to sell. This
is normally the time when most buyers prefer to buy for next few
months, as they need to ll in the orders of the last quarter of the
year. RCN markets have declined in nominal terms but in real terms
prices are steadier. Arrivals in some markets like Orissa have just
begun while Mangalore area is having its peak period. Prices have
declined mostly on quality concerns but still above par in some
places. Data from East Coast is not available. The DCD has put out
a report that the Indian crop is short by ten per cent. It will be
another 3 weeks to go before one gets into a focus in a certain
area. Indian market is extraordinarily quiet with buyers refraining
from entering the market in principal areas, Mumbai and Delhi. This
is in view of the Vat issue. It is hoped that there is an early
resolution. India has a scorching heat above normal and this deters
consumption a bit. The wedding season is now three weeks away and
some buying in two to three weeks is expected on this account,
especially in broken grades.
CASHEW WEEK
Page
1
A Product of www.CashewInfo.com Demand could pick up from Japan
and Western Markets from this week onwards for near and forward
positions and from spot markets from July onwards till October.
Exchange rates could play a signicant role in pricing. The strength
of the Indian rupee could result in positive movement in prices.
West African supplies could be crucial for exports. Any decline in
Indian raw cashew production would affect the pricing in Indian
markets while any decline in Vietnamese production could impact
international prices. Availability of African would be possible for
supplies and this again depends on processing capacities and
throughput in India and Vietnam. Sri. Rajendra Sabat, Sabat
Associate (cashew expert/ Consultant), Orissa. In this entire
region raw cashew arrival to market is satisfactory and in full
swing. Now all most at all the market the RCN price is stabilized
at Rs.50 per kg. The quality of the present crop that is arriving
at different markets is reported better and seems to be good with
dry shortage of 4 to 5 kg maximum. At some places the price is
either one rupee less or high based on quality. All most all the
old stock of kernels of last year crop is completed. The new crop
price will come in the 1st week of May because most of the
factories were started their new crop production from last week
onwards and some are yet to start with new crop. After two to three
weeks one can say the real position of the market. If the RCN
arrival will continue smoothly with full swing then only the crop
size & future of the market can be assessed. The current kernel
prices in Rs/kg Grades JEYPORE Coastal Orissa / Palasa
Market CommentaryW-320 W-450 JH K 320-325 300-305 275-277
250-255 320-325 300-305 275-280 250-255 285-290 270-275 255-260
215-220 290-295 275-280 260-265 215-220
Sri. Biju, M/s. AGRO TRADE INTERNATIONAL, Kollam The cashew nut
kernels export market continued to remain quiet. Prices were down
by a few cents biz reported W240 was at around $ 3.05 per lb FOB ($
6724 / Mt Fob), W320 around $ 2.85 per lb FOB (US $ 6283 / Mt Fob),
W450 around $ 2.65 per lb FOB (US $ 5842 / Mt Fob) level, as buying
interest from US and Europe were very less. Both the buyers and
sellers are now waiting for some competitive price. Very few
processors are prepared to offer new crop at current market because
of the downtrend. We expect the market to remain rm until June 2010
and then prices could start to ease again. We recommend covering
your immediate requirements and watch the market developments. Raw
cashew arrivals are better in some counties, Ivory Coast raw cashew
traded at US $ 750 Per Mt C&F Cochin for 48 Lbs, Guinea Bissau
at US $ 900 per Mt C&F Cochin, Konakry at US $ 745 per Mt CNF
Cochin for 48 outturn. The FOB prices of cashew kernels from Kollam
market (in USD/lb FOB) Grades 04/17/10 W-180 3.45 W-210 3.30 W-240
3.10 W-320 2.80 W-450 2.45 SW-240 2.80 SW-320 2.40 LWP 2.05 LSP
1.85 Note: Packing in 1x50 Lbs Flexi 04/24/10 3.50 3.20 3.05 2.80
2.55 2.80 2.50 2.10 1.90
W-240
04/17/10 04/24/10 04/17/10 04/24/10 340-345 340-345 315-320
320-325
CASHEW WEEK
Page
2
A Product of www.CashewInfo.com
Market Commentary
Indian CNSL market commentarySri. Venkatesh, KANCO SOUTHWEST
ENTERPRISES, Mangalore The price of CNSL loose remained steady at
previous levels of Rs.21.50 per kg at Ex- Mangalore. The prices of
Cardanol also remained steady at Rs.41 per kg at Ex- Mangalore. The
new crops have brought Panruti raw nut market down by almost 8%.
The raw nuts that were costing about Rs. 4500 per bag are now
around Rs. 4050 to Rs.4100. The kernel prices are lowered
accordingly. The parity in prices is likely to be reached in this
week and we expect good shelling there after. The shell prices have
nosedived and are at Rs.5.65 per kg. CNSL has come down to Rs.20
per kg with cake prices remaining steady at Rs. 3.30 per kg. The
north Indian buyers are likely to enter market of CNSL very
soon.
Sri. Omprakash N. Phadnis, M/S. N.S. PHADNIS, Panruti, Tamil
Nadu The new crop has started in Panruti market. My best guess is
crop would be near normal.
