Indian exports of pepper and cashew nuts went down
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Indian Black Pepper price
India’s cashew nut exports in 2016-2017 totaled 80,033 tonnes worth Rs50 billion (about $ 770 million), down 18 percent in volume from 96,346 tonnes, worth Rs 49.52 billion in 2015-2016. . Meanwhile, India’s black pepper exports for the nine months (April to December 2016) fell 40% in volume and 37% in value year-on-year. 14,100 tons and Rs 9,030 million.
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Exports down 18% in 2016-2017
Mr. S. Kanna, Executive Director and Secretary of the Council for Export Promotion Article India (CEPCI) said that although the number of Article exports decreased, revenue increased due to the average price of Article 2016- 2017 has increased by 22%, from Rs 513.99 / Kg from 2015-2016 to Rs 625.9 / Kg.
Sundaram Prabha, President of CEPCI, said the price of raw cashew nuts has risen sharply in 2016-2017, up from $ 2,250-2,200 per tonne, along with higher processing costs. competitive in the world market. The average price of raw cashew nuts has increased by 29% from Rs 89.33 / Kg in 2015-2016 to Rs 115.57 / kg in FY 2016-2017. The price of raw cashew nuts has also risen to around Rs 150 / kg. Meanwhile, raw cashew nuts produced domestically also cost around Rs.140 / kg.
Sundaran says only 40% of cashew nut production and processing plants in Kerala, one of India’s largest cashew producers, are still operating, due to high production costs and is subject to major competition from other states. With a processing capacity of about 2 million tons of cashew nuts / year, the cashew nut processing industry is dependent and using more than 50% of cashew nuts from imported sources. The country’s raw cashew nut production has grown to around 700,000 tonnes a year. In the year 2016-17, India’s import of raw cashew nuts has fallen 21% from the previous year as many factories closed. Meanwhile, the cost of processing cashew in Kerala is around Rs 3,500 per 80 kg bag, which is higher than the cost of cashew production in other states, from Rs 1,000 to Rs 1,350 per bag.
Indian Black peppercorns
CEPCI President also said the cashew industry in India is facing many difficulties such as high production costs; State and federal government support / encouragements are negligible; high cost of borrowing; weak demand from overseas markets due to the global economic downturn; the fierce competition from Vietnam and the traditional cashew exporter.
Pepper exports declined sharply
“Our black pepper exports (India) have fallen by more than half from 2,500 tonnes to 1,000 tonnes in the previous year because India’s prices are higher than in India,” said Gulshan John, general manager of Nedspice India. international markets. That trend is still going on this year. ” According to Spices Board statistics, India’s black pepper exports for the nine months (April to December 2016) fell 40% in volume and 37% in value year over year to 14,100 tonnes and 9,030 tonnes. million rupees. Official data for 2016 has not been released but is expected to be lower than the 28,100 tonnes by 2015.
According to the World Pepper Association (IPC), Vietnam has achieved about 200,000 tonnes of pepper (almost half of world pepper), bringing the price from $ 5,250 / tonne to $ 5,000 / tonne. Indian black pepper was traded at $ 9,000 / tonne, so export competitiveness is unlikely.
With prices maintained high due to lack of supply in India, exporters have had to buy from other countries for export. The unofficial figure for this import in 2016 is 19,000 tons, 20% higher than the previous year. This year, imports will certainly reach 20,000 tons due to the low price of pepper in Vietnam.
According to Jojan Malayil, CEO of Bafna Enterprises, “At the current price of Vietnam, import prices to India will be 340 rupees / kg without taxes. After paying the tax the price will be close to 600 rupees per kilogram in India. ”
Vietnam Trade Office in India (concurrently Nepal, Bhutan.
Source: Ministry of Industry and Trade Portal
