Lok Sabha Question No. 408 (STARRED), answered on 2019-07-22
Subject: Assistance to Cashew Industry
Ministry: FINANCE
Asked by: N.K. Premachandran

## GOVERNMENT  OF INDIA MINISTRY OF  FINANCE

ANSWERED  ON-22.07.2019/ASHADHA 31, 1941 (SAKA)

## LOK SABHA STARRED QUESTION NO.*408

## ASSISTANCE  TO CASHEW  INDUSTRY

*408: SHRI N.K. PREMACHANDRAN:

Will  the Minister  of FINANCE  be pleased to state:

- (a)  whether   the  Government   has  noticed   that   cashew   factory   owners   have committed  suicide   due  to  the  action   taken   by   the  banks   against   them,   if  so,  the details  thereof  along  with  the directions  given  to the banks  in this  regard;
- (b) whether  the Union  Government  is considering  the request  of the Government of  Kerala  for  extending   the  support   of  banks   for  the  rejuvenation of  cashew industry,   if  so,  the  details   thereof   and  the  action   taken   by   the  Government   to ensure the support  of the banks;
- (c) whether  the Government  proposes to consider  the relaxation  of the conditions of  the  repayment   of  loan   and  penal   interest   for  the  loan   availed   by   the  cashew industry  so as to save the industry  from the  crisis;  and
- (d) if so, the details  thereof  including  the action  taken  by  the Government  in this regard?

## ANSWER

## THE FINANCE  MINISTER

(SMT. NIRMALA  SITHARAMAN)

- (a) to (d): A statement  is laid  on the Table  of the House.

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Statement  as referred  to in reply  to parts (a) to (d) of Lok Sabha Starred Question no. *408 for  answer on 22 nd  July, 2019/Ashadha  31  (Saka), 1941 regarding 'ASSISTANCE  TO CASHEW  INDUSTRY' by SHRI N.K. PREMACHANDRAN, Hon'ble  Member of Parliament

(a)  to  (d):  As  per  inputs   received   from the  Department   of  Commerce   and  State Level Bankers'  Committee,  Kerala (SLBC),  no instance  of cashew  factory  owners in Kerala committing  suicide  due to action  taken  by  banks  against  them  has been reported  to the Central  Government  or to SLBC by  the Government  of Kerala. The  Department   has  also  informed   that   it  is  in  receipt   of  request   from  the Government  of Kerala for, inter-alia , reduction  of basic custom  duty  on import  of raw cashewnut  and a revival   plan   for  cashew   industry   including   restructuring of bank loans.  The Department  has further  apprised  that  the basic custom  duty  on import   of  raw   cashewnut   has  been  reduced   from 5%  to  2.5%  with   effect  from 2.2.2018.   In  addition,   Reserve   Bank of  India, vide circular   dated  1.1.2019,   has permitted  one-time  restructuring by 31.3.2020,  of such loans of Micro,  Small  and Medium  Enterprises  having  aggregate  exposure  of not more  than  Rs. 25 crore,  that are in default  but 'standard' as  on 1.1.2019.

Further,  as per inputs  received  from SLBC,  the Government  of Kerala has formed a  three-member   Cashew   Revival   Committee   under   the  convenorship   of  Deputy Secretary,   Government   of  Kerala,  Industries   Department   to  assess  financial viability of  cashew   processing   units   so  as  to  examine   feasibility of  any   revival package  submitted  by  the borrower  and to make recommendations to the banks. The committee  has examined  285 cashew  processing  units  and recommended  176 units  for additional  finance/restructuring, and 67 units  for one-time  settlement.  30 units  have been sanctioned  additional  finance  or restructured  by  banks.  SLBC  has further  informed  that  three  Scheduled  Commercial Banks have adopted  a revival scheme for stressed cashew  units  in Kerala, relaxing  conditions  for repayment  of loan and providing  for reversal  of penal  interest.

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