Second Covid-19 wave dampens the spirits of cashew sector

The second wave of Covid has dampened the spirits of the cashew processing sector, which

The second wave of Covid has dampened the spirits of the cashew processing sector, which was seeking forward to a much better 20201 following remaining battered by the to start with wave previous yr.

Highlighting the trend in intake, K Prakash Rao, Associate at the Mangaluru-primarily based Kalbavi Cashews and former Chairman of the Mangaluru chapter of CII, instructed BusinessLine that the desire for dry fruits experienced long gone up across the environment publish-to start with Covid wave.

“We have to presume that folks are seeking to take in healthful things, most likely with an eye on boosting immunity. The intake for almonds and cashews is really increasing really fast,” he stated, adding that Europe has been increasing at about eight-eight.5 for every cent on an typical, and India at about four-5 for every cent. Although manufacturing was disrupted previous yr, the cashew sector right here nonetheless managed to witness development.

“In this qualifications, we had been anticipating that the 2021 season would be smooth for us and we would be seeking at a really positive season. However, the second wave strike us yet again in March and it was yet again through our procurement season,” he stated.

Procurement

Rao stated the selling prices had been secure for uncooked cashew nuts in East and West Africa and in India this yr. West Africa began offering at $one,350 a tonne for Benin origin. In India, the marketplace opened just about at ₹110-a hundred and fifteen a kg.

With the arrival of the crop in the nation through April-May perhaps, selling prices underwent correction and dropped to ₹100-105 a kg. Having said that, the abnormal pre-monsoon showers early in the season broken the crop. The selling prices also dropped as the top quality also affected, he stated.

This yr, the selling prices of uncooked cashew nuts (RCN) averaged about ₹125 a kg in Goa, at ₹115 in Maharashtra, about ₹105 in Kerala, and about ₹95-105 a kg in Karnataka.

Rao stated the crop received washed absent through April-May perhaps. “Many folks say that is the cause why we might see a fall in the seed volumes by just about 20 for every cent,” he stated.

This might effects the pricing of the cashew kernels and the availability of RCNs, if the market features ordinarily.

If Vietnam and India are not able to approach cashew through the yr because of to the Covid pandemic, then the 20 for every cent scarcity might not really make any difference. “But at this point of time, we are anticipating that most of the Indian brands have not lined their need further than August,” he stated, hinting selling prices hardening for the uncooked cashew nuts if Covid is not introduced less than management.

Vietnam imports

To a query on the import state of affairs for uncooked cashew nuts, Prakash Rao stated there are no consolidated figures as of now. Having said that, Vietnam has really elevated its imports by just about 20-25 for every cent. “That is a massive number we are viewing from them, which suggests India has imported substantially considerably less than what it did in the previous yr,” he stated, adding that cashew brands in India ordinarily approach about one.5 million tonnes a yr. But if Vietnam’s aggressive import proceeds, then Indian processing might go down to one.three-one.four million tonnes, he stated.

India is obtaining substantial difficulties obtaining merchandise from Africa to India simply because of non-availability of containers at place in Africa, and the ocean freights have just about doubled in several voyages. This has also impacted the imported seed selling prices, he stated.

Subraya Pai, former President of Karnataka Cashew Manufacturers’ Association (KCMA), stated that the imported nuts are starting to be costlier working day by working day simply because of Vietnam’s hefty buy in Africa. Given that Vietnam does not have severe Covid difficulties, it has elevated the manufacturing swiftly and is catering to export markets, he stated.

Use

Prakash Rao stated though there was no national lockdown in India, the States took their choices of locking down unique towns which experienced higher positivity costs.

Some of the major markets this kind of as Jaipur (Rajasthan), Indore (Madhya Pradesh), Mumbai and Delhi are in lockdown at this point of time.

Even though there are channels where by desire exists, logistics companions are operation entirely. Even the doorway-to-doorway courier services are going through a lot of difficulties. They are not capable to supply the merchandise in their transshipment factors simply because of the lockdowns. Their warehouses are comprehensive and that is the cause why they are now not operational, he stated.

Santosh D’Silva, President of KCMA, stated that the profits of ‘brokens’ quality received dented because of to the curtailment and cancellation of weddings and other this kind of celebrations. On the other hand, profits of ‘wholes’ quality had been on a great upswing because of to growing awareness of the well being advantages of cashew. He stated processors from Mangaluru had been also capable to shift their profits from the bulk packs to customer packs. Limited kernel shares, equally in the manufacturing models and at the intake centres, stored the kernel marketplace buoyant and active, he stated.

Subraya Pai stated that just about every Condition developing cashew – Maharashtra, Goa, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Odisha, and West Bengal – is less than lockdown.

Given that the consuming States are also poorly strike by Covid, it is really hard to predict the long term, he included.