CropGPT - Nuts

The weekly report on the global Nuts market for week 20. Brought to you by CropGPT

Show Notes

Global Nuts Market Summary
  • Bangladesh's cashew industry is grappling with severe market challenges, primarily due to the impact of cheaper imported cashews, which are undermining local processor competitiveness. The production cost for local processors is approximately TK 1,300 per kilogram excluding profits. However, imported cashew kernels priced between TK 1,400 and TK 1,500 per kilogram undercut the necessary selling price of TK 1,950 to TK 2,000 per kilogram required for local processors to remain viable.
  • A crucial factor is the tax differential between imported cashews with testa (skin) taxed at $4.1 per kilogram and processed cashews taxed at $6 per kilogram, resulting in a tax advantage of TK 101 to TK 107. This has catalyzed a significant shift in import trends, with cashews with testa surging from negligible amounts in fiscal year 2024 to 87% in the first ten months of fiscal year 2026. Consequently, domestic investment is stalling, and local cashew farms are witnessing plummeting prices due to decreased procurement by processors striving to compete with more affordable imports.
  • In response to these pressures, the Bangladeshi government is deliberating potential changes to import valuation mechanisms and customs classifications to alleviate strains on domestic processors. The current customs valuation misalignment allows imported cashews to undercut local market prices, thereby discouraging investment in domestic processing. Authorities are reviewing policies concerning these valuation rules, with revisions potentially featuring in the forthcoming national budget to address these discrepancies and support local industry viability.
  • The influx of cheaper imports compels local processors to operate below breakeven levels, inciting operational losses and diminishing procurement from region-specific cashew farms, particularly affecting areas like Rangameedi. Farm gate prices for raw cashews have dropped from TK 6,000 to TK 6,500 per month to TK 4,800 to TK 5,200 per month. Since cashew cultivation area expanded substantially post-2021 involving roughly 3,500 farmers, the present market dynamics threaten these farmers' economic stability. Policy realignments are essential to develop a competitive stance for the local cashew industry while safeguarding the livelihoods of farmers who rely on this crop across Bangladesh.

What is CropGPT - Nuts?

Market news about nuts - Cashews, nuts, almonds, macadamias, pistachios. Including trading news, weather and forecasts

Speaker 1:

Welcome to the weekly summary of the global nuts market for 05/17/2026. For more information on any aspect of this report, please visit the CropGPT website for far more detailed reporting and analysis. The cashew industry in Bangladesh is grappling with severe market challenges, primarily due to the impact of cheaper imported cashews, which are undermining local processor competitiveness. The production cost for local processors is approximately TKL-one 1,300 per kilogram, excluding profits. However, with imported cashew kernels priced between TKL-one 1,400 and TCO-one $1,500,100 per kilogram, these prices undercut the necessary selling price of TCO-one $195,100 dollars to TCO-one thousand 600 per kilogram required for local processors to remain viable.

Speaker 1:

A crucial factor is the tax differential between imported cashews with testa skin taxed at $4.1 per kilogram and processed cashews taxed at $6 per kilogram, resulting in a tax advantage of TK one zero one to TK one zero seven, respectively. This has catalyzed a significant shift in import trends with cashews with testa skin imports surging from negligible amounts in fiscal year twenty twenty four to 87% in the first ten months of fiscal year twenty twenty six. Consequently, domestic investment is stalling, and local cashew farms are witnessing plummeting prices due to the decreased procurement by processors striving to compete with the more affordable imports. In response to these pressures, the Bangladeshi government is deliberating potential changes to import valuation mechanisms and customs classifications to alleviate strains on domestic processors. The current customs valuation misalignment allows imported cashews to undercut local market prices thereby discouraging investment in domestic processing.

Speaker 1:

Authorities are reviewing policies concerning these valuation rules, and revisions could feature in the forthcoming national budget to address these discrepancies and support local industry viability. This influx of cheaper imports compels local processors to operate below breakeven levels, inciting operational losses and diminishing procurement from region specific cashew farms, particularly affecting places like Rangameedi. This scenario has dropped the farm gate price for raw cashews from TKs 6,000 to TK 6,500 per month down to TK 4,800 to TK 5,200 per month. Since the area under cashew cultivation expanded substantially post-twenty eight and twenty one involving roughly 3,500 farmers, the present market dynamics threaten these farmers' economic stability. It remains essential for forthcoming policy realignments to develop a competitive stance for the local cashew industry while also safeguarding the livelihoods of farmers who rely on this crop across Bangladesh.

Speaker 1:

Remember, our CropGPT site contains far more details and reports about the nuts market, including crop health reports, twenty years of weather data, and even pricing data and earning call analysis. This podcast is just a few selected highlights for the week.