SRIKAKULAM: The West Asia conflict has cast its spell on the cashew processing industry in Palasa with exports coming to a grinding halt forcing the shut-down of processing units.
Palasa has about 300 cashew industries and 500 tons of raw cashew nuts are being processed per day. About 125 tons of processed cashew nuts are being exported to Gorakhpur, Indore, Kanpur, Jaypore, Pakistan, Bangladesh and Afghanistan and other parts of the world per day with over 20,000 people working in the industry.
The industry is heavily dependent on imported raw cashew nuts (RCN) mainly from African countries including Ghana, Ivory Coast, Benin, Tanzania and Indonesia.
The shipping companies have increased the freight charges as the freight routes passing through key shipping lanes have become uncertain. The shipping rates have surged by over 200 per cent as several African countries have imposed temporary export bans, leading to a shortage of raw materials.
Speaking to TNIE, the Palasa Cashew Manufacturers’ Association (PCMA) Malla Srinivasa Rao said, “The ongoing conflict in the Middle East has dealt a massive blow to the Palasa cashew industry. The exports of processed cashew were frozen and the imports of raw cashew nuts from several African countries were stalled.
Ramzan month is a good season to sell our produce. Now, the cashew produce from Kerala and Karnataka is forced to sell in the Indian market at lower price due to ban on exports. Therefore, the demand for Palasa cashew has declined and the rate also drastically dropped. We are in a precarious position.