SRIKAKULAM: The price slump in the domestic market and surge in input cost for processing cashew nuts has forced the manufacturers in Palasa of Uddanam region to go on a 25-day strike from July 5. With 350-odd cashew units being shut, the livelihoods of over 20,000 workers are at stake.
Palasa Industrial Estate and villages in the vicinity are home to 350 industries that process at least 3,000 bags of raw cashew nuts per day. The humble town is known as the financial capital of Srikakulam district due to the thriving cashew industry that exports nearly two tonnes of processed cashew kernels to Gorakhpur, Indore, Kanpur, Jaipur, and other parts of the country daily.
However, the industry has been facing a challenging time for the past few months due to an increase in power tariffs and labour charges. Cashew nuts imported from Vietnam at a cheaper price are also hurting the manufacturers in Palasa. This has forced the Palasa Cashew Manufacturers’ Association to call for a strike as they are unable to bear the expense of operating the units.
“The rise in imports has resulted in a sudden decline in the price of the commodity to Rs 625 from Rs 800 per kg of the 180-grade variety. As the input cost for processing cashew nuts has increased due to the surge in power tariff and labour charges, we are incurring hefty losses,” Palasa Industrial Estate Cashew Association President M Rameswara Rao lamented.
The imports from Vietnam are cheaper as the availability of raw cashew nuts as well as their processing cost is very low in the South Asian country. Demanding the State government to set up a cashew development board similar to the one in Kerala, Rameswara Rao said the board can then resolve issues related to cashew production and marketing.
Further, the Palasa Industrial Estate Cashew Association president said a meeting will be held on July 15 to discuss with other manufacturers whether or not the strike should be continued till July 30. Meanwhile, the 20,000-strong labour force at these units is preparing ground to protest against the bandh.