Southern States - Karnataka

Exports of cashew rise, prices fall

By Our Staff Correspondent

MANGALORE JUNE 22. The recession-hit cashew industry in the State has recorded a moderate increase in its share in the export of cashew kernels.

In a status paper on exports, the Mangalore Cashew Manufacturers' Association secretary, Prakash Kalbavi, said on Saturday that another "feel good" factor about the cashew industry was that the State Government had introduced, for the first time in the country, a de-regulation Bill simplifying the requirement to file annual and other statutory returns under various laws, thus putting an end to the inspection raj and enabling entrepreneurs to concentrate on production, instead of running from pillar to post to comply with the regulations.

Another major development that helped exporters was the opening up of the New Mangalore Port (NMP) for general cargo. Earlier, the shipments from Mangalore were routed through ports in Kochi and Tuticorin as the NMP did not handle general cargo. This caused hardship to exporters, as they had to spend more on transport charges.

With the Mangalore port handling containerised general cargo, about 70 per cent of the cashew exports were sent to the NMP. The paper hoped that the NMP could attract 100 per cent cargo in the next six months.

Also, 2001-02 turned out to be disastrous for the cashew industry, with kernel prices in international markets plummeting to a 20-year low. This was attributed to stiff competition from Vietnam and improved raw cashew nut production in East and West Africa. India shipped a record 98,000 tonnes of cashew worth over Rs. 2,250 crore in 2001-02. In terms of quantity, India almost exported 1,000 tonnes more than in 2000-01, but in terms of value there was a steep fall of over Rs. 300 crore.

The status paper reported that the Indian crop now harvested was short by about 20 per cent at 3.60 lakh tonnes. East and West Africa had reported that the last harvested crop was down by more than 30 to 35 per cent as a result of which there was pressure on raw nut prices. While demand at the current low prices was good, the industry was looking for better prices in the coming months. Indications from international buyers were that they already covered their requirements right up to September 2002 but were keen on buying at the current levels till March 2003.

The demand from international markets started pushing up the prices, and the W/320 variety, which was traded at $ 1.70 in the beginning of the 2002 season, had moved up to $ 1.90. The premium grades such as the W/180 and W/210 were traded at record prices in international markets, which had resulted in a majority of the exporters selling these grades right up to October, the paper pointed out.

In comparison with the figures for 1998-99, the exports from the State had gone up from 1,30,236 cartons that year to 2,11,840 cartons in 2001-02.

During the same period, the all-India figures showed that exports went up from 33,21,823 cartons in 1998-99 to 44,05,267 cartons in 2001-02.

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