Indian Cashew Industry is Heading Towards Disaster

This entry was posted on Sunday, April 25th, 2010 and is filed under Cashew.

Economic theory says that the sale price should always exceed the cost of production. But the Indian cashew manufacturers are producing a pound of W320 at around $3.25 and selling it around $2.80! At the same time, Vietnamese processors are in much better condition. Their cost of W320 production is below $2.80 per pound. In Vietnam, the cost of fully dried raw cashew is around Rs48 to Rs50. On the contrary this cost is above Rs60 in India! In Vietnam, all other expenses excluding bank interest is less when compared to the same in India.When the cost difference is more than Rs12 per kilo of rawnuts how long can the Indian cashew Industry survive?

Filed Under: Cashew