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Dear Patrons of Cashew Week
While we welcome all our readers to the prestigious international conference
on cashew at Goa, we thank all our subscribers and sponsors for their support
which paved the way for this print edition.
As we all know, Goa and cashew have a special relationship as Goa is
associated with its beautiful beaches abound with lush green cashew trees and
the processing of world famous feni.
While we have presented the picture of the national and international cashew
markets in our regular features of the weekly, we also have a collection ofarticles relevant to the occasion, written by eminent writers focusing on
various aspects associated with cashew.
The cashew markets across the world continue to be dull and kernel prices
seem to have got stuck somewhere in a range for a long time. The reason
for the same seems to be the extra caution being exercised by the players
who are deferring any forward positions and are transacting small quantities
with conrmed orders only. The whole industry is waiting for cues from the
demand side for this lull to be broken. We hope that the discussions in the
conference will throw light on the upcoming demand situation in the coming
festival season.
While on one hand we need to ponder over the economics of current cashew
cultivation and processing and the ultimate kernel prices which determine the
same, we must acknowledge the ever growing appetite for cashew and its
products across the world. While Africa is rapidly increasing its processing
capacity and Vietnam is having issues with maintaining its plantations, it is
high time that India has to focus on enhanced productivity technologies and
area expansion for a larger supply base in order to maintain its leadership
among the cashew processing nations of the world. Along with this, we need
to focus on quality and food safety aspects to satisfy the discerning consumers
of tomorrow. We hope that the conference will provide an array of thoughts
and enrich the knowledge of the world cashew community on these pertinent
aspects.
Wish you Happy Reading from the Cashew Week Desk
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Sl. No. Content Page no.
1 Development of Cashew in Goa 5
2 Cashew Nut Shell Liquid in India 8
3Indian Cashew Industry Meeting
Competitive Challenge of Vietnam9
4 Cashew Nut is in the Seed 14
5 Indian Cashew Market 15
6 International Cashew Market 27
7 RCN Quality in Cte dIvoire 29
8 Currency Movements 30
Foretell Business Solutions Pr ivate Limited#146, 1st & 2nd Floor, Gopal Towers, Ramaiah Street,
HAL Airport Road, Kodihalli, Bangalore - 560 008. India
Tel : +91 80 2527 6152/53, Fax : +91 80 2527 6154
Email: [email protected], [email protected]
Table of Contents
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Development of Cashew in Goa
Satish S. P. Tendulkar Director of Agriculture, Government of Goa
ashew as everybody knows was introduced in Goa
by Portuguese who ruled this State for four and half
ecades till 1960. The tree being a very hardy and
easy to grow in the tropical areas was introduced
s a tool for soil conservation on steep slopes, on
hills in Goa in between year 1550-1600. But the
real economic value of cashew nupt was known to
people only after about 100 years of its introduction.
he technology of processing of cashew in Goa is
thus 250 years old. In course of its cultivation therower understood the value of its fruits for making
lcoholic drink feni and records of feni making
re traceable upto year 1870. Today cashew is
enerating produce worth Rs. 200 crores annually for
the State and involving more than 4 lakh population
of the State in direct and indirect employment.
One third of the area under cultivation in Goa is
under Cashew covering 55000 Ha and producing
bout 25000 tonnes annually. The State has about
15000 ha under high yielding grafts and remaining
rea is under seedling progeny. A large chunk of
and under cashew of about 7000 Ha is with Goa
Forest Development Corporation, which is also
seedling progeny. The remaining all area is in private
holdings. The average productivity of cashew in
oa is about 450 kgs per hectare with trees ranging
rom 60-250 per hectare. The per tree production
rom sparsely populated plantation is more while is
very low in thick plantation. The sparsely populated
plantations are also not cared properly, and in many
of the places the wild bushes and shrubs have been
growing rampantly. The need is therefore felt for
leaning such areas to facilitate optimum plant
population to enhance production. However, theorest regulations have been a hindrance in this
ctivity. The high density plantation out of seedling
origin generally tend to be tall and very frequently
the trees are seen broken down in rains. The stem
borer problem is noticed to be increasing in such
reas.
The grafted plantations are being established in Goa
or last 15-18 years. The Vengurla-4 is the most
predominant variety which is cultivated followed
by Vengurla-7 and Balli-2 variety. The average
yield is about 600-700 kg per hectare, though some
plantations have been harvesting upto 2000 kg per
hectare. Considering the present market rate and
the yield of feni the farmer can earn anywhere
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between Rs 20,000/- to Rs 70,000/- net prot per
hectare from cashew with systematically managed
plantation.
ashew in Goa is generally grown in neglected
hill slopes without irrigation or manuring, thus
by default it is organic in nature. Many of the
processing units exploit this situation for exporting
this product as organic. However, much need to be
one to improve the productivity of this crop to meet
the ever growing demand of this organic cashew.
here are about 38 cashew processing units in Goa
with a processing capacity of more than 35000
tonnes. However, much of the local cashew is
marketed outside Goa and local processing units
ace a shortage of produce. The decit is thus met
rom the imports from other States or from other
ountries.
ashew in Goa is unique. It is mainly because
the crop in Goa is not harvested but is collected.
he fruit ripens on tree and the fallen fruits are
ollected. This provide full term for the fruits toevelop sugar and other components including the
size of kernel which provide an unique taste. The
ull development of the kernel also increases the
recovery for processing industry and improves the
keeping quality of raw nuts, this is a major reason
or the high demand of Goa cashew by processing
ndustry which get a premium rate in the market.
The feni making industry is thus supportive to the
production of quality cashew.
The plantation of cashew in Goa are heterozygones.
The vide varieties of plants with different characters
of fruit, nut, productivity and quality are observed.
The plantations are thus a very good source for the
botanist and breeders. The cashew clones developed
in Goa are mainly selection of the available germ
plasm. The Balli-1, Balli-2, and Bhaskara are some
of the examples. Taking clue from the researchers
some of the farmers have identied some of the
ocal high yielding trees and are multiplying them.
This shows the immense wealth, the State is having
in terms of germ plasm variability which is ready
or exploitation for economic betterment of cashew
in the state as well as for the Country.
Development of Cashew is taken up in the State
with support from National Horticulture Mission.
