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  • Cashew industry lobby seeks revival package

    Jun 28th, 2019

    The Cashew Industry Protection Council has sought a package for revival of the crisis-ridden industry.

    The Council said foreign exchange earnings through cashew exports are to the tune of ₹7,000 crore a year and with 20 per cent growth in demand it would be easy to achieve a target of ₹10,000 crore.

    If the industry is bought under the MSME ministry, it can run on profit with partial mechanisation, K Rajesh, president of the Council, said in a memorandum submitted to Finance Minister Nirmala Sitharaman through Rajeev Chandrasekhar, Member of Parliament.

    Rajesh pointed out that the Cente had constituted the Coir Board and brought the sector under the MSME ministry to help the coir industry overcome the crisis it was facing. He urged the Minister to look into the possibility of constituting a cashew board for the betterment of stakeholders in the cashew industry .

    Around 700 cashew factories, out of the 834, remain closed for more than three years now, basically due to a three-fold hike in prices of raw cashewnuts in the international market and stiff competition from Vietnam. As a result, around 175 entrepreneurs’ accounts turned NPA and another 100 accounts are stressed. Banks are in the process of physical possession of collateral properties based on Sarfaesi Act, he said.

    The Council suggested some immediate revival measures, including waiver of at least the last five years of bank interest of these NPA accounts as well as stressed accounts. It also sought assistance for small scale processors to mechanise.