Cashew entrepreneurs, workers go on protest path

Kollam: The Kerala cashew industry joint protest council on Tuesday conducted a march and sit-in protest in front of the RBI and Secretariat in Thiruvananthapuram raising various demands to revive the sinking industry.

Some 500 cashew entrepreneurs and 2,000 women cashew workers took part in the protest march which was inaugurated by K. Muraleedharan, MLA.

As the moratorium declared on revenue recovery in the cashew sector ended on August 31, some 160 entrepreneurs are in trouble as their endeavours have been declared non-performing asset (NPA) by the financiers. Around 700 out of 834 registered cashew factories are closed due to huge operational costs that eventually led to accrued loss of these firms. The cashew workers submitted memorandums to the RBI governor and chief minister raising their demands.

The cashew owners raised their demand to protect some 3.5 lakh employees depending on the industry. They also pointed out declaring it to be a sick industry could help it recover with additional supply of funds. The entrepreneurs have demanded the Government to arrange moratorium for bank liabilities until a revival package is implemented.

The moratorium declared on recovery proceedings against the factories declared as NPAs end on August 31. Some 400 small scale cashew factories in the district remain closed owing to a slew of reasons including high operational costs that end up in accrued loss.

The private owners allege they are denied sufficient timeframe to repay the dues as the debt is listed as non-performing asset soon after the completion of 90 days of non-payment.

At present, the banks charge an interest rate of 9% - 12% from the processors which could be included as a financial package with the intervention of the government.

Proper repayment schedule in long term and availability of new working capital from the banks could save the sinking industry.