Annually about 300-500 Ha of new area is covered
while about 700-1000 ha is rejuvenated with grafts.
Assistance of Rs 11250/- per ha is provided for newrea and Rs 15000/- is provided for rejuvenation.
The assistance is provided in three instalments.
Assistance is also provided for soil and water
onservation measures. Many of the plantations are
now certied as organic plantation with linkage to
processing units. These farmers get Rs 4/- to Rs
5/- extra per kg of raw nut. Incentive of Rs 10,000/-
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per hectare is also provided for organic certication
n cluster of 50 Ha. The support from Government
needs to be enhanced to at least Rs 22000 per hectare
ue to rising cost in recent years.
he cashew grafts are produced in government
nurseries as well as in private nurseries. Annually
bout 4 lakh cashew grafts are produced in the
State. Goa has a well developed marketing setup of
new cashew. The Goa State Agriculture Marketing
Board has market yards in 11 places with facilities
or correct weighing and record. The processing
units either buy the raw nuts at this market directly
or purchase through the traders of cashew nut. The
processing in Goa is generally by steam roasting.
However, some units produce and sell drum roasted
ashew at premium rates.
ashew cultivation is getting more and more
popular and added thrust is given for increasing the
production and productivity. However, some issues
need to be attended on top priority to meet the ever
rowing demand of this crop by processing industry.
Some of them are as below:-
Increasing productivity per unit area: The per1.
hectare production from cashew grafts need
to be enhanced to at least 1500 kg by proper
management, manuring and other methods. A
standardised package need to be developed for
the State.
Proper manuring schedule specially with2.
certied organic inputs need to be standardised
for organic cashew.
The widely available cashew germ plasm in3.
Goa needs to be exploited for selection of new
lines before they get vanished with induction of
grafts. This plantation needs to be protected as
germ plasm bank.
The old cashew plantations as well as the newly4.
developed once from grafts have been showing
an increasing trend of stem borer infestation.
The traps or other biological means for its
control need to be developed to increase the life
span of the cashew plantation.
The inter crops in between cashew under5.
rainfed cultivation need to be recommended
without any competitive effect.
The production of cashew feni or ethanol from6.
cashew apple juice needs to be standardised
as a by product like from sugarcane molasses
to improve cashew quality and income from
cashew.
Pest control by fogging of pesticides need to be.standardized.
Contour trenching or continuous contour8.
bunds need to be created for soil and water
conservation.
Drip irrigation should be promoted.9.
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ashew Nut Shell Liquid In India
Omprakasn N. Phadnis, M/S. N.S. Phadnis, Panruti, Tamil Nadu
ashew Nut Shell Liquid (CNSL) is used in India
or ages now. Since the Portuguese brought this
rop to India, it showed its presence more on west
oast than on south. For decades only Kerala, Kar-
nataka and Goa were good cultivators and it took
some years for Tamil Nadu and AP to join them. To-
ay, Gujarat, Orissa, West Bengal and some parts of
Manipur are also cultivating.
n Kerala and Goa, the oil was initially used for
the purpose of water proong. All the dhonies
.e. small boats were applied this oil which was ex-
tracted by kiln method in various villages in Kerala.
t was only Pierce Leslie which was doing the pro-
duction of CNSL in scientic and mechanized way.
hey were having bath oil roasting method. After
that this cashew processing method developed lot
n Kerala but in Mangalore area and Goa area the
nuts were processed by drum roasting method only.
Later, it was discovered that the kernels got yellow-
sh and therefore, in 1970s, the bath oil method wasiscarded and steam roasting came in to existence.
his method is fully acceptable and modernized now
every where. The shells that are available now are
subjected to crushing by expellers and the oil is ex-
tracted from the shells like ground nut kernels. This
oil is subjected to various methods of purication.
As mentioned, the initial use of the oil restricted to
water proong and it followed with some medici
nal use. Later on, it was discovered that the CNSL
polymerizes fast and could be used as phenolic sub-
stitute. It was used in rubber industries. The RRL,
Hyderabad were able to distill the CNSL and spread
the use of cardanol, residol etc. Card Chem Indus-
tries of Hyderabad were pioneer to set us the rst
istillation unit of cardanol from CNSL in India.
Today there are more than 15 well working distilla-
tion units in India mostly spread in south. The car-
anol which is having phenolic structure is used as
phenol substitute and has good demand overseas in
brake linings, paints and chemical industries includ-
ing colors. CNSL has been in use in brake linings,
paints and water proong industries along with in
plywood industries too. Both CNSL and cardanol
re used in foundry industries on a very good scale.
About few years back, when the crude oil prices
started raising globally, once again thoughts wentor the fuel purpose of CNSL. Trials are on for using
it as bio-diesel fuel. At this moment it is used widely
in blending furnace oil. The furnace oil properties
does not alter much and it is very protable for the
urnace oil suppliers to add CNSL to bring down
osts of furnace oil.
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Indian Cashew Industry Meeting
Competitive Challenge of Vietnam
a oo avas ar 1, Archana Kshirsagar1
History of Cashew Industry in India
ash in cashew seems to reveal that cashews are
ommercially very valuable processed nuts in the
world. The English name cashew is derived from the
Portuguese name for the fruit of cashew plantation,
aju. In India also, cashew is commonly known
s kaju, and was brought by the Portuguese from
Brazil during the 16th century, and was rst planted
n Goa, from where it spread to other parts of the
ountry, and thereafter across Southeast Asia, and
even Africa.
What is the wonder about cashew? Usually, a seed
s inside a fruit; but, unlike other fruits, cashew seed
or nut can be easily noticed, without cutting the
ruit, as it is attached outside to the lower portion
of the soft cashew apple, which is not so much a
ruit as an enlarged stem of the cashew tree. How
aptivating is the sight of a cashew tree, indeed!
ncidentally cashew nut also ranks rst among the
world production and trade of edible nuts.
