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  • Call for change in loan policy to cashew sector

    Aug 16th, 2017

    Minister for Cashew Industry and Fisheries J. Mercykutty Amma called upon banks in the State to adopt a loan policy towards the cashew sector similar to that adopted for the revival of the textile sector.She stated this at a meeting in Thiruvananthapuram on Wednesday with representatives of various banks, including the Reserve Bank of India and small-scale cashew processors.She told the bankers that the cashew sector provided employment to 3 lakh persons and was a major foreign-exchange earner.

    Practical changes to bank rules to suit the needs of the changing situations in the cashew industry should be adopted to sustain the cashew factories that are in operation and to help reopen the factories that are lying closed.She told the bankers that the loan limit amount sanctioned in the past to import 200 metric tons of raw cashew would not suffice to purchase even 50 metric tons at present. The price of kernels in the international market also fluctuated constantly. The banks should take these aspects into consideration while providing fresh loans to the cashew sector and also when it came to action on retrieval of loans, she said.Action on retrieval of loans should not result in closure of factories that were operating, she said.