Cashew prices expected to remain high due to weak domestic production and expensive imports
13-Jul-2024 01:50 PM
Mumbai. Due to the decrease in the production of raw cashew in the domestic sector and the increase in prices abroad, which has made the imports expensive,
the price of processed cashew is expected to remain high and strong in the coming months and especially during the festive season. Due to the El Nino weather cycle, the cashew crop was affected in some producing countries and its production decreased.
The price of raw cashew was running at $ 1200-1800 per tonne in April-May, which may now jump to $ 1900/2000 per tonne.
Accordingly, the prices of processed cashew have also increased. According to trade analysts, the festive demand for cashew in India starts from the last days of July.
The demand and consumption of cashew in the country is increasing at an average rate of 7 percent every year.
At present, India remains a leading producer and the largest consumer of cashew. An international organization is also running a campaign to increase the demand and consumption of dry fruits including cashew in India.
The size of the cashew market in India is estimated to be $ 2.40 billion in the year 2024, while it is estimated to expand to $ 2.90 billion by the year 2029. India is the largest consumer of processed cashew in the world.
According to industry analysts, the production of raw cashew (RCN) has decreased in all the producing areas of the country during the current year and production has also declined by about 25 percent in many major producing countries of the world, including Vietnam and African countries. In view of this,
the price of cashew is expected to increase further in the coming months. According to industry analysts, the domestic market price of processed cashew will remain at a very high level before the strong arrival of the new crop starts in March 2025.
The International Nut and Dried Fruit Council (INC) has projected a 7 percent decline in global cashew production in the 2024 season as compared to 2023,
due to unfavorable weather in various countries. Due to weak production, an African country - Ivory Coast - banned the export of raw cashew nuts,
which led to a rise in global market prices. Later the ban was lifted, but the shortage of raw cashew nuts in the market persisted. In early July,
the export offer price of India's W 320 grade processed cashew nuts was running between $ 6.60-6.90 per kg.