Four centuries ago, when the Portuguese landed on
the Indian soil, they brought with them the priceless
tree nut, Cashew. Cashew came, conquered and
took deep roots across the entire coastal region of
India. Cashew found the Indian soil more congenial
or its growth than even its homeland - Brazil. Not
surprisingly, cashew soon gained popularity as a
ash crop in many parts of the country. Large-scale
ommercial cultivation of cashew commenced in
India during early 1960s, however. Today, India
is the largest producer and processor of cashews,
nd is still seeking new areas for cultivation in
the country. Cashew is presently grown in Kerala,
Karnataka, Goa, and Maharashtra along the west
oast, and in Tamil Nadu, Andhra Pradesh, Orissa,
nd West Bengal along the east coast.
The products of cashew fruit are cashew apple and
nuts/kernels. Cashew apple is used in the preparation
of jams, as also for the manufacture of soft and
lcoholic drinks, in Brazil. In India, cashew apple
is extensively used only in Goa to prepare cashew
iquor called feni.
In India, cashew processing began during the
rst half of the 20th century. The processing was
Dr. Madhoo Pavaskar is Director, Research & Strategy, Financial Technologies India Limited, Mumbai. Archana
Kshirsagar is Assist. Vice President in the same company, and is working with Dr. Pavaskar. The views expressed in
the article are personal.
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then manual. Cashew kernel is covered by a thin
membrane called testa, which contains non-edible
substance tannin. So, processing of cashew kernel
s indispensable. The yield of kernel is around 22-
24% of raw cashew in shell. The major by-product
of cashew processing is cashew nut shell liquid
CNSL), which is an important raw material used in
the manufacture of resin.
ndia is the second largest producer of raw cashew
nuts in the world, the rst being Nigeria; India
ranks number one in area under cashew plantations,
though. To be fair, almost 70% of the global raw
ashew production in 2010 was accounted for by just
our countries, namely, Nigeria, India, Cte d'Ivoire,
nd Vietnam. If three more countries, namely,
ndonesia, Philippines, and Brazil, were added,
then these seven countries together contributed as
much as 84% to the total world production in that
year. While India shared nearly 19.6% of the world
creage under cashew in 2010, it contributed 22.2%
to the world production. This was because its per
hectare yield of cashews in shell at 660 kg was then
slightly higher than the global average of 585 kg.
Nevertheless, Indias average yield of cashew nut
n shell was much less than similar yields of other
major cashew producing countries like Nigeria (2
tonnes), and Vietnam (1 tonne), and Philippines (4.8
tonnes)
ndia is also the second largest exporter of shelled
ashew (kernels) in the world, and follows Vietnam
that leads globally in cashew exports. India enjoys
omparative cost advantage in not only production
of cashew fruit, due mainly to long coastal line of
the country that favours cashew cultivation, with apt
soil and climatic conditions, but, more importantly,
lso processing of raw cashews, owing to abundant
vailability of cheap and skilled labour. To be sure,
India may well be regarded as the global leader in
ashew processing, mainly because of the dexterity
of its labour. For, when processed manually, broken
nuts hardly account for 20% of the countrys output
of processed kernels.
Location of Cashew Industry
ashew processing industry in India gathered
momentum through the last over half a century. In
the early years, the industry was located mostly in
Kerala, which had then over 50% of the cashew
plantations in the country. But land ceiling legislation
restricted the expansion of cashew sowing in Kerala,
s demand for cashew nuts grew. Therefore, over
the years, cashew cultivation extended to the other
oastal states of the country, more particularly in
the Sindhudurg district of Maharashtra. The cashew
industry promptly developed in other states, too.
High value added tax (VAT) of 12.5% in Kerala also
uelled the growth of the industry in other states,
where such tax was around 2-4% only.
The number of cashew processing units in the country
increased rapidly from 170 in 1959 to as many as
3650 in 2005-06, the last year for which the ofcial
government data are available. The total capacity of
processing units in India was then 15 lakh tonnes in
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terms of raw nuts, and the capacity utilization was
5%. Maharashtra had then 2200 units, followed by
Kerala 432 units, and Tamil Nadu 417 units. Nearly
84% of the processing units in Maharashtra were in
the small scale cottage sector.
Probably, at present, the country may have around
4000 cashew processing units, with an installed
apacity of about 18 lakh tonnes. Assuming 75%
apacity utilization, as in 2005-06, the utilization
may presently be estimated at around 14 lakh tonnes.
Half of the capacity is utilized through domestic
supplies, while for the rest the industry depends on
the imports.
Cashew Processing
ashew processing involves roasting/boiling,
moisture conditioning, shelling, drying, peeling,
rading, and packing. Four types of methods,
namely, sun drying, drum roasting, oil bath roasting,
nd steaming, are adopted by the different processing
units.
raditionally, experienced semi-skilled workers
processed raw nuts manually. Since 1960s, the
processes came to be mechanized for roasting, CNSL
extraction, and shelling. Nevertheless, for the most
part, cleaning of raw materials and kernel grading
by sizes have still remained manual operations.
Although, cashew processing industry in India
nvolves low capital investment and operational
osts, and therefore achieves much greater
efciency in terms of yield, it needs a large number
of experienced workers, working at unhealthy levels
of exposure to CNSL. In contrast, the mechanized
methods are more vulnerable due to shortage of spare
parts, and require large volumes of raw material
supplies for efcient operation. Moreover, though
mechanization is introduced in cashew processing,
the availability of skilled and cheap labour, and
better quality of kernels under manual processing,
bounds the scope for wide mechanization.
Mechanization is conned to mainly in roasting/
boiling, and packing. But manual labour continues
to be in use in such processes as shelling, peeling
nd grading. Not surprisingly, capacity utilization
of fully mechanized units in the country, by and
arge, operates at below optimum. Nevertheless, the
industry in India, being mostly manual and labour
intensive, employs as many as four lakh workers,
with 95% women employees.
