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G. Chandrashekhar

In the first quarter of 2002, India's cashew kernel shipments were in excess of one million cartons. For the last three years, its total cashew kernel shipments have been steady at 4.25 million cartons.

MUMBAI, June 13

AFTER a long period of inactivity, the cashew market has begun to show signs of life.

The sentiment has changed since April and prices have started to move up. Dealers in Europe and elsewhere have begun to show interest for current year's last quarter needs.

Export prices are edging up. Over the last four weeks, W240 grade has moved up from $2.25 to $2.40 per pound, W180 from $3.30 to $3.50 and W320 from $1.75 to $1.95. However, Indian exporters are cautious in signing export deals because of tight raw cashew supplies.

Raw cashew arrivals from Africa, especially East Africa, have not been in required volumes. Prices are around $600-700 a tonne cost and freight, depending on quality. Lower imports have lent firmness to raw cashew prices here. Stockists are watching the market and hoping for further price rise.

According to Mr Pankaj Sampat, well-known intermediary in the edible nut market, some export orders for cashew kernel have been obtained as overseas dealers are covering on behalf of their customers. Some deals for nearby position June/August have also been concluded, he added.

``Buyers are willing to place orders with India as roasters are not fully covered; but Indian processors are unwilling to commit in large quantities because of firm raw material prices,'' Mr Sampat said.

In the first quarter of 2002, India's cashew kernel shipments were in excess of one million cartons, higher than 950,000 cartons during the same period in 2001 and 2000.

For the last three years India's total cashew kernel shipments have been steady at 4.25 million cartons, with almost 50 per cent of exports going to the US.

Due to good crops in West Africa, India's raw cashew imports in 2001 showed a rapid expansion to 3.25 lakh tonnes, up from the average of 2.5 lt in the previous two years, Mr Sampat estimated.

Import of cashew kernels into the US the main importing country has been growing for the last three years.

From 3.2 million cartons in 1999, US imports expanded to 3.6 million cartons the following year and then on to 3.7 million cartons in 2001.

India has been the major supplier of cashew kernel to the lucrative US market.

The origin accounted for 2.1 million cartons in 1999, 1.9 million cartons in 2000 and 2.15 million cartons in 2001. Brazil and Vietnam two other major suppliers.

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