Panel for overhaul of Kerala State Cashew Development Corporation

Kochi: The expert committee headed by principal secretary P.H. Kurian, formed to look into the anomalies in the Kerala State Cashew Development Corporation and the Kerala State Cashew Workers Apex Industrial Co-operative Society Ltd,  submitted before Kerala High Court that the reconstitution  of the board and the removal of the managing director were  needed for the revival of the corporation.

Stressing the need to relook the working model of the KSCDC and CAPEX,  the  committee concluded that their long-term prospects were extremely grim.

The committee  suggested formation of   proper audit  and  professional marketing teams, employing staff with multi-tasking capabilities, reduction of work days and  export of maximum goods. Mr R. Chandrasekharan is the current chairman while Mr K. A. Retheesh is the MD.

The committee comprised  Sasi Varma, secretary and executive director,  Cashew Export Promotion Council of India, J.J. Ranjith,  deputy general manager finance and chief financial officer, Kerala State Industrial Development Corporation,  and K.S. Rajagopal, joint secretary, department of industries.

A proper concurrent audit team should be appointed to monitor the purchase and sales procedures, fixation of selling prices, maintenance of proper records and to ensure that accounts are properly recorded and timely audited, it said.

While dealing with the purchase of raw cashew nuts,  the terms of contract with regard to payment and delivery should  be ruthlessly followed and the purchase should  be  well-planned.

The committee also made it clear that products should be exported directly so as to avail of export benefits or should be sold locally,   but no advances should  be taken from the prospective buyers.

As domestic demand of high quality kernels is growing  and the brand value of these organisations are very high, they should increasingly concentrate on the domestic market to achieve at least 25 percent added sales in the next three years. Marketing division needs to be set up with professional managers.

The committee also opined that no new recruitment should be permitted in both the organisations. Both KSCDC and CAPEX should attempt work force rationalisation and multi-tasking without which they cannot survive, it said.