Exports of Cashew Nuts
In the scal year 2011-12, India exported almost
132,000 tonnes of shelled cashew nuts, as against
106,000 in the previous year. In fact, Indias cashew
nut exports increased from 82,000 tonnes in 2000
to 132,000 in 2011-12, which represented an annual
growth of 4.45%, the exports witnessed ups and
owns during the intervening years, though. Whats
more disturbing is that even though India ranks
second globally in cashew exports, a small country
ike Vietnam, whose production is less than half of
that of India, exports twice as much as India ships
broad. Vietnam has thus emerged as Indias major
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n 2010 to as much as a fourth of what it was in
2010 - from 1.25 million tonnes to merely 29, 000
tonnes. Though precise reasons for the swift fall
n Vietnams cashew production is not known, it
seems that, of late, Vietnam has moved to augment
ts production of rice and spices, especially pepper.
ndias cashew output, on the other hand, hasremained steady around 650, 000 tonnes. Manifestly,
ndias dependence on imports of raw cashew nuts
s much less than that of Vietnam.
his is not all. Export demand for cashew kernels
rom the developed countries like USA, Europe,
nd Japan, which together account for 90% of
world imports of shelled cashew nuts, continues to
remain strong, despite recession in those economies.onsequently, the average unit value realization on
world cashew nut exports has swelled from US $
3, 369 per tonne in 2002 to US $ 5, 351 in 2010,
showing a net increase of 59% over the period of
eight years. The average unit value realization on
ndias exports of cashew kernels, however, rose by
87%, from US $ 3,251 per tonne to US $ 6, 066
over the same period. The higher rise in the unit
value realization by Indian cashew exporters seems
to reect the superior quality of Indian cashew
kernels.
Whats more, while the average global unit value
ost on imports was higher at US $ 1, 087 per tonne
n 2010, India could procure raw cashew in the world
markets at a lower average cost of US $ 992 during
the same year. In fact, India has been consistently
buying raw cashews in the global markets at a price
ower than the average world import price. As a
result, the cashew processing margins of the Indian
ashew industry has remained higher than that of the
global industry. That gives India a competitive edgeover other cashew exporting countries, including
Vietnam.
India also has an added advantage in that it can expand
its cashew cultivation owing to the availability of
plenty of land in its extensive coastal areas. Vietnam
oes not have a similar advantage. What India needs
to do is to adapt a phased replanting of cashew trees
with grafts of improved varieties to achieve a highergrowth rate of cashew production. At the same
time, the cashew industry should also improve its
efciency and viability by adapting high levels of
hygiene standards to increase production of better
uality kernels that can fetch higher value in the
export markets.
Benchmarking the Global Cashew Industry, Micro and
Small Enterprise Trade-Led Growth Program in Brazil,
Development Alternatives, Inc (DAI), Melissa Hall,
Pareen Patel, German Sarmiento, Nikola Smith, Aimee
Sostowski, and Stephanie Waxman, May 2007.
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Cashew Nut is in the seed
r. a s manan, ea , Horticultural Research Station
ashew Kernels are
processed from raw
ashew seeds, those intact
rom the shell grading
hem to required standard
by the food companies all
over the world. The Kernel
s dried to loosen the skin
which is then carefully peeled off. Cashew kernels
should have moisture content not greater than 5
percent by weight and preserved in a dry and clean
place. Cashew kernel is surrounded by a ne brown
seed coat, contains antioxidants which protect the
kernel from penetration by atmospheric oxygen
so preventing it from becoming rancidity. Cashew
kernel has oil, edible linoleic acid and kernel cake.
ashew nut shell liquid has phenolic compound.
he cashew testa has tannin of commercial utility.
Majority of the nut are in the fruits, or fruit includes
nut. In Cashew crops cashew apple (fruit) holds
the seed at distal end. Cashew apple with conical
shape and size and its juice contains 80-85% water
ontent. The seed attached to fruit, which has edible
kernal called cashew nuts. The general statement for
ashew nut pointed to seed but actual nut in side
the seed. The seed that inculcate the tasty nut called
kernal. The nature adds tangible delicious and sweet
olfactory from soil to tree, tree to fruit, fruit to seed
and nally seed nut in a miracluls morphology which
made the cashew nut has dollar earning crops. The
seed coat is a guard with tannin odors may able
to preserve the cashew nut luster, shinning, glossy
ppearance, plumule and radical, with considerable
ir pouch from the effect of biotic and abiotic
actors. That means cashew nut in the seed is the
nature phenomenon, which deals the postharvest
management of food security and preservation by
the cashew apple before abscission.
A Cashew nut in the apple may not be tasty and
remains as seed if excites as such in the nature. The
omposition of cashew apple like, water, sugar,
mineral, acids, fats and carotene compound whenreaches to seed part the moisture content reduces
but ample increase in carbohydrate, protein, fat,
alcium, phosphors and iron. In addition, over to the
kernel seed testa that forms with moisture, tannin,
ber and oil act as cashew nut inner protection.
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Indian Cashew Market
Price Movement\
Average FOB prices USD/lb of W-320 gradeerne
his week W320 grade prices moved down to USD
3.20 to 3.35 per lb compared to last week level of
USD 3.25 to 3.40 per lb FOB at Mumbai.
Raw Cashew Nut Price Trend-India Rs.80/kg
his week, RCN prices remained stable at Rs 6000-
6250 per 80 kg bag in Vetapalem (AP).
Commentaries by Experts
Mr Pankaj N. Sampat, Samsons TradingCompany
FOB prices USD per lbs
GradesPrices for9/29/2012
Prices for10/06/2012
W240 3.60 to 3.75 3.55 to 3.75W320 3.25 to 3.40 3.20 to 3.35W450 3.00 to 3.15 3.00 to 3.15SW320 3.00 to 3.15 3.00 to 3.15SW360 2.75 to 2.90 2.70 to 2.90
. to . . to .WS 2.00 to 2.25 2.05 to 2.25WB 2.10 to 2.30 2.20 to 2.30
P 1.65 to 1.80 1.60 to 1.75
During weeks 39 + 40, we saw slightly more activity
rom USA and EU than previous weeks. BUT, the
ashew market is continuing to pass through the
longest quiet and steady period in many years. Despite
this, there has not been much change in prices in the
last 3 months!! BUT, the range of offers from different
processors continues to be wide current prices are
W240 from USD 3.55 to 3.75, W320 from 3.20 to
3.35, W450 and SW320 from 3.00 to 3.15, SW360
rom 2.70 to 2.90, Splits from 2.05 to 2.25, Butts from
2.10 to 2.30, Pieces from 1.60 to 1.75 FOB. There has
been a slight pick up in activity in the Indian market
s well in the last few days. Although there has not
been any big increase in prices in domestic market,
the appreciation of over 5% in value of INR vs. USD
means the equivalent USD prices are higher.
