At present, Vietnamese initiative to control the import price of global raw cashew has no takers in India.
According to some trade sources, the first goal of a cashew factory is to reach a safe stock level. India needs huge imports at this stage as the summer holiday season is fast approaching. Ramadan month will start from May 15, which is the second highest consumption period in India after Diwali.
But we think that the production cut of 50000-tonne in kernel terms; if strictly regulated will reduce 15-17% in raw cashew imports.
A better harvest also reduces the dependence on costly imports.
So the total reduction in Vietnam’s raw cashew import may be 250000-300000 Tonnes by the year-end. Another addition to this figure is the ‘global level year on year increase’!