Mozambique wants an “extraordinary trade agreement” to deal with the negative impact of the new import tax on cashew nuts adopted by the Indian government, which has reduced the amount of the product imported by the Asian country.
“The increase in the import rate of cashew nuts [in India] has had a negative impact on the national processing industry”, considerably reducing the amount of Mozambican cashew purchased there, a National Cashew Institute (INCAJU) document sent to Lusa yesterday reveals.
At issue is the increase in the import tax on cashew nuts from 45% to 70% imposed by the Indian government last July, forcing those who buy the product from Mozambique to cut their orders.
“The measure mainly affects the broken-kernels sector,” the INCAJU document notes, adding that India’s adoption of new tax rates was aimed at “protecting their domestic market”.
Mozambique intends investing in the local market by promoting the “multipurpose use” of cashew in the food and cosmetics industry, as well as identifying alternative export markets such as South Africa, which already imports from Mozambique, and is a country which several studies indicate as one of the main buyers of the product in the region.
Data from the Association of Cashew Industrialists of Mozambique (ACAJU) indicate that around 12,000 tons of cashew kernels are produced in the country annually, of which 4,500 are ‘broken kernels’.
Between 2017 and 2019, the country earned US$116 million (€103 million euros) from the export of more than 80,000 tons of raw kernels, of which 76% went to India, the world’s top cashew consumer.
Besides India, the main cashew markets are Europe, the United States, Vietnam and Lebanon.
Source: Lusa via Club of Mozambique