More News

News

200-cr capital for cashew board

200-cr capital for cashew board

December 6, 2017

 

Various nationalised banks and the State Cooperative Bank will provide a 200-crore working capital for the Kerala Cashew Board, a body formed to revive the cashew industry. The government will provide guarantee for the loan. An in-principle decision to approve the demand of the board was reached at a joint meeting of the banks attended by Finance Minister T.M. Thomas Isaac, Minister for Cashew Industry J. Mercykutty Amma, and Chief Secretary K.M. Abraham.

 

A total of 10 lakh tonnes of cashew is needed for the cashew factories in the State. Middlemen who exploited the situation and sell imported cashew on higher rates have caused the crisis in the sector. As a solution, the government will directly buy cashew from foreign countries and provide it to public sector units and private factory owners through the board. Regional factory owners will have to pay an advance based on the volume of cashew they need. The banks have been asked to form a new package for over 60 non-functional factories, declare a moratorium on current loans, and provide them working capital, said a press note issued by the office of Ms. Mercykutty.

 

The banks will convene a meeting on providing the 200-crore loan on December 11 and inform the government about subsequent formalities.

 

The banks have been asked to submit a special package for the 60 factories at a meeting to be held on December 13.

 

Source:http://www.thehindu.com/