April 19 - 24, 2010 Volume 11 Issue 17

A Product of

CASHEW WEEK CashewInfo.com

CONTENTS

Market Commentary

FOB Price Movement

Forex Rates

Rupee outlook

Exporters' Guide

News Highlights

Domestic prices of nut

Trade Events

SPECIAL COVERAGE:
Cashew once meant for export loosing its way

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A Product of www.CashewInfo.com
Market Commentary from experts :
Indian Cashew Market Commentary
Sri. Pankaj Sampat, SAMSONS TRADING CO,
Mumbai
After a quiet beginning, there was some activity in
the market in the second half of week 16. Some
quantities were traded to USA (and a little to Eu-
rope and other markets as well). Prices moved up
a few cents with sales for W240 at 3.05-3.10, W320
at 2.80-2.85, W450 at 2.70-2.75 FOB. Splits / Butts
moved up to about 2.35 FOB but offers were scarce.
Indian domestic market continued to be quiet.
RCN market is steady. First shipments of WA RCN
have started arriving in India. Most of the Benin
crop has been sold. IVC is trading around US$ 800.
In March, most of the sales were to Vietnam but now
both India & Vietnam are buying. There have been
some speculative sales by RCN traders for GB but
real situation will not be known till mid May. There
is a reasonable quantity of RCN still to be traded
from IVC + GB (and its smaller neighbours) but it is
difficult to judge the price trend.
On the demand side, first quarter offtake seems to
have been good (although there are reports of declines
in some markets). Outlook for coming months is not
clear but there are no reasons to expect any decline.
If prices for other nuts do not come down, retailers in
USA & Europe might be inclined to put more cashews
& mixed nuts/dried fruits on the shelves to meet the
nut category demand. Inventories are low (and might
be tighter in Jun/Jul due to lower shipments from
origin in Apr/May). Some buyers have been buying
portion of their forward requirements in the last few
weeks, but many buyers continue to buy for nearbys
only as they do not see anything on horizon for prices
to increase too much.
On the supply side, despite crop concerns in some
areas & delays in some others, overall availability for
2010 seems to be comfortable. But due to the un-
certainty of RCN prices, processors are reluctant to
make any large forward sales. Unless the RCN prices
come down in May/Jun, they will not be inclined to
take on any big commitments – they will continue to
CASHEW WEEK
Market Commentary
sell small volumes when they have to because the
regular demand will keep things moving.
Periodic dips have been opportunities for buyers to
cover some volume and periodic spikes have been
inducing processors to make some sales. This trend
is likely to continue and keep the market within cur-
rent range until we reach a tipping point – either a
big change in RCN prices or a big bunch of buying or
selling interest in a short period.
Sri. Giridhar Prabhu, Achal Cashews Private Lim-
ited, Mangalore
There is news of firmness in cashew kernel market.
It was range bound at 2.75 to 2.80 and now there is
news that business has been done at 2 .90. This firm-
ness at this time is an indicator of progressive buying
matched with a limited inclination to sell. This is
normally the time when most buyers prefer to buy
for next few months, as they need to fill in the or-
ders of the last quarter of the year.
RCN markets have declined in nominal terms but
in real terms prices are steadier. Arrivals in some
markets like Orissa have just begun while Mangalore
area is having its peak period. Prices have declined
mostly on quality concerns but still above par in
some places.
Data from East Coast is not available. The DCD has
put out a report that the Indian crop is short by ten
per cent. It will be another 3 weeks to go before one
gets into a focus in a certain area.
Indian market is extraordinarily quiet with buyers re-
fraining from entering the market in principal areas,
Mumbai and Delhi. This is in view of the Vat issue. It
is hoped that there is an early resolution.
India has a scorching heat above normal and this de-
ters consumption a bit. The wedding season is now
three weeks away and some buying in two to three
weeks is expected on this account, especially in bro-
ken grades.
Page 1
A Product of www.CashewInfo.com Market Commentary

Demand could pick up from Japan and Western Mar- W-320 320-325 320-325 285-290 290-295
kets from this week onwards for near and forward W-450 300-305 300-305 270-275 275-280
positions and from spot markets from July onwards JH 275-277 275-280 255-260 260-265
till October. Exchange rates could play a significant K 250-255 250-255 215-220 215-220
role in pricing. The strength of the Indian rupee
could result in positive movement in prices. Sri. Biju, M/s. AGRO TRADE INTERNATIONAL, Kol-
lam
West African supplies could be crucial for exports. The cashew nut kernels export market continued to
Any decline in Indian raw cashew production would remain quiet. Prices were down by a few cents biz
affect the pricing in Indian markets while any decline reported W240 was at around $ 3.05 per lb FOB ($
in Vietnamese production could impact international 6724 / Mt Fob), W320 around $ 2.85 per lb FOB (US
prices. Availability of African would be possible for $ 6283 / Mt Fob), W450 around $ 2.65 per lb FOB
supplies and this again depends on processing capac- (US $ 5842 / Mt Fob) level, as buying interest from
ities and throughput in India and Vietnam. US and Europe were very less. Both the buyers and
sellers are now waiting for some competitive price.
Sri. Rajendra Sabat, Sabat Associate (cashew ex- Very few processors are prepared to offer new crop
pert/ Consultant), Orissa. at current market because of the downtrend. We
In this entire region raw cashew arrival to market expect the market to remain firm until June 2010
is satisfactory and in full swing. Now all most at all and then prices could start to ease again. We rec-
the market the RCN price is stabilized at Rs.50 per ommend covering your immediate requirements and
kg. The quality of the present crop that is arriving watch the market developments.
at different markets is reported better and seems to
be good with dry shortage of 4 to 5 kg maximum. At Raw cashew arrivals are better in some counties,
some places the price is either one rupee less or high Ivory Coast raw cashew traded at US $ 750 Per Mt
based on quality. C&F Cochin for 48 Lbs, Guinea Bissau at US $ 900
per Mt C&F Cochin, Konakry at US $ 745 per Mt CNF
All most all the old stock of kernels of last year crop Cochin for 48 outturn.
is completed. The new crop price will come in the
1st week of May because most of the factories were The FOB prices of cashew kernels from Kollam
started their new crop production from last week market (in USD/lb FOB)
onwards and some are yet to start with new crop.
Grades 04/17/10 04/24/10
W-180 3.45 3.50
After two to three weeks one can say the real posi-
W-210 3.30 3.20
tion of the market. If the RCN arrival will continue
W-240 3.10 3.05
smoothly with full swing then only the crop size &
W-320 2.80 2.80
future of the market can be assessed.
W-450 2.45 2.55
SW-240 2.80 2.80
The current kernel prices in Rs/kg
SW-320 2.40 2.50
Coastal Orissa /
Grades JEYPORE LWP 2.05 2.10
Palasa
LSP 1.85 1.90
04/17/10 04/24/10 04/17/10 04/24/10 Note: Packing in 1x50 Lbs Flexi
W-240 340-345 340-345 315-320 320-325

