The global cashew market is facing a significant supply crunch. Factors contributing to this scarcity include:
End of West African Season: The cashew season in West Africa, a major supplier of raw cashew nuts, is drawing to a close.
Côte d’Ivoire Export Ban: The Ivorian government’s imposition of an export ban has further tightened global supplies.
Low Stock Levels: Many key markets are reporting low stock levels of cashews.
Rising Prices on the Horizon
Given the supply constraints, it’s anticipated that cashew prices will escalate in the near future. This price hike is likely to impact both the domestic and international markets.
Indian Cashew Industry Faces Headwinds
The Indian cashew industry, a significant player in the global market, is grappling with several challenges:
Crop Failures: Adverse weather conditions and crop diseases have led to reduced cashew nut production in India.
Trade Embargoes: Trade restrictions imposed by certain countries have disrupted the supply chain and increased costs.
Labor Costs: Rising labor costs, including new wage settlements and Onam bonuses, have squeezed profit margins for factory owners.
Supplier Withdrawal: Major suppliers are withdrawing from the market due to various factors, including economic pressures.
Increased Domestic Processing: Many cashew-producing countries are now processing their own nuts domestically, reducing the availability of raw cashews for export.
AICA Convention: A Path Forward
To address these challenges and revitalize the Indian cashew industry, the All-India Cashew Association (AICA) convened its inaugural convention in Bengaluru. The key areas of discussion included:
Boosting Raw Cashew Production: Implementing strategies to increase domestic cashew nut production.
Technological Upgradation: Adopting advanced technologies to improve efficiency and quality.
Modernizing Factories: Upgrading cashew processing facilities to meet international standards.
Promoting Domestic Consumption: Encouraging greater consumption of cashew kernels within India.