With an increased outlay of ₹135 crore and steps to support to private processors, the State Budget definitely brings in some cheer to the crisis-hit cashew sector.
The allocation is expected to fuel an intensive drive to revive the industry and reopen nearly 500 factories that had downed their shutters due to heavy losses. While ₹20 crore has been set aside as compensation for the owners of the factories that were taken over in 1970s, ₹20 crore has been earmarked as interest subsidy.
Private processors find launching a special drive to save the industry an appreciable move, something that can restore hope in lakhs of labourers.
“At the same time we need proper intervention as allocation alone can't save the processors. Currently the accounts of nearly 400 processors have been declared NPA and some banks are unwilling to restructure them,” says K. Rajesh, president, Cashew Industry Protection Council.
The last two Budgets had set aside ₹45 crore for arranging interest-free loans, a first-time subsidy introduced to help the ailing sector. “But in order to help processors restart operations, the government should ensure moratoriums and restructuring of loans,” says Nizamudeen I., president, Federation of Cashew Processors and Exporters.
While ₹20 crore will go into clearing gratuity arrears, the public sector factories have been allocated ₹20 crore for modernisation. Since ensuring the supply of raw cashew nut is crucial in keeping the industry afloat, ₹5 crore has been set aside for promoting cashew cultivation.
“Though the Budget points out the increase in working days provided by Kerala State Cashew Development Corporation (KSCDC) and Kerala State Cashew Workers Apex Industrial Cooperative Society (Capex), the allocations for gratuity arrears and renovating the factories of KSCDC and Capex are not adequate,” says KSCDC chairman S. Jayamohan.
Meanwhile, a major glitch comes in the form of a substantial allocation for Cashew Board among allegations of non-performance and corruption. A body constituted to procure RCN directly from cashew exporting countries, there has been widespread resentment among various stakeholders regarding the functioning of the Board. Of late, the Board has been facing many serious allegations including the purchase low-quality RCN from agents for KSCDC and Capex.