CASHEW WEEK Page 2

A Product of www.CashewInfo.com
Indian CNSL market commentary
Sri. Venkatesh, KANCO SOUTHWEST ENTERPRISES,
Mangalore
• The price of CNSL loose remained steady at pre-
vious levels of Rs.21.50 per kg at Ex- Mangalore.
• The prices of Cardanol also remained steady at
Rs.41 per kg at Ex- Mangalore.
Sri. Omprakash N. Phadnis, M/S. N.S. PHADNIS,
Panruti, Tamil Nadu
The new crop has started in Panruti market. My best
guess is crop would be near normal.
International Cashew Market Commentary
Mr. Kim, Vietnam
Soft demand has come out during the past week.
Small and medium sellers sold W240 at USD 2.95,
W320 at USD 2.75, Lbw320 at USD 2.55, W450 at USD
2.55, WS at USD 2.18 per lb FOB for May shipments.
Top and reliable sellers indicated W240 at USD 3.05,
W320 at USD 2.80/2.85, WS at USD 2.25, DW at USD
2.25/2.30, LP at USD 1.62/1.65 per lb FOB for June
– August shipments with big quantity but no business
reportedly done at these mentioned levels as buyers
could not pay at these high prices indicated by sell-
ers. Buyers’ ideal prices were somehow lower than
sellers’ ideals and if they could not buy at estimated
levels they would prefer to wait and see rather than
chase the current markets levels as the fact that not
strong demand from roasters/ manufacturers.
Extracted from US source: What will it reflect?
On a seasonally adjusted basis, the Consumer Price
Index for All Urban Consumers (CPI-U) increased 0.1
percent in March, the U.S. Bureau of Labor Statistics
reported today. Over the last 12 months, the index
increased 2.3 percent before seasonal adjustment.
The seasonally adjusted increase in the all items
CASHEW WEEK
Market Commentary
The new crops have brought Panruti raw nut market
down by almost 8%. The raw nuts that were costing
about Rs. 4500 per bag are now around Rs. 4050 to
Rs.4100. The kernel prices are lowered accordingly.
The parity in prices is likely to be reached in this
week and we expect good shelling there after.
The shell prices have nosedived and are at Rs.5.65
per kg. CNSL has come down to Rs.20 per kg with
cake prices remaining steady at Rs. 3.30 per kg. The
north Indian buyers are likely to enter market of
CNSL very soon.
index was mostly due to an increase in the fresh
fruits and vegetables index, which rose 4.6 percent
in March and accounted for over 60 percent of the
all items increase. Other food at home indexes were
mixed and the index for food away from home was
unchanged. The index for energy and for all items
less food and energy were both unchanged in March.
Within energy, an increase in the electricity index
was offset by declines in the indexes for gasoline and
natural gas. Within all items less food and energy,
the indexes for medical care, new vehicles, and used
cars and trucks posted increases, while the indexes
for shelter, household furnishings and operations,
and apparel declined.
China market consumed some quantity mainly on
W320 and DW. W320 traded at USD 6.30/6.35, W450
at USD 5.97, DW at USD 5.40 per kg for prompt ship-
ments.
Efforts on selling imported raw seeds have been seen
during the past week. Offers were being made with
good prices as well as promotions but buyers chose
to wait a little bit to see the progress of kernels mar-
ket in the coming weeks whether it is positive or
negative.
Page 3
A Product of www.CashewInfo.com Market Commentary

FOB prices of cashew grades in Vietnam that sold Cashew Bulletin

last week for April 2010 It’s been another relatively quiet week although the
Grades 04/17/10 04/24/10 market moved back up a little on enquiries from buy-
W-240 2.95 2.95 ers in the USA. The European market is not particu-
W-320 2.75-2.77 2.75-2.77 larly active but it is clear now that unsold inventories
W-450 2.50 2.50 in Europe are low. It is difficult to find any good qual-
LBW-320 2.55 2.55 ity material for sale in the Rotterdam spot market and
DW 2.18 2.20 prices reflect that. In general some of the economic
WS 2.15 2.18 indicators are more encouraging for demand and we
WB 2.18 2.20 may see better activity although perhaps not a change
LP 1.50 1.55 to the current buying pattern. Overall sentiment among
buyers remains negative/neutral and a continued cau-
tious approach is the most likely scenario. This may be
Mr. Kees Blokland, The Netherlands influenced by a strengthening US dollar, which will keep
Market is calm. Buyers are just awaiting further de- buyers away and should reduce prices if it continues.
velopments. Customers are showing some interest to Longer term European demand looks stable to growing
check prices but no real business is committed. slowly whereas the much more price sensitive USA mar-
ket may reduce purchases at the current levels and the
FCA Rotterdam Prices (USD / lbs) chances of sales promotions seem slight.
Grades 04/17/10 04/24/10
W 240 3.05 3.15-3.25 Supply side we saw more offers this week albeit at high-
W 320 2.95-3.00 2.95-3.00 er prices. It seems clear that processors would make
W 450 2.75 2.75 sales for prompt and forward if the enquiries were in
(Prices are indicative) the market. This is not to say they seem under pressure
but just that current levels for kernels and RCN make a
profitable calculation. You can follow Cashew Bulletin
on twitter.com.