International Cashew Market CommentaryMr. Kim, Vietnam Soft
demand has come out during the past week. Small and medium sellers
sold W240 at USD 2.95, W320 at USD 2.75, Lbw320 at USD 2.55, W450
at USD 2.55, WS at USD 2.18 per lb FOB for May shipments. Top and
reliable sellers indicated W240 at USD 3.05, W320 at USD 2.80/2.85,
WS at USD 2.25, DW at USD 2.25/2.30, LP at USD 1.62/1.65 per lb FOB
for June August shipments with big quantity but no business
reportedly done at these mentioned levels as buyers could not pay
at these high prices indicated by sellers. Buyers ideal prices were
somehow lower than sellers ideals and if they could not buy at
estimated levels they would prefer to wait and see rather than
chase the current markets levels as the fact that not strong demand
from roasters/ manufacturers. Extracted from US source: What will
it reect? On a seasonally adjusted basis, the Consumer Price Index
for All Urban Consumers (CPI-U) increased 0.1 percent in March, the
U.S. Bureau of Labor Statistics reported today. Over the last 12
months, the index increased 2.3 percent before seasonal adjustment.
The seasonally adjusted increase in the all items index was mostly
due to an increase in the fresh fruits and vegetables index, which
rose 4.6 percent in March and accounted for over 60 percent of the
all items increase. Other food at home indexes were mixed and the
index for food away from home was unchanged. The index for energy
and for all items less food and energy were both unchanged in
March. Within energy, an increase in the electricity index was
offset by declines in the indexes for gasoline and natural gas.
Within all items less food and energy, the indexes for medical
care, new vehicles, and used cars and trucks posted increases,
while the indexes for shelter, household furnishings and
operations, and apparel declined. China market consumed some
quantity mainly on W320 and DW. W320 traded at USD 6.30/6.35, W450
at USD 5.97, DW at USD 5.40 per kg for prompt shipments. Efforts on
selling imported raw seeds have been seen during the past week.
Offers were being made with good prices as well as promotions but
buyers chose to wait a little bit to see the progress of kernels
market in the coming weeks whether it is positive or negative.
CASHEW WEEK
Page
3
A Product of www.CashewInfo.com FOB prices of cashew grades in
Vietnam that sold last week for April 2010 Grades W-240 W-320 W-450
LBW-320 DW WS WB LP 04/17/10 2.95 2.75-2.77 2.50 2.55 2.18 2.15
2.18 1.50 04/24/10 2.95 2.75-2.77 2.50 2.55 2.20 2.18 2.20 1.55
Market CommentaryCashew BulletinIts been another relatively
quiet week although the market moved back up a little on enquiries
from buyers in the USA. The European market is not particularly
active but it is clear now that unsold inventories in Europe are
low. It is difcult to nd any good quality material for sale in the
Rotterdam spot market and prices reect that. In general some of the
economic indicators are more encouraging for demand and we may see
better activity although perhaps not a change to the current buying
pattern. Overall sentiment among buyers remains negative/neutral
and a continued cautious approach is the most likely scenario. This
may be inuenced by a strengthening US dollar, which will keep
buyers away and should reduce prices if it continues. Longer term
European demand looks stable to growing slowly whereas the much
more price sensitive USA market may reduce purchases at the current
levels and the chances of sales promotions seem slight. Supply side
we saw more offers this week albeit at higher prices. It seems
clear that processors would make sales for prompt and forward if
the enquiries were in the market. This is not to say they seem
under pressure but just that current levels for kernels and RCN
make a protable calculation. You can follow Cashew Bulletin on
twitter.com.
Mr. Kees Blokland, The Netherlands Market is calm. Buyers are
just awaiting further developments. Customers are showing some
interest to check prices but no real business is committed. FCA
Rotterdam Prices (USD / lbs)
Grades 04/17/10 W 240 3.05 W 320 2.95-3.00 W 450 2.75 (Prices
are indicative)
04/24/10 3.15-3.25 2.95-3.00 2.75
Disclaimer: The prices quoted in this report are sourced from
reliable trade sources. However, these could vary on account of
varietal, seasonal, payment terms and conditions and so on. Readers
are advised to take these rates for indicating purposes only to
note the direction of the trend. Foretell Business Solutions
Private Ltd., is not be responsible for inaccuracy in prices, if
any.
CASHEW WEEK CASHEW WEEK
Page
4
A Product of www.CashewInfo.com FOB Prices of cashew nut in USD
/lb (Cochin/Tuticorin) Grades W-240 W-320 W-450 WS/FS WB/FB SW320
SW360 SSW LP/LWP 04/17/10 3.00-3.05 2.80-2.85 2.60-2.65 2.30 2.25
2.65 2.50 2.00 1.65 04/24/10 3.05-3.10 2.85-2.90 2.70 2.35 2.30
2.70 2.55-2.60 2.10-2.15 1.65
FOB Price MovementCurrency Brazilian Real Chinese Yuan Singapore
Dollar Tanzanian Shilling Thai Baht Mozambique New Metical Vietnam
Dong Indonesian Rupiah Benin CFA Franc BCEAO 04/17/10 1.76 6.83
1.37 1358.5 32.18 31.51 19005 9017.5 475.35 04/24/10 1.759 6.83
1.37 1378.5 32.22 34.14 18885 8983.5 483.41
Note: W = Whole White, SW = Scorched Wholes, SSW = Scorched
Wholes Seconds, LWP = Large White Pieces, WS = White Splits, WB =
White Butts, FS = Fancy Splits, FB = Fancy Butts, SS = Scorched
Splits, SB = Scorched Butts, SP = Scorched Pieces, LP = Large
Pieces Average FOB prices (USD /lb) of W-320 grade Kernel (2009-10
vs.2010-11)3.60 3.40 3.20 3.00 2.80 2.60 2.40 2.20 2.0015-Jul
21-Feb 10-Mar 25-May 21-Sep 11-Nov 28-Nov 18-Aug 15-Dec 21-Apr
27-Mar 11-Jun 28-Jun 18-Jan 8-May 4-Sep 25-Oct 1-Aug 4-Apr 4-Feb
1-Jan 8-Oct
US Dollar vs. INR MovementIndian rupee gains to continue Indian
rupee this week moved in the range of 44.74 and 44.36 and nally
settled lower at 44.4375 levels on Friday. Rupee appreciated on the
back of strong gains in Indian sensex and dollar index inability of
holds on to the recent gains. RBI hikes the CRR by 25 bps from
5.75% to 6% effective April 24th. RBI also raised the key repo and
reverse repo rates by 25 bps each with immediate effect In the last
three weeks rupee is moving in the broader range of 44.15 and 44.78
levels. On the higher side upside capped initially at 44.78 and
above to move higher till 4545.20 levels. At the same time down
side is limited to 44.15 and below to drop till 43.90-43.70 levels.
