Cashew prices are expected to firm up from the current lows, considering lower domestic crop this year and a likely increase in exports and domestic consumption.
From a peak of Rs 150-160 per kg last year, farmers are getting Rs 125-130 per kg currently.
The prices are likely to remain weak only for a short term as new crop is being harvested across Maharashtra, Kerala, Karnataka and Andhra, traders say they will increase in the coming months.
Besides a spike in exports, the cashew industry also expects increased demand from the domestic market which has been growing 8.3 per cent a year, almost at double the pace of exports demand, growing 4.2 per cent.
The current export price is about Rs 600 to Rs 630 per kg as the market is dull and quiet. The domestic price is in the range of Rs 700 to Rs 800 per kg.