Cashew kernel exports, which have been on a decline since last five years following intense competition from Vietnam is likely to be around 5 per cent this calender year (CY), Icra said in a report.
In CY12, India’s exports stood at 1.02 lakh tonne, enjoying 27 per cent market share compared to 58 per cent of Vietnam, Icra assistant vice president and head, mid-corporate ratings, R Srinivasan said.
“However, since then India’s marketshare began declining and while the Indian cashew exports recorded a marginal decline at a annually 3 per cent between CY2012 and CY2017, the exports from Vietnam grew at 10 annually during the same period,” he said.
In CY17, India’s share was 19 per cent of global exports with 88,000 tonne while Vietnam enjoys 74 per cent, he added. Lower cost of production aided by a higher degree of mechanisation and cheaper labour costs have aided the Vietnamese processors to become more competitive.