Second Covid-19 wave dampens the spirits of cashew sector

The next wave of Covid has dampened the spirits of the cashew processing sector, which was seeking forward to a far better 20201 soon after getting battered by the initial wave previous year.

Highlighting the development in intake, K Prakash Rao, Companion at the Mangaluru-based Kalbavi Cashews and previous Chairman of the Mangaluru chapter of CII, advised BusinessLine that the desire for dry fruits experienced absent up across the world publish-initial Covid wave.

“We have to presume that people are seeking to eat healthful stuff, in all probability with an eye on boosting immunity. The intake for almonds and cashews is really increasing incredibly speedy,” he mentioned, adding that Europe has been increasing at close to 8-8.5 for each cent on an typical, and India at close to 4-5 for each cent. However creation was disrupted previous year, the cashew sector here even now managed to witness growth.

“In this qualifications, we were anticipating that the 2021 year would be smooth for us and we would be seeking at a incredibly optimistic year. Sadly, the next wave hit us all over again in March and it was all over again through our procurement year,” he mentioned.

Procurement

Rao mentioned the costs were secure for uncooked cashew nuts in East and West Africa and in India this year. West Africa began presenting at $1,350 a tonne for Benin origin. In India, the sector opened almost at ₹110-a hundred and fifteen a kg.

With the arrival of the crop in the state through April-Might, costs underwent correction and dropped to ₹100-one hundred and five a kg. Having said that, the unconventional pre-monsoon showers early in the year destroyed the crop. The costs also dropped as the high quality also affected, he mentioned.

This year, the costs 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 hundred and five a kg in Karnataka.

Rao mentioned the crop acquired washed away through April-Might. “Many people say that is the motive why we may see a fall in the seed volumes by almost twenty for each cent,” he mentioned.

This may influence the pricing of the cashew kernels and the availability of RCNs, if the market features typically.

If Vietnam and India are not able to method cashew all through the year because of to the Covid pandemic, then the twenty for each cent shortage may not really subject. “But at this issue of time, we are anticipating that most of the Indian companies have not protected their need further than August,” he mentioned, hinting costs hardening for the uncooked cashew nuts if Covid is not brought underneath command.

Vietnam imports

To a query on the import situation for uncooked cashew nuts, Prakash Rao mentioned there are no consolidated figures as of now. Having said that, Vietnam has really enhanced its imports by almost twenty-twenty five for each cent. “That is a major variety we are viewing from them, which signifies India has imported a lot less than what it did in the previous year,” he mentioned, adding that cashew companies in India typically method about 1.5 million tonnes a year. But if Vietnam’s aggressive import continues, then Indian processing may go down to 1.three-1.4 million tonnes, he mentioned.

India is getting enormous challenges acquiring goods from Africa to India because of non-availability of containers at spot in Africa, and the ocean freights have almost doubled in lots of voyages. This has also impacted the imported seed costs, he mentioned.

Subraya Pai, previous President of Karnataka Cashew Manufacturers’ Association (KCMA), mentioned that the imported nuts are turning into costlier working day by working day because of Vietnam’s weighty invest in in Africa. Considering that Vietnam does not have serious Covid challenges, it has enhanced the creation quickly and is catering to export markets, he mentioned.

Consumption

Prakash Rao mentioned although there was no national lockdown in India, the States took their choices of locking down particular person towns which experienced higher positivity rates.

Some of the big markets these kinds of as Jaipur (Rajasthan), Indore (Madhya Pradesh), Mumbai and Delhi are in lockdown at this issue of time.

Even although there are channels where desire exists, logistics companions are procedure absolutely. Even the doorway-to-doorway courier companies are going through a ton of challenges. They are not capable to supply the goods in their transshipment details because of the lockdowns. Their warehouses are complete and that is the motive why they are now not operational, he mentioned.

Santosh D’Silva, President of KCMA, mentioned that the revenue of ‘brokens’ grade acquired dented because of to the curtailment and cancellation of weddings and other these kinds of celebrations. On the other hand, revenue of ‘wholes’ grade were on a excellent upswing because of to rising recognition of the wellbeing gains of cashew. He mentioned processors from Mangaluru were also capable to shift their revenue from the bulk packs to consumer packs. Confined kernel shares, both equally in the producing models and at the intake centres, stored the kernel sector buoyant and lively, he mentioned.

Subraya Pai mentioned that almost every single State developing cashew – Maharashtra, Goa, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Odisha, and West Bengal – is underneath lockdown.

Considering that the consuming States are also terribly hit by Covid, it is incredibly tricky to forecast the upcoming, he extra.