Second Covid-19 wave dampens the spirits of cashew sector

The second wave of Covid has dampened the spirits of the cashew processing sector, which was looking forward to a improved 20201 following being battered by the very first wave very last 12 months.

Highlighting the trend in usage, K Prakash Rao, Partner at the Mangaluru-based Kalbavi Cashews and former Chairman of the Mangaluru chapter of CII, informed BusinessLine that the need for dry fruits experienced gone up throughout the planet article-very first Covid wave.

“We have to presume that folks are looking to take in nutritious stuff, most likely with an eye on boosting immunity. The usage for almonds and cashews is seriously growing pretty rapid,” he stated, adding that Europe has been growing at about eight-eight.5 per cent on an average, and India at about four-5 per cent. Even though generation was disrupted very last 12 months, the cashew sector here nevertheless managed to witness development.

“In this history, we have been anticipating that the 2021 time would be clean for us and we would be looking at a pretty optimistic time. Sad to say, the second wave strike us yet again in March and it was yet again in the course of our procurement time,” he stated.

Procurement

Rao stated the charges have been secure for raw cashew nuts in East and West Africa and in India this 12 months. West Africa started off providing at $1,350 a tonne for Benin origin. In India, the marketplace opened just about at ₹110-a hundred and fifteen a kg.

With the arrival of the crop in the country in the course of April-May well, charges underwent correction and dropped to ₹100-one zero five a kg. Even so, the abnormal pre-monsoon showers early in the time broken the crop. The charges also dropped as the high quality also afflicted, he stated.

This 12 months, the charges of raw cashew nuts (RCN) averaged about ₹125 a kg in Goa, at ₹115 in Maharashtra, about ₹105 in Kerala, and about ₹95-one zero five a kg in Karnataka.

Rao stated the crop bought washed away in the course of April-May well. “Many folks say that is the reason why we could see a fall in the seed volumes by just about 20 per cent,” he stated.

This could influence the pricing of the cashew kernels and the availability of RCNs, if the marketplace capabilities generally.

If Vietnam and India are not able to procedure cashew during the 12 months owing to the Covid pandemic, then the 20 per cent shortage could not seriously make any difference. “But at this issue of time, we are anticipating that most of the Indian suppliers have not protected their need beyond August,” he stated, hinting charges hardening for the raw cashew nuts if Covid is not introduced below control.

Vietnam imports

To a query on the import scenario for raw cashew nuts, Prakash Rao stated there are no consolidated figures as of now. Even so, Vietnam has seriously enhanced its imports by just about 20-25 per cent. “That is a major selection we are seeing from them, which means India has imported considerably less than what it did in the very last 12 months,” he stated, adding that cashew suppliers in India generally procedure about 1.5 million tonnes a 12 months. But if Vietnam’s intense import proceeds, then Indian processing could go down to 1.3-1.four million tonnes, he stated.

India is getting substantial issues receiving products from Africa to India for the reason that of non-availability of containers at place in Africa, and the ocean freights have just about doubled in a lot of voyages. This has also impacted the imported seed charges, he stated.

Subraya Pai, former President of Karnataka Cashew Manufacturers’ Association (KCMA), stated that the imported nuts are turning into costlier day by day for the reason that of Vietnam’s weighty obtain in Africa. Given that Vietnam does not have significant Covid issues, it has enhanced the generation speedily and is catering to export markets, he stated.

Consumption

Prakash Rao stated however there was no national lockdown in India, the States took their selections of locking down unique metropolitan areas which experienced significant positivity charges.

Some of the big markets this sort of as Jaipur (Rajasthan), Indore (Madhya Pradesh), Mumbai and Delhi are in lockdown at this issue of time.

Even however there are channels in which need exists, logistics companions are procedure completely. Even the doorway-to-doorway courier providers are dealing with a large amount of issues. They are not in a position to supply the products in their transshipment details for the reason that of the lockdowns. Their warehouses are entire and that is the reason why they are now not operational, he stated.

Santosh D’Silva, President of KCMA, stated that the sales of ‘brokens’ quality bought dented owing to the curtailment and cancellation of weddings and other this sort of celebrations. On the other hand, sales of ‘wholes’ quality have been on a great upswing owing to raising consciousness of the health gains of cashew. He stated processors from Mangaluru have been also in a position to change their sales from the bulk packs to client packs. Limited kernel shares, equally in the production units and at the usage centres, stored the kernel marketplace buoyant and active, he stated.

Subraya Pai stated that just about each Condition manufacturing cashew – Maharashtra, Goa, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Odisha, and West Bengal – is below lockdown.

Given that the consuming States are also terribly strike by Covid, it is pretty hard to predict the foreseeable future, he additional.