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 each cent decrease in quantity and 38 for each cent in value in the initially quarter of the recent fiscal, in contrast to the corresponding interval of the prior yr.

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

Having said that, the soaring retail profits in particular in the US and the EU markets on improved snacking in May possibly and June have brought some cheer to the sector, witnessing slight advancements in export figures.

“There are some favourable developments in the export marketplace with improved shipments to the US, Japan, Australia, and Iran in May possibly and June, in contrast to April in the recent fiscal yr. There are company orders from other markets as perfectly,” reported K Rajesh of Kerala Cashew Industries Marketing Council.

On the domestic aspect, he reported, the fall was about 40 for each cent, in particular for broken kernels in the upcountry markets of Delhi, Jaipur, Mumbai, and Chennai, among other individuals. The sector could not even derive the advantage of declining raw cashew price ranges in the global markets, which arrived down to $one,000 for each tonne from $one,650-one,seven-hundred in 2019.

In accordance to RK Bhoodes, Chairman, Federation of Indian Cashew Business, the sector has taken actions to highlight cashew nut as a organic immunity boosting merchandise thanks to the presence of zinc and other minerals in it. “We are producing a new channel for marketing to boost intake, emphasising on the overall health gains of cashew nut,” he reported.

In upcountry markets, the most important level of intake was down thanks to Covid-19. But the sector witnessed a 23 for each cent rise in secondary level intake, thank to improved offtake from confectionery businesses, which, he reported, is a good indication.

Trade analysts Pankaj N Sampat of Samson Traders reported that the cashew sector in India expects a fast and significant revival in demand from customers thanks to reduce kernel price ranges, furnished the Covid-19 condition increases in the next six to 8 weeks. If that transpires, there could be a squeeze in the availability of kernels through the peak intake interval, which begins in August.

Exports of cashew for the yr 2020-21

Resource: Trade info