HANOI (Commodity Online): With price rise prevailing and low quality of cashew nuts imported for processing persisting, Vietnam is grappling with problems in the exports and imports of the coveted commodity.
Raw cashew production for the year had been about 300,000 tons, equal to last year and the exports are expected to be not more than 150,000 tons, down 48,000 tons against 2010, according to the Viet Nam Cashew Association (Vinacas).
The export of nuts in the first eight months of 2011 was down by 13% to 107,500 tons but had 25% rise in value year on year.
Meanwhile, various companies imported 200,000 tons of raw cashews from Nigeria, Ghana, the Ivory Coast, Indonesia and Cambodia this year. Further, about 30,000-40,000 tons would be imported from Africa this month.
But with quality issues enduring, the imports are not expected to continue.
According to Nguyen Thai Hoc, Chairman of Vinacas, the Cashew processors and exporters have faced a slew of hardships in 2011, including a shortage of capital and laborers and higher input costs. Many firms were forced to sell the nuts at lower prices to pay bank debts.
