Kernel of calm for Goa's cashew biz as Trump hits pause on tariffs

Panaji: US President Donald Trump’s decision to hit pause on his trade war — except with China — has alleviated anxieties in the far corners of Bicholim and Sattari. While Trump’s tariff tantrums did not result in any additional duties on Indian cashew nuts, his move to impose higher tariffs on Vietnam, which holds more than 80% market share of cashews in the US, would have seen nuts from Vietnam and African nations flooding India.
Owners of cashew nut processing plants said such an eventuality would have sent prices tumbling in Goa. Vietnam was hit with a 46% tariff by Trump before the 90-day pause was announced.
Vietnam imports raw cashews from West African nations and then exports them to the US. If the demand from the US and Vietnam had dropped, cashew nuts from West Africa would have swamped India, crashing cashew prices.
“If Vietnam is affected, it will default on the African crop and the price will drop. This is our worry,” said Rohit Zantye, the Goa Cashew Manufacturers Association president.
Vietnam imports raw cashew nuts from Cote d’Ivoire, Tanzania, Benin, Tonga, and Ghana. Goan companies also tap those markets. Many Goan cashew nut processing factories and packers have already placed import orders for the current year.
As of now, the landed cost for African cashew nuts is Rs 155 per kg while for Goa cashew nuts, which are of a higher quality, it is Rs 175 per kg.
“We have already purchased 40% of our raw material. If the raw cashew prices collapse after we have purchased at a higher price, it would have been a challenge,” Zantye said. “Those who have bought local produce will be in the soup since the African cashew nuts will flood the Indian market.”
The reciprocal tariffs imposed by Trump roiled the international markets last week and an impact analysis by the Federation of Indian Chambers of Commerce & Industry (Ficci) had said tariffs could be an opportunity for the cashew nut processing units.
“Vietnam is the dominant supplier of cashews (raw as well as processed) in the US market with more than 80% share,” the Ficci report said. “Since the reciprocal tariff imposed on Vietnam is considerably high at 46%, this gives an opportunity to other exporting countries like India to expand their market share in the US.”
India currently has a 0.9% share in the export of fresh or dried cashew nuts to the US, the same as Nigeria, while Vietnam has an 88% share. Trump’s reciprocal tariff on India is just 26%. In terms of preserved cashew nuts, India has a 6% share in exports to the US.
However, the 15-odd cashew nut processing units in Bicholim and Sanquelim were worried last week.
The state’s cashew crop spanning approximately 55,302 hectares yields an estimated 27,070 tonnes annually, but hardly anything goes to the US. Goaʼs age-old cashew industry has been on a downward spiral, with many processing units shutting down or reducing capacity due to stiff competition and poor prices.
The availability of cheaper imported nuts would have been an additional threat.
Goa’s exports before Covid-19 amounted to 60 containers a year worth about Rs 40-50 crore but now it has dropped by three-fourths. The domestic demand for cashews grew phenomenally and there was no need to export any more, say local manufacturers.
Panaji: US President Donald Trump’s decision to hit pause on his trade war — except with China — has alleviated anxieties in the far corners of Bicholim and Sattari. While Trump’s tariff tantrums did not result in any additional duties on Indian cashew nuts, his move to impose higher tariffs on Vietnam, which holds more than 80% market share of cashews in the US, would have seen nuts from Vietnam and African nations flooding India.
Owners of cashew nut processing plants said such an eventuality would have sent prices tumbling in Goa. Vietnam was hit with a 46% tariff by Trump before the 90-day pause was announced.
Vietnam imports raw cashews from West African nations and then exports them to the US. If the demand from the US and Vietnam had dropped, cashew nuts from West Africa would have swamped India, crashing cashew prices.
“If Vietnam is affected, it will default on the African crop and the price will drop. This is our worry,” said Rohit Zantye, the Goa Cashew Manufacturers Association president.
Vietnam imports raw cashew nuts from Cote d’Ivoire, Tanzania, Benin, Tonga, and Ghana. Goan companies also tap those markets. Many Goan cashew nut processing factories and packers have already placed import orders for the current year.
As of now, the landed cost for African cashew nuts is Rs 155 per kg while for Goa cashew nuts, which are of a higher quality, it is Rs 175 per kg.
“We have already purchased 40% of our raw material. If the raw cashew prices collapse after we have purchased at a higher price, it would have been a challenge,” Zantye said. “Those who have bought local produce will be in the soup since the African cashew nuts will flood the Indian market.”
The reciprocal tariffs imposed by Trump roiled the international markets last week and an impact analysis by the Federation of Indian Chambers of Commerce & Industry (Ficci) had said tariffs could be an opportunity for the cashew nut processing units.
“Vietnam is the dominant supplier of cashews (raw as well as processed) in the US market with more than 80% share,” the Ficci report said. “Since the reciprocal tariff imposed on Vietnam is considerably high at 46%, this gives an opportunity to other exporting countries like India to expand their market share in the US.”
India currently has a 0.9% share in the export of fresh or dried cashew nuts to the US, the same as Nigeria, while Vietnam has an 88% share. Trump’s reciprocal tariff on India is just 26%. In terms of preserved cashew nuts, India has a 6% share in exports to the US.
However, the 15-odd cashew nut processing units in Bicholim and Sanquelim were worried last week.
The state’s cashew crop spanning approximately 55,302 hectares yields an estimated 27,070 tonnes annually, but hardly anything goes to the US. Goaʼs age-old cashew industry has been on a downward spiral, with many processing units shutting down or reducing capacity due to stiff competition and poor prices.
The availability of cheaper imported nuts would have been an additional threat.
Goa’s exports before Covid-19 amounted to 60 containers a year worth about Rs 40-50 crore but now it has dropped by three-fourths. The domestic demand for cashews grew phenomenally and there was no need to export any more, say local manufacturers.