Cashew association moots clusters to revive business

KOLLAM:  The Kollam cashew manufacturers and exporters’ association has proposed to form clusters among cashew factories to revive the industry and rehabilitate the workers.  The plan is  to initially form a group of clusters under the cluster development programme of the ministry of MSME and to be managed by a consortium.

The exporters also expect  the announcement of a package by the central government based on the meeting between Chief Minister Pinarayi Vijayan and  Prime Minister Narendra Modi  in Delhi last month. The association’s proposal  is to initially form a group of clusters comprising  10-15 units in each cluster based on the proximity between the units.  About 50 such clusters would have to be formed to accommodate more than 600 cashew units  under the cluster development programme.

These clusters would be managed and controlled by a consortium proposed to be formed under the industrial upgradation scheme under the department of industrial promotion policy under the ministry of commerce with representation from the cashew clusters, cashew association, state government and the representatives from the banking sector. According to the association, out of the 680 cashew industries not functioning now,   658  had  closed down during the past one year, mainly due to the action initiated by banks. Out of 792 cashew factories, only 112  are  still working.