A sharp drop in exports, several processing units shutting shop and lakhs of skilled labourers rendered jobless - the cashew sector has been on a tailspin for some years now. The crippled industry has been struggling hard to cope since 2016 and the crisis assumes even larger proportions post COVID-19.
Though there were signs of revival during the last couple of years, the sector has once again hit a major roadblock. The labour-intensive industry, that used to employ around 3 lakh labourers, is badly in need of emergency relief measures.
“Of late we have seen a drastic fall in fortunes and only a special economic package can keep the industry going. Though our wages seem very reasonable in Kerala, it’s higher compared to other States. At present we are unable to afford it and in order to support the sector, the government can offer a share by integrating the industry with Mahatma Gandhi National Rural Employment Guarantee (MGNREGA) scheme,” says Nizamudeen I., president, Federation of Cashew Processors and Exporters.
The State government had earlier declared a moratorium after a couple of processors committed suicide when slapped with Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) notice. In the last two budgets, interest-free loans for private processors and provision to restructure their loans were also announced.
“There have been several interventions from the part of the government, but the banks have restarted the revenue recovery procedures once again. They are not supportive when it comes to restructuring the loans and many processors will not be able to stay afloat without fresh funding,” he adds.
While almost all government-run factories that come under Kerala State Cashew Workers Apex Industrial Cooperative Society (Capex) and Kerala State Cashew Development Corporation (KSCDC) were recently renovated in an employee-friendly manner, a good percentage of the private units still lack basic amenities.
“Though it's the time for wage revision, many labourers are not even getting the current wage and are forced to work in pathetic conditions. We want the government to ensure rightful minimum wages and take action against processors who deny that. Also, steps should be taken to reopen the factories that have remained closed for several years,” says Savin Sathyn, general secretary, Kerala Kasuvandi Thozhilali Congress.
P.Saraswathy Amma, who won the Thozhilali Sreshta award in the sector, believes that the industry requires a proper revival strategy rather than going for any quick-fix.
“When I started off it was a good option for a person like me, but during the last 10 years the picture turned grim,” she says. Working as a cashew labourer for over two decades, she says both workers and processors are in dire straits.
“We want more working days, but there is no point in pressurising our employers who are also struggling. In my neighbourhood, every family has a cashew worker and we have depended on this industry for long. All we want from the new government is to support the sector and revive its lost glory,” she adds.