Monday, June 25, 2007
Commodity Watch Monday, June 25, 2007 -->
Strong Re worries cashew exportersCommodities BureauKochi, Jun 24 Cashew exporters with huge inventory of raw cashew kernel are worried over the strengthening rupee as export realisation drops. The exporters who imported raw cashew for a higher price are now pinning their hopes on the strong domestic appetite for premium cashew to square off their account books, traders said.
India imports raw cashew kernel from African countries and re-exports it after processing, with the process taking about three months. “The appreciation of the rupee by 10-12% in just about a month has taken its toll on some importers who are now wary of entering into contracts,” said Pratap Nair, an exporter, Vijayalakshmi Cashews.
“Exporters with firm commitment have to ship facing losses,” he added. India’s export earning from cashew slipped by 5.73% in April-May compared with same period a year ago while quantity of exports rose slightly to 28,574 tonne as against 28,543 tonne in same period.
Average export earning slipping to Rs 193 per kg compared with Rs 208.50 in the same period a year ago is a key factor for fall in export value, a trader said. Traders are now hoping that the industry will achieve parity with price of raw cashew kernel falling due to the appreciating rupee and increased supply in the African nations. Import of raw cashew nuts for processing and re-export rose to 124,155 tonne from 120,179 tonne and the average price of raw cashew nut has fallen to Rs 27.19 from Rs 31.42. Demand from the US market is likely to firm up in the coming days, as the buyers are in short position, a trader said. The demand is firm but competition from Vietnam and other tree nuts such as almonds restrain the price, he added. India exported 1,18,540 tonne of cashew valued at Rs 2455.15 crore in FY06-07 while it managed to get Rs 2514.86 crore in 2005-06 for exporting 1,14,143 tonne.