Lok Sabha Question No. 202 (STARRED), answered on 2025-03-13
Subject: Crisis in Cashew Industries
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri N K Premachandran

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA STARRED QUESTION NO. *202 TO BE ANSWERED ON 13.03.2025

## CRISIS IN CASHEW INDUSTRIES

## *202.           SHRI N K PREMACHANDRAN:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether the Government proposes to protect the Micro, Small and Medium Enterprises (MSMEs) from the present crisis and if so, the action taken thereon;
- (b) whether  the  Government  proposes  to  implement  any  special  programme  to  save  the  MSME Cashew Industries and if so, the details thereof;
- (c) whether the Government proposes to direct the banks for implementing the decision of the State Level Bankers Committee (SLBC), Kerala to revive the cashew industries which are MSMEs and if so, the action taken thereon;
- (d) whether  it  has  come  to  the  notice  of  the  Government  that  suicide  in  cashew  industry  sector  is increasing due to stringent action of the banks violating the decision of the SLBC and if so, the action taken thereon; and
- (e) whether the Government proposes to implement any special programme for settling the NPA of MSME Cashew Industries and if so, the action taken thereon?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI JITAN RAM MANJHI)

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

## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. 202 FOR 13.03.2025 REGARDING 'CRISIS IN CASHEW INDUSTRIES'.

(a) & (b): With  a  view  to  revitalize  the  cashew  sector  in  Kerala  and  to  protect  the  MSME,  the Government  of  Kerala  constituted  an  Expert  Committee  in  October  2022  to  undertake  a  systematic assessment of the cashew sector. It recommended that the currently functioning private cashew processing units  may  reduce  their  viability  gap  by  taking  advantage  of  four  existing  schemes  viz.  Continued Operation  Linked  Stimulus  Programme;  Women  Friendly  Physically  Infra  Creation/  Upgradation; Modernization/  Upgradation  of  Shelling  Units  and  Scheme  for  Assistance  for  Capital  Grants  for  the Revival of Small and Medium Cashew Units.

Further,  the  Government  of  Kerala  has  introduced  various  schemes to  support the Cashew  sector which  inter  alia  includes,  Entrepreneur  Support  Scheme;  One  Family  One  Enterprises;  Margin  Money Grant  to  Nano  Units;  Scheme  for  Revival  of  MSMEs  with  Stressed  Asset,  Defunct  MSME  Units  & Cashew Processing Units and One-Time Settlement scheme (OTS).

- (c):       The issue of revival of cashew industries which are MSME have been made as special agenda in the State Level Bankers' Committee (SLBC) meeting. In the last meeting held in the month of November 2024, the issue was taken up and all banks were directed to put coordinated efforts for the rejuvenation of cashew sector.  Further,  it  was  decided  to  develop  a  common  Standard  Operating  Procedure  (SOP)  for settling  the  loan  accounts  and  propose  the  extension  date  of  One-Time  Settlement  scheme  (OTS)  till December 2025.
- (d):      As  reported  by  Government  of  Kerala,  five  individuals  associated  with  the  industry  have committed suicide due to overwhelming financial liabilities.
- (e):    The Government of Kerala introduced One-Time Settlement scheme (OTS) for helping the banks reduce  NPA  and  rejuvenate  the  cashew  sector  in  Kerala.    In  the  last  State  Level  Bankers'  Committee (SLBC)  meeting  on  November  24,  it  was  decided  that  banks  will  take  up  the  proposal  of  One-Time Settlement to individual bank boards for approval.

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