Cashew processors across the country are up in arms against the 9.36 per cent duty slapped on import of raw cashew nuts in the latest Union Budget. This is the first time that raw cashew has been subjected to import duty. The new duty came into effect from March 1.
In Tamil Nadu, the cashew industry will be on strike on March 7 and 8 and in Andhra Pradesh and Kerala, on March 8. Cashew processors across the country will march to the CEPCI (Cashew Export Promotion Council of India) office here on March 8 to register their protest against the import duty.
In Karnataka, the processors met Chief Minister Siddaramaiah on Sunday and handed over a memorandum. He assured them that he would take up the issue with the Union government. The processors allege that the CEPCI was behind the decision. On Sunday, a delegation of cashew processors here went to the residence of Kollam MP N.K. Premachandran to register their protest against the MP presenting the CEPCI version in Parliament.
Employment
Raw cashew nut imports had been hitherto exempted from import duty on grounds that the cashew industry was providing employment to about 7 lakh women and is the second largest industry in the country providing employment to rural women, after the tea industry.
Processors here said the import duty is yet another burden on the cashew sector in Kerala which had been burdened with a 35 per cent wage hike recently. Now several processors are keeping their factories closed. The new duty will sound the death knell for the century-old cashew industry of the State, they said adding that Mr. Premachandran had been misled by a section of the CEPCI board.
The intention is to eliminate small and medium processors who have started to make a mark in the cashew sector. This is not to the liking of a section which has a traditional sway over the cashew sector, they said. Asked about it, Mr. Premachandran said he had not moved Parliament for imposing a duty, but only wanted measures to prevent unfair trade practices that grip the industry.
