27/10/2021

Tannochbrae

Built Business Tough

Second Covid-19 wave dampens the spirits of cashew sector

The 2nd wave of Covid has dampened the spirits of the cashew processing sector, which was wanting forward to a better 20201 following staying battered by the very first wave last year.

Highlighting the development in use, K Prakash Rao, Lover at the Mangaluru-centered Kalbavi Cashews and previous Chairman of the Mangaluru chapter of CII, told BusinessLine that the demand from customers for dry fruits experienced gone up throughout the planet publish-very first Covid wave.

“We have to presume that persons are wanting to take in healthier things, likely with an eye on boosting immunity. The use for almonds and cashews is seriously increasing quite quick,” he mentioned, adding that Europe has been increasing at close to 8-8.five for each cent on an regular, and India at close to four-five for each cent. Even though manufacturing was disrupted last year, the cashew sector in this article nonetheless managed to witness expansion.

“In this history, we ended up anticipating that the 2021 time would be sleek for us and we would be wanting at a quite optimistic time. Sad to say, the 2nd wave hit us once more in March and it was once more all through our procurement time,” he mentioned.

Procurement

Rao mentioned the rates ended up stable for uncooked cashew nuts in East and West Africa and in India this year. West Africa begun providing at $one,350 a tonne for Benin origin. In India, the market place opened pretty much at ₹110-one hundred fifteen a kg.

With the arrival of the crop in the nation all through April-Might, rates underwent correction and dropped to ₹100-one zero five a kg. Nevertheless, the unusual pre-monsoon showers early in the time weakened the crop. The rates also dropped as the excellent also impacted, he mentioned.

This year, the rates of uncooked cashew nuts (RCN) averaged close to ₹125 a kg in Goa, at ₹115 in Maharashtra, close to ₹105 in Kerala, and about ₹95-one zero five a kg in Karnataka.

Rao mentioned the crop obtained washed absent all through April-Might. “Many persons say that is the purpose why we may see a drop in the seed volumes by pretty much twenty for each cent,” he mentioned.

This may affect the pricing of the cashew kernels and the availability of RCNs, if the industry capabilities ordinarily.

If Vietnam and India are unable to system cashew during the year owing to the Covid pandemic, then the twenty for each cent lack may not seriously matter. “But at this issue of time, we are anticipating that most of the Indian brands have not covered their need further than August,” he mentioned, hinting rates hardening for the uncooked cashew nuts if Covid is not introduced under handle.

Vietnam imports

To a question on the import scenario for uncooked cashew nuts, Prakash Rao mentioned there are no consolidated figures as of now. Nevertheless, Vietnam has seriously increased its imports by pretty much twenty-25 for each cent. “That is a massive quantity we are looking at from them, which suggests India has imported a lot considerably less than what it did in the last year,” he mentioned, adding that cashew brands in India ordinarily system about one.five million tonnes a year. But if Vietnam’s intense import proceeds, then Indian processing may go down to one.three-one.four million tonnes, he mentioned.

India is getting large difficulties getting products from Africa to India because of non-availability of containers at place in Africa, and the ocean freights have pretty much doubled in many voyages. This has also impacted the imported seed rates, he mentioned.

Subraya Pai, previous President of Karnataka Cashew Manufacturers’ Association (KCMA), mentioned that the imported nuts are starting to be costlier day by day because of Vietnam’s heavy invest in in Africa. Because Vietnam does not have significant Covid difficulties, it has increased the manufacturing rapidly and is catering to export marketplaces, he mentioned.

Consumption

Prakash Rao mentioned though there was no countrywide lockdown in India, the States took their conclusions of locking down personal towns which experienced substantial positivity rates.

Some of the key marketplaces this sort of as Jaipur (Rajasthan), Indore (Madhya Pradesh), Mumbai and Delhi are in lockdown at this issue of time.

Even though there are channels in which demand from customers exists, logistics companions are procedure absolutely. Even the door-to-door courier companies are dealing with a whole lot of difficulties. They are not ready to supply the products in their transshipment factors because of the lockdowns. Their warehouses are total and that is the purpose why they are now not operational, he mentioned.

Santosh D’Silva, President of KCMA, mentioned that the product sales of ‘brokens’ quality obtained dented owing to the curtailment and cancellation of weddings and other this sort of celebrations. On the other hand, product sales of ‘wholes’ quality ended up on a good upswing owing to rising consciousness of the health and fitness gains of cashew. He mentioned processors from Mangaluru ended up also ready to change their product sales from the bulk packs to consumer packs. Minimal kernel shares, both of those in the production units and at the use centres, stored the kernel market place buoyant and active, he mentioned.

Subraya Pai mentioned that pretty much just about every Condition manufacturing cashew – Maharashtra, Goa, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Odisha, and West Bengal – is under lockdown.

Because the consuming States are also poorly hit by Covid, it is quite complicated to forecast the upcoming, he added.