Indian exports of cashew kernels to the US have declined from 33,898 metric tonnes (MT) at Rs 15.05 billion in 2013-14 to 13,179 MT at Rs 9.06 billion in 2017-18. During 2013-14, the US was the largest export destination for cashew kernel exporters from India.
The decline has also been evident in European countries and in other traditional strongholds, with competitors like Vietnam offering same quality products at a lower rate. The Cashew Exports Promotion Council of India (CEPCI) has said that it is looking at marketing strategies to recapture the lost share in these traditional markets.
Exports of cashew kernels to the US were around 33,898 MT at a value of Rs 15.05 billion in 2013-14, which has come down to 13,179 MT at Rs 9.06 billion in 2017-18. Exports to the Netherlands, the third largest export destination for India, have also declined in volume from 9,918 MT to 8,650 MT from 2013-14 to 2017-18, respectively, while in terms of value, it has grown from Rs 4.23 billion to Rs 5.84 billion during the respective years.
However, exports to the UAE, Japan and Saudi Arabia have seen a growth, both in terms of volume and value.
The UAE, US, Netherlands, Japan and Saudi Arabia were the top five markets for Indian cashew kernels during 2017-18.
Export of cashew kernels recorded an increase of 2.5 per cent in quantity and an increase of 14 per cent in value realisation as compared to 2016-17, according to the CEPCI.
"It's a matter of serious concern that we are losing our market share in the traditional markets like the US, Europe and Japan. We should envisage proper marketing strategies to recapture our lost share in the traditional markets and also to increase exports to other emerging markets, while fully catering to the requirements of the domestic market," said R K Bhoodes, chairman of CEPCI, in the recent annual general meeting of the organisation.
The overall exports, in terms of quantity, have come down from 1,14,791 MT in 2013-14 to 84,352 in 2017-18. In terms of value, they have grown from Rs 50.58 billion to Rs 58.71 billion during the period.
There has been an increase of 2.5 per cent in quantity, 14 per cent in terms of rupees and 18 per cent in terms of dollar when compared to the previous year (2016-2017), which recorded an export of 82,302 MT of cashew kernels valued at Rs 51.68 billion ($ 771 million).
The export of cashew nut shell liquid, or Cardanol, from India during 2017- 2018 was estimated at 8,325 MT, valued at Rs 330 million ($ 5 million). There was a decrease of 27 per cent in quantity, 26 per cent in value in terms of rupees and 23 per cent in terms of dollar compared to the export of 11,422 MT of cashew nut shell liquid valued at Rs 440 million ($ 7 million) achieved during 2016-2017.
Out of the total quantity of cashew kernels exported during 2017-18, the American Zone accounted for 17.16 per cent, African Zone for 0.50 per cent, European Zone for 27.49 per cent, Oceanic Zone for 0.32 per cent, South East and Far East Asian Zone for 16.21 per cent and West Asian Zone for 38 per cent. The West Asian Zone was the largest importer of cashew kernels from India during 2017-18, said the CEPCI chairman.