Strong Forward Demand in India

This entry was posted on Friday, June 14th, 2013 and is filed under Cashew.

North Indian buyers are back in higher grades futures. Shortage in premium quality SSW, SW, Splits and Pieces seems to be the main reason behind the spike in demand. Traders are trying to build their stocks for the Ramadan month, around the current market level. But processors from Goa and Mangalore are expecting Rs6000/Premium W320/11.340kgs for the July-August contracts.

The Govt of India has gained a right to increase the import duty up to 70%. However, the notification passed might impose duty up to 45% or Rs65/kilo for pieces and Rs75/kilo for wholes (whichever is higher). This amount does not include additional Cess. As a result, the under-billing will be reduced for paltry gains.

Kernel import has become a burden due to the import duty and Forex variations. The coming months will be good for Indian local processors and they might gain more than expected following good demand and reduced imports.

Filed Under: Cashew