Disclaimer: The prices quoted in this report are sourced from reliable trade sources. However, these could
vary on account of varietal, seasonal, payment terms and conditions and so on. Readers are advised to
take these rates for indicating purposes only to note the direction of the trend. Foretell Business Solutions
Private Ltd., is not be responsible for inaccuracy in prices, if any.

CASHEW
CASHEWWEEK
WEEK Page 4
A Product of www.CashewInfo.com FOB Price Movement

FOB Prices of cashew nut in USD /lb (Cochin/Tuti-

Currency 04/17/10 04/24/10
corin)
Brazilian Real 1.76 1.759
Grades 04/17/10 04/24/10 Chinese Yuan 6.83 6.83
W-240 3.00-3.05 3.05-3.10 Singapore Dollar 1.37 1.37
W-320 2.80-2.85 2.85-2.90 Tanzanian Shilling 1358.5 1378.5
W-450 2.60-2.65 2.70 Thai Baht 32.18 32.22
WS/FS 2.30 2.35 Mozambique New Metical 31.51 34.14
WB/FB 2.25 2.30 Vietnam Dong 19005 18885
SW320 2.65 2.70 Indonesian Rupiah 9017.5 8983.5
SW360 2.50 2.55-2.60 Benin CFA Franc BCEAO 475.35 483.41
SSW 2.00 2.10-2.15
LP/LWP 1.65 1.65

Note: W = Whole White, SW = Scorched Wholes, US Dollar vs. INR Movement

SSW = Scorched Wholes Seconds, LWP = Large White
Pieces, WS = White Splits, WB = White Butts, FS = Indian rupee gains to continue
Fancy Splits, FB = Fancy Butts, SS = Scorched Splits, Indian rupee this week moved in the range of 44.74
SB = Scorched Butts, SP = Scorched Pieces, LP = Large and 44.36 and finally settled lower at 44.4375 levels
Pieces on Friday. Rupee appreciated on the back of strong
gains in Indian sensex and dollar index inability of
Average FOB prices (USD /lb) of W-320 grade holds on to the recent gains. RBI hikes the CRR by
Kernel (2009-10 vs.2010-11) 25 bps from 5.75% to 6% effective April 24th. RBI
also raised the key repo and reverse repo rates by
3.60 2009-10 2010-11 25 bps each with immediate effect In the last three
3.40 weeks rupee is moving in the broader range of 44.15
3.20
2.90 and 44.78 levels. On the higher side upside capped
3.00
2.80
2.9 initially at 44.78 and above to move higher till 45-
2.8
2.60 45.20 levels. At the same time down side is limited
2.33
2.40 to 44.15 and below to drop till 43.90-43.70 levels.
2.20
Overall rupee to move in the broader range of 43.70
2.00
and 45.20 levels in the commencing one to two
15-Jul

21-Feb
10-Mar
27-Mar
4-Feb
25-May
11-Jun
28-Jun

18-Jan
8-May

1-Jan
21-Sep

11-Nov
28-Nov
15-Dec
4-Sep

25-Oct
8-Oct
18-Aug
1-Aug
21-Apr
4-Apr

weeks time period.

After being quiet for a long time, Cashew market

has witnessed some activity in the current week.
USA demand was more in the market and the price
have moved up a few cents. The FOB price for W-320
grade kernels was quoted at USD 2.85-2.90 per lb
this week against USD 2.80-2.85 per lb last week.

Forex Rates (in US $)

Currency 04/17/10 04/24/10
Indian Rupee 44.53 44.35
Euro 0.74 0.747
Japanese Yen 92.17 93.935

CASHEW WEEK Page 5

A Product of www.CashewInfo.com Special Coverage

Cashew once meant for export loosing its way

Cashew, considered as a luxury commodity, was main- tough competition from Vietnam and Brazil, which
ly meant for export till recently. In the recent years over took India’s first position in 2007-08. Vietnam
we have seen a changing trends in cashew exports, is gaining momentum on India’s fall in exports and is
which fell in to the negative growth zone. Cashew now claiming to export 50 per cent more than India.
export growth in the last five years is registered a Brazil, which is the second largest producer of raw
decline of 2.68 per cent. This could be mainly at- cashew, also became a competitor mainly in the US
tributed to the increasing domestic demand, which and CIS markets. The major buyers of cashew ker-
could be triggered by various reasons coupled with nels from India are USA, Netherlands, UK, Japan,
narrowing price parity between the export and do- UAE, France, Canada and Saudi Arabia.
mestic earnings to the exporters.
Indian Cashew nut im ports vs kernal exports
Cashew traders are finding a better place for their (tons)
800000 130000
cashews in domestic market as the cashew consump- 750000 125000
tion is increasing in India. Higher purchasing power 700000
650000 120000
along with increasing health conscious lead the con- 600000 115000
550000
sumers, especially the youth towards more cashews 500000
110000
105000
in the form of snacks, ingredient in food items etc. 450000 Imports Exports
400000 100000
In the National Sample Survey Organization (NSSO) 4 5 6 7 8 9 0
-0 -0 -0 -0 -0 -0 -1
survey on household consumer expenditure is also 03 04 05 06 07 08 09
20 20 20 20 20 20 20
reporting that the share of expenditure on dry fruits
is increasing both in rural as well as in urban re- The domestic cashew processing industry requires
gions. around 1.2 million tons of raw cashew a year to meet
export and domestic demand. At present, domestic
Cashew exports in the current year (2009-10) has re- output meets less than 50 per cent of the require-
ported a 1.28 per cent decline to 108,120 tons from ment. This situation made India to become a net
109,522 tons a year ago. The average prices fell to importer of cashew with value of imports overshad-
Rs.268.76 a kg from Rs.272.86 a year ago that result- owing the value of exports despite the potential of
ed in a drop in earnings too. In the meantime, raw value addition in processing of raw cashew and re-
cashew imports has registered a growth of 24.26 per exporting it. When cashew export fell in to a nega-
cent to 752,854 tons from 605,850 tons a year ago. tive growth phase imports are growing at a 4.5 per
The average cost of imported raw cashew, however, cent annually. Domestic demand is also growing at a
fell to Rs.40.34 a kg from Rs.43.45 a year ago. It 5.3 per cent annually.
is obvious that cashew kernels are finding their way
into the robust domestic market. However, the industry is optimistic that the current
Another reason behind the fall in exports was the year will be a good year with more exports.

