About USD800 million proposed to import raw cashew

Monday, 16/07/2018 22:21
The Vietnam Cashew Association (Vinacas) has suggested the State should ask banks to provide USD800 million for importing 500,000 tons of raw cashew for the processing demand in the coming time.

According to Vinacas, due to scarcity of imported raw materials for the processing of cashew kernels, many businesses are not granted credit by banks for the import.  

Therefore, about 80% of small processing facilities in Binh Phuoc, the centre of the cashew industry, have to temporarily close while 12 out of 33 plants in Long An also have to halt operation.

The reason is a sharp reduction in prices of cashew kernel in a short time, so banks are hesitant to continue providing credit and business must sacrifice cashew kernels at low prices to return capital.

In the first half of 2018, the cashew industry shipped 176,000 tons overseas, worth over USD1.4 billion, up 17% in both volume and value. Of this, June alone saw 33,000 tons of cashew exported, valued at USD300 million. But in July, due to the scarcity of imported raw materials, the export turnover is forecast to be not high as the previous months./.

 

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