Lok Sabha Question No. 2742 (UNSTARRED), answered on 2025-12-16
Subject: Cashew Industry Crisis
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri N K Premachandran

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

## LOK SABHA UNSTARRED QUESTION NO. 2742 ANSWERED ON 16/12/2025

## CASHEW INDUSTRY CRISIS

## 2742.   SHRI N K PREMACHANDRAN:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) whether the Government proposes to protect the cashew industry from crisis, if so, the details thereof along with the action taken thereon;
- (b) whether  the  Government  initiate  action  to  give  directions  to  the  bank  for implementing  the  revival  package  declared  by  Government  of  Kerala  after discussion  with  banks  and  stake  holders  of  cashew  industry,  if  so,  the  details thereof along with the action taken thereon;
- (c) whether the State Bank of India is exempted from implementing the decisions for revival of cashew industries, if so, the details thereof;
- (d) whether  the  Government  initiate  action  against  the  SBI  for  its  violation  in implementing the decisions taken in high level meeting for the revival of cashew industries, if so, the details thereof along with the action taken thereon; and
- (e) whether the Government proposes to give strict direction to SBI to implement the package declared for the revival of cashew industries, if so, the details thereof?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

(a) to (e) : The Department of Commerce through the Agricultural and Processed Foods Export Development Authority (APEDA) provides financial assistance for export promotion of  its  Scheduled  products  through  its  Financial  Assistance  Scheme  (FAS),  in  three components: (i) Development of Export Infrastructure, (ii) Quality Development, (iii) Market Development. Scheme guidelines are available at https://apeda.gov.in/FinancialAssistanceSchemes. APEDA  invited proposals from the cashew processing units for development of export infrastructure and received a total of 12 applications,  out  of  which  9  applicants  were  granted  In-Principle  Approvals  (IPAs)  for financial assistance of Rs. 5.33 crores.

Further, the State Level Bankers' Committee (SLBC) Kerala has proactively collaborated with the Kerala State Government to support and protect the cashew sector. The SLBC Kerala, in coordination with the Cashew Revival Committee, agreed to a special One-Time Settlement (OTS) scheme for the sector, which was formalized by the Government. The scheme offers substantial relief, stipulating that units with exposure up to ₹2 crores may be settled at 50% of the base amount, and units with exposure above ₹2 crores may be settled

at 60% of the base amount. The scheme's timeline has been repeatedly extended through Government orders, with ongoing support.

No provision of exempting any member bank from considering and acting upon the revival decisions has been submitted to the SLBC. However, the final adoption of the special Stateproposed  OTS  scheme,  like  all  credit-related  policies,  is  subject  to  the  approval  of  an individual bank's Board, as banks maintain their own Board-approved policies and pan-India operational frameworks.

Any violation by State Bank of India (SBI) or any other bank is viewed in the context of their operational mandate. The approval and implementation of the State-level revival package are  fundamentally credit  policy  related  matters,  and  as  such,  the  final  implementation authority rests with the respective banks, within the overall regulatory framework of RBI.

As informed by RBI, in a deregulated credit environment, banks have been advised to take credit related decisions, including restructuring related decisions as per their assessment of the viability prospects of the borrower, in terms of the Board approved policy of the bank, subject to the prudential norms issued by Reserve Bank of India contained in the Prudential Framework  for  Resolution  of  Stressed  Assets.  This  is  a  principle-based,  steady  state framework, which provides adequate flexibility to banks to design and implement resolution plans, tailor made to suit the unique requirements of each borrower, including those from the cashew industries.

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