BANGALORE (Commodity Online): India for the past four has been losing hold over cashew market in U.S on low production, high domestic demand and entry of Vietnam in cashew export.
The cashew export to U.S has slashed 29.45% during the last four years.
Around 250,000 tons of cashew kernels are produced by India annually, Exports 110,000 tons and rest of it is consumed internally.
The major reason for the decline in export to U.S, India diversified the exports to other countries in west Asia, Japan etc. But of the other hand Vietnam offers cashew kernel only to U.S at very low price.
Australia is another country apart from U.S. which has lowered the dependency India for cashew import.
Currently, India produces around 5 million tons of cashew kernels and imports around 7 million tons.
The decline in import by U.S is to continue for 2011-2012 financial year. For the first four months, the U.S imported around 7,000 tons of kernels at Rs 275 crore.
The import of India would lower this year as the buying U.S and Brazil is increasing.
