Market Commentary from experts :

Sri. Giridhar Prabhu, Achal Cashews Private Limited,


Mangalore

Market has reached a subdued phase due to lack of

enquiries and interest in overseas markets. Exporters

with positions could be comfortable. There is a natural

phase during the second quarter of the year when

myriad exporters have to deal with large amount of raw

cashews and contend with arrivals from West Africa.

The apparent news on worries in Europe and problems

in OECD countries on growth with threats of

recession and macroeconomic problems creates a

negative feeling for an item like cashews. On the

other hand raw material prices which keep going

up, costs which escalate in developing countries,

logistics diffi culties, quality problems do

not permit any drastic reduction in kernel prices

which is usually a stimulant for consumption.

Prices are likely to be stagnant for next six weeks

unless a major processor or buying nation enters

the spot market and wipes off the existing

material and triggers an enthusiasm for price.

In Mangalore, speculative sales for next month have

already begun from high quality sellers. This creates

a position for the future and apparently manufacturers

of good quality are literally sold out for next ten

days. Brokens are in heavy shortage, especially splits.

Demand is there apparently from W 180 to Baby Bits.

RCN is in demand, especially good quality. Overall,

rainfall is cheerful all over India with a very good distribution.

Therefore, the perception of drought disappears

and irrigation and electricity dams are getting

infl ows. If rainfall distribution is good and rains get copious

where they ought to be the Indian economy will

expand overall with a possibility of growth of over 6 to

8 per cent from agriculture, which has eluded India.