CASHEW WEEK Page 6

A Product of www.CashewInfo.com
Exporter’s Guide: India
Section II: Exporter Business Tips
G. Business Etiquette
Although Hindi is India’s leading national language,
most Indian officials and business people have an ex-
cellent command of English. Most Indian businessmen
have traveled abroad and are familiar with Western
culture. Business is not conducted during religious
holidays that are observed throughout the many re-
gions and states of India. Verify holiday information
with the Consulate or Embassy before scheduling a
visit. Indian executives prefer late morning or af-
ternoon appointments between 11:00 a.m. and 4:00
p.m. Indians often have longer meetings, so be sure
to leave plenty of time between appointments.
The climate in India can be very hot for most part of
the year, so it is advisable to wear lightweight cloth-
ing to avoid discomfort. Men should wear a jacket
and tie (and women should wear corresponding at-
tire) when making official calls or attending formal
occasions. Always present a business card when intro-
ducing yourself. Refer to business contacts by their
surname, rather than by their given name. Use cour-
tesy titles such as “Mr.”, “Mrs.”, or “Miss.” Talking
about your family and friends is an important part of
establishing a relationship with those involved in the
business process. Hospitality is a key part of doing
business in India; most business discussions will not
even begin until “chai” (tea), coffee, or a soft drink
is served and there has been some preliminary “small
talk.” To refuse any beverage outright will likely be
perceived as an insult. While an exchange of gifts
is not necessary, most businessmen appreciate token
momentos, particularly if they reflect the subject
under discussion. Business lunches are preferred to
dinners. Try to avoid business breakfasts, especially
in Mumbai. The best time of year to visit India is
between October and March, so that the seasons of
extreme heat and rains can be avoided. Although
Delhi (the capital) has a cool, pleasant winter (No-
vember - February), summers (April –July) are fierce
with temperatures of up to 120 degrees Fahrenheit.
Mumbai (the business hub) and most other major cit-
ies have a subtropical climate – hot and humid year
CASHEW WEEK
Exporter’s Guide
around. Most Indian cities have good hotels and are
well connected by domestic airlines.
The following websites were found to be informa-
tive and user-friendly in providing information on In-
dian business culture and business etiquettes. These
websites are mentioned for readers’ convenience;
USDA/FAS does NOT in any way endorse, guarantee
the accuracy of, or necessarily concur with the in-
formation contained in the below sites: http://sty-
lusinc.com/business/india/cultural_tips.htm, www.
executiveplanet.com/index.php?title=India
H. Import Duties
Imports into India are subject to a high and often
confusing array of duties, which include the follow-
ing: a “basic” duty, an Additional Duty (AD), also
known as “Countervailing Duty (CVD),” and an Ed-
ucation Cess (a special surcharge on all direct and
indirect taxes at 2 percent introduced in the July 8,
2004 Budget, which was increased to 3 percent in the
2007 Budget). A special Countervailing duty (SCVD)
of 4 percent was introduced in the 2005 GOI Bud-
get on all imports (agricultural and non-agricultural)
with a few exceptions. This was done to account for
the VAT and other taxes applicable only to domestic
products. Agricultural products exempted from the
CVD include fresh vegetables and fruits, seeds, raw
wool, poultry and cattle feed, pulses, rice, wheat,
and coarse grains.
The basic duty on most processed food products
is 30 percent. Exceptions in the agriculture/food
group include “sensitive” items such as wine, li-
quor, poultry meat, wheat, rice, corn, coffee, tea,
vegetable oils, cigarettes and tobacco, and several
dairy products, which attract much higher basic du-
ties. However, due to food inflation, the import duty
on wheat, rice, corn and crude vegetable oils cur-
rently remains zero. The CVD equals the excise duty
on similar products produced domestically (16 per-
cent on most consumer food products), and is lev-
ied on the total of the assessed value plus the basic
duty. The calculation of the CVD on packaged goods
Page 7
A Product of www.CashewInfo.com
is based on the Maximum Retail Price (MRP), minus
the abatement notified for similar domestic goods
in India, which makes the calculation more difficult.
Total import tariffs on most consumer food products
range from 36.1 percent to 59.1 percent.
I. Food Laws
Food exporters will have to grapple with India’s var-
ied food sector laws, particularly those pertaining
to the use of additives and colors, labeling require-
ments, packaging, weights and measures, shelf-life,
and phytosanitary regulations. Following the re-
moval of quantitative restrictions on imports of food
products in 2001, the GOI issued several notifications
to make imported food products comply with domes-
tic laws. Details on India’s food laws are available
in our “Food and Agricultural Import Regulations and
Standards Country Report 2008” (IN8082), which can
be accessed via the FAS/USDA website: www.fas.
usda.gov. On August 24, 2006, the GOI notified, in
the official gazette, the Food Safety and Standards
Act, 2006 to bring about an integrated food law. The
new Food Safety and Standard Authority has been
formulated and has initiated the rule making pro-
cess.
Some of the major food laws affecting Indian food
importers are:
• The Prevention of Food Adulteration (PFA) Act,
1954, and PFA Rules of 1955, as amended. This
is a basic statute established to protect consum-
ers against adulterated foods, and it encom-
CASHEW WEEK
Exporter’s Guide
passes food colors and preservatives, pesticide
residues, packaging, labeling, and regulation
of sales. This is similar to the Federal Food,
Drug, and Cosmetics Act of the United States’
Food and Drug Administration. Standards and
regulations of the PFA apply equally to domestic
and imported products. The PFA Act and Rules,
and recent notifications are available at: http://
mohfw.nic.in/pfa.htm
• The Standards of Weights and Measures Act,
1976, and the Standards of Weights and Mea-
sures (Packaged Commodities) Rules, 1977, as
amended. This Act established standards for
weights and measures to regulate interstate
trade and commerce in goods that are sold or
distributed by weight, measure, or number. The
Rules formed under the Act require labeling re-
garding the nature of the commodity, the name
