India Loses Competitive Edge in Africa

This entry was posted on Sunday, February 24th, 2013 and is filed under Cashew.

Usually the finishing difference between the Indian local nuts and the Tanzanian nuts is just around Rs3-4/kilo. This is mostly due to 12-15% difference in Pieces-Splits percentage.

Though the cost of production is much more in India, Indian raw cashew importers make profits on the strength of the local consumption.

Earlier, Indian domestic demand for the pieces and lower grades was the saving grace for the Indian cashew industry for many decades. But the Indian market is now lagging behind the global market, even for pieces and lower grades.

At present, the finishing difference between a kilo raw cashew of 21-24% pieces/splits and 34-38% pieces/splits is around Rs7-8/kilo. If this trend continues, African nations will have to process their cashew inventory in their own country.

Indian traders have lost their competitive advantage in African countries.

Filed Under: Cashew