Overall rupee to move in the broader range of 43.70 and 45.20
levels in the commencing one to two weeks time period.
2009-10
2010-11
2.90 2.9 2.8 2.33
After being quiet for a long time, Cashew market has witnessed
some activity in the current week. USA demand was more in the
market and the price have moved up a few cents. The FOB price for
W-320 grade kernels was quoted at USD 2.85-2.90 per lb this week
against USD 2.80-2.85 per lb last week. Forex Rates (in US $)
Currency Indian Rupee Euro Japanese Yen
04/17/10 44.53 0.74 92.17
04/24/10 44.35 0.747 93.935
CASHEW WEEK
Page
5
A Product of www.CashewInfo.com
Special Coverage
Cashew once meant for export loosing its wayCashew, considered
as a luxury commodity, was mainly meant for export till recently.
In the recent years we have seen a changing trends in cashew
exports, which fell in to the negative growth zone. Cashew export
growth in the last ve years is registered a decline of 2.68 per
cent. This could be mainly attributed to the increasing domestic
demand, which could be triggered by various reasons coupled with
narrowing price parity between the export and domestic earnings to
the exporters. Cashew traders are nding a better place for their
cashews in domestic market as the cashew consumption is increasing
in India. Higher purchasing power along with increasing health
conscious lead the consumers, especially the youth towards more
cashews in the form of snacks, ingredient in food items etc. In the
National Sample Survey Organization (NSSO) survey on household
consumer expenditure is also reporting that the share of
expenditure on dry fruits is increasing both in rural as well as in
urban regions. Cashew exports in the current year (2009-10) has
reported a 1.28 per cent decline to 108,120 tons from 109,522 tons
a year ago. The average prices fell to Rs.268.76 a kg from
Rs.272.86 a year ago that resulted in a drop in earnings too. In
the meantime, raw cashew imports has registered a growth of 24.26
per cent to 752,854 tons from 605,850 tons a year ago. The average
cost of imported raw cashew, however, fell to Rs.40.34 a kg from
Rs.43.45 a year ago. It is obvious that cashew kernels are nding
their way into the robust domestic market. Another reason behind
the fall in exports was the tough competition from Vietnam and
Brazil, which over took Indias rst position in 2007-08. Vietnam is
gaining momentum on Indias fall in exports and is now claiming to
export 50 per cent more than India. Brazil, which is the second
largest producer of raw cashew, also became a competitor mainly in
the US and CIS markets. The major buyers of cashew kernels from
India are USA, Netherlands, UK, Japan, UAE, France, Canada and
Saudi Arabia.Indian Cashew nut im ports vs kernal exports
(tons)
800000 750000 700000 650000 600000 550000 500000 450000
400000
130000 125000 120000 115000 110000
Imports
Exports
105000 100000
03 20
4 -0
04 20
5 -0
05 20
6 -0
06 20
7 -0
07 20
8 -0
08 20
9 -0
09 20
0 -1
The domestic cashew processing industry requires around 1.2
million tons of raw cashew a year to meet export and domestic
demand. At present, domestic output meets less than 50 per cent of
the requirement. This situation made India to become a net importer
of cashew with value of imports overshadowing the value of exports
despite the potential of value addition in processing of raw cashew
and reexporting it. When cashew export fell in to a negative growth
phase imports are growing at a 4.5 per cent annually. Domestic
demand is also growing at a 5.3 per cent annually. However, the
industry is optimistic that the current year will be a good year
with more exports.
CASHEW WEEK
Page
6
A Product of www.CashewInfo.com
Exporters GuideExporters Guide: India
Section II: Exporter Business Tips G. Business Etiquette
Although Hindi is Indias leading national language, most Indian
ofcials and business people have an excellent command of English.
Most Indian businessmen have traveled abroad and are familiar with
Western culture. Business is not conducted during religious
holidays that are observed throughout the many regions and states
of India. Verify holiday information with the Consulate or Embassy
before scheduling a visit. Indian executives prefer late morning or
afternoon appointments between 11:00 a.m. and 4:00 p.m. Indians
often have longer meetings, so be sure to leave plenty of time
between appointments. The climate in India can be very hot for most
part of the year, so it is advisable to wear lightweight clothing
to avoid discomfort. Men should wear a jacket and tie (and women
should wear corresponding attire) when making ofcial calls or
attending formal occasions. Always present a business card when
introducing yourself. Refer to business contacts by their surname,
rather than by their given name. Use courtesy titles such as Mr.,
Mrs., or Miss. Talking about your family and friends is an
important part of establishing a relationship with those involved
in the business process. Hospitality is a key part of doing
business in India; most business discussions will not even begin
until chai (tea), coffee, or a soft drink is served and there has
been some preliminary small talk. To refuse any beverage outright
will likely be perceived as an insult. While an exchange of gifts
is not necessary, most businessmen appreciate token momentos,
particularly if they reect the subject under discussion. Business
lunches are preferred to dinners. Try to avoid business breakfasts,
especially in Mumbai. The best time of year to visit India is
between October and March, so that the seasons of extreme heat and
rains can be avoided. Although Delhi (the capital) has a cool,
pleasant winter (November - February), summers (April July) are
erce with temperatures of up to 120 degrees Fahrenheit. Mumbai (the
business hub) and most other major cities have a subtropical
climate hot and humid year
around. Most Indian cities have good hotels and are well
connected by domestic airlines. The following websites were found
to be informative and user-friendly in providing information on
Indian business culture and business etiquettes. These websites are
mentioned for readers convenience; USDA/FAS does NOT in any way
endorse, guarantee the accuracy of, or necessarily concur with the
information contained in the below sites:
http://stylusinc.com/business/india/cultural_tips.htm, www.