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On the RCN side, there is nothing much to report.
here have been some sales from stocks of West
African RCN in Vietnam and India. Good volume
of West African RCN is still available but quality and
onsequently realization / kernel parity are a concern.
ood quality Indonesia RCN continues to trade at
a signicant premium. No news from Tanzania or
Mozambique about pricing and movement, except that
rops should be normal question is how much will be
ollected + sold (and when). There is no change in the
news from Brazil expectations are for a crop below
250,000 tonnes for third year in a row.
Supply of RCN is comfortable and unless the 2012/13
rops are bad (in terms of collection rather than
ctual production); there is no reason to fear a supply
tightness. But due to reduced buying in West Africa
uring the 2012 season, lot of RCN is in the wrong
place. Conversion into kernels in the last quarter of
2012 is likely to be less than normal. If kernel activity
picks up, processing in rst quarter of 2013 may be
higher than normal.
Demand outlook continues to be hazy especially in
USA and EU. Continued economic uncertainty makes
t difcult to forecast or project offtake in coming
months. Everybody seems to be content making short
term deals. Unless this changes and there is some
condence for future planning, periodic buying in
small and short trances is likely to continue.
Although it is difcult to judge how much forward
business has been done, trend of short term covering
or the last few quarters and relative quietness in the
market for last 2-3 months leads us to believe that
buying for shipment in last quarter has been lower than
normal. This is corroborated by reports that offtake
n many markets in last few months has been slow
meaning inventories are lasting longer than planned.
If the offtake in the last quarter picks up, it could mean
bunching of buying for nearbys and rst half of next
year.
There is nothing on the horizon pointing to a major
move in prices in the foreseeable future. And that
would be good for everyone in the chain as stability in
prices would induce condence in consistent supply.
But if the Indian demand picks up in next 4-6 weeks
nd if that is coupled with buying interest from USA
nd EU for 2013 shipments, we could see some upward
movement in prices before the end of the year. However
there is no reason to expect any big jump in prices.
Another point to be kept in mind is that processing
costs have gone up signicantly in the last 3 years in
ll countries. This portion of increase in average price
is unlikely to go down. So kernel prices can come
down signicantly only if RCN prices come down.
Overall it would be reasonable to expect a steady
market in the last quarter moving in the current range
with limited downside and some possibility of a price
increase if activity picks up in next 4-6 weeks.
Mr Giridhar Prabhu, Achal Cashews Private
Limited, Mangalore
An important message that needs to go out to the
ashew producing community is: TAKE CARE OF
POST HARVEST TREATMENT of raw cashews.
The estimated loss of global value on this account
exceeds Rs 700 crores per annum (100 million Euros).
This is calculated at 10 percent of the traded value of
raw cashews. The marketing potential loss is much
higher.
This can be substantiated only when producer trader
nd manufacturer interests gather to study assess and
estimate the losses.
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ashew marketing is in peril due to quality issues and
valuable material is handled badly without information
nd knowledge about the produce.
ashew markets in India woke up to the seasonal
requirements. There is no extraordinary phenomenon
to notice. Demand is routine. There is still no evidence
of Industrial demand being aggressive. Passive demand
or core consumption is on.
he markets in India generally are lack luster. The
bright spot in worked dried fruit markets is almonds.
With a reasonably good crop almond prices have
jumped nearly 20 pc.
his is both due to physical demand and could be
speculative buying
Almond prices are hovering at Rs 440 - 445 per kg
range.
Shell prices are warmer with enquiries from millers
nd liquid is yet to get liquidity.
he next two weeks will reveal the contours of Indian
emand.
World enquiries could come in at any time and
hopefully the lull will turn into active markets for
offered materials.
he Brazilian crop news is now out in the open. Impact
could be guess work. There is sufcient material
round of dubious quality. Good quality kernels can
be anticipated out of Tanzanian and Mozambique
supplies.
Mr Rajendra Sabat, Sabat Associate Cashew
Expert/ Consultant , Orissa
he cashew market was not showing any good activity
looking to the market situation and coming up Dasara
nd Diwali. The processors were eagerly waiting for
the Dasara and Diwali in which period the the market
is always running with full demand. But unfortunately
this year neither the market has good demand not
having any good sale.
Looking to the market position the local RCN is not
matching with the kernel prices. Local RCN is quotingt Rs 80 per kg.
he current cashew kernel prices in Rs/Kg at
Orissa
ra es eypore oas a r ssa a asa
W240 500-510 465-470
- -
W450 440-445 405-410
H 390-395 330-335
K 350-360 275-285
Mr. Biju P, Agro Trade International, Kerala
ashew market is very quiet again
Current prices of cashew kernels at Kollam USD
per
ra esPrices for9/29/2012
Prices for10/06/2012
W180 4.75 .90W210 4.50 .50
. .
. .W450 3.05 3.05SW240 3.25 3.20SW320 2.98 .98Splits 2.50 3.00
WP 2.30 .50. .
Packing : 1x50 Lbs Flexi Pouch, Shipment :
Prompt
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Indian CNSL Market Commentaries
Mr Venkatesh, Kanco Southwest Enterprises,
anga ore
his week CNSL traded at Rs 22.50 per kg in Ex-
Mangalore.
he price of Cardanol quoted at Rs 52.00 per kg in
Ex-Mangalore.
Mr Omprakash N. Phadnis, M/S. N.S. PHAD-
, anru , am a u
As anticipated, the market has zoomed up as far as
the CNSL is concerned. The rates after touching as
ow as 17.50 per kg are around Rs. 20.50 per kg
today and the shell market is Rs. 5.80 per kg. Cake
is quoted around Rs. 4.25 per kg.
Basic reason is low shelling of raw nuts due to work-
ers non availability. Second reason is low out turn
rom the shells which is said to be around 18-19%
only. Some furnace oil adulterators having connec-
tion in Chennai lifted over hundred tonnes around
Rs. 19.50 per kg and this has pushed the market up.
