Current Market Stability Due to High Stock and Low Demand

The Indian cashew prices remain stable due to excess stock and lower demand in the market. However, experts anticipate a slight increase by mid-March, driven by rising demand during the festive and wedding seasons in India.

Upcoming Demand May Support Cashew Price Growth

Market trends suggest an upward movement in the next two months, as cashew bookings have already increased. This pre-booking activity is preventing a further drop in prices. Currently, 320-grade cashews are selling in Tamil Nadu markets for USD 9,64-10,85 per kg.

India remains the world’s largest processor and exporter of cashews, with production concentrated in Maharashtra, Kerala, Goa, Karnataka, Andhra Pradesh, Odisha, West Bengal, Tamil Nadu, Chhattisgarh, and Meghalaya. Cashew originally came from Brazil but now accounts for 75% of India's total production.

Seasonal Demand From Food Industry Expected to Push Prices Up

By March-end, demand for cashews is expected to increase significantly, especially from ice cream manufacturers as summer approaches. However, analysts do not expect a long-term bullish trend before March, indicating that price fluctuations will likely be short-term.

Conclusion: Cashew Prices May Firm Up in the Coming Weeks

While cashew prices remain stable for now, rising demand in March could lead to moderate price growth. With festival and summer-related consumption increasing, traders and processors should monitor the market for potential shifts in pricing trends.

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