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 was on the lookout forward to a improved 20201 right after being battered by the initial wave previous 12 months.

Highlighting the development in usage, K Prakash Rao, Spouse at the Mangaluru-primarily based Kalbavi Cashews and previous Chairman of the Mangaluru chapter of CII, informed BusinessLine that the demand from customers for dry fruits experienced absent up throughout the planet post-initial Covid wave.

“We have to presume that folks are on the lookout to take in wholesome things, probably with an eye on boosting immunity. The usage for almonds and cashews is truly escalating incredibly rapid,” he mentioned, including that Europe has been escalating at close to eight-eight.five for each cent on an normal, and India at close to 4-five for each cent. Though manufacturing was disrupted previous 12 months, the cashew sector right here nevertheless managed to witness progress.

“In this history, we ended up anticipating that the 2021 year would be easy for us and we would be on the lookout at a incredibly beneficial year. Regrettably, the second wave hit us once more in March and it was once more throughout our procurement year,” he mentioned.

Procurement

Rao mentioned the price ranges ended up secure for raw cashew nuts in East and West Africa and in India this 12 months. West Africa begun presenting at $one,350 a tonne for Benin origin. In India, the market place opened just about at ₹110-one hundred fifteen a kg.

With the arrival of the crop in the region throughout April-May, price ranges underwent correction and dropped to ₹100-a hundred and five a kg. On the other hand, the unusual pre-monsoon showers early in the year damaged the crop. The price ranges also dropped as the good quality also impacted, he mentioned.

This 12 months, the price ranges of raw cashew nuts (RCN) averaged close to ₹125 a kg in Goa, at ₹115 in Maharashtra, close to ₹105 in Kerala, and about ₹95-a hundred and five a kg in Karnataka.

Rao mentioned the crop got washed away throughout April-May. “Many folks say that is the explanation why we may perhaps see a fall in the seed volumes by just about 20 for each cent,” he mentioned.

This may perhaps impact the pricing of the cashew kernels and the availability of RCNs, if the sector capabilities typically.

If Vietnam and India are not able to course of action cashew all over the 12 months due to the Covid pandemic, then the 20 for each cent lack may perhaps not truly make any difference. “But at this position of time, we are anticipating that most of the Indian makers have not included their prerequisite beyond August,” he mentioned, hinting price ranges hardening for the raw cashew nuts if Covid is not introduced beneath regulate.

Vietnam imports

To a query on the import state of affairs for raw cashew nuts, Prakash Rao mentioned there are no consolidated figures as of now. On the other hand, Vietnam has truly increased its imports by just about 20-25 for each cent. “That is a huge selection we are seeing from them, which means India has imported much fewer than what it did in the previous 12 months,” he mentioned, including that cashew makers in India typically course of action about one.five million tonnes a 12 months. But if Vietnam’s aggressive import proceeds, then Indian processing may perhaps go down to one.3-one.4 million tonnes, he mentioned.

India is obtaining massive troubles receiving products from Africa to India due to the fact of non-availability of containers at destination in Africa, and the ocean freights have just about doubled in lots of voyages. This has also impacted the imported seed price ranges, he mentioned.

Subraya Pai, previous President of Karnataka Cashew Manufacturers’ Affiliation (KCMA), mentioned that the imported nuts are turning into costlier working day by working day due to the fact of Vietnam’s significant buy in Africa. Since Vietnam does not have major Covid troubles, it has increased the manufacturing promptly and is catering to export marketplaces, he mentioned.

Consumption

Prakash Rao mentioned while there was no nationwide lockdown in India, the States took their choices of locking down individual towns which experienced significant positivity rates.

Some of the major marketplaces these as Jaipur (Rajasthan), Indore (Madhya Pradesh), Mumbai and Delhi are in lockdown at this position of time.

Even while there are channels exactly where demand from customers exists, logistics companions are operation entirely. Even the doorway-to-doorway courier providers are struggling with a lot of troubles. They are not capable to provide the products in their transshipment details due to the fact of the lockdowns. Their warehouses are entire and that is the explanation why they are now not operational, he mentioned.

Santosh D’Silva, President of KCMA, mentioned that the sales of ‘brokens’ grade got dented due to the curtailment and cancellation of weddings and other these celebrations. On the other hand, sales of ‘wholes’ grade ended up on a very good upswing due to rising recognition of the wellness positive aspects of cashew. He mentioned processors from Mangaluru ended up also capable to change their sales from the bulk packs to client packs. Limited kernel stocks, both equally in the manufacturing units and at the usage centres, stored the kernel market place buoyant and active, he mentioned.

Subraya Pai mentioned that just about every State making cashew – Maharashtra, Goa, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Odisha, and West Bengal – is beneath lockdown.

Since the consuming States are also terribly hit by Covid, it is incredibly hard to forecast the potential, he extra.