Lok Sabha Question No. 76 (STARRED), answered on 2018-07-23
Subject: Cashew Industry
Ministry: COMMERCE AND INDUSTRY
Asked by: N.K. PREMACHANDRAN

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

## LOK SABHA STARRED QUESTION NO. 76 TO BE ANSWERED ON 23 rd  JULY,2018

## CASHEW INDUSTRY

## *76. SHRI N.K. PREMACHANDRAN:

Will the Minister of COMMERCE & INDUSTRY ( वाͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) whether it has come to the notice of the Government that the cashew industry is in crisis and if so, the details thereof along with the action taken by the Government to save the cashew industry;
- (b) whether the Government proposes to change the export-import policy for cashew in the light of the crisis in the said industry and if so, the details of the action taken by the Government in this regard;
- (c) whether it  has also  come to the notice of the Government  that the exporters  who have cleared the import cargo with the help of advance authorisation license as per foreign trade policy are not able to fulfil their export obligations due to the crisis in the cashew industry;
- (d) if so, the details of the action taken by the Government in this regard; and
- (e) the details of the action taken by the Government to sanction the request of cashew industrialists to provide additional time limit of 18 months from the date of expiry of the current period of advance authorisation?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jh lh- vkj- pkS/kjh½

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

- a) to e):  A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 76  FOR ANSWER ON 23 rd  JULY,2018  REGARDING 'CASHEW INDUSTRY'.

- (a)    Cashew Industry  in  india  has  seen  a  positive  growth  in  the  production  of  raw cashew nuts and export of cashew kernnel. Production of Raw Cashew nut during 2016-17 has registered 16% increase to 7,79,335 Metric Tons compared to previous production of  6,70,300 Metric Tons.  Similarly, the export earnings from cashew and allied products during the year 2017-18  has reached at Rs.5903.60 crore (USD 916 million) registering a growth of 13.25% (in rupees terms) over the last year export of Rs.5,212.78 crores (US$ 778 Million).

However, the Government has taken several steps to address the problems faced by some section cashew industry

-  Basic Custom Duty on import of raw  cashew nut has been reduced  from 5% to 2.5% w.e.f 01.02.2018 in the current budget session.
-  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 Incentive  Scheme  (MEIS)  for  cashew  was  increased  to  5%  (from  3%)  for cashew kernel and 7% (from 5%) for cashew nut salted/roasted respectively.
-  Revised Standard Inputs Output Norms (SION) norms for export of Cashew Kernel,  from  import  of   Raw  Cashew  Nut  under  Advance  Authorisation Scheme, to 5.04 kg  from 4 kg.
-  Approved  the  Medium  Term  Framework  (2017-2020)  Scheme  for   Process Mechanization  and  Automation  of  Cashew  Processing  Units  with  financial outlay of Rs. 60 crore.
-  Under  Mission for Integrated  Development of Horticulture (MIDH) and Rashtriya Krishi Vikash Yojana (RKVY), Ministry of Agriculture and Farmer's Welfare (MoAFW) 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. Some  of  the  key  initiatives  are  New  plantation  Development  programme, replanting  programme of   cashew, technology  dissemination and  transfer of technology programme etc.
- b) No Madam. The Government has no such proposal at present.
- c & d)  No Madam, such incident has not been reported to the Government.
- e) The Government has not received any request from the cashew industrialists to  provide additional time limit of 18 months of export obligation period over and above the current time limit of 18 months.

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