and address of the manufacturer, quantity, date
of manufacture, best-before date, and the MRP.
These labeling requirements apply equally to
imported and domestic packaged foods.
• The Plant Quarantine (Regulation of Import into
India) Order, 2003, and amendments. These leg-
islative measures regulate imports of planting
seeds and agricultural products into India. These
can be accessed from: www.plantquarantinein-
dia.org/PQO_amendments.htm
(Compiled from USDA Foreign Agriculture Service
GAIN Report Number: IN8112)
(To be continued…)
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A Product of www.CashewInfo.com
NEWS HIGHLIGHTS
Cashew production seen down 8-10% in 2009-10
Unseasonal rains and high temperature in the last
few months of 2009 have reduced cashew yield by
8-10%, according to Directorate of Cashew and Co-
coa Development (DACCD). Rains in most producing
states in October and November proved bad for the
standing crop, Venkatesh Hubballi of DACCD. The er-
ratic rains were followed in November and December
by high day time temperature which again affected
the final production, he added.
According to the crop estimate prepared by the
agency, India’s production would be around 6.3 lakh
ton in 2009-10 as against 6.95 lakh ton in 2008-09. In
2007-08, the country produced around 6.65 lakh ton
of cashew. India has to import more than half of its
requirement of raw cashew because of low domes-
tic output. Imports of raw cashew were almost 23%
more in the first eleven months of last fiscal. It is ob-
vious that cashew kernels are finding its way into the
robust domestic market. Traders said India’s cashew
consumption could be a trigger point in global trade
in the coming days given the huge size of the market
and growing retail sector.
India’s per hectare cashew productivity is almost
three to four times less than that of Vietnam. While
Vietnam produces 34% of the world’s cashew from
just 10% of the world’s cashew farming area, India,
on the other hand, has the largest share of land
under cashew (24%) but has a share of only 19% in
the total production. Productivity in Vietnam is 2.8
ton of cashew nuts per hectare, while the average
productivity in India is only 663 kg per hectare. The
credit for highest productivity in India goes to Maha-
rashtra with 1.1 ton per hectare.
The state has also displaced Kerala as the largest
producer of cashew with 25% of the total produc-
tion. Cashew production is likely to get a boost with
the government doubling the subsidy provided for
cashew re-planting, Venkatesh Hubballi said. “From
April 1, farmers will get Rs.20,000 per hectare for
CASHEW WEEK
News Highlights
re-planting as against Rs.11,250 in the past. This
should encourage farmers to re-plant cashews in
more area,”Hubballi added. The directorate is taking
steps to increase the area under farming by 50,000
hectare (ha) by 2012. The government body has de-
cided to take up cashew cultivation in a big way in
states like Chhattisgarh, Jharkhand, and the north-
eastern region under the 11th Five Year Plan Period.
From the present farming area of 874,000 ha, the di-
rectorate hopes to increase it by 15% increase which
will help in reducing the import of raw cashew ker-
nels, for which the nation depends on African na-
tions. In traditional areas, the directorate hopes to
replant up to 10,000 ha to increase productivity
Mozambique records highest cashew crop in 3 years
Mozambique has reported the biggest cashew nut
production in three years. The once world cashew
export leader sees its industry recovering slowly.
According to reports from the country, the season’s
production has topped 95,000 tons, mostly thanks
to favourable weather conditions. The director of
the national cashew institute (INCAJU), Filomena
Maiópuè was reported in the local press saying the
southern part of the country was the most fortunate
and suitable to have achieved the bumper crop.
The national cashew nut institute said this year’s pro-
duce also well within the target of 100,000 tons of
raw cashew, also adding that the price was also very
good for the farmers this year. Mozambique’s cashew
season starts in October and ends in March, but due
to extended flowering of cashew trees this season
as well as the selling period, it is expected that the
season will be extended to the end of April. While
this year’s cashew crop is among the best during the
last decade, production is however still significantly
lower than in the peaking 1970s, when Mozambique
was the world’s leading producer. The civil war and
poor maintenance brought the cashew industry to its
knees by the mid-90s.Since then, however, massive
investments in cashew production has seen Mozam-
bique’s main cash crop to recover slowly.
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A Product of www.CashewInfo.com
Cashew exports recover in H2
Cashew exports from India in 2009-10 overcame
the sluggishness of the first half to finish marginally
behind 2008-09, Cashew Export Promotion Council
(CEPC) sources said. However, India has become a
net importer of cashew with value of imports over-
shadowing the value of exports by 4.5% in the finan-
cial year despite the potential of value addition in
processing of raw cashew and re-exporting it. “It is
obvious that cashew kernels are finding their way
into the robust domestic market,” sources said. Ac-
cording to figures provided by CEPC, exports in April-
March 2009-10 fell short by 2.7 % in value terms and
1.2 % in volume terms as compared with the same
period of 2008-09.
Dollar realization for the fiscal was lower by 6% over
the previous fiscal. Unit value of exports was lower
by Rs.4 per kg at Rs.268.76 per kg in 2009-10. In the
first half of FY09-10, volume and value of exports
were lower by 12%. Cashew exports were lower as
buyers reduced their forward covering to six months
from the usual practice of one year. With sellers re-
fusing to lower their prices, trading during the im-
portant month of September remained low and quiet.
Shipments from Vietnam and India, the two largest
exporters, were down by almost 10% during the fist
ten months of 2009 calendar year. However, things
improved during the first three months of 2010 with
exports picking up, sources at CEPC said.
In March 2010, volume of exports was higher by 3.2%
and value higher by 5.38% over the same period last
year. Exporters who were hoping for good contracts
in the last quarter of 2009 were disappointed with
retailers not covering for long. Trade sources said
the first quarter of 2010 will be a decisive period.
If buyers feel that consumption would be back to
