Lok Sabha Question No. 1335 (UNSTARRED), answered on 2024-12-03
Subject: Crisis in Cashew Industry
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri N K Premachandran

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO.1335

TO BE ANSWERED ON THE 03 rd  DECEMBER, 2024

## IMPACT OF CRISIS IN CASHEW INDUSTRY

1335.  SHRI N K PREMACHANDRAN:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

- (a) whether the Government conducted study regarding the crisis in cashew industry; (b) if so the details of action taken by the Government; (c)  whether  the  Government  proposes  to  initiate  action  to  introduce  a  revival  plan  for cashew industry and if so, the details thereof; (d) whether the Government discussed with Finance Department for introduce a scheme for save the cashew industry in Kerala, if so the details thereof; (e) whether it comes to the notice of the Government that the revival plan approved by the Government of Kerala is not implemented by the banks, if so, the action taken to implement the same; (f)  whether  the  Government  conducted  study  regarding  the  unemployment  and  social
- impact due to closure of cashew industry in Kerala; and
- (g) if so, the details of action taken by the Government to resolve the crisis?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFAREs क ृ िष एवं िकसान कʞाण राǛ मंũी (SHRI BHAGIRATH CHOUDHARY)

- (a)  &  (b):      Yes,  the  Directorate  of  Industries  and  Commerce,  Government  of  Kerala constituted a five member expert committee to sort out various issues and challenges of cashew  industry in Kerala. The  Agricultural  &  Processed  Food  Products  Export Development Authority (APEDA) under Ministry of Commerce has awarded a study to M/S Credit Rating Information Services of India Limited (CRISIL) on ' An Assessment of market for selected value added agriproducts including cashew and interventions for increasing their export'.

(c):  Yes,  the  Directorate  of  Industries  and  Commerce,  Government  of  Kerala  has introduced a scheme for the revival of cashew sector named Revival, Rejuvenation and Resurrection of Cashew sector. The Directorate of Cashewnut and Cocoa Development (DCCD), Kochi, Kerala under Department of Agriculture & Farmers Welfare (DA&FW) is also promoting development of cashew cultivation including promotion of area expansion, enhancing production and productivity by providing support to farmers under the Mission for Integrated Development of Horticulture (MIDH), such as area expansion, rejuvenation of senile plantations, and capacity building for farmers to improve production. The details of assistance given to farmers are at Annexure .

(d) & (e): Yes, the Directorate of Industries and Commerce, Government of Kerala with concurrence of its Finance Department has introduced Scheme for cashew sector and the assistance is given for capital grants and interest subvention to Small and Medium Cashew factory  units.  Their  officers  has  communicated  to  the  banks  for  the  implementation  of Government  schemes.  Further,  APEDA  under  Ministry  of  Commerce  and  Industry  is extending  support  for  export  promotion  in  the  country  including  Kerala  State  for development of export infrastructure, quality development & market development under Agriculture & Processed Food Export Promotion Scheme.

(f) & (g): The expert Committee constituted by the Directorate of Industries and Commerce, Government of  Kerala  has  studied  about  the  unemployment  and  social  impact  due  to closure  of  cashew  industry  in  Kerala  and  introduced  the  One  Time  Settlement  (OTS) scheme for the settlement of financial crisis of the employers.

Annexure

## Cashew development schemes of Directorate of Cashew and Cocoa Development (DCCD) under Mission for Integrated Development of Horticulture (MIDH)

|   Sl. No. | Scheme component                                                                                            | Pattern of assistance                                                                                                                                          |
|-----------|-------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         1 | Establishment of new plantation of cashew (ha) without integration with drip                                | Rs.20,000/ha (40% of the cost) for meeting cost of planting material and cost of INM/IPM in three instalments in the ratio of 60:20:20. (Three year programme) |
|         2 | Establishment of new plantation by replacing senile plantations and replanting with high yielding varieties | Rs.20,000/ha for meeting cost of planting material and cost of INM/IPM in three instalments of 60:20:20                                                        |
|         3 | Establishment of demonstration plots with high density planting with drip Irrigation                        | Maximum 1.125 lakhs/ unit of 1 ha for meeting the cost of inputs (75% of the total cost).                                                                      |
|         4 | Establishment of demonstration plots with high density in cashew                                            | Maximum 0.40 lakhs/ unit of 1 ha for meeting the cost of inputs                                                                                                |
|         5 | Establishment of demonstration plots with high yielding variety in normal density with drip Irrigation      | Maximum 0.75 lakhs/ unit of 1 ha for meeting the cost of inputs                                                                                                |
|         6 | Varietal demonstration with normal density                                                                  | Maximum 0.20 lakhs/ unit of 1 ha for meeting the cost of inputs.                                                                                               |
|         7 | Establishment small cashew nurseries                                                                        | Maximum of 7.50 lakhs for small nursery as a credit linked back ended subsidy. No need of bankable proposal for public institutions                            |
|         8 | Upgradation / modernization of nurseries                                                                    | Modernization/upgradation: Financial assistance subject to a maximum of Rs. 5.00 lakh/nursery.                                                                 |
|         9 | District level seminar                                                                                      | 100% assistance subject to a maximum of Rs.75,000/- per event of 1 day                                                                                         |
|        10 | Cashew fair/day                                                                                             | Maximum of Rs.0.50-3.00 lakh per event                                                                                                                         |
|        11 | Cashew apple utilization training                                                                           | Rs.20,000/- for 1 day training per batch of 25 participants                                                                                                    |
|        12 | Farmers training on cashew production technologies                                                          | Rs.30,000/- for one day training per batch of 50 participants                                                                                                  |
|        13 | Exposure visit                                                                                              | Rs.2.75 lakhs for 7 days visit per batch of 50 farmers                                                                                                         |
|        14 | Primary processing unit in cashew                                                                           | Credit linked back-ended subsidy @ 40% of the capital cost maximum of Rs.10.00 lakhs.                                                                          |

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