executiveplanet.com/index.php?title=India H. Import Duties Imports
into India are subject to a high and often confusing array of
duties, which include the following: a basic duty, an Additional
Duty (AD), also known as Countervailing Duty (CVD), and an
Education Cess (a special surcharge on all direct and indirect
taxes at 2 percent introduced in the July 8, 2004 Budget, which was
increased to 3 percent in the 2007 Budget). A special
Countervailing duty (SCVD) of 4 percent was introduced in the 2005
GOI Budget on all imports (agricultural and non-agricultural) with
a few exceptions. This was done to account for the VAT and other
taxes applicable only to domestic products. Agricultural products
exempted from the CVD include fresh vegetables and fruits, seeds,
raw wool, poultry and cattle feed, pulses, rice, wheat, and coarse
grains. The basic duty on most processed food products is 30
percent. Exceptions in the agriculture/food group include sensitive
items such as wine, liquor, poultry meat, wheat, rice, corn,
coffee, tea, vegetable oils, cigarettes and tobacco, and several
dairy products, which attract much higher basic duties. However,
due to food ination, the import duty on wheat, rice, corn and crude
vegetable oils currently remains zero. The CVD equals the excise
duty on similar products produced domestically (16 percent on most
consumer food products), and is levied on the total of the assessed
value plus the basic duty. The calculation of the CVD on packaged
goods
CASHEW WEEK
Page
7
A Product of www.CashewInfo.com is based on the Maximum Retail
Price (MRP), minus the abatement notied for similar domestic goods
in India, which makes the calculation more difcult. Total import
tariffs on most consumer food products range from 36.1 percent to
59.1 percent. I. Food Laws Food exporters will have to grapple with
Indias varied food sector laws, particularly those pertaining to
the use of additives and colors, labeling requirements, packaging,
weights and measures, shelf-life, and phytosanitary regulations.
Following the removal of quantitative restrictions on imports of
food products in 2001, the GOI issued several notications to make
imported food products comply with domestic laws. Details on Indias
food laws are available in our Food and Agricultural Import
Regulations and Standards Country Report 2008 (IN8082), which can
be accessed via the FAS/USDA website: www.fas. usda.gov. On August
24, 2006, the GOI notied, in the ofcial gazette, the Food Safety
and Standards Act, 2006 to bring about an integrated food law. The
new Food Safety and Standard Authority has been formulated and has
initiated the rule making process. Some of the major food laws
affecting Indian food importers are: The Prevention of Food
Adulteration (PFA) Act, 1954, and PFA Rules of 1955, as amended.
This is a basic statute established to protect consumers against
adulterated foods, and it encom-
Exporters Guidepasses food colors and preservatives, pesticide
residues, packaging, labeling, and regulation of sales. This is
similar to the Federal Food, Drug, and Cosmetics Act of the United
States Food and Drug Administration. Standards and regulations of
the PFA apply equally to domestic and imported products. The PFA
Act and Rules, and recent notications are available at: http://
mohfw.nic.in/pfa.htm The Standards of Weights and Measures Act,
1976, and the Standards of Weights and Measures (Packaged
Commodities) Rules, 1977, as amended. This Act established
standards for weights and measures to regulate interstate trade and
commerce in goods that are sold or distributed by weight, measure,
or number. The Rules formed under the Act require labeling
regarding the nature of the commodity, the name and address of the
manufacturer, quantity, date of manufacture, best-before date, and
the MRP. These labeling requirements apply equally to imported and
domestic packaged foods. The Plant Quarantine (Regulation of Import
into India) Order, 2003, and amendments. These legislative measures
regulate imports of planting seeds and agricultural products into
India. These can be accessed from:
www.plantquarantineindia.org/PQO_amendments.htm
(Compiled from USDA Foreign Agriculture Service GAIN Report
Number: IN8112) (To be continued)
CASHEW WEEK
Page
8
A Product of www.CashewInfo.com
News Highlights
NEWS HIGHLIGHTSCashew production seen down 8-10% in 2009-10
Unseasonal rains and high temperature in the last few months of
2009 have reduced cashew yield by 8-10%, according to Directorate
of Cashew and Cocoa Development (DACCD). Rains in most producing
states in October and November proved bad for the standing crop,
Venkatesh Hubballi of DACCD. The erratic rains were followed in
November and December by high day time temperature which again
affected the nal production, he added. According to the crop
estimate prepared by the agency, Indias production would be around
6.3 lakh ton in 2009-10 as against 6.95 lakh ton in 2008-09. In
2007-08, the country produced around 6.65 lakh ton of cashew. India
has to import more than half of its requirement of raw cashew
because of low domestic output. Imports of raw cashew were almost
23% more in the rst eleven months of last scal. It is obvious that
cashew kernels are nding its way into the robust domestic market.
