Lok Sabha Question No. 663 (UNSTARRED), answered on 2020-02-05
Subject: Crisis in 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. 663 TO BE ANSWERED ON 05 th FEBRUARY, 2020

## CRISIS IN CASHEW INDUSTRY

## 663. SHRI N.K. PREMACHANDRAN:

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

- (a) whether Indian cashew industry is in crisis;
- (b) if so, the details of the actions taken for revival of cashew industry;
- (c) whether banks are attaching cashew industry on account of Non Performing Asset (NPA) issue and if so, the details of actions taken thereon;
- (d) whether  the  Government  proposes  to  declare  moratorium  to  the  loans  availed  by  the cashew industry and if so, the details thereof;
- (e) whether the Government proposes to give directions to banks to implement revival package and if so, the details of the actions taken thereon;
- (f) whether cashew workers have lost their employment due to the closing down of cashew industries; and
- (g) if so, the details of actions taken to protect the interest of workers?

## 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. The Government has taken several steps to address the issues affecting cashew industry:

- i. Import Policy for cashew kernels, both whole and broken, has been changed from 'free' to 'prohibited' vide notification dated 12 th 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. 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.
- 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.

(c) to (e): As per the information received from the industry, the banks have been taking action to recover the outstanding loans from the cashew industry. The Cashew Export Promotion Council of India (CEPCI) have submitted a proposal requesting moratorium on the loans availed by the cashew exporters, restructuring of outstanding bank dues and additional funding. Department of Commerce has forwarded the proposal to the Department of Financial Services for their consideration.

(f) & (g): The Department of Commerce has not received any information of cashew workers having lost their employment due to the closing down of cashew industries.

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