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

The Covid-19 pandemic has taken a toll on India’s cashew exports with a 41 for every cent decrease in quantity and 38 for every cent in benefit in the 1st quarter of the existing fiscal, in comparison to the corresponding period of the past yr.

Exporters attribute the dismal performance to the lockdown that hindered the operations of many cashew factories, hitting abroad shipments and domestic gross sales.

On the other hand, the soaring retail gross sales especially in the US and the EU markets on amplified snacking in Could and June have introduced some cheer to the sector, witnessing slight improvements in export figures.

“There are some positive developments in the export industry with amplified shipments to the US, Japan, Australia, and Iran in Could and June, in comparison to April in the existing fiscal yr. There are business orders from other markets as effectively,” explained K Rajesh of Kerala Cashew Industries Promotion Council.

On the domestic side, he explained, the fall was close to 40 for every cent, especially for damaged kernels in the upcountry markets of Delhi, Jaipur, Mumbai, and Chennai, amid some others. The sector could not even derive the reward of declining raw cashew selling prices in the global markets, which came down to $one,000 for every tonne from $one,650-one,700 in 2019.

In accordance to RK Bhoodes, Chairman, Federation of Indian Cashew Industry, the sector has taken steps to highlight cashew nut as a organic immunity boosting product because of to the existence of zinc and other minerals in it. “We are acquiring a new channel for advertising to improve use, emphasising on the overall health added benefits of cashew nut,” he explained.

In upcountry markets, the principal degree of use was down because of to Covid-19. But the sector witnessed a 23 for every cent increase in secondary degree use, thank to amplified offtake from confectionery corporations, which, he explained, is a excellent sign.

Trade analysts Pankaj N Sampat of Samson Traders explained that the cashew sector in India expects a brief and sizeable revival in demand because of to lessen kernel selling prices, delivered the Covid-19 condition improves in the upcoming six to 8 months. If that comes about, there could be a squeeze in the availability of kernels through the peak use period, which commences in August.

Exports of cashew for the yr 2020-21

Source: Trade info