SRIKAKULAM: Several cashews producing units in the district have stopped production for the past 10 days, thanks to a steep drop in price triggered by the effect of unseasonal rains on the crop. As a result, over 30,000 workers have lost their jobs in Uddanam area, which has around 3,000 cashew factories.
Merchants, keeping in view the low yield, have imported the nut from South Africa to meet demand, but the stocks which arrived in Visakhapatnam several days back remain locked as the traders are yet to pay taxes.
“The cashew yield in Uddanam region has declined mainly because of unscientific procedures employed in cultivation,” said Malla Rameswara Rao, leader of Palasa Cashew Production Association. The low yield, in turn, has caused the cost of raw materials to spike. An 80-kg bag which could be procured for Rs 10,000 until a few days back now goes for Rs 12,600.
“The price of cashew nuts has dropped to Rs 600 per kg from Rs 800 per kg in the national market. We are importing raw materials from South Africa at a cost of Rs 10,500 per 80-kg bag. Though the size of the nut is very small when compared to local varieties, we have no alternative,” he observed.
“Instead of selling the product at a lower price resulting in a loss, we have stopped production,” Rao explained. He added that the tax is collected by local agriculture market committees had created a crisis-like situation and must be stopped.
Cashew crisis
Each worker earns about `500 or more daily. Since production has stopped for the last 10 days, the financial condition of workers has taken a turn for the worse.