KOLLAM: Hundreds of cashew workers and entrepreneurs took out a march here on Monday protesting against the alleged coercive steps adopted by banks, including the State-Level Bankers' Committee (SLBC), against cashew processors despite the directives from the state government.
The march was held from the head post office junction at Chinnakkada to the Federal Bank office near Iron Bridge.
“The banks are raising threats against some three lakh workers depending on the industry and small -scale entrepreneurs who run their business by pledging their assets. The government’s attempts to sustain the industry have not been effective,” said joint protest council state convenor K. Rajesh.
The protesters have threatened to launch a hunger strike by the employees and entrepreneurs if the government did not prevent banks from taking coercive action against loan defaulters. The government had promised to support the private cashew sector by pumping in money and allocated Rs 20 crore in the budget for it.
A committee was formed to scrutinise each account that has been declared as non-performing asset (NPA) and restructure the financial liabilities with the banks. With the banks sabotaging the revival efforts, the entrepreneurs will not get fresh loans as additional working capital to restart the industry.
Some 160 entrepreneurs are in trouble with the declaration of NPA by the banks. Around 700 out of 834 registered cashew factories are closed due to huge operational costs and losses.