normal levels like other commodities, their demand
would be significant. Import of raw cashew in 2009-
10 was higher by 15 % in value terms and 24% in vol-
ume terms. Indian production for the same period
was lower by 8%-10% according to an estimate by the
Directorate of Cashew and Cocoa Development.
CASHEW WEEK
News Highlights
Cashew exports down in 2009-10
Cashew exports from the country during 2009-10
declined 1.3 per cent in volume and 2.8 per cent
in value on stiff competition from other suppliers in
the world market. Total shipments during the last
fiscal stood at 1,08,120 tons valued at Rs.2,905.82
crore ($612 million) against 1,09,522 tons worth
Rs.2,988.40 crore ($649.79 million) the previous
financial year. The average unit valued realised in
2009-10 was Rs.268.76 a kg against Rs.272.86 a kg a
year ago.
The Chairman of Cashew Export Promotion Council
of India (CEPC), Mr. Shahal Hassan Musaliar, said the
main reason for the decline last fiscal was competi-
tion from other producing countries – Vietnam and
Brazil. He said India enjoyed the number one po-
sition in the world market till 2007-08. During the
last five years, exports declined 10.5 per cent and
Vietnam took advantage of it. Its export increased
67 per cent during this period and is now claiming
to export 50 per cent more than India. On the other
hand, Brazil, which is the second largest producer of
raw cashew, also became a competitor mainly in the
US and CIS markets.
Strong Rupee
The rupee’s appreciation against the dollar has also
contributed to the declining trend. In contrast, the
Vietnam devalued its currency in three phases by 15
per cent. During this period, the rupee appreciated
against the dollar by over 14 per cent. As a result,
“we have become about 30 per cent less competi-
tive in price terms against our major competitor and
the export earnings have been lower than the levels
budgeted for raw cashew nut procurement”. Next
was the global recession, which had a severe impact
on the cashew industry with demand from the US
and Europe dropping. Consequently, the prices and
volume of sales fell in the international market.
Export ban
Added to this was the ban on export of agriculture
products to Russia in 2008 that remained in force for
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A Product of www.CashewInfo.com
two years. During this period Vietnam captured the
Russian and CIS markets. According to Mr. Musaliar,
banks are not allowing exporters to avail themselves
of enough Foreign Currency Packing Credit, citing
non-availability of dollars. Exporters are forced to
avail themselves of rupee packing credit at 7 to 9.5
per cent. The sharp appreciation of the rupee has
also taken a toll.
He said that costs of raw cashew nuts and process-
ing had gone up. Even though the Government an-
nounced that service tax exemption would be grant-
ed for export activities, cashew exporters are being
levied service tax for transport of goods from farm/
port to factory and from factory to port, commission
paid to foreign agents, etc. All these have added to
the cost of production. At the same time inadequate
availability of domestic raw nuts has forced the in-
dustry to depend on imports, he said.
“Our domestic production is around 7 lakh tons while
our processing capacity is about 14 lakh tons. Hence
we have to depend on imported raw cashew nut for
more than half of the requirement. Vietnam is also
competing with our processors for sourcing raw ca-
shew nut from African producing countries, resulting
in increase in raw cashew prices,” he said.
Other surrogate nuts such as almonds, macadamias
are being promoted in the major world markets on
the basis of health claims and large amounts are
being spent by the grower associations, supported
by the Governments. “Since cashew is produced by
developing or least developed countries, the farm-
ers are not in a position to spend large amounts for
promotion,” Mr. Musaliar pointed out. On the rise in
imports of raw nuts, which had gone up by 24.26 per
cent in 2009-10 from the previous fiscal, the CEPC
Chairman said, “Our domestic production is around
7 lakh tons while our processing capacity is about 14
lakh tons.
“Hence, we have to depend on imported raw cashew
nut for more than half of the requirement and for
protecting the employment of thousands of cashew
factory workers. Four tons of raw cashew nut need
CASHEW WEEK
News Highlights
to be processed for producing one ton of cashew
kernels”. India imported 7,52,854 tons of raw nuts
valued at Rs.3,037.35 crore in 2009-10 as against
6,05,850 tons valued at Rs.2,632.41 crore in 2008-
09. The import value increased by 15.38 per cent
while the unit import price by 7.71 per cent. On the
current trend, he said, “the rupee is strengthening
and the effects of recession and financial crunch are
continuing”. However, the factories need to be run
for providing employment to lakhs of workers.
Therefore, at this critical juncture, the industry
needs the full support of the Centre for survival. Mr.
Musaliar expressed the hope that cashew may be in-
cluded in the priority sector along with leather, han-
dlooms, handcrafts, etc, for support from Govern-
ment. “We hope the recession will be over and trade
will increase during the second half of the current
financial year and exports pick up to reach Rs 3,000
crore.
Nuts sector 20 p.c. below its capacity
The processing capacity of cashew nuts and maca-
damia in the country is underdeveloped and, there-
fore, more investors should be encouraged to join
the sector. With only about five large processing
plants and a handful of other small players, the sec-
tor is believed to be operating at only 20 per cent its
maximum capacity.
According to industry players, there are efforts to
increase the capacity from within as well as foreign
investors, to use the capacity. “We are increasing
the capacities and also engaging with investors who
have shown interest in putting up processing plants
locally to match up,” Mr Bobby Thomas, a director of
Wonder Nuts, told the Nation on Thursday. Last year,
the government imposed a ban on the export of nuts
from the country as means of boosting the industry.
The ministry of Agriculture indicated that it was only
the National Cereals and Produce Board (NCPB) that
was mandated to buy the nuts from farmers. Before
then, a number of exporters had a field day buying
nuts and exporting it to countries like China, Viet-
nam and India. This, the ministry argued, denied
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A Product of www.CashewInfo.com
