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  • Revival package for cashew sector by July 31, says Minister

    Jul 6th, 2019

    Processors complain that banks refuse to restructure loans

    The government has taken all steps to implement the revival package for private cashew processors within July 31, Minister J. Mercykutty Amma has said.

    The decision was taken at a meeting here on Saturday attended by State Level Bankers’ Committee (SLBC) officials and factory owners in Thiruvananthapuram.

    Bank’s refusal

    The meeting was convened after the processors said that some banks were refusing to restructure their loans as part of the package.

    South Indian Bank, Federal Bank, and Catholic Syrian Bank were expected to restructure the loans of 84 factories.

    Also, seven factories handed over to asset reconstruction companies for auction would be returned to the owners.

    Interest-free loans

    The State government would also provide interest-free loans for private processors for one year.The Minister observed that the cashew sector was in a deep crisis when the Left Democratic Front (LDF) government came into power.

    “Kerala State Cashew Development Corporation (KSCDC) and Capex factories along with the majorities of factories in the private sector were not functioning. The government took immediate steps to protect the industry and the employment of lakhs of labourers. The KSCDC and Capex factories have been functioning since August 2016,” she said.The Minister said that over 5,000 labourers were newly recruited in various government factories of late and half of the private factories were functional now.Centre’s help“The State government has repeatedly approached the Centre for a package to revive the industry,” the Minister said.