Cashew processing units, which are reeling under severe crisis after the Centre imposed an import duty of 9.36 per cent, have received yet another setback with the domestic consumers increasing the price of the new crop. The situation has forced about 75-80 per cent of the 1,000-odd units in North Andhra to shutdown their operations.
Palasa in Srikakulam is the hub for cashew processing as it has around 600 to 700 units.
The per bag price of raw cashew nuts, each bag containing 80 kg, has been raised from the previous year’s Rs.8,200 to Rs.10,000. “This is mostly influenced because of spread of word that imported cashew nut price has gone up,” finance and marketing head of Arle Cashew Pvt. Ltd Madhav Sure told
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The price of imported raw cashew nuts of lower quality per a bag of 80 kg costs around Rs.9,500. This used to be available for Rs.8,500 before levying import duty.
Almost 70-80 per cent of cashew kernel requirement is met by sourcing it from Tanzania, Ghana, and other East and West African countries.
There is also a shortfall in meeting the domestic requirement from cashew farmers though the crop raised by them is considered of very high quality than the imported raw nuts.
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The yield in North Andhra and other parts lasts for two to three months a year from March-end to first or second week of May. Some of the African countries have also started collecting export duty. This, many fear, may lead to further increase in the prices of overseas raw cashew nuts.
Labour shortage
Industry sources say that the cashew processing units are not only facing the problem of raw material availability but also shortage of labour, hindering their work.
“They prefer to take up work for a few hours and get Rs.160 per day under the Mahatma Gandhi National Rural Employment Guarantee Scheme,” owner of a cashew factory said.