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  • Abolish extra duty on cashew: Exporters

    Mar 15th, 2016

    The Cashew Export Promotion Council of India (Cepci) has said that imposition of 5% duty on the import of raw cashew nut into the country would be beneficial for the cashew processors and exporters. The administrative committee of Cepci which met last week observed that the import duty introduced in the Union budget 2016-17 would boost the export of cashew kernels from India and would help the country to curtail the widening trade deficit in the sector.

    However, it felt that the special additional duty (SAD) of 4% introduced would have a negative effect on the processors and lend an upper hand to traders as the SAD component is reimbursable to traders who sell the raw nuts unprocessed against VAT. "Here, the processor is at a disadvantage. Further, the standard input output norms (SION) should be redefined for the cashew industry at realistic levels," the committee noted, urging the government to abolish SAD and restructure the SION at a realistic level. "The cashew processors and exporters in the country have been passing through tough times owing to escalating prices of raw cashew nuts against declining prices of finished product (cashew kernels). At the prevailing inflated prices of raw nuts, processing and exports have become unviable, leading to closure of many factories," the committee pointed out.

    The CEPCI felt that it would be advisable not to ask for roll-back of duty as it would bring in some corrections, forcing a large portion of the processing units from the unorganized sector to join the main stream.

    The Committee also registered protest on the 'defaming comments and messages aimed at the Cepci and some of its members in the committee of administration by a fraction of traders and parties who are not connected to the industry. "It is apprehended that such acts are at the behest of those involved in the unfair and unethical activities. As a responsible body, CEPCI has always stood to protect the interest of the cashew processing in general and that of exporting in particular and would continue to play a vital role in boosting exports of cashew kernels and allied products from the country in future as well."


    Source: www.timesofindia.indiatimes.com/