Rising Demand and Cost of Processed Cashew Due to Complex African Raw Cashew Supply
Impact of Weather on Cashew Production
Adverse weather conditions in African countries have significantly impacted the production of raw cashew nuts. Dry and hot weather, coupled with irregular rainfall, has resulted in reduced exportable stock. This shortage has led to a rapid increase in the price of raw cashew nuts. Countries like India and Vietnam, which are significant buyers of African raw cashew nuts, have been making solid purchases, further driving up prices. The increased cost of raw materials has inevitably led to higher costs for the finished product. As a result, it is unlikely that the price of processed cashew nuts will decrease in the near future.
Festive Season Demand in India
With the festive season starting in India in August, local traders have begun purchasing cashew nuts to build their stock. This includes firms that manufacture sweets. According to trade analysts, if the price of raw cashew nuts increases in the coming months, the price of processed cashew nuts could rise as well. The domestic sector is experiencing a shortage of raw cashew nuts. Processing units, also known as roller plants, are struggling to obtain sufficient stock at reasonable prices. Africa accounts for 50-60 percent of the global export of raw cashew nuts, with Vietnam and India being its most significant buyers.
Rising Costs in Producing Countries
This year, the price of raw cashew nuts in producing countries has increased by 25-30 percent compared to the previous year. Additionally, the weather in India and Vietnam has been unfavorable for cashew crops over the last several months, indicating potential production challenges. Industry analysts note that due to the shortage of raw materials, processing plants are operating at only 50 percent of their total capacity. Many processing units have been established in Africa, increasing the demand and consumption of raw cashew nuts locally. This trend suggests that the domestic market price of cashew nuts in India may remain strong during the festive season.
The complex supply chain and adverse weather conditions in African countries have led to a significant increase in the price of raw cashew nuts. This has impacted the cost of processed cashew nuts globally. Strong demand from significant buyers like India and Vietnam, combined with the upcoming festive season, is expected to keep prices high.
Adverse weather conditions in African countries have significantly impacted the production of raw cashew nuts. Dry and hot weather, coupled with irregular rainfall, has resulted in reduced exportable stock. This shortage has led to a rapid increase in the price of raw cashew nuts. Countries like India and Vietnam, which are significant buyers of African raw cashew nuts, have been making solid purchases, further driving up prices. The increased cost of raw materials has inevitably led to higher costs for the finished product. As a result, it is unlikely that the price of processed cashew nuts will decrease in the near future.
Festive Season Demand in India
With the festive season starting in India in August, local traders have begun purchasing cashew nuts to build their stock. This includes firms that manufacture sweets. According to trade analysts, if the price of raw cashew nuts increases in the coming months, the price of processed cashew nuts could rise as well. The domestic sector is experiencing a shortage of raw cashew nuts. Processing units, also known as roller plants, are struggling to obtain sufficient stock at reasonable prices. Africa accounts for 50-60 percent of the global export of raw cashew nuts, with Vietnam and India being its most significant buyers.
Rising Costs in Producing Countries
This year, the price of raw cashew nuts in producing countries has increased by 25-30 percent compared to the previous year. Additionally, the weather in India and Vietnam has been unfavorable for cashew crops over the last several months, indicating potential production challenges. Industry analysts note that due to the shortage of raw materials, processing plants are operating at only 50 percent of their total capacity. Many processing units have been established in Africa, increasing the demand and consumption of raw cashew nuts locally. This trend suggests that the domestic market price of cashew nuts in India may remain strong during the festive season.
The complex supply chain and adverse weather conditions in African countries have led to a significant increase in the price of raw cashew nuts. This has impacted the cost of processed cashew nuts globally. Strong demand from significant buyers like India and Vietnam, combined with the upcoming festive season, is expected to keep prices high.
