Question

What factors threaten indias future competitive position in cashew nut production?

Answer 1

New competition in the export market, development of sustainable source for supply of RCN (Raw cashew nuts), developing new markets, managing margins in volatile market environment, etc.

Answer 2

Factors threaten indias future competitive position in cashew nut production:

• The growth of cashew industry in India has been deserving, the competitive environment has improved significantly.

• Early demand will incur the transportation cost  to reach the market level.

• New controversy in the export market, development of source for supply of RCN (Raw cashew nuts), developing new markets, managing margins.

• The unfavorable procedures, lack of raw cashew Kernels coupled with high costs are responsible for the crises.

• In fact the problem started in 2006 when the government introduced a 9.4 % duty on import of raw cashew.

• This went on to intensify when the prices of cashew touched at an all -time high in 2016.

• One of the reasons could be the emergence of cashew processing units in China and Vietnam that were efficient than Indian counterparts.

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