Buyers’ Responsibilities

This entry was posted on Friday, August 3rd, 2012 and is filed under Cashew.

When the production cost is around $3.45/pound for W320 ‘ordinary grading’ and $3.65/pound for W320 ‘premium grading’, how can a seller afford to sell below the cost price! Profits might be more important to the buyer but the industry has to survive for all their business activities. ¬†If the common complaint is substandard quality followed by some industries, then it may be for the unworkable ¬†prices offered. Any seller would try to survive, keeping production expenses within his limit.

Indians have a powerful domestic market but Vietnamese cashew industry is depending only on the exports. If 20-25% of industries in Vietnam close down then the Indian export market might jump to $4.00/pound and the same market might jump to $4.80/pound if 30-35% of Vietnamese industries shut down.

Filed Under: Cashew