The Karnataka-based mostly All India Cashew Growers Association (AICGA) has urged the Centre to implement minimum import cost (MIP) on cashew kernels made use of in the models coming beneath SEZs (unique financial zones) and EOUs (export-oriented