Sharp Rise in Raw Cashew Nut Prices

The prices of raw cashew nuts in India have surged sharply, reaching between USD 1,90 and USD 2,00 per kg, compared to USD 1,20 to USD 1,30 per kg just six months ago. This marks an increase of more than 50 percent within half a year. Cashew kernel prices have also risen to USD 8,80 per kg in India. The festive season, Diwali is approaching in India. Demand for cashews is expected to rise further, which could push prices even higher.

Global Crop Shortages Impact Cashew Supply

One of the primary reasons for this price hike is the significant gap between demand and supply. A board member of the International Nuts and Dried Fruits Foundation highlighted that crop shortages are being observed worldwide, primarily due to high prices of raw seeds. Additionally, reports of pest-related crop damage in several regions have exacerbated the situation. With limited supply expected until the new season starts in March-April 2025, relief in prices seems unlikely in the short term, despite strong market demand.

Decline in Global Cashew Production Adds Pressure

The chairman of a leading cashew brand noted that Ivory Coast, the largest producer of cashew nuts, has seen a significant reduction in production. Other major cashew-producing countries are also facing declines, with some implementing export restrictions, further tightening supply. In India, where cashew is also grown, production has dipped, while demand continues to rise. This growing gap between supply and demand could lead to an additional price increase of 3 to 5 percent in the coming weeks.

Expanding Cashew Market in India

Despite rising prices, the consumption of cashews remains strong in the market. A prominent businessperson in the cashew trade estimated that India's cashew market will reach USD 2,40 billion by the end of 2024, with projections of it growing to USD 2,90 billion by 2029.

Conclusion: Price Pressure Expected to Persist

With global supply challenges and increasing demand, cashew prices are likely to remain elevated in the near future. Both producers and consumers will need to navigate this environment as festive demand adds further pressure to the market.

Click here to reach our trading platfrom CMBroker