Lok Sabha Question No. 2235 (UNSTARRED), answered on 2020-03-04
Subject: Cashew Processing Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: Suresh Kodikunnil

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

## LOK SABHA UNSTARRED QUESTION NO. 2235 TO BE ANSWERED ON 04 th MARCH, 2020

## CASHEW PROCESSING SECTOR

## 2235.  SHRI KODIKUNNIL SURESH:

Will the Minister of COMMERCE & INDUSTRY ( वािण�य एवं उ�ोग मं�ी ) be pleased to state:

- (a) whether the Government is aware of the cashew processing sector experiencing a financial crisis in Kerala;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether the Government has proposed to provide a comprehensive relief package for helping the said employees, who are primarily women, in the cashew industry;
- (d) if so, the details thereof and if not, the reasons therefor;
- (e) whether  the  Government  has  monitored  cashew  factories  that  defaulted  on  their  share  of contribution to the Employees Social Securities; and
- (f) if so, the details thereof and if not, action taken by the Government in this regard?

## ANSWER

## ( ) okf.kT; ,oa m|ksx ea=h Jh ih;w'k xks;y THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

(a) &(b):  It has come to the notice of the Government that due to supply situation of raw cashew nuts in the international market, certain section of the cashew industry is facing some difficulties.

(c) & (d):  The Government has taken several steps to address the issues affecting cashew industry, which will also help the employees working in the cashew industry:

- i. Import Policy for cashew kernels, both whole and broken, has been changed from 'free' to 'prohibited' vide notification dated 12th June 2019 and the imports are allowed only if the CIF value is more than Rs. 680/- per kg for broken and Rs. 720/- per Kg for whole cashew kernel.
- ii. Basic Custom Duty on import of raw cashew nut has been reduced from 5% to 2.5% w.e.f 01.02.2018.
- iii. Goods and Service Tax (GST) for Cashew nuts has been reduced from 12%to 5%.
- iv. In  Mid  Term  Review  of  Foreign  Trade  Policy  (FTP),  the  support  under  the  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.
- v. 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.
- vi. Approved Medium Term Framework (2017-2020) Scheme for Process Mechanization and Automation of Cashew Processing Units with financial outlay of Rs.60.00 crore.
- vii. Duty free import of raw cashewnuts is allowed under Duty Free Tariff Preference (DFTP) Scheme from Least Developed Countries (LDCs).
- viii. 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.

(e) & (f):   Compliance position of the factories/ establishments, which are covered under the ESI Act, 1948, is monitored by the ESI Corporation and action is taken against the defaulter factories/ establishments,  including  cashew  factories,  as  per  provisions  of  the  ESI  Act,  1948.  As  per  the information furnished by the Ministry of Labour& Employment, there are 131 non-compliant cashew factories in Kerala and defaulter action has been initiated in most of the cases.

Employees' Provident Fund Organisation monitors the defaulting establishments through 'Default Management' system on monthly basis.  The Act provides for assessment of dues from defaulting establishments. In respect of 75 defaulting cashew establishments, inquiries have been concluded and an amount of Rs. 206.82 lakhs has been assessed in Kerala.

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