KOLLAM: The Kerala State Cashew Development Corporation (KSCDC) is planning to sign a bilateral agreement with African countries to address the shortage of raw cashew in Kerala, as it looks to revive the struggling sector. The deal will allow KSCDC to purchase cashew plantations in the countries.
“Shortage of raw materials in Kerala is our biggest problem. Almost all cashew plantations have either shut down or did not produce enough cashews. Once the bilateral agreement is signed, KSCDC can purchase cashew plantations in African countries, allowing us to provide cashews to private industries at competitive rates,” said Rajesh Ramakrishnan, KSCDC MD.
Meanwhile, the industries department is planning to introduce mechanisation to increase production and profits. Also, as part of the recently announced Rs 37-crore package, private processors were given the offer to close their loans by paying 50% of the principal amount.
“At present, the government has taken up the responsibility of providing Provident Fund (PF) and Employees State Insurance (ESI) contributions for labourers in private factories. This is the first time a government has offered such an assistance in the private sector, with the aim of sustaining the industry and protecting labourers. This support was part of the `37-crore package,” said K A Maniram, a senior official of the industries department.
Private cashew owners see the agreement as a positive step, but have urged officials to sell raw cashew at competitive prices. K Rajesh, founder of Cashew Industry Protection Council, said, “If KSCDC is able to sell raw cashews at a competitive price, it is a good move. Since the price of raw cashew depends on the season, the overall benefit will be clearer only after the deal.”