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  • Manufacturers for restoration of 5 pc export sop

    Apr 6th, 2015

    The Karnataka Cashew Manufacturers Association (KCMA) has requested the Central government to increase benefits under MEIS scheme for export of cashew kernels to 5 per cent, to support the cashew industry, which has been facing tough competition from neighbouring states.

    In a memorandum submitted to Minister of State for Commerce and Industry Nirmala Sitaraman, Karnataka Cashew Manufacturers Association President Bola Rahul Kamath has said the VKGUY incentives for cashew exports has been reduced from 5 per cent to 2 per cent under MEIS, as per the Foreign Trade Policy announced by the central overnment on Wednesday.

    The memorandum read that the cashew industry has suffered due to increase in labour cost in India and low raw cashew nut production this season due to adverse weather conditions. Indian cashew exporters have been facing major competition from Vietnam and West Africa. India used to be the world’s biggest processor and exporter of cashews.

    But, in the last 5 years, Vietnam and West Africa have rapidly increased their processing capacity and comprehensively overtaken India to become world’s largest exporter of cashew kernels.

    If India looses out totally on cashew exports, thousand of workers may loose employment opportunity in rural India, the memorandum read. The association has also said that in particular, the state of Karnataka has more than 300 cashew processing industries, all of them in the SME sector.

    The state currently has a processing base of about 200,000 metric tonnes of raw cashew nuts per annum. The Industry is directly employing over 50000 women, particularly from the weaker sections of the society, and over 1,25,000 indirectly in rural Karnataka.

    The share of the state in the National exports of cashew has improved from 5 per cent to 20 per cent in the last seven years, the memorandum said The memorandum has also requested the government to support the cashew industry by restoring export incentives at 5 per cent.


    Source: www.deccanherald.com