Nuts

Cashews: possible crop damage in India

March 17, 2022 11:57 AM, Der AUDITOR
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NEW DELHI/HANOI. While market players estimate the 2022 crop in India to be similar to last year's, there are some growers who report crop damage due to heavy rains. Things are looking better in the East African and Vietnamese growing regions.

Wedding season boosts demand in India

As the experts at Chelmer Foods report, initial estimates for the Indian cashew crop 2022 are at a similar level to last year, when 738,000 mt were harvested. In the meantime, however, some voices are being raised that the above-average rainfall during the monsoon season may have led to crop damage. Market players expect demand to increase in the coming months due to the Indian wedding season and the easing of Covid measures. Stocks of large kernels have increased, which could put pressure on prices in the longer term.

Favourable weather in East Africa

Chelmer Foods also expects stable crop figures in the East African growing countries. The forecasts currently amount to 220,000 mt for Tanzania and 55,000 mt for Mozambique. Côte d'Ivoire already managed to break the 1 million mt mark last year and experts there expect that this could be the case again this year. So far, the weather has been favourable. In February, a new marketing campaign was launched in the country.

Cashew kernels, Vietnam

Type

EUR/kg

USD/kg

WW320

6.30

6.85

Small Pieces

3.10

3.37

FCA Spain

Vietnam expects harvest delays

In Vietnam, growing conditions have been very favourable so far this season. Despite heavy rainfall, farmers expect only minimal crop damage, although the harvest could be delayed for a short time. After a massive increase in imports in 2021 - Chelmer Foods is talking about 2.9 million mt - the new season is likely to start with high carry-over stocks of up to 500,000 mt. This will also have an impact on prices, and producers and packers are watching the market closely. Vietnamese cashew exports in 2021 were 609,260 mt, up 17% from the previous year. Due to the Ukraine crisis and the difficult-to-assess impact on the European market in particular, Vietnam recently lowered its export target for 2022. In the 2021/22 season, the EU was one of the main buyers of Vietnamese cashews, with imports of 120,000 mt.

The International Nut and Dried Fruit Council (INC) estimates global cashew production for the 2021/22 season at 3.95 million mt, which would represent a 3% increase over the previous year.

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