With Supplyco gearing to obtain 4 lakh kg of nuts for the Onam package, the cashew sector has lastly one thing to cheer about amidst a significant droop.
Industry stakeholders imagine that the measure can set the sector on the trail of revival and assist it emerge from the disaster , particularly after the alarming fall in demand throughout COVID-19.
“As per the current rate, Supplyco will have to spend around ₹46 crore to procure the product. It is a positive development as the rising demand will lead to an increase in prices,” says Nizamudeen I., president, Federation of Cashew Processors and Exporters.
Supplyco requires round 85 lakh cashew sachets, every weighing 50 gm. “It has triggered a spurt in the domestic market and if the global demand rebounds, the sector will revive. Business is expected to pick up after August as the markets in metros such as Mumbai and Delhi are also recovering,” he provides.
In India, greater than 20 cashew grades are commercially out there and Supplyco will likely be procuring cashew splits, a range often used for getting ready desserts resembling payasam. “The government will be distributing 85 lakh kits and the decision to include cashew, cardamom, and ghee will promote our domestic industries,” says S.Jayamohan, former chairman, Kerala State Cashew Development Corporation Limited (KSCDC).
Since the amount is big, mid and small scale processors may also profit. Big processors should supply the fabric from items throughout the State providing them some reduction. “Factories in both public and private sectors will benefit as a single unit won’t be able to provide the required quantity,” he provides.
The crisis-ridden business had hit all-time low through the pandemic because of the dip in exports and lull in home market. While the provision chain was badly hit in the preliminary days, a pointy decline in demand was reported later. Since all large-scale occasions, celebrations, and weddings had been known as off, the consumption hit an all-time low. Lack of vacationers and pilgrims was one other blow to the business as costs began plummeting.
The KSCDC, which had report gross sales of ₹5.5 crore throughout 2019 Onam, couldn’t repeat it in 2020 whereas personal processors had a tough time attempting to clear the inventory. “If we continue the procurement in coming years too, there will be a steady market and the labourers will get more working days,” provides Mr.Jayamohan.