Andhra Pradesh

Cashew traders hail decision on export of kernels

The cashew industry in North Andhra has a turnover of ₹100 crore at present.

The cashew industry in North Andhra has a turnover of ₹100 crore at present.  

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The move comes at a time when hundreds of small units have closed their operations in North Andhra

A notice issued by the Directorate General of Foreign Trade suspending the ad-hoc norms approved in July 2018 for the export of cashew kernels (wholes and pieces) against the import of shelled cashew kernels has brought cheer among cashew exporters from North Andhra.

Welcoming the decision, A.P. Cashew Manufacturers’ Association president Phani Raghavalu called the decision a New Year gift from the State government to the cashew industry, at a time when exporters were struggling to overcome a slowdown and recover losses caused by multiple cyclones.

“We are thankful to the DGFT and the Ministry of Commerce and Industry for suspending the ad-hoc norms,” Mr. Raghavulu told The Hindu.

There have been umpteen complaints regarding misuse by some companies who dumped low quality cashew kernels in the country using loopholes and gaps in the system, forcing processors to suffer huge losses.

North Andhra, comprising Visakhapatnam, Srikakulam and Vizianagaram districts, has nearly 800 processing units of which over half closed their operations due to heavy losses. Many are operating by drastically reducing production. The turnover in the region is estimated to be over ₹100 crore.

Some companies allegedly misused norms by dumping broken cashews in the domestic market, bringing prices down by ₹150 to ₹200 per kg. “This affected small processors hugely who are entirely dependent on domestic markets for their production. Our State has over 650 units which come under micro and medium enterprises. As a result of losses, many units were shut down,” Mr. Raghavalu said.

APCMA vice-president Vasu said that the notice has brought hope to crisis-hit cashew farmers and processors.

Over 300 processing units in Srikakulam had come under huge pressure due to the market fluctuation following dumping of low quality cashew kernel into the domestic market by some big players, according to Malla Kantaro of Kannan Cashews.

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Printable version | Jan 24, 2020 6:56:04 AM | https://www.thehindu.com/news/national/andhra-pradesh/cashew-traders-hail-decision-on-export-of-kernels/article30537944.ece

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