Due to lower domestic production of cashew and higher prices in international markets, there has been a rise of 0,30 to 0,50$ per kg and there is a possibility of increasing by $0,50 more.
Experts state there is a decrease of 19 percent in crop size. On the other hand, high prices of cashew nuts in the international markets lead to imports. This is the reason that the demand is good for the festival of Diwali, traders have started procuring goods from the producer mandis. As of today, broken cashew from South India is costing $8,25 per kg, while its price was running at $7,85. Instead of producing mandis, buying of broken cashew has increased due to the price has gone up. Similarly, cashews count 180 and 320 have also been quoting up by 0,45$ up in the market.
Significantly, due to unfavourable weather in the international markets, the production of cashew coming in European countries has decreased by 22 to 25 percent. Whereas in India, due to continuous storms and rain in the past, the production of cashew in Goa and Kerala is also being said to be low. In Orissa, the cashew crop is not favourable. On the other hand, stockists have sold their goods almost at cost price due to non-trade from the last 8 months.
Now cashew stock has decreased in all major mandis of India, including Delhi, Amritsar, Jaipur, Kanpur and Indore. On the other hand, new production is also not favourable. Before the Diwali festival, the consumption season of Navratri and Dussehra is about to come in 2 weeks. Along with that, the wedding season is at its peak in India in November-December.
Therefore, experts state that cashew might not go down from the current price level, furthermore there is a possibility of further increase of $0,50 to $0,60 per kg from the current stage. Traders believe that peanut kernels are adding more to the crumb material.
The cashew nuts W320 prices were recorded at $8,24 per kg FOB.
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