Demonetization of Rs500 and Rs1000 denomination notes has hit Indian domestic demand as well as supply of cashew kernel. Buyers are not interested in bulk quantity but there is no competition in the supply side also.
” Those who have no billing or accounting habit can not sell their goods in the current situation. They are completely out from the supply side of the market”
Exporters’ buying price is Rs8400+VAT/11.340 kilo/premium W320/Goa-Mangalore. They have huge forward contracts around $4.80-490/lb/W320, made during the Diwali festive time.
Slight Rupee depreciation is also responsible for the price rise .