Nation Current Affairs 17 Jan 2019 Kerala: Additional c ...

Kerala: Additional cess a blow to cashew industry

DECCAN CHRONICLE.
Published Jan 17, 2019, 2:53 am IST
Updated Jan 17, 2019, 2:53 am IST
Some 700 cashew factories in the private sector remain shut due to financial crunch.
Currently, some 700 cashew factories in the private sector remain shut due to financial crunch while 173 of these have been declared NPAs facing recovery procedures.
 Currently, some 700 cashew factories in the private sector remain shut due to financial crunch while 173 of these have been declared NPAs facing recovery procedures.

Kollam: The additional cess to be imposed by State Government is likely to affect the cashew industry in the State. As many as 174 cashew processors have been declared Non-Performing Assets(NPAs), despite revival attempts by the Government.

As the State Government gears up to impose additional cess to make up the losses incurred in the recent floods, the cashew industry is likely to be affected by the move. The Cashew Export Promotion Council of India (CEPCI) has put forward its demand to exempt cashew industry from imposing the cess in order to support the industry which is already facing crisis.

 

Currently, some 700 cashew factories in the private sector remain shut due to financial crunch while 173 of these have been declared NPAs facing recovery procedures.

"In the current situation, the cashew processors in the State could not compete with other State processors owing to huge expenses incurred in cashew processing in the State. If the Government imposes cess, the products from Kerala will experience a price hike in the public market," said CEPCI chairman R.K. Bhoodes. Such a situation will adversely affect the marketing prospects of the products from Kerala which is likely to further deepen the crisis faced by the industry, Mr. Bhoodes added.

Some 2.5 lakh cashew employees are either completely jobless or just part-time job workers after the crisis has gripped the industry. They are also deprived of social security benefits including the provident fund and employees' state insurance as the employees lack mandatory working days.

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