Traders said Indias cashew consumption could be a trigger point in
global trade in the coming days given the huge size of the market
and growing retail sector. Indias per hectare cashew productivity
is almost three to four times less than that of Vietnam. While
Vietnam produces 34% of the worlds cashew from just 10% of the
worlds cashew farming area, India, on the other hand, has the
largest share of land under cashew (24%) but has a share of only
19% in the total production. Productivity in Vietnam is 2.8 ton of
cashew nuts per hectare, while the average productivity in India is
only 663 kg per hectare. The credit for highest productivity in
India goes to Maharashtra with 1.1 ton per hectare. The state has
also displaced Kerala as the largest producer of cashew with 25% of
the total production. Cashew production is likely to get a boost
with the government doubling the subsidy provided for cashew
re-planting, Venkatesh Hubballi said. From April 1, farmers will
get Rs.20,000 per hectare for re-planting as against Rs.11,250 in
the past. This should encourage farmers to re-plant cashews in more
area,Hubballi added. The directorate is taking steps to increase
the area under farming by 50,000 hectare (ha) by 2012. The
government body has decided to take up cashew cultivation in a big
way in states like Chhattisgarh, Jharkhand, and the northeastern
region under the 11th Five Year Plan Period. From the present
farming area of 874,000 ha, the directorate hopes to increase it by
15% increase which will help in reducing the import of raw cashew
kernels, for which the nation depends on African nations. In
traditional areas, the directorate hopes to replant up to 10,000 ha
to increase productivity Mozambique records highest cashew crop in
3 years Mozambique has reported the biggest cashew nut production
in three years. The once world cashew export leader sees its
industry recovering slowly. According to reports from the country,
the seasons production has topped 95,000 tons, mostly thanks to
favourable weather conditions. The director of the national cashew
institute (INCAJU), Filomena Maipu was reported in the local press
saying the southern part of the country was the most fortunate and
suitable to have achieved the bumper crop. The national cashew nut
institute said this years produce also well within the target of
100,000 tons of raw cashew, also adding that the price was also
very good for the farmers this year. Mozambiques cashew season
starts in October and ends in March, but due to extended owering of
cashew trees this season as well as the selling period, it is
expected that the season will be extended to the end of April.
While this years cashew crop is among the best during the last
decade, production is however still signicantly lower than in the
peaking 1970s, when Mozambique was the worlds leading producer. The
civil war and poor maintenance brought the cashew industry to its
knees by the mid-90s.Since then, however, massive investments in
cashew production has seen Mozambiques main cash crop to recover
slowly.
CASHEW WEEK
Page
9
A Product of www.CashewInfo.com Cashew exports recover in H2
Cashew exports from India in 2009-10 overcame the sluggishness of
the rst half to nish marginally behind 2008-09, Cashew Export
Promotion Council (CEPC) sources said. However, India has become a
net importer of cashew with value of imports overshadowing the
value of exports by 4.5% in the nancial year despite the potential
of value addition in processing of raw cashew and re-exporting it.
It is obvious that cashew kernels are nding their way into the
robust domestic market, sources said. According to gures provided
by CEPC, exports in AprilMarch 2009-10 fell short by 2.7 % in value
terms and 1.2 % in volume terms as compared with the same period of
2008-09. Dollar realization for the scal was lower by 6% over the
previous scal. Unit value of exports was lower by Rs.4 per kg at
Rs.268.76 per kg in 2009-10. In the rst half of FY09-10, volume and
value of exports were lower by 12%. Cashew exports were lower as
buyers reduced their forward covering to six months from the usual
practice of one year. With sellers refusing to lower their prices,
trading during the important month of September remained low and
quiet. Shipments from Vietnam and India, the two largest exporters,
were down by almost 10% during the st ten months of 2009 calendar
year. However, things improved during the rst three months of 2010
with exports picking up, sources at CEPC said. In March 2010,
volume of exports was higher by 3.2% and value higher by 5.38% over
the same period last year. Exporters who were hoping for good
contracts in the last quarter of 2009 were disappointed with
retailers not covering for long. Trade sources said the rst quarter
of 2010 will be a decisive period. If buyers feel that consumption
would be back to normal levels like other commodities, their demand
would be signicant. Import of raw cashew in 200910 was higher by 15
% in value terms and 24% in volume terms. Indian production for the
same period was lower by 8%-10% according to an estimate by the
Directorate of Cashew and Cocoa Development.
News HighlightsCashew exports down in 2009-10 Cashew exports
from the country during 2009-10 declined 1.3 per cent in volume and
2.8 per cent in value on stiff competition from other suppliers in
the world market. Total shipments during the last scal stood at
1,08,120 tons valued at Rs.2,905.82 crore ($612 million) against
1,09,522 tons worth Rs.2,988.40 crore ($649.79 million) the
previous nancial year. The average unit valued realised in 2009-10
was Rs.268.76 a kg against Rs.272.86 a kg a year ago. The Chairman
of Cashew Export Promotion Council of India (CEPC), Mr. Shahal
Hassan Musaliar, said the main reason for the decline last scal was
competition from other producing countries Vietnam and Brazil. He
said India enjoyed the number one position in the world market till
2007-08. During the last ve years, exports declined 10.5 per cent
and Vietnam took advantage of it. Its export increased 67 per cent
during this period and is now claiming to export 50 per cent more
than India. On the other hand, Brazil, which is the second largest
producer of raw cashew, also became a competitor mainly in the US
and CIS markets. Strong Rupee The rupees appreciation against the
dollar has also contributed to the declining trend. In contrast,
the Vietnam devalued its currency in three phases by 15 per cent.
