Archive for the Cashew Category
At present, Only the Delhi market controls the Wholes category in the Indian cashew kernel. Still, there is no such competition from exporters or from Mumbai, Gujarat and any other well-known regions. Buyers from Delhi are enjoying the wholesale trade under GST by transferring the tax benefits to their suppliers. Under the VAT system; there […]
Online price of a 500g package of W320 is around ₹625-650. But for a 10 kg pack; it is about ₹18900 for W240, ₹16,900 for W320 and ₹14,000 for W400 in a big online market place! Something extraordinary may happen if online retailers get enough orders during the peak retail period in September!
Current Delhi market for Premium W320 is around ₹9760/11.340 kilo/including GST/ Goa-Mangalore and for W240 about ₹10420/same conditions/Goa-Mangalore. Removal of interstate barriers and double taxation during the biggest festive season are responsible for the buoyant mood. Those who have made export contracts under Euro terms have no problems but market equilibrium needs at-least 10% rise in Dollar terms.
Indian cashew sector is now almost unanimous about Chapter 08 of HSN codes for shells and other non-edible by-products. According to trade sources, there is a direction from a govt sponsored entity to use HSN codes of Chapter 08 for all these items. They think that the safest way is to follow the direction of the govt […]
North Indian buyers are offering around ₹10000/11.340 kilo/Premium Grade W240/including GST/August 1st Week/Goa-Mangalore. Price of W320 & Jumbo Half is ₹9500/Same Quantity/Same conditions/August 1st Week. Choice of the festive gift box industry is usually W240 or W320 but the food industry needs large quantity of splits and pieces.
This year’s Diwali festival will start from 19/10/2017 and continue till 23/10/2017. Diwali bonanza period for the cashew industry will begin from 24th July with the arrival of the auspicious Shravana month of the Hindu calendar. W320 is moving around ₹9300/11.340 kilo/including GST/immediate delivery. Whatever is the forward premium, sellers are not interested in August, September and […]
According to reports, the default tax rate under GST is 18%. Goods which are not specified in schedule I, II, IV, V, VI are classified under Schedule III with the HSN: Any Chapter. – If the above news is true, the industry should accept the default rate of 18% for cashew shells, husk and rejections. There is no loss […]
Edible items of the cashew industry fall under Chapter 08 of the HSN code in the GST billing system. But the problem is in the non-edible by-products. The industry itself can not create a heading or subheading for non-edible items under Chapter o8. Globalized system may not accept mixing of edible and non-edible products in this […]
GST council has brought down the tax rate on cashew nut from 12% to 5%. Entire cashew sector of India will happily welcome today’s decision. Business activity in cashew kernel will improve even before the rollout of the GST. However, traders may take first few days of July to adjust to the new system.
Exporters are buying W320 around ₹8600+VAT/11.340 kilo/Goa-Mangalore. Domestic demand is around ₹9350/Same quantity/including VAT. Both buyers and sellers want huge turnover in June, i.e before the rollout of the GST. Trading community in the domestic market may avoid wholesale trade in the first few days of the next tax system. Even retailers may witness a boom period […]
West Bengal’s finance minister Amit Mitra is the most important person after Union finance minister Arun Jaitly in the GST Council. Most probably, he will attend the June 3 meeting of the Council to fight against the GST rate on books, cinema, raw cashew, plastic, electricity, newsprint and rubber footwear. Cashew and some other products are not […]
Current VAT rate is 5 to 5.5 percent in the manufacturing region. It will become 12% after 40 days! So, processors and traders should share the 6.5 to 7% extra burden! Inter state trade now attracts 5 to 5.5 percent VAT on raw cashew in the manufacturing region, plus 2% CST (Central Sales Tax) during […]
Finally, the GST rates are announced. Dry fruits and cashew are under 12% Tax slab. Importers have to pay the basic customs duty and the GST during the import release from July 1, 2017 onwards. The negative impact of the GST rate will be on sellers who sell with in the state. Interstate traders may […]
Large scale exporters get $5.10/pound/W320, which is equal to Rs8200 according to current exchange rate. If we add 9.36% import duty, it becomes Rs8967. Import duty is zero under Advance Authorization scheme. VAT exemption or refund is 5-5.5%. 8967 + 5.5% = 9460. Then there is a small subsidy on exports and also some kind […]
Exporters are the bulk buyers despite the Ramadan festive month will begin on Friday, 26 May. Their price is ₹8400+VAT/W320/11.340 kilo/Without Packing/Goa-Mangalore. Indian domestic buyers are buying W400, SSW, DW, Splits and Pieces in large quantity. But in the W320 grade, their interest is only in small quantity.
Usually, exporters make lobbying for the currency depreciation. They earn more in the exchange market when their domestic currency decreases in value against the US Dollar. But this time the trend has reversed. Kernel exporters are getting more than proportionate increase in the unit price. Indian origin W320 is moving above $4.90/Pound.