W2 Cashew Update: Global Cashews Market Expected Remain Stable in 2024, and Illegal Imports Threaten Indian Cashew Industry

Global Cashew Price Expected to Increase Slightly in 2024

The global cashew market is expected to remain stable in 2024, with no major fluctuation unless significant supply incidents occur. The prices are anticipated to be slightly higher in 2024 than the lows seen in the second and third quarters of 2023. Currently, the FOB price for cashew kernels from Vietnam ranges from USD 2.45 to 2.6 per kilogram (kg), while the African supply costs USD 10 to 20 cents more. However, there are concerns about the impact of El Niño on the 2024 harvests in Vietnam and Cambodia. On the other hand, West Africa will increase its processing by establishing new facilities in 2024 and 2025. Furthermore, there is also news about processing facility plans in Cambodia.

Zambezia Province in Mozambique Exports 10 Thousand MT of Cashews in the First Two Months of 2023/24 Season

Zambezia province in Mozambique exported 10 thousand metric tons (mt) of cashew nuts between Nov-23 and Dec-23, the first two months of the 2023/24 season. The country aims to export 17 thousand mt by the end of Feb-24. Currently, the price of cashew nuts stands at USD 0.56 per kilogram (MZN 35/kg), which is 16.67% higher than the price of USD 0.48/kg (MZN 30/kg) in 2023. Cashew nuts are produced in 12 districts of Zambezia, with Mocuba, Pebane, Gilé, and Mulevala showing great potential in production.

Indian Cashew Nut Industry Struggles Due to Illicit Imports

The Indian cashew nut industry faces severe threats due to illegal imports of low-quality cashew nuts. These illicit imports are dumped in the domestic market without paying customs duty, causing genuine processors in the country to struggle to sell their products. The prices of cashew nuts have been impacted due to the illegal dumping of low-quality kernels, making local processing unviable. Indian cashew nuts are known for their rich taste and unique flavors, and exporting low-quality kernels with Indian labels could damage the brand image of Indian products. As a response to this issue, Indian cashew nuts processors are planning to submit a representation to the Cashew Export Promotion Council of India (CEPCI), requesting them to take action and prevent illegal import activities.