Cashew nuts are seeds of a cashew tree which are used in various industries to maximize profits. They are widely used in food processing industry for culinary purposes and can be processed into cashew butter and milk; alternatives for individuals with dairy allergies or those following diets.
Cashew nuts are a popular ingredient in the snack industry, especially roasted and flavored cashews which are common snacks that offer a crunchy and flavorful option. They are also used in confectionery industry to enhance the taste and texture of chocolates and sweets.
Additionally, cashews are used in pharmaceutical industries where cashew nut shell liquid(CNSL), a byproduct of cashew nut processing has various applications. It is also used in some medications and as a raw material for the synthesis of certain drugs.
Bangladesh Cashew Nuts
Cashew nuts were introduced in Bangladesh in the early 1960s when Chittagong Hill Tracts Development Board (CHTDB) and the Department of Agricultural Extension (DAE) introduced cashew trees to the hilly regions of southeastern Bangladesh. They were mainly planted to prevent soil erosion and provide additional source of income for the local population.
The cashew industry grew slowly due to lack of knowledge about cashew cultivation in the early years. However, in the 1970s the government began to provide more support to the industry and cashew cultivation increased significantly.
By the 1980s, Bangladesh had become a significant producer of cashew nuts and began exporting to other countries. However, in the following decades the industry faced a number of challenges including low productivity and lack of access to finance.
Despite the challenges, the cashew industry in Bangladesh has continued to grow in recent years. The government has implemented a number of policies to support the industry and there is a growing demand for cashew nuts in the global industry.
Cashew Nuts Price in Bangladesh
In 2022, Bangladesh cashew exports were valued at just above 127,300 US Dollars. This was a slight decrease from the previous year’s figure which was valued at just above 526,390 US Dollars.
The sharpest climb was between 2016 and 2017 when the export value increased from 257,590 US Dollars to just above 828,000 US Dollars.
Here are the total values in the export of cashew nuts from Bangladesh between 2013 and 2022.
Price of Cashew Nuts per kg in Bangladesh
A kilo of raw cashew nuts in Bangladesh costs between 45 BDT (0.4 US Dollars) and 155 BDT (1.4 US Dollars) based on the average export price per kg. The wholesale price per kg can go as high as 221 BDT (2 US Dollars).
Bangladesh Cashew Price
There are various factors which influence the price of cashew nuts both locally and globally they include:
Supply and Demand
When the supply of cashew nuts is higher than demand, the prices are reduced. This is witnessed mostly during harvest time when there is plenty of cashews therefore suppliers have to lower prices in order to compete effectively.
On the other hand, when demand is greater than supply, the prices increase. Suppliers have the leeway to increase their prices especially if there is a steady demand.
Quality of Cashew Nuts
The quality of a cashew nut is a crucial determinant of price. Nuts that meet high quality standards are more expensive than lower standard cashew. Nuts with desirable color, size and taste are often considered high quality
Currency Exchange Rates
Fluctuations in currency exchange rates can influence prices since cashews are often traded internationally hence changes in exchange rates can affect both exporting and importing.
Final Note
The future of cashew nut cultivation in Bangladesh is bright and with continued support from the government, it can establish itself as a key player in the global cashew nut industry.