Minimum Export Price is Important not the Annual Export Target

This entry was posted on Tuesday, July 31st, 2012 and is filed under Cashew.

Current situation is certainly a big challenge to Vinacas –  the Vietnamese cashew association, known for its enthusiasm, hard work and success.

In a similar situation, some times back, Vinacas temporarily succeeded in changing the scenario by fixing (advising) a minimum export price. Strangely, that was just a suggestion to their members but was not an order or regulation.

Entire Vietnamese cashew industry once again needs this kind of a ‘commanding suggestion‘. Vinacas can show their control over the industry by fixing a minimum export price, at least for the W320 grade. If members fail even after this kind of a measure, just one week’s holiday to the entire industry can create kernel shortage. Creating shortage during a strong demand period is not always artificial. However, the survival of the industry also needs strict quality standards, which is one of the main reasons behind the turmoil

There may not be a big competition from India in the next 3-4 months as Indian domestic prices are ruling 18-20% above the Vietnamese export market. Despite having a very strong local demand, there is no enthusiasm in India on bulk kernel imports because of the quality reason.

Filed Under: Cashew