During this period, the rupee appreciated against the dollar by
over 14 per cent. As a result, we have become about 30 per cent
less competitive in price terms against our major competitor and
the export earnings have been lower than the levels budgeted for
raw cashew nut procurement. Next was the global recession, which
had a severe impact on the cashew industry with demand from the US
and Europe dropping. Consequently, the prices and volume of sales
fell in the international market. Export ban Added to this was the
ban on export of agriculture products to Russia in 2008 that
remained in force for
CASHEW WEEK
Page
10
A Product of www.CashewInfo.com two years. During this period
Vietnam captured the Russian and CIS markets. According to Mr.
Musaliar, banks are not allowing exporters to avail themselves of
enough Foreign Currency Packing Credit, citing non-availability of
dollars. Exporters are forced to avail themselves of rupee packing
credit at 7 to 9.5 per cent. The sharp appreciation of the rupee
has also taken a toll. He said that costs of raw cashew nuts and
processing had gone up. Even though the Government announced that
service tax exemption would be granted for export activities,
cashew exporters are being levied service tax for transport of
goods from farm/ port to factory and from factory to port,
commission paid to foreign agents, etc. All these have added to the
cost of production. At the same time inadequate availability of
domestic raw nuts has forced the industry to depend on imports, he
said. Our domestic production is around 7 lakh tons while our
processing capacity is about 14 lakh tons. Hence we have to depend
on imported raw cashew nut for more than half of the requirement.
Vietnam is also competing with our processors for sourcing raw
cashew nut from African producing countries, resulting in increase
in raw cashew prices, he said. Other surrogate nuts such as
almonds, macadamias are being promoted in the major world markets
on the basis of health claims and large amounts are being spent by
the grower associations, supported by the Governments. Since cashew
is produced by developing or least developed countries, the farmers
are not in a position to spend large amounts for promotion, Mr.
Musaliar pointed out. On the rise in imports of raw nuts, which had
gone up by 24.26 per cent in 2009-10 from the previous scal, the
CEPC Chairman said, Our domestic production is around 7 lakh tons
while our processing capacity is about 14 lakh tons. Hence, we have
to depend on imported raw cashew nut for more than half of the
requirement and for protecting the employment of thousands of
cashew factory workers. Four tons of raw cashew nut need
News Highlightsto be processed for producing one ton of cashew
kernels. India imported 7,52,854 tons of raw nuts valued at
Rs.3,037.35 crore in 2009-10 as against 6,05,850 tons valued at
Rs.2,632.41 crore in 200809. The import value increased by 15.38
per cent while the unit import price by 7.71 per cent. On the
current trend, he said, the rupee is strengthening and the effects
of recession and nancial crunch are continuing. However, the
factories need to be run for providing employment to lakhs of
workers. Therefore, at this critical juncture, the industry needs
the full support of the Centre for survival. Mr. Musaliar expressed
the hope that cashew may be included in the priority sector along
with leather, handlooms, handcrafts, etc, for support from
Government. We hope the recession will be over and trade will
increase during the second half of the current nancial year and
exports pick up to reach Rs 3,000 crore. Nuts sector 20 p.c. below
its capacity The processing capacity of cashew nuts and macadamia
in the country is underdeveloped and, therefore, more investors
should be encouraged to join the sector. With only about ve large
processing plants and a handful of other small players, the sector
is believed to be operating at only 20 per cent its maximum
capacity. According to industry players, there are efforts to
increase the capacity from within as well as foreign investors, to
use the capacity. We are increasing the capacities and also
engaging with investors who have shown interest in putting up
processing plants locally to match up, Mr Bobby Thomas, a director
of Wonder Nuts, told the Nation on Thursday. Last year, the
government imposed a ban on the export of nuts from the country as
means of boosting the industry. The ministry of Agriculture
indicated that it was only the National Cereals and Produce Board
(NCPB) that was mandated to buy the nuts from farmers. Before then,
a number of exporters had a eld day buying nuts and exporting it to
countries like China, Vietnam and India. This, the ministry argued,
denied
CASHEW WEEK
Page
11
A Product of www.CashewInfo.com the country opportunities for
employment and value addition. Currently, the production of nuts is
estimated at about 10,000 metric tons annually. Some processors
have also urged the government to focus on increasing production by
providing incentives to farmers as the ban stays on to protect
them. Lifted However, the issue cropped up in Parliament recently,
with a member asking for the ban to be lifted. Through a
ministerial statement, the ministry remained adamant, insisting the
ban was there to stay. Foreign exporters destabilised the market
and in the last three years farmers suffered immense losses due to
middle men. After the ban, prices shot up and if post harvest
regulations are followed, and the quality will improve and the
buying price will shoot higher next year, read the ministerial
statement in Parliament. Statistics from the ministry further
indicate that the sector currently earns the country only Sh500
million annually, but has a potential value of Sh1 billion. Cashew
nut growers lose out over low output The low level of cashew nut
production is blocking processors from setting up plants in the
country causing farmers huge losses. The Kenya Cashew Nuts
Processors and Exporters Association chairman Samuel Varghese
stated that based on current production, it is not economically
viable for members to put up processing units in the country. Kenya
currently produces 11,000 metric tons. Following a ministerial ban
of the export of raw nuts last year, exporters have shifted their
bases to Tanzania, Mozambique and Ghana where they are getting
enough nuts for their export market, Mr. Varghase said. The ban was
meant to encourage local processing. The government and other
industry investors had pegged their hope on the fact that the
higher quality Kenyan nuts would force exporters to establish
processing units to protect their market in India. Mr. Varghase
stated that, we have substituted the Kenyan nuts with those from
elsewhere in Africa, which are also of high quality. The government
should have rst focused on increasing production to about
News Highlights60,000 metric tons perhaps in less than 10 years
and then ban the export of raw nuts. He said that importing
countries prefer to buy raw nuts, for which they give high rebates
since by exporting them the exporters were creating jobs. This has
made the business highly protable. Mozambique produces about 90,000
metric tons of cashew nuts. Most of the produce from Tanzania nds a
market in the United States, Europe, Japan and India. On average,
Tanzania produces about 100,000 tons of the crop every year, mainly
for export. Ghana exports some 45,000 tons of raw nut every year.
