Cashew industry seeks huge loans for new harvest
By Ngoc Hung - The Saigon Times Daily
HCMC – The Vietnam Cashew Association (Vinacas) will ask for the Government’s support in providing loans of over VND29.5 trillion to buy cashew material for processing activities and export.
If it secures the Government’s backing, the association will buy raw cashews from farmers at VND35,000 per kilogram, VND7,000-8,000 kilogram higher than the current price.
In a petition which will be sent to the Government, Vinacas expects loans from the central bank to be raised to 90% of the total cashew value as collateral from the current rate of 70%. The association suggests that the loans carry a softer interest rate, at 11-12% per year compared to the current commercial rate of around 20%.
The total domestic cashew volume is estimated to reach 380,000 tons, or 30,000 tons higher than the previous season, as there will be no big weather changes.
Cashew firms have to depend on banks’ credit supply to buy enough materials.
Beside the domestic yield, Vinacas estimates to import around 450,000 tons of dry cashews worth VND13.23 trillion from Africa and Indonesia.