Reckless buyers will have to pay the penalty when the trade is in the hands of black marketeers. However, both buyers and sellers may land in a very dangerous situation in this year’s international raw cashew trade.
Thousands of Indian processors are suffering huge losses from the first month of the calendar year. They are losing nearly 5% of their capital on month on month basis. When the capital erosion continues, release of the imported inventory will become highly difficult.
Already some small-scale processors faced liquidity problems in the fiscal year-end month of March.
Reckless buyer, who becomes a puppet in the hands of rumor mongers and black marketeers will certainly become a loan defaulter. Therefore, completely stopping the raw cashew buying is the only remedy for survival.