No international demand is seen.
o not m ss t e o en pportun ty to vert se nwww.Cashewinfo.com/Cashew week
ContactSwapna at 09342540609 or mail at [email protected]
Foretell Business Solutions Pvt Ltd#146, Ramaiah Street, 1st & 2nd Floor , Gopal Towers,
Near Anjenaya Tech Park, Old Airport Road, Kodihalli,
Bangalore - 560008, India
Ph: 080 25276152/53, Fax:080 25276154
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Domestic Prices of Nuts
rice Highlights for the week
angalore market Some improvement has seen in the market with some of the cashew grades
ollam marketncrease in W180, W210, W240 and WSP prices where as, other grade prices
were steady to low compared to last week
Delhi market Steady to low in cashew kernel prices from last week
Sangrur market Kernel prices remained steady
eypore market Kernel prices moved up from last week prices
Vetapalem market210 and JH prices moved down and other kernel prices moved up from
ast week prices
Panruti market Kernel prices were steady to high
alandhar Market No movement in the kernel prices
Cashew Grades 09/29/2012 10/06/2012 % change in price over last week
Mangalore Rs/ kg
.
S180 661 644 2.57
210 617 631 2.27
.
240 551 556 0.91
S240 511 520 1.76
320 503 511 1.591 489 498 1.84
SW 472 485 2.75
SSW 441 441 0.00
432 437 1.16
S 419 414 1.19
WP 366 368 0.55
SWP 331 326 1.51
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Cashew Grades 09/29/2012 10/06/2012 % change in price over last week
379 392 3.43
.
Kollam Rs/kg
180 595 600 0.84
210 529 538 1.70
240 494 498 0.81
320 450 423 6.00
450 432 397 8.10
SW240 423 397 6.15
SW210 No stock No stock
S (Splits) 375 362 3.47
SS 309 309 0.00
Butts 322 317 1.55
SB (Scorched Butts) 295 287 2.71
SP .
WP 322 317 1.55
SP 73 282 3.30
Delhi Rs/Kg
320 No. 495 495 0.00
210 No. 660 658 0.30
o. .
180 No. 00 700 0.00
pieces 363 355 2.20
pieces .
8 pieces 98 298 0.00
Sangrur Rs/Kg
.
210 663 663 0.00
240 618 618 0.00
180 03 703 0.00
pieces 500 500 0.00
pieces 485 485 0.00
8 pieces 460 460 0.00
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Cashew Grades 09/29/2012 10/06/2012 % change in price over last week
eypore Orissa Rs/Kg
ocal Raw Nuts .
210 560 600 7.14
240 520 565 8.65
320 475 500 5.26
400 450 470 4.44
S240 500 500 0.00
S320 460 470 2.17
S 385 400 3.90
360 385 6.94
WP 350 360 2.86
SWP 310 340 9.68
H 400 410 2.50
Vetapalem AP Rs/Kg
- - .
240 490-500 500-510 2.02
320 430-440 440-445 1.72
- .
H 25-435 425-430 0.58
/LWP 335-340 335-340 0.00
- .
B/Butts 365 360-370 0.00
400 400 400-410 1.25
Panruti Wholesale Market Tamil Nadu Rs/kg
aw nut (Rs/80kg) 5500 5500 0.00
240 450 450 0.00
.
450 388 388 0.00
H 350 350 0.00
K 309 309 0.00
282 287 1.77
SWP 250 280 12.00
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Cashew Grades 09/29/2012 10/06/2012 % change in price over last week
alandhar Punjab Rs/kg
.
210 635 635 0.00
240 535 535 0.00
180 583 583 0.00
*Mangalore Prices are exclusive of tax. Tax for inter-state sales- CST 3 per cent, Tax for local sales 4
per cent VAT Note: W= White Wholes, S= Splits, SW= Scorched Wholes, SSW= Scorched Wholes Sec-
onds, DW= Dessert Wholes, LWP= Large White Pieces, SWP= Small White Pieces, BB= Baby Bits, SB=
Scorched Butts, SS= Scorched Splits, SP= Scorched Pieces, 1kg = 2.24lb
Cashew Raw Nuts prices
Country 09/29/2012 10/06/2012 % change in price over last week
Indian RCN (Rs per 80 kg bag) 6000 to 6250 6000 to 6250 0.00
Ghana (Rs per 80 kg bag) 5000 to 5200 5000 to 5200 0.00
Benin (Rs per 80 kg bag) 5000 to 5200 5000 to 5200 .
Other nuts prices at Delhi market Rs/kg
Grades 09/29/2012 10/06/2012 % change in price over last week
Almond Girdhi New 84 84 0.00
Almond Gurbandhi New 00 200 0.00
Almond California .
Almond Kernel California 36 441 1.15
Almond Kernel Gurbandi 375 375 0.00
Pistachio Irani .
Pistachio Hairati 820 830 1.22
Pistachio Peshawari 1060 1040 -1.89
Walnut New .
Walnut Kernel 650 650 0.00
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International Cashew Market
rice Highlights
Prices for 10/06/2012 arket Source
240 USD 3.60 to 3.65 per lb FOB Vietnam Mr Kim, Vietnam
320 USD 3.20 to 3.25 per lb FOB Vietnam Mr Kim, Vietnam
Commentaries by Experts
Mr Kim, Khiem Nguyen Co., Vietnam
he week was totally quiet without any demand/
trades from buyers sides but prices offered were
not changed i.e. W320 at USD 3.20 to 3.25, W240
t USD 3.60 to 3.65 per lb fob for October and No-
vember shipments. Very limited sales reportedly
one at USD 3.19 per lb fob for Prompt. Reliable
sellers offered W240 at USD 3.65, W320 at USD
3.25, WS at USD 2.10 to 2.15 per lb fob for October
December shipments but no business done at the
said levels.
here might be some minor demands but too weak
nd prices lured were lower compared to the levels
esired by sellers. The limited and seldom demand
uring the past week could not temporally drag the
kernels market to its rmer status like before. But
there is still strong feeling that there are some de-
mands in the coming time as buyers will have to
need something at least in preparation for their on-
oming holidays. It is however, the time for this is
not long enough so demand may be weak compared
to previous years so chances for the prices to be
strongly waken up is limited.
hina market was quiet with weak prices offered
to this market. Brokens demand from this was also
uiet.
FOB prices of cashew grades that sold last weekor c o er
GradesPrice USD per
lbs 09/29/2012
Price USD per
lbs 10/06/2012
. to . . to .
. to . . to .
