Will West African Sellers Honor All the Contracts?

This entry was posted on Monday, April 29th, 2019 and is filed under Cashew.

Vietnamese buyers are not showing any interest in the low out-turn or low-grade nuts as they have no market for husky & dotted kernels. Last year, Nigerian raw cashew exporters faced sudden problems when the Vietnamese authorities rejected the imported inventory on quality grounds. Therefore, West African sellers are contacting Indian buyers in the below 27% cutting out-turn category.

Benin/26.67% cutting out-turn raw cashew gives a filling yield of 20.75 kilos/quintal. This is the workability calculation(Approximate in INR)—–

3*700 + 5*650 + 5*600 + 5*550 + 2*300 + .75*200 = 11850 for the entire 20.75 kilos. Adding 5% for the by-products, the final figure becomes 12442.5. Deducting 5% for taxes, 5% for interest 3% for packing & commissions, 25% for all the processing charges and another 5% for depreciation & maintenance; what we get is ₹8350/quintal, i.e ₹83.5/kilo/approximate. If the buyer and his family need a small profit, their purchase price should be less than ₹80/kilo/Delivery.

Filed Under: Cashew