With COVID-19 intensifying the crisis in the cashew sector, a factory owner based at Nallila ended his life on Thursday.
The deceased was identified as Simon, 40 , owner of Nirmalamatha Factory. He is the fourth cashew processor to commit suicide in the past couple of years.
His friends said Simon was under pressure as he had mortgaged his house and factory and the loan moratorium would end next month.
“With the industry at a standstill for the past few months, he was left with no option to repay the ₹4-crore loan. He was worried that banks will soon initiate recovery procedures and attach his properties,” said Nizamudeen I., president, Federation of Cashew Processors and Exporters.
Following the crisis in the sector, many cashew processors are now facing revenue recovery due to default in interest payments. The State government had intervened declaring a moratorium after two processors committed suicide in 2018 when served with Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) notice.
Exports, sales hit
Later, interest-free loans for private processors and provision to restructure their loans were introduced, benefiting many. “Even then many banks refused to cooperate and issue fresh loans. Many processors had incurred huge losses with the pandemic affecting both the export market and domestic sales. The industry is in a deep crisis once again,” Mr. Nizamudeen said.
Meanwhile, Kerala State Cashew Development Corporation chairman S.Jayamohan demanded strict action against bank authorities. He alleged that the Centre was trying to destroy the cashew industry in Kerala by denying loans while promoting the sector in other States.
(Suicide Prevention Helpline: Disha - 1056, 0471-2552056)