W450 3.10 3.10
BW320 3.10 3.10
WS 2.10 2.10
WB 2.10 2.10
DW 2.30 2.30
P 1.60 to 1.65 1.60 to 1.65
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Mr Jim Fitzpatrick, Ingredient Sourcing Solutions
More trade in the past week but still way below
what would have been considered normal vol-
umes a couple of years ago. The market has been
n a relatively quiet pattern since this time last year
bar the over reaction in April and May. This has led
to some frustrations for processors and others buthas led to certain price stability for the past three
months. This is not yet enough to encourage a re-
turn to far forward purchasing on the part of buyers
but does at least help to build some level of con-
ence that cashews are an item that will eventually
become more easily judged and therefore promoted
t retail level.
he quiet demand pattern is not unique to cashewss a number of tree nuts and especially peanuts are
returning from volatile times to a more normal pat-
tern What is unique to cashews is the wide differ-
ences in price between processors which makes it
difcult for buyers to determine exactly where the
market is at a given time and often to unfair com-
parisons between justiably higher priced, reliable
processors and their less reliable competitors. Given
that the cashew kernel trader is, if not extinct then at
east an endangered species, the ability of less fre-
uently involved buyers to identify reliable proces-
sors is in question causing continued conict and
amaging the reputation of the industry. Perhaps it
is time for some generic marketing approach on the
part of the edgling World Cashew body to addressthis and other problems.
Short term there is little in the way of market mov-
ing news to be expected. The general expectations
or crops are well known. There is a stock of RCN in
West Africa slowly making its way to be processed
lthough much of it may never make it and will un-
ergo a miraculous rebirth as 2013 crop next March.
Demand is lacking energy and the lethargic patternis likely to continue especially in the North Ameri-
an and European markets as buying season 2012
ends. Price movements are likely to be a function of
ocal factors and nancial pressures indicating that
when good reliable processors want to sell toward
the bottom of the current range cashews should be
bought.
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RCN Quality in Cte dIvoire
Mr. Pierre RiCAU NKalo Services - RONGEAD
te dIvoire is the second cashew producer in the
world with around 420 000 Metric Tonnes in 2012. It
s also currentlythe country where cashew production
s growing the fastest in Africa.
Most of the Ivoirian cashew acreage has been planted
between 1995 and 2002, and our expectations are that
production in Cte dIvoire will reach his peak around
2020 with a production between 500 000 and 550 000
metric tonnes.
n 2012, Cte dIvoire will be the 4th country for
ashew processing with more than 20 000 MT of RCN
processed locally, but still around 90 % of the production
s exported to India, Vietnam and Brazil as Raw Cashew.
Even if it is expected that local processing will grow
n the coming years, Cte dIvoire will still mainly
be a raw cashew supplier for the coming 10 years.
Each year, RCN importers complain about the bad
uality of Ivorian cashew. Yet, when you compare
arm gate quality, the Ivorian cashew is not very
ifferent from Beninese or Bissau Guinean cashew nut.
Averages KOR at the farm gate are between 48 and
51 lbs depending of Ivorian regions, and Nut Count is
enerally around 190 nuts / kg in the whole country.
But when Ivorian cashew reaches Asian factories,
yields often fall to 42 to 46 lbs per bag.
Where and when happened this big decrease?
he decrease happens mostly during the cashew storage
nd transport and mostly because cashew trading come
ate after the harvest.
here is no payment for quality at the farm gate
evel as local traders mainly try to get big volumes as
soon as possible. So farmers nd no interest to dry the
ashew after the harvest. Most of the time, cashew will
be stocks several weeks in plastic bags and is dried
only when it reaches the port and exporters facilities.
ashew harvest normally begins during the second
half of February. Most of the cashew is harvested in
March and April. Generally, the short rainy season
lso called season of mangoes rains lasts all April
Month. That is why, from April, humidity rate grows
in cashew stocks and quality begins to decrease. More
the storage is long; worst is the quality, as it can be
seen in the chart below.
Another problem is that for exporters it is not always
interesting to spend time and money to get better quality
product as many RCN importers never pay premium
or good quality and often do not pay last part of the
ontract arguing of bad quality even if the quality wasgood. On this point, it seems to be really important to
get an arbitrage authority and common quality control
standards between India, Cte dIvoire and eventually
Vietnam to get a real valuation of quality.
Ivorian government has amongst his priority to improve
ashew average quality but it is really necessary that
good quality bring value until the farm gate level to get
big change.
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Currency Movements
Forex Rates (In USD)
Currency 09/28/2012 10/05/2012
ndian Rupee 52.855 51.916
uro 0.778 0.767
apanese Yen 77.930 78.660
Brazilian Real 2.026 2.032
hinese Yuan 6.286 6.324
Singapore Dollar 1.228 1.229
anzanian Shilling 1574.550 1575.750
hai Baht 30.834 30.620
ozambique Newetical
28.500 28.500
Vietnam Dong 20850.000 20890.000
ndonesian Rupiah 9569.100 9589.000Benin CFA FrancBCEAO
507.790 504.200
hanaian Newedi
1.897 1.899
Comparative Movement of Currencies vis--Vis
USD in cashew Processing Regions Weeks Starts
rom anuary
(Note: Prices Indexed to the rst week prices as-
sumed to be 100)
USD vs. BRL Movement
In recent time Brazil trade account improvedas shown in above chart from Aug12 low of
805.86million dollar. The recent weakness in Real
which is currently around 2.06v/s dollar was mainly
because of improvement of Brazil export sector.
However still the current account balance is decit
as shown in above chart but shows some signs of
improvement. So Improving Brazilian trade and
current account balance to keep Brazilian Real weak.
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he Brazilian real closed weaker to the dollar Friday
fter the countrys central bank sold reverse-swap
ontracts to deter the currency appreciation. The
real exited active trading at BRL2.0293 to the U.S.
ollar, according to Tullett Prebon via FactSet, after
hursday closing price at BRL2.0167. The Brazilian
entral bank sold the equivalent to $1.29 billion in
reverse swap contracts Friday. Such auctions givethe investors a chance to exchange dollar-linked
bonds for paper indexed to domestic interest rates.
hey tend to support the dollar against the real by
removing dollar-hedged contracts from the market.
ntervention by Brazils central bank and declarations
rom government ofcials aiming to protect local
exporters have kept the real in a tight trading range
between BRL2.00 and BRL2.05 in recent months.
echnically Brazil currency poised to extenduncertain movement in broad range of 2-1.998level.
