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  • Kerala cashew factory owners say budgetary measures inadequate

    Jan 31st, 2019

    The Kerala Cashew Industry Protection Council, comprising small factory owners, has called for re-examination of the proposal for cashew sector announced in the Kerala state budget on Thursday , as it will not ensure continuation of jobs for lakhs of women workers and prevent measures for attachment by the banks

    The state finance minister Thomas Issac said in his budget speech that he has earmarked Rs 25 crore for taking over the interest of the restructured loans of the closed factories in the state for one year.

    He said majority of the factories in the cashew sector are debt-ridden due to huge losses. To reopen the closed private factories, the government has constituted a package. In the present situation, restructuring of the debts and not one-time settlement is the solution, he said. Unfortunately, the RBI and commercial banks are not in favour of it.

    The council state convenor Rajesh K said the banks are not willing to restructure the loans of closed factories. He requested for a comprehensive package from the state government for the cashew sector. The banks have allowed only 50% of the value of the property including the houses submitted as collateral by the small scale sector factory owners as loans so far. `` The banks are ready to allow renewed loans for rest of the value only if the state government stands guarantee,’’ Rajesh said.