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  • Organised cashew sector seeks package for survival

    Sep 29th, 2015

    The cashew industry in the organised sector is said to be passing through crisis and its revival, according to the industry, is possible only by government intervention through a package.Speaking to BusinessLine, Sundaran Prabha, Vice-Chairman, Cashew Export Promotion Council of India (CEPCI), said the industry was finding it difficult to run the factories for long to provide employment to thousands of workers, mostly women, throughout the year.“About 50 per cent of the factories in the organised sector continue to remain closed from April 1, following a substantial hike in the wages by the State government; reduction in incentives for export of cashew in the new foreign trade policy; and high raw nut prices. Consequently, exports continued to decline, affecting the industry on the export front,” he said.Total exports during April-August 2015 dropped to 41,658 tonnes valued at ₹2,068.45 crore at an average unit value of ₹496.54 a kg from 47,549 tonnes valued at ₹2,088.54 crore at the unit value of ₹439.24.He said the Centre has reduced export incentives for cashew. This industry, being labour intensive, no excise duty is levied on the imported raw nuts.Sundaran alleged that some of the new entrants, of late, trading in RCN in West African countries were buying raw nuts at prevailing higher prices and selling to processors in unorganised sectors here.Add to this, India’s main competitor in the field Vietnam has expanded its mechanised processing capacity and started importing raw nuts in huge volumes from overseas sources.


    Source: www.thehindubusinessline.com