the country opportunities for employment and value
addition. Currently, the production of nuts is esti-
mated at about 10,000 metric tons annually. Some
processors have also urged the government to focus
on increasing production by providing incentives to
farmers as the ban stays on to protect them.
Lifted
However, the issue cropped up in Parliament recent-
ly, with a member asking for the ban to be lifted.
Through a ministerial statement, the ministry re-
mained adamant, insisting the ban was there to stay.
“Foreign exporters destabilised the market and in
the last three years farmers suffered immense losses
due to middle men. After the ban, prices shot up
and if post harvest regulations are followed, and the
quality will improve and the buying price will shoot
higher next year,” read the ministerial statement in
Parliament. Statistics from the ministry further indi-
cate that the sector currently earns the country only
Sh500 million annually, but has a potential value of
Sh1 billion.
Cashew nut growers lose out over low output
The low level of cashew nut production is blocking
processors from setting up plants in the country caus-
ing farmers huge losses. The Kenya Cashew Nuts Pro-
cessors and Exporters Association chairman Samuel
Varghese stated that based on current production,
it is not economically viable for members to put up
processing units in the country. Kenya currently pro-
duces 11,000 metric tons. Following a ministerial
ban of the export of raw nuts last year, exporters
have shifted their bases to Tanzania, Mozambique
and Ghana where they are getting enough nuts for
their export market, Mr. Varghase said.
The ban was meant to encourage local processing.
The government and other industry investors had
pegged their hope on the fact that the higher qual-
ity Kenyan nuts would force exporters to establish
processing units to protect their market in India. Mr.
Varghase stated that, we have substituted the Ke-
nyan nuts with those from elsewhere in Africa, which
are also of high quality. The government should
have first focused on increasing production to about
CASHEW WEEK
News Highlights
60,000 metric tons perhaps in less than 10 years and
then ban the export of raw nuts.
He said that importing countries prefer to buy raw
nuts, for which they give high rebates since by ex-
porting them the exporters were creating jobs. This
has made the business highly profitable. Mozambique
produces about 90,000 metric tons of cashew nuts.
Most of the produce from Tanzania finds a market in
the United States, Europe, Japan and India. On aver-
age, Tanzania produces about 100,000 tons of the
crop every year, mainly for export. Ghana exports
some 45,000 tons of raw nut every year.
Mr. Varghase stated that, the government will this
year lose $10-15 million (Sh770m-Sh1.15bn) in for-
eign exchange as a result of the ban. Major exporting
firms that relocated from Kenya include Emke Com-
modities, Export Trading, Donal International and
Jumba international. They all registered companies
in Tanzania last year when the government indicat-
ed the impending ban. Most of the processors have
stocked on enough nuts and left the field before the
season came to a close. They went for the high qual-
ity nuts and left farmers with a huge volume of low
quality nuts that will not fetch better prices. Farm-
ers are calling us to buy the nuts, but our hands are
tied by last year’s ban.
Farmers say that the ban only favoured a few pro-
cessors and did not consider their plight. Farmers
in the leading cashew nut producing areas of Lamu
and Kilifi are holding huge volumes of nuts in their
stores. The middlemen now buying the nuts are of-
fering Sh17 per kg. A farmer in Mpeketoni, in Lamu,
Mr. Julius Thuo said that the local cashew nut proces-
sors offered between Sh32-37, compared to between
Sh50 and Sh60 offered by exporters last season. “We
want the ban lifted to encourage competition so that
farmers can earn better prices,” Mr. Thuo said, add-
ing that the farmers who cultivate cashew nuts as a
commercial crop, especially in Mpeketoni, will now
be forced to abandon the crop due to low prices.
The production of the cashew nuts in the country
has been on a decline reaching its lowest record of
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A Product of www.CashewInfo.com
10,000 tons last year compared to 14,000 metric
tons three years ago, according to statistics from
the Ministry of Agriculture. Income generated by the
cash crop also declined from $3.75 million (Sh290m)
to $3.25 million (Sh250m) during the same period.
Experts said that the current processors lack the ca-
pacity to handle more than 12,000 metric tons. The
Kenya Nuts Ltd field officer, James Ndegwa, stated
that the company has the capacity to process 8,000
metric tons.
India’s food inflation surges to 17.65%
The annual food inflation, based on the wholesale
price index, rose 17.65 per cent during the week
ended April 10, marginally higher than an annual rise
of 17.22 per cent in the previous week. The fuel price
index increased 12.45 per cent in the week to April
10, a tad higher than an annual rise of 12.43 per cent
in the previous week, data released by the Ministry
of Commerce and Industry showed on Thursday.
Primary articles
According to the data, the WPI for the Primary Ar-
ticles group gained 0.6 per cent on a sequential basis
to 289.7 points from 288.0 points for the previous
week. The annual rate of inflation in the Primary
CASHEW WEEK
News Highlights
Articles group, calculated on point-to-point basis,
stood at 14.14 per cent points for the latest week
compared with 13.88 per cent points for the previ-
ous week and 6.42 per cent during the corresponding
week of the previous year.
Sequentially, the index for ‘Food Articles’ group was
up 0.7 per cent due to higher prices of fruits and
vegetables (3 per cent), fish-marine (2 per cent) and
condiments and spices, arhar and moong (1 per cent
each). However, the prices of wheat and eggs (1 per
cent each) declined.
Non-food articles
The index for ‘Non-Food Articles’ group rose 0.5 per
cent due to higher prices of groundnut seed and cas-
tor seed (3 per cent each) and raw silk, sunflower
and copra (1 per cent each). However, the prices of
gingelly seed (5 per cent) and linseed (1 per cent)
declined.
The Fuels index increased 0.1 per cent to 363.2
points from 362.7 points for the previous week, due
to higher prices of light diesel oil, petrol and high
speed diesel oil (1 per cent each). However, the pric-
es of furnace oil (1 per cent) slipped.
Page 13
A Product of www.CashewInfo.com Indian cashew kernel prices

