Global Cashew Production Drops Sharply

Cashew production in key regions of India has seen a significant decline, causing market analysts to express concern. Major producing countries, including Vietnam and several African nations, are also experiencing a 25% drop in production. This reduction in supply is likely to drive up the price of processed cashews during the festive season. The international market has already witnessed a notable increase in the price of both raw and processed cashews. In India, the price of processed cashews has risen to $8,82 per kg, while raw cashews are now priced between $1,90 and $2 per kg.

• Earlier, in April-May, these prices were around $1,20 to $1,30 per kg.
• High import costs are further contributing to the price surge.
• Typically, India's festive demand for cashews begins at the end of July. The country's cashew consumption is growing at an annual rate of 7%, making India the largest market for cashews.
• The International Nut and Dried Fruit Council (INC) is promoting nuts and dried fruits in India with an annual budget of $224,000. The Indian cashew market is projected to grow to $2,40 billion in 2024 and $2,90 billion by 2029.

Market Prices Surge Due to Reduced Production

Industry experts report a significant decrease in raw cashew production across all producing areas in India this year. Production in major global producing countries, including Vietnam and African nations, has also declined by about 25%. This drop in supply is expected to further increase cashew prices in the coming months. Analysts predict that domestic market prices for pre-processed cashews will remain high until the arrival of the new crop in March 2025. The weakened production in Ivory Coast led to a temporary ban on raw cashew nut exports, driving up global market prices. Although the ban was later lifted, the shortage persisted. In early July, India's export offer price for W 320 grade processed cashew nuts ranged from $6.60 to $6.90 per kg.

Bullish Trend Expected to Continue in Cashew Market

India, ranking as the second-largest producer of cashew nuts globally, exports a significant quantity. According to a leading market analyst, the bullish trend in cashew prices is expected to continue for the next few months. A potential price softening may occur only with the new season's start in March 2025.

The International Nut and Dried Fruit Council has estimated a 7% decline in global raw cashew nut production this season. This decline, coupled with rising demand, suggests that cashew prices will remain elevated during the festive season. As India prepares for increased cashew consumption, market watchers will be closely monitoring production trends and price movements.

The cashew market is experiencing high prices due to a 25% drop in global production and increased demand. With India's festive season approaching and continued high import costs, cashew prices are expected to remain elevated until the new crop arrives in March 2025. Market analysts will closely monitor production trends and price movements to navigate this evolving landscape.