Raw Cashew Nuts: Cashew industry disappointed with Budget.
February 5, 2018 at 7:28 PM ,
Rainbow Exports
Cashew industry disappointed with Budget proposals of Union of India.
KOCHI: Cashew sector feels that the advantage of duty reduction on import of raw cashews is neutralized by the reduction in the number of months for re-export to three months from six.
The cashew sector had been arguing for lifting the 5 % duty on import of Raw Cashews Nuts for processing and exports, because of the runaway increase in prices.
The government has cut duty by 50% in the Union Budget. But on the other hand they have reduced the time for re-export of cashews under licence to 3 months from 6 months.
"Actually it is self-defeating as majority of exporters rely on advance licence for importing raw cashews at zero duty and exporting kernels. It is practically impossible to export in three months,'' said by leading exporters in the industry.
But when they pay 2.5 % and import, there is no restriction on the period for export. "In other words , we have to pay duty at a lower rate for Raw Cashew Nuts import for export as it will be difficult to use advance licence now because of reduction in the period for export,'' said by leading exporters of the Industry.
As the raw nut prices are on an all-time high of $2400 tonne, the exporters had demanded scrapping the duty. "This provides some relief but even paying lower duty the export will be unviable given the high price of raw nuts,'' said by another processors of cashew.
Current International Market prices are higher than average prices of last fivers years.
NIGERIA: New crop has started in the bush. Arrival is slow in the bush and market is stable and at higher level. When there will be presser of arrival, market will go down for some time. Flag off has been announced on 2nd of February by the Cashew Association of Nigeria.
BENIN: New crop has started in the bush but not much quantity is arriving in the local bush market. More arrival will starts after 20th February. The following is the prices for the forward business done by the exporters/traders.
GHANA: New crop has started in the bush but not much quantity is arriving in the local bush market. Flow will starts after 25th February. The following is the prices for the forward business done by the exporters/traders.
TOGO: Togo has its own crop as well as the cargo coming from Burkina Faso by road to TOGO market. Arrival will starts after end of February. The following is the prices for the forward business done by the exporters/traders.
Current FOB Offers from the RAW CASHEW NUTS Origins:
|
Origin Country |
FOB PRICES IN US$ |
Market UP/DOWN/Stable |
|
NIGERIA |
$ 2,100.00 |
|
|
BENIN |
$ 2,250.00 |
|
|
TOGO |
$ 2,150.00 |
|
|
GHANA |
$ 2,200.00 |
View related articles