Overall, central bank intervention and improvement
of Trade and current account decit Brazil Real
ikely to keep Real lower around 2 against US dollar.
vs. ovemen
Vietnams government bonds fell, pushing the
ve-year yield to the highest level since May, after
the State Treasury sold more debt. The dong was
steady.
The government on Oct. 5 auctioned 500 billion
ong ($23.9 million) of three-year notes and 850
billion dong of two-year bonds at 9.9 percent and
9.7 percent, respectively, according to Hanoi Stock
Exchange. The yields were 10 basis points higher than
t a sale of similar-maturity securities on Sept. 27.
The yield on the ve-year notes rose eight basis
points, or 0.08 percentage point, to 10.23 percent,
according to a daily xing from banks compiled by
Bloomberg.
The dong traded at 20,890 per dollar as of 3:16 p.m.
in Hanoi, unchanged from the end of last week,ccording to data compiled by Bloomberg. The
State Bank of Vietnam set the currencys reference
rate at 20,828, unchanged since Dec. 26, according
to its website. The dong is allowed to trade as much
s 1 percent on either side of the rate.
Technically Vietnam dong likely to remain in range
of 21000-20000 level.
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Indian Rupee Revival of Good Times
Debajit Saha, Content Editor, Bullion Bulletin
ndian Rupee nally got out of stage of nemesis.
t had lost long ago good days of a strong currency
with economic downturn all over the world and un-voidable (or at times avoidable) macro-economic
actors of domestic economy. Lack of economic
reforms under colalition political pressure kept the
entral government out of path of reforms which
otherwise could have saved the currency from its
rapid downfall against US dollar. Neverthless, alls
well that ends well. Central Government nally has
taken series of bold steps which revitalizes the eco-
nomic environment. Protectionist thus turns into
saviour. Rupee performed best amongst all Asianurrencies last quarter and most importatantly, last
two weeks.
Now the important question is it a reaction rally or
rupee will continue to strengthen against dollar. We
would focus on this in next paragraphs.
Macro Economic Syndrome
Advocates of Keynesian economics argue that pri-
vate sector decisions sometimes lead to inefcientmacroeconomic outcomes which require active pol-
cy responses by the public sector, particularly mon-
etary policy actions by the central bank and scal
policy actions by the government to stabilize output
over the business cycle. The term business cycle (or
economic cycle) refers to economy-wide uctua
tions in production or economic activity over sever-
al months or years. These uctuations occur around
long-term growth trend, and typically involve
shifts over time between periods of relatively rapid
economic growth (an expansion or boom), and pe-riods of relative stagnation or decline. )Wikipaedia
The above theory is perfectly suited for emerging
economies growth story. (It is necessary to focus
on global parameters as India is exposed to global
economic vulnerability same way other emerging
economies are. China has grown only at the rate of
ittle above 9% last year from whopping 12-13%
in previous years. So current economic downturn
in India is not the inefciency of our economy butombination of both micro and macro economic
undamentals). We have grown at a brisk pace above
.5% on an average till 2011. The economic reforms
that were rst undertaken way back in 1992 by the
then Finance Minister and todays Prime Minister
of the country Dr. Manmohan Singh and subse-
uent reforms that were carried on later by various
governments pushed India to become worlds sec-
ond fastest growing economy. But this growth was
halted on theory of cyclical economic downturn (asinidcated above) in line with other emerging as well
as developed economies. The condition of inef
ient macroeconomic outcome, for example, can
be justied in form of Indias high Current Account
Decit (CAD) or lets say, high ination. Indias
dependency on foreign market to source crude oil
and peoples inclination to buy gold, which In
ia imports 100% basis, coupled with low export
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rowth resulted in high CAD. On the other hand,
rapid growth or expansion of private sectors created
high ination. Central bank was forced to under
take tight monetary measures last year which is still
continuing to counter this menace of ination. This
created huge liquidity shortage in nancial market.
Lack of scal reforms created void in the economy
resulting in slow employment and infrastructurerowth. The intervention of central governmet on
scal front was a necessity. With the current reform
nnouncements like allowing FDI in retail, aviation
nd insurance sectors along with curtailing sub-
sidies in LPGs and hike in diesel prices in place,
entral bank may ponder over to losen the monetary
policy in near future now as central bank was con-
strantly stating that unless something coming from
scal front, monetary policy can not be losened as
ination is still above the accepted level of 5-6%.
ombinedly, all put enormous pressure on Rupee.
Europes debt crisis also created additional demand
or US dollar which indirectly impacted other cur-
rencies as well. With ECBs declaration of buyingunlimited debts and Feds QE3 programme, some
relief can be expected from global front. So, we
ould see much sronger currency in coming days.
But, to see level of 45-46 against dollar, well, we
have to wait longer period of time, perhaps.
Net FII Flows till September 2012 in Asian Countries in billion
India Phillipines South Korea Taiwan Thailan Vietnam
FII Flow 13.19 2.18 12.81 1.54 2.15 0.18
he above table is just indicative that global inves-
tors have not left India, rather placed better than
ts peers in Asia. Market is expecting more inows
nto the country after the current reform measures.
On the other hand, oil price in international market
has come down substantially and possibily it would
remain in comparatively lower level than last year
or next quarter or two possibly keeping better than
ast years political unrest in Middle East and Africa
nd adequate global supply in mind. So, Indias oil
bill might have improved in next couple of quar-
ters which may ease substantial pressure on CAD.
overnments continuous efforts to bring down the
mports of gold is so far successful. But, taking the
decits below 3 percent of GDP from last years 4.2
of GDP, it will take substantial time.
ec n ca s:-
The chart is showing rupee is at 6 months high
nd getting resistance at 50 week EMA. MACD
is showing negative divergence at a time when the
urrency has broken the resistance of 54.30 deci-
sively. Combined, one can expect that rupee would
ontinue to strenthen till 49 against US dollar. All it
needs two onsecutive weekly close below 50 week
EMA level. Keep the ngers crossed!
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