Domestic Prices of Nuts

Cashew Grades 04/17/10 04/24/10 Cashew Grades 04/17/10 04/24/10

Mangalore (Rs/11.34Kg) (without tax) 4 pieces 225/260 225/260
8 pieces 180/240 180/240
W180 5700 5700
S180 5100 5100 Sangrur (Rs/Kg)
W210 4700 4700 W320 390 385
S210 4300 4300 W210 470 465
W240 4250 4250 W240 380 375
S240 3900 3900 W180 425/435 420/430
W320 3700700 3700700 2 pieces 300/310 300/310
W1 3550 3550 4 pieces 280/285 280/285
SW 3400 3400 8 pieces 215/225 215/225
SSW 3200 3200 Jeypore – Orissa (Rs/Kg)
JH 3200 3200 W180 NS NS
S 3050 3050 W210 450 450
LWP 2775 2775 W240 380 380
SWP 2550 2550 W320 330 330
K 2950 2950 W400 295 295
JB 3100 3100 S240 370 370
Kollam (Rs/22.68 kg) S320 320 320
W180 9200 9200 S 290 290
W210 8200 8200 K 265 265
W240 7600 7600 LWP 255 255
W320 6800 6800 SWP 235 235
W450 6200 6100 JH 300 300
SW240 6400 6400 Vetapalem – AP (Rs/Kg)
SW210 7000 7200 W210 425 390
S (Splits) 6100 5900 W240 375 350
SS 4800 4800 W320 330 320
Butts 5200 5200 SW 300 280
SB (Scorched JH 330 310
4600 4600
Butts)
K/LWP 260 260
SP 4300 4300
W1 300 300
LWP 5200 5200
JB/Butts 275 260
WSP 4500 4500
W400 300 300
Delhi (Rs/Kg)
Bhubaneswar (Rs/Kg)
W320 No. 350 350
W210 No. 455/460 455/460 2 Pieces 260 270
W240 No. 380/385 380/385 4 Pieces 235 250
W180 No. 490/500 490/500 8 Pieces 205 210
2 pieces 285/300 285/300 W 320 290 285

CASHEW WEEK Page 14

A Product of www.CashewInfo.com Indian cashew kernel prices

Other Nuts prices at Delhi market

Grades 04/17/10 04/24/10
Almond Girdhi New (Rs/40Kg) 2400/2600 2600/2800
Almond Gurbandhi New (Rs/40Kg) 4700/4800 4700
Almond California (Rs/40Kg) 11000 11100
Almond Kernel California (Rs/Kg) 375/378 383/385
Almond Kernel Gurbandi (Rs/Kg) 305/380 305/380
Pistachio Irani (Rs/Kg) 850/950 840/900
Pistachio Hairati (Rs/Kg) 1550/1600 1500/1550
Pistachio Peshawari (Rs/Kg) 1700/1800 1700/1750
Walnut New (Rs/Kg) 80/150 80/150
Walnut Kernel (Rs/Kg) 300/450 300/450

Cashew Nuts prices ($/ton C&F)

Country 04/17/10 04/24/10
Indian RCN (Rs./80 Kg bag) 4800 3700-4000
Benin 965 960
IVC 820 750-870
Note: Indian RCN is quoted in rupees.

*Mangalore Prices are for 11.34 Kg tin and exclusive of tax. Tax for inter-state sales- CST 3%, Tax for local
sales 4% VAT. Note: W= White Wholes, SW= Scorched Wholes, SSW= Scorched Wholes Seconds, DW= Dessert
Wholes, S= Splits, LWP= Large White Pieces, SWP= Small White Pieces, BB= Baby Bits, SB= Scorched Butts,
SS= Scorched Splits, SP= Scorched Pieces, I tin =11.34kg, 1kg = 2.24lb

Disclaimer:Foretell Business Solutions Pvt. Ltd. is not responsible in any form for the trade or trade
related activities by the subscribers or members of public based on the research findings published in this
product. Note: The content published in this product cannot be published or reproduced in any form with-
out the written permission from Foretell Business Solutions Pvt. Ltd

Raw cashew nut prices in Rs/quintal

State Markets 04/17/10 04/24/10
Andhra Pradesh Chirala 5000 5040
Narsipatnam 5600 5600
Tuni 5550 5550
Sompeta 4000 4000
Orissa Gunpur 5100 5000
Goa Pernem 5950 5800
Karnataka Puttur 5050 4200
Karkala 4600 4600

Source: Agricultural Marketing Information Network

Note: Prices are weekly average

CASHEW WEEK Page 15

A Product of www.CashewInfo.com Trade Events

TRADE EVENTS

FOODAGRO China Food Industry & Food Export Fair

Addis Ababa Exhibition Center, Addis Ababa, Qingdao International Convention & Exhibition Cen-
Ethiopia ter, Qingdao, Shandong, China
Apr 27-30, 2010 May 11-13,2010

Agriculture Food & Packaging Industry Exhibition SEOUL FOODTECH

Lithuanian Exhibition and Convention Centre (LI- Kintex - Korea International Exhibition Center, Goy-
TEXPO), Vilnius, Vilniaus Apskritis, Lithuania ang, Korea
Apr 29- May 1, 2010 May 12-15, 2010

International Food Exhibition Philippines Thaifex-World of Food Asia

World Trade Center Metro Manila, Manila, Metro- Impact Exhibition & Convention Center, Bangkok,
politan Manila, Philippines Thailand
May 6-8, 2010 MAY 12-16,2010

Foodmash Food Technology Exhibition

Crocus Expo International Exhibition Center, Mos- Moldexpo International Exhibition Centre(IEC),
cow, Moskva, Russia Chisinau, Moldova
May 11-14, 2010 MAY 12-16,2010

Foodtech Bulgaria INTERNATIONAL FOOD INDUSTRY EXHBITION SEOUL

International Fair Plovdiv, Plovdiv, Kintex - Korea International Exhibition Center, Goy-
Bulgaria ang, Korea
May 11-16, 2010 MAY 12-15,2010

Cibus Parma China International Foodstuff Exposition

Parma Exhibition Centre, Parma, Emilia-Romagna, Chinese Export Commodities Fairground, Guang-
Italy zhou, China
MAY 10-13,2010 MAY 13-15,2010

Dolce Italia China Food Machinery & Packaging Exhibition

Parma Exhibition Centre, Parma, Emilia-Romagna, China Import & Export Fair Pazhou Complex, Guang-
Italy zhou, China
MAY-10-13, 2010 MAY 13-15,2010

Bakery China Irresistible Gluten Free Food Show-Brisbane

Shanghai New International Expo Centre(SNIEC), Brisbane Convention & Exhibition Centre, Brisbane,
Shanghai, China Australia
MAY 11-13,2010 MAY 15-16,2010

CASHEW WEEK Page 16