Cashew nut farmers in distress as prices fall, traders form 'syndicate'

KAKINADA: Cashew nut farmers in the Godavari region are distressed over the slump in prices of the cash crop. "Traders have formed a syndicate to keep the prices of cashew nuts down," the farmers have alleged, adding that the government should intervene and provide best prices to them.

“Initially, the farmers and those who take cashew nut gardens on contract felt happy as the traders bought the nuts at a rate of Rs 810,000 per 80kg bag in the agency area and at Rs 8,500 to Rs 9,000 in the plains. But, after the rain, the traders decreased the rates by citing the discoloration of the cashew crop,” they said.

After the rain, the colour of the cashew nuts has turned brownish or blackish. At present, traders are purchasing the nuts at Rs 4,500 per bag in the plains. They are cautioning the farmers the prices may come down further due to a “slump” in cashew market.

Some farmers say they don’t want to sell their produce at cheap rates. Other farmers are forced to sell their cashew nuts to recoup their investments and they require money for the Khariff season.

“We have invested more money on the gardens with a prediction that the prices may rise to Rs 12,000 or above. Initially, traders bought cashew nut at Rs 8,500, but now they are offering no more than Rs 4,500 to Rs 5000. I don’t want to sell the product to them at this rate,” a farmer said.

But the farmers who took the gardens on contract are selling the produce as they are not in a position to wait,’’ said Subba Rayudu of Rajanagaram mandal. He said the traders were trying to fool the farmers. “If the paddy crop is discoloured, the quality of grain may come down. In the case of cashew nuts, this is not a problem.”

Another cashew nut farmer, Nageswara Rao, who took a 3-acre cashew garden on contract at Rs 25,000, said cashew nut prices in the open market are high, but the traders formed into a syndicate and are not giving farmers a reasonable price for their produce.

Meanwhile, due to the heavy gales in the evenings, scores of cashew trees fell in the fields and the nuts  germinated. Horticulture officials said there was no problem of rain for the crop, as these gardens need more water to grow the nut.