Cashew kernel exports, which have been on a decline on account that remaining five years following severe opposition from Vietnam, is in all likelihood to rise via around five% this calender year (CY), credit rating business enterprise ICRA stated in a record.

In CY12, India’s exports stood at 1.02 lakh tonne, playing 27% marketplace share as compared to fifty eight% of Vietnam, the organisation stated.

“However, in view that then India’s marketshare started declining and at the same time as the Indian cashew exports recorded a marginal decline at a yearly three% between CY2012 and CY2017, the exports from Vietnam grew at 10 yearly during the identical period,” ICRA stated.

In CY17, India’s percentage changed into 19% of worldwide exports with 88,000 tonne even as Vietnam enjoys 74 percent.

Lower fee of production aided with the aid of a better degree of mechanisation and inexpensive labour expenses have aided the Vietnamese processors to grow to be greater competitive inside the worldwide marketplace, the Icra report said.

To compete with Vietnam, the government must encourage mechanisation inside the cashew processing zone through incentives, ICRA mentioned.

The authorities has blanketed domestic industry with the aid of manner of forty five percentage import obligation on cashew kernels, which has supported higher home price resulting in Indian processors focusing increasingly more on the domestic market, ICRA stated.

In terms of output, the sector cashew kernel manufacturing is led via Vietnam and India.

While in intake, India has registered a more potent increase than the rest of the arena and remains the most important marketplace for cashew kernels, supported with the aid of its usage in conventional candies and snacks.

Despite extended rate stages in the latest years, cashew kernel call for has sustained and the increase fashion in each home and worldwide call for is predicted to retain going forward. “We assume the home consumption to grow 6-eight percent this 12 months,” ICRA stated.