Kernel import cost hike may help cashew sector

KOLLAM: Cashew industry sees new rays of hope in the latest foreign trade policy amendment on import of kernels.

The minimum import cost for both broken and whole has been hiked substantially that could prevent flooding of kernels in the local market, which in turn supports the price of domestically processed products.

The minimum import price of broken kernels has been set at Rs 680 from an earlier Rs 288 and whole kernels Rs 720 from Rs 400.

“We welcome the decision by the Union government hiking the minimum import price. It would give a new lease of life to the industry that is facing a crisis,” K. Rajesh, convenor, Kerala Cashew Industry Joint Protest Council, said.

The new amendment is expected to increase the demand for indigenously processed cashew, which in turn increases the processing capacity of cashew. Such a condition also ensures more job days to women who depend upon the industry.

Meanwhile, the entrepreneurs are concerned about the sabotage attempts against the cashew revival package already initiated by the government.

It has been proposed to refinance the private cashew units to revive them.

A total of 111 factories have been identified by an expert committee to provide financial aid. Of these, 30 units got Rs 21 crore in the first phase, which is expected to include more units shortly.

Currently, some 700 cashew factories in the private sector remain shut due to financial crunch while 173 are facing recovery procedures after their bank loans turned non-performing assets (NPA).