[India]: Hike in customs duty will support Goan cashew growers

July 06, 2019

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PANAJI: Finance minister Nirmala Sitharaman’s move to hike customs duty on cashew kernels has brought cheer to Goa’s cashew processing industry. 

Such a move could put curbs on the low-quality cashew kernel shipments from Africa and ASEAN countries, they said. 

Every year 10-12 thousand tonnes of raw cashew is processed in Goa yielding around Rs 350 crore for Goan cashew farmers. 

The Centre’s decision will protect domestic cashew growers as it will make cashew imports expensive. 

“This is what was requested by our industry and the government recognized them. It will help employment and farmers. Indian farmers will get better prices as higher price for cashew kernels will result in higher price for raw cashew in Goa,” said secretary of Goa Cashew Processors association Rohit Zantye. 

Stakeholders observed that African and ASEAN countries had begun to dump cheap and low-quality nuts into India and this in turn had impacted local production. 

Cashew kernels from Vietnam, Mozambique, Ivory Coast are currently imported on a massive scale causing cashew kernel prices to come down by 30% in India, an industry representative said. 

India currently produces 3.5 lakh tonnes of cashew kernels. The cashew processing industry in Goa comprises about 30-odd units, equally divided between large units and small units. 

While there are a few cashew nut exporters like Ajanta Industries and Zantye Cashew, most established processing units prefer to cater to the domestic market. 

Goa processes between 10,000 to 12,000 tonnes of cashew nuts per year, and the shortfall is made up through raw cashew imports from Indonesia, Tanzania and other African countries. 

“From Goa’s perspective, the customs duty on cashew kernels has increased. This will help the Goan cashew growers. The imported cashew kernels will come at a higher price,” said president of Goa Chamber of Commerce and Industry Manoj Caculo. 

Cashew processing plants, largely situated in Goa’s hinterland, provide employment in the rural parts of Goa. 

TNN

Source: Times of India