KOLLAM: The private cashew processors are seeking government intervention in curbing the indifferent approach of banks towards the cashew industry. The cashew owners alleged the banks levy huge sums as penalty by verifying the accounts that had already been assessed during the VAT reign. The processors suggest the promotion of the brand ‘Kollam cashew’ and thereby mooting semi mechanisation of cashew factories as a means to revitalise the dying industry. In terms of interest rates, these banks impose exorbitant interest rates upto 18 per cent in case of defaults when the normal rates are fixed at 8 per cent, they alleged.
“Even if higher officers agree for amicable settlement of these issues, the officers at the lower level including the branch manager are adamant on their stands. This is the right time for intervention by the government as the raw cashew prices are at the lowest,” I. Nisamudeen, secretary, federation of cashew owners and exporters told this newspaper. The cashew processors demanded write off on the interest for the last three years and to refund the paid interest as capital for continuing the processing.
The drum roast type of cashew marketed as ‘Kollam cashew’ should be promoted and the industry could be supported with semi mechanisation. Sufficient capital for such modernisation should be given as subsidy by the Central and state governments. The moratorium declared in the cashew sector on proceeding further and initiating coercive actions by the banks against acco-unts declared NPA ended on May 31.
The cashew processers also demand for an extension of the moratorium for another six months. The small scale private cashew processors at the receiving end as some 400 factories in Kollam district remain closed owing to a slew of reasons including high operational costs that end up in accrued loss. Many cashew processors now face revenue recovery procedures by the banks upon default in mortgage payments.
