KENDRAPARA: Cashew nut production in coastal Kendrapara and nearby areas, despite having prospects for villagers, has not benefitted growers due to the middlemen nexus and absence of a processing unit. Add to it the impact of the pandemic.
Sources said there are over 4,000 farmers who grow nearly 100 quintal cashew in the district annually. But they do not get fair prices for the produce as middlemen procure raw and unprocessed cashew from them at prices way lower than the market price.
They then supply it to processors outside the district. While middlemen procure raw cashew from farmers at Rs 80-Rs 100 a kg, sources said, the processors sell the same at Rs 400-Rs 500 in the market.
A bulk of raw cashews from Kendrapara are processed at units in Ganjam district. With no processing unit in the district, farmers have no option but to turn to middlemen for supplying the raw cashew to processors. As it is, raw cashew fetches lower rates while the processed nut has high returns.
Secretary of district unit of Krusaka Sabha, Madhab Das said some processors have entrusted middlemen to buy and supply raw cashew from far-flung areas. The middlemen buy a significant portion of raw cashew nuts from farmers paying only Rs 80 to Rs 100 per kg. Whereas, after processing, the processors sell a kg of cashew nuts for Rs 400 to Rs 500 in the markets,” he said. The scenario has only worsened with the lockdown restrictions since last year.
“We used to supply raw cashew nuts directly to some processing plants in Puri and Ganjam district . But the lockdown has forced us to depend on middlemen,” said Randhir Haldar, a farmer of Ramnagar village. Another Naveen Mandal, a cashew nut farmer of Petachela village claimed the cashew nut market is now being controlled by brokers which is putting them at a disadvantage.
The exploitative situation has forced many farmers to abandon cashew nut farming which is otherwise a lucrative venture specially in coastal areas.
Assistant director of Horticulture department in Kendrapara, Kanda Jena said the department under MGNREGS has provided financial help to around 200 cashew nut growers encouraging them to cultivate the seed over 30 hectares of land within three years in the district.
“The Odisha State Cashew Development Corporation (OSCDC) and the Horticulture department are not controlling the prices of cashew nuts. We provide cashew saplings to the farmers. The main objectives of OSCDC and Horticulture are to develop land and raise cashew plantations and other suitable species in the State besides providing fertilizers, manures, dips, spray, disinfectants, fungicides, insecticides etc,” he said, adding that the government has no policy regarding minimum support price (MSP) of cashew nuts.
Contacted, OSCDC chairman Amarendra Das said “ We are determined to provide proper price to farmers for raw cashew nuts. The government has no cashew processing plant in the state though some private players are running units in the state. The state government is encouraging people to establish cashew processing plants in the state for which more businessmen should come forward for the benefits of farmers”.