Lok Sabha Question No. 871 (UNSTARRED), answered on 2019-06-26
Subject: Cashew Industry
Ministry: COMMERCE AND INDUSTRY
Asked by: N.K. Premachandran

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 871 TO BE ANSWERED ON  26 th  JUNE, 2019

## CASHEW INDUSTRY

## 871. SHRI N.K. PREMACHANDRAN:

Will  the  Minister  of COMMERCE & INDUSTRY ( वािण᭔य एवं उ᳒ोग मंᮢी ) be pleased to state:

- (a) whether the Government proposes to introduce a comprehensive scheme for the protection of  cashew  industry  and  if  so,  the  details  thereof  along  with  the  action  taken  by  the Government in this regard;
- (b) whether the Government has taken note of the crisis in the cashew industry;
- (c) if so, the details thereof along with the steps taken/being taken by the Government for the protection of cashew industry;
- (d) the details of the action taken by the Government to ensure the supply of raw cashew nuts at a reasonable price;
- (e) whether it has come to the notice of the Government that cashew industries in the State of Kerala have been closed due to the non-availability of raw cashew nuts; and
- (f) if  so,  the  details thereof  and the action taken by the Government to ensure availability of sufficient quantity of raw cashew nuts to these industries?

## ANWSER

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## THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

(a), (b) & (c) : It has come to the notice of the Government that due to supply situation of raw cashew nut in the international market, certain section of the cashew industry is having issues in operation. The Government has no proposal to introduce a comprehensive scheme for protection of cashew industry at present. Government has taken several steps to address the issues in cashew industry.

-  Import  policy  for  cashew  kernel,  broken  (08013210)  and  cashew  kernel,  whole (08013220)    has  been  revised  from  'free'  to  'prohibited'  with  the  condition  that 'import is free if CIF value is above Rs.680/- per kg import of cashew kernel, broken (08013210)'  and  'import is free if CIF value is above Rs.720/- per kg import cashew kernel, whole (08013220)' vide DGFT notification dated 12.06.2019.
-  Basic Custom Duty on import of raw cashew nut has been reduced  from 5% to 2.5% w.e.f 01.02.2018.
-  Goods and Service Tax (GST) has been reduced to 5% from 12% for Cashew nuts.
-  Under Mid Term Review of Foreign Trade Policy (FTP), Merchandise Export from India Scheme (MEIS) for cashew was increased to 5% (from 3%) for  cashew kernel and 7% (from 5%) for salted/roasted  cashew, respectively.
-  The Standard Inputs Output Norms (SION) was revised to  1 kg kernel from  5.04 kg of raw cashew nuts as against earlier norms of 1 kg from 4 kg of raw cashew nut for export of Cashew  Kernel, from imported raw cashew nut under Advance Authorization Scheme.
-  Approved Medium Term Framework (2017-2020) Scheme for Process Mechanization and Automation of Cashew Processing Units with financial outlay of Rs.60.00  crore.    A  sum  of    Rs.5.00  crore  has  been  released  to  Cashew  Export Promotion Council till March,2019  as grant-in-aid under MTF (2017-20).
-  Duty  free  import  of  raw  cashewnuts  is  allowed  under  Duty  Free  Tariff  Preference (DFTP) Scheme from Least Developed Countries ( LDCs).
-  Extended financial assistance to Cashew Export Promotion Council of India (CEPCI) for organizing Buyer Seller Meet (BSM) and participation in International fair under Market Access Initiative (MAI) scheme, in order to tap new markets and Branding.

(d)  &  (f)  Indian  cashew  industry  is  heavily  dependent  on  the  imported  raw  cashewnuts (about 50% of requirement) for fulfilling domestic and export demand for cashew kernels. Department of Agriculture, Cooperation and Farmer's Welfare (DAC&FW), under Mission for  Integrated  Development  of  Horticulture  (MIDH)  and  Rashtriya  Krishi  Vikas  Yojana (RKVY),   has  drawn  up  strategies  to  increase  domestic  production  by  massive  area expansion of cashew and replacing of senile cashew  plantations with high yielding varieties in traditional and non-traditional states. DAC&FW has approved the roadmap programme of Directorate of Cashewnut & Cocoa Development (DCCD) to extend the area of cashew cultivation    by  1.20  lakh  hectare.    Production  of  raw  cashew  nut  during  2017-18  has increased by 4.83 % to 8,17,045 Metric Tons as compared to  production of 7,79,335 Metric Tons during 2016-17 and 21.89%  increase compared to the production of 6,70,300 Metric Tons during 2015-16 .

(e)      No, Sir. The Government has no information regarding closure of cashew industry due to non-availability of raw cashew nut.

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