Mr. Varghase stated that, the government will this year lose $10-15
million (Sh770m-Sh1.15bn) in foreign exchange as a result of the
ban. Major exporting rms that relocated from Kenya include Emke
Commodities, Export Trading, Donal International and Jumba
international. They all registered companies in Tanzania last year
when the government indicated the impending ban. Most of the
processors have stocked on enough nuts and left the eld before the
season came to a close. They went for the high quality nuts and
left farmers with a huge volume of low quality nuts that will not
fetch better prices. Farmers are calling us to buy the nuts, but
our hands are tied by last years ban. Farmers say that the ban only
favoured a few processors and did not consider their plight.
Farmers in the leading cashew nut producing areas of Lamu and Kili
are holding huge volumes of nuts in their stores. The middlemen now
buying the nuts are offering Sh17 per kg. A farmer in Mpeketoni, in
Lamu, Mr. Julius Thuo said that the local cashew nut processors
offered between Sh32-37, compared to between Sh50 and Sh60 offered
by exporters last season. We want the ban lifted to encourage
competition so that farmers can earn better prices, Mr. Thuo said,
adding that the farmers who cultivate cashew nuts as a commercial
crop, especially in Mpeketoni, will now be forced to abandon the
crop due to low prices. The production of the cashew nuts in the
country has been on a decline reaching its lowest record of
CASHEW WEEK
Page
12
A Product of www.CashewInfo.com 10,000 tons last year compared
to 14,000 metric tons three years ago, according to statistics from
the Ministry of Agriculture. Income generated by the cash crop also
declined from $3.75 million (Sh290m) to $3.25 million (Sh250m)
during the same period. Experts said that the current processors
lack the capacity to handle more than 12,000 metric tons. The Kenya
Nuts Ltd eld ofcer, James Ndegwa, stated that the company has the
capacity to process 8,000 metric tons. Indias food ination surges
to 17.65% The annual food ination, based on the wholesale price
index, rose 17.65 per cent during the week ended April 10,
marginally higher than an annual rise of 17.22 per cent in the
previous week. The fuel price index increased 12.45 per cent in the
week to April 10, a tad higher than an annual rise of 12.43 per
cent in the previous week, data released by the Ministry of
Commerce and Industry showed on Thursday. Primary articles
According to the data, the WPI for the Primary Articles group
gained 0.6 per cent on a sequential basis to 289.7 points from
288.0 points for the previous week. The annual rate of ination in
the Primary
News HighlightsArticles group, calculated on point-to-point
basis, stood at 14.14 per cent points for the latest week compared
with 13.88 per cent points for the previous week and 6.42 per cent
during the corresponding week of the previous year. Sequentially,
the index for Food Articles group was up 0.7 per cent due to higher
prices of fruits and vegetables (3 per cent), sh-marine (2 per
cent) and condiments and spices, arhar and moong (1 per cent each).
However, the prices of wheat and eggs (1 per cent each) declined.
Non-food articles The index for Non-Food Articles group rose 0.5
per cent due to higher prices of groundnut seed and castor seed (3
per cent each) and raw silk, sunower and copra (1 per cent each).
However, the prices of gingelly seed (5 per cent) and linseed (1
per cent) declined. The Fuels index increased 0.1 per cent to 363.2
points from 362.7 points for the previous week, due to higher
prices of light diesel oil, petrol and high speed diesel oil (1 per
cent each). However, the prices of furnace oil (1 per cent)
slipped.
