By Pham Thai - The Saigon Times Daily
HCMC – The country imported a large volume of cashew but most of the imported stocks remain at bonded warehouses rather than processing mills, according to the General Customs Department.
The country from January-April imported around 84,500 tons of cashews worth US$90 million, up 45% in volume and down 3% in value year-on-year. In the first half of this month, an additional 6,117 tons of cashews was imported at a total cost of US$6.3 million.
What makes it a surprise is the rise in cashew imports goes against global market movements. Singapore-based International Nut and Fried Fruit Council (INC) forecast the price of cashew nut W320 will stay at US$3.5 a pound in the coming months, nearly half of last year’s level.
The recorded figure includes the amount of imported cashew in contracts signed at the end of last year, said Vu Thai Son, board chairman of Long Son Company, one of the country’s biggest cashew exporters.
“After clinching new contracts with a falling price, cashew processors have left imported inventories at bonded warehouses as they are afraid of possible losses in case of shipping materials to factories for processing,” Son explained.
Son said most cashew businesses this year have imported a small amount of cashew despite the fact that this was a good time to purchase cashew as the world price went down strongly against the domestic price.