Domestic Cashew Production Expected to Improve Amid Mixed Price Outlook

25-Dec-2024 08:58 PM

Kochi: Domestic cashew production is expected to show improvement in the current season, thanks to favorable monsoon rains in key producing states and generally good weather conditions.

While some regions experienced early flowering due to climate change and abnormal rainfall patterns, the overall crop condition appears favorable, with sufficient moisture in the fields. The harvest for the new crop is anticipated to begin in mid-March and may continue until the third week of May.

The primary cashew-producing states in India include Maharashtra, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Odisha, Gujarat, Goa, and West Bengal, with some additional production in Madhya Pradesh.

The positive weather conditions are likely to boost production in these regions, benefiting the overall cashew industry.

However, the global cashew market is facing some challenges. The El Niño weather phenomenon earlier in 2024 negatively impacted the cashew crops in several West African nations, as well as in India and Vietnam.

For much of the year, cashew prices had been rising due to these weather disruptions. But with improved production forecasts in East African countries, prices began to soften.

Looking ahead to the first quarter of 2025, cashew prices are expected to exhibit a mixed trend. On one hand, the potential for better production could encourage millers and stockists to increase supply.

On the other hand, demand is expected to remain robust due to various global factors. As a result, it is unlikely that cashew prices will experience sharp fluctuations—neither significant increases nor drastic declines are expected in the near term.