CASHEW WEEK
Page
13
A Product of www.CashewInfo.com
Indian cashew kernel prices
Domestic Prices of NutsCashew Grades W180 S180 W210 S210 W240
S240 W320 W1 SW SSW JH S LWP SWP K JB W180 W210 W240 W320 W450
SW240 SW210 S (Splits) SS Butts SB (Scorched Butts) SP LWP WSP W320
No. W210 No. W240 No. W180 No. 2 pieces 04/17/10 5700 5100 4700
4300 4250 3900 3700700 3550 3400 3200 3200 3050 2775 2550 2950 3100
Kollam (Rs/22.68 kg) 9200 8200 7600 6800 6200 6400 7000 6100 4800
5200 4600 4300 5200 4500 Delhi (Rs/Kg) 350 455/460 380/385 490/500
285/300 350 455/460 380/385 490/500 285/300 9200 8200 7600 6800
6100 6400 7200 5900 4800 5200 4600 4300 5200 4500 04/24/10 5700
5100 4700 4300 4250 3900 3700700 3550 3400 3200 3200 3050 2775 2550
2950 3100 Cashew Grades 4 pieces 8 pieces W320 W210 W240 W180 2
pieces 4 pieces 8 pieces W180 W210 W240 W320 W400 S240 S320 S K LWP
SWP JH W210 W240 W320 SW JH K/LWP W1 JB/Butts W400 2 Pieces 4
Pieces 8 Pieces W 320 04/17/10 225/260 180/240 Sangrur (Rs/Kg) 390
470 380 425/435 300/310 280/285 215/225 Jeypore Orissa (Rs/Kg) NS
450 380 330 295 370 320 290 265 255 235 300 Vetapalem AP (Rs/Kg)
425 375 330 300 330 260 300 275 300 Bhubaneswar (Rs/Kg) 260 235 205
290 270 250 210 285 390 350 320 280 310 260 300 260 300 NS 450 380
330 295 370 320 290 265 255 235 300 385 465 375 420/430 300/310
280/285 215/225 04/24/10 225/260 180/240
Mangalore (Rs/11.34Kg) (without tax)
CASHEW WEEK
Page
14
A Product of www.CashewInfo.com
Indian cashew kernel prices
Other Nuts prices at Delhi marketGrades Almond Girdhi New
(Rs/40Kg) Almond Gurbandhi New (Rs/40Kg) Almond California
(Rs/40Kg) Almond Kernel California (Rs/Kg) Almond Kernel Gurbandi
(Rs/Kg) Pistachio Irani (Rs/Kg) Pistachio Hairati (Rs/Kg) Pistachio
Peshawari (Rs/Kg) Walnut New (Rs/Kg) Walnut Kernel (Rs/Kg) 04/17/10
2400/2600 4700/4800 11000 375/378 305/380 850/950 1550/1600
1700/1800 80/150 300/450 04/24/10 2600/2800 4700 11100 383/385
305/380 840/900 1500/1550 1700/1750 80/150 300/450
Cashew Nuts prices ($/ton C&F)Country Indian RCN (Rs./80 Kg
bag) Benin IVC 04/17/10 4800 965 04/24/10 3700-4000 960
820 750-870 Note: Indian RCN is quoted in rupees.
*Mangalore Prices are for 11.34 Kg tin and exclusive of tax. Tax
for inter-state sales- CST 3%, Tax for local sales 4% VAT. Note: W=
White Wholes, SW= Scorched Wholes, SSW= Scorched Wholes Seconds,
DW= Dessert Wholes, S= Splits, LWP= Large White Pieces, SWP= Small
White Pieces, BB= Baby Bits, SB= Scorched Butts, SS= Scorched
Splits, SP= Scorched Pieces, I tin =11.34kg, 1kg = 2.24lb
Disclaimer:Foretell Business Solutions Pvt. Ltd. is not
responsible in any form for the trade or trade related activities
by the subscribers or members of public based on the research
ndings published in this product. Note: The content published in
this product cannot be published or reproduced in any form without
the written permission from Foretell Business Solutions Pvt.
Ltd
Raw cashew nut prices in Rs/quintalState Andhra Pradesh Markets
Chirala Narsipatnam Tuni Sompeta Gunpur Pernem Puttur Karkala
04/17/10 5000 5600 5550 4000 5100 5950 5050 4600 04/24/10 5040 5600
5550 4000 5000 5800 4200 4600
Orissa Goa Karnataka
Source: Agricultural Marketing Information Network Note: Prices
are weekly average
CASHEW WEEK
Page
15
A Product of www.CashewInfo.com
Trade Events
TRADE EVENTSFOODAGRO Addis Ababa Exhibition Center, Addis Ababa,
Ethiopia Apr 27-30, 2010 Agriculture Food & Packaging Industry
Exhibition Lithuanian Exhibition and Convention Centre (LITEXPO),
Vilnius, Vilniaus Apskritis, Lithuania Apr 29- May 1, 2010
International Food Exhibition Philippines World Trade Center Metro
Manila, Manila, Metropolitan Manila, Philippines May 6-8, 2010
Foodmash Crocus Expo International Exhibition Center, Moscow,
Moskva, Russia May 11-14, 2010 Foodtech Bulgaria International Fair
Plovdiv, Plovdiv, Bulgaria May 11-16, 2010 Cibus Parma Parma
Exhibition Centre, Parma, Emilia-Romagna, Italy MAY 10-13,2010
Dolce Italia Parma Exhibition Centre, Parma, Emilia-Romagna, Italy
MAY-10-13, 2010 Bakery China Shanghai New International Expo
Centre(SNIEC), Shanghai, China MAY 11-13,2010 China Food Industry
& Food Export Fair Qingdao International Convention &
Exhibition Center, Qingdao, Shandong, China May 11-13,2010 SEOUL
FOODTECH Kintex - Korea International Exhibition Center, Goyang,
Korea May 12-15, 2010 Thaifex-World of Food Asia Impact Exhibition
& Convention Center, Bangkok, Thailand MAY 12-16,2010 Food
Technology Exhibition Moldexpo International Exhibition
Centre(IEC), Chisinau, Moldova MAY 12-16,2010 INTERNATIONAL FOOD
INDUSTRY EXHBITION SEOUL Kintex - Korea International Exhibition
Center, Goyang, Korea MAY 12-15,2010 China International Foodstuff
Exposition Chinese Export Commodities Fairground, Guangzhou, China
MAY 13-15,2010 China Food Machinery & Packaging Exhibition
China Import & Export Fair Pazhou Complex, Guangzhou, China MAY
13-15,2010 Irresistible Gluten Free Food Show-Brisbane Brisbane
Convention & Exhibition Centre, Brisbane, Australia MAY
15-16,2010
CASHEW WEEK
Page
16