Why raw cashew should come to Vietnam or India for processing?
Countries like Tanzania and Guinea Bissau have the advantage of quality local nuts and they are now attracting huge foreign investments in the processing field.
1) Labour cost is cheapest in Africa.
2) Out-turn and grading quality diminishes during the 40-60 days of transit period from West Africa to Asia.
3) Unnecessary sea transport cost.
4) Most African nations charge export tax on raw cashew nuts.
But India has a domestic market for 300000 Ton processed kernel. For broken and lower grades, even the entire world demand is no match for Indian consumption.
—- However, the import dependant export may bring profits whenever there is a strong bullish run but results in a disaster when the situation turns bearish.