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India’s cashew exports contract by 38% to $ 22.71 million in September

25 Oct 2022 Evaluate

Continuing contracting trend for yet another month, the commerce ministry in its latest data has showed that India’s cashew exports contracted by 38% to $ 22.71 million in September succumbing to intense competition in the international markets. The exports have been declining since November last year. The data showed that the exports dipped by 34 per cent in April, about 30 per cent in May, about 6 per cent in June, 26.62 per cent in July and 31.5 per cent in August.

Karnataka Cashews Manufacturers Association Vice President Tukaram Prabhu said that withdrawal of export incentives under 'Vishesh Krishi and Gram Udyog Yojana' too is impacting the outbound shipments. He said ‘At present, we have no incentives to push shipments, though there is good demand in global markets. Our quality is much better than Vietnamese cashew. It is also a labour-intensive sector’. He urged the government to consider extending export incentives to boost exports. According to him, India's edible cashew kernel production stood at 3,50,000-3,70,000 tonnes per year.

According to the data of Agricultural and Processed Food Products Export Development Authority (APEDA), exports were down 25.16% to $113 million during April-August this fiscal. Besides Vietnam, Indian exporters are also facing tough competition from African countries, including Guyana, Mozambique, Tanzania and Ivory Coast. The African nations have formed 'African Cashew Alliance' to boost the industry in that continent. The Indian cashew industry exports different grades and products like cashew kernels (wholes and broken), cashew nut shell liquid (CNSL), cardanol (purified CNSL) and flavoured kernels. The country exports to about 80 countries, including the US, UAE, the Netherlands, Saudi Arabia, Germany, Japan, Belgium, Korea, Spain, France, the UK, Kuwait, Singapore, Qatar, Greece, Italy, Iran and Canada. Kerala, Tamil Nadu and Karnataka are major cashew exporting states in the country.

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