Cashew export dips 21 per cent in July due to demand slowdown

KOCHI: Cashew export dipped by nearly 21 per cent during July to Rs 265 crore due to fall in demand, especially from the US and the European Union, amid the global economic slowdown and a weakening US dollar.

According to the data provided by the Cashew Export Promotion Council (CEPC), the country exported cashew worth Rs 264.77 crore in July against Rs 335.03 crore in the same month last year.

In terms of volume, the export declined to 9,789 tonnes against 11,471 tonnes in the same month in 2008.

The export of cashew, a non-essential and luxury food item, is mainly affected on account of the weak dollar and slowdown in demand following the global economic crisis, CEPC Secretary K Sasi Varma said.

The slowdown also resulted in a fall in cashew prices from Rs 292.07 per kg in July last year to Rs 270.48 per kg this year.

However, with the global economic crisis showing signs of recovery, especially with France, Germany and Japan coming out of recession, Verma said he is expecting growth for the sector.

"We (will) continue to make efforts and hope that the Foreign Trade Policy, to be announced later this month, will encourage the sector," he added.