KOLLAM: The cashew processing industry in the country is facing a dark future after the Central government imposed a 9.36 percent customs duty on raw cashew imports. The cashew processing units are now planning to shift their operations to other countries including those in Africa.
India had exported cashew kernels worth Rs 5,400 crore in 2014-15. The traditional industry is already on the verge of collapse and the new move came as a devastating blow to it.
"Basically it is beneficial for exporters while the local sellers are likely to get hit. The trade deficit has been widening due to unauthorised processing in Kerala. Such operators spend less than half of legal units. They extensively stock imported cashew and create scarcity in the domestic market. They also can stock it for $400 less than established firms. The export deficit has already crossed Rs 1800 crore," Cashew Exports and Promotion Council member R.K. Bhoodesh told DC.
The amount equal to the customs duty could also be given as bank guarantee, which could affect small scale importers. The budget envisages return of money while the imported cashew is later exported after processing.
This will affect a majority of cashew processors in the country who find indigenous market for their processed cashew and not exporting. This will also affect public sector companies like the Kerala State Cashew Development Corporation (KSCDC) and the Capex.
