Covid-19 fallout: Cashew exports in both quantity and value, take a hit in Q1

Kochi, July 6

The Covid-19 pandemic has taken a toll on India’s cashew exports with a 41 per cent drop in quantity and 38 per cent in value in the initial quarter of the present fiscal, compared to the corresponding interval of the former 12 months.

Exporters attribute the dismal efficiency to the lockdown that hindered the operations of quite a few cashew factories, hitting overseas shipments and domestic profits.

On the other hand, the mounting retail profits particularly in the US and the EU marketplaces on improved snacking in Might and June have brought some cheer to the sector, witnessing slight enhancements in export figures.

“There are some favourable developments in the export current market with improved shipments to the US, Japan, Australia, and Iran in Might and June, compared to April in the present fiscal 12 months. There are company orders from other marketplaces as well,” explained K Rajesh of Kerala Cashew Industries Marketing Council.

On the domestic side, he explained, the drop was all over forty per cent, particularly for broken kernels in the upcountry marketplaces of Delhi, Jaipur, Mumbai, and Chennai, among some others. The sector could not even derive the advantage of declining uncooked cashew selling prices in the intercontinental marketplaces, which arrived down to $1,000 per tonne from $1,650-1,seven hundred in 2019.

In accordance to RK Bhoodes, Chairman, Federation of Indian Cashew Sector, the sector has taken measures to emphasize cashew nut as a normal immunity boosting solution due to the presence of zinc and other minerals in it. “We are building a new channel for promoting to improve consumption, emphasising on the health and fitness advantages of cashew nut,” he explained.

In upcountry marketplaces, the most important degree of consumption was down due to Covid-19. But the sector witnessed a 23 per cent rise in secondary degree consumption, thank to improved offtake from confectionery corporations, which, he explained, is a very good signal.

Trade analysts Pankaj N Sampat of Samson Traders explained that the cashew sector in India expects a quick and sizeable revival in desire due to reduce kernel selling prices, presented the Covid-19 scenario enhances in the next 6 to 8 weeks. If that comes about, there could be a squeeze in the availability of kernels all through the peak consumption interval, which commences in August.

Exports of cashew for the 12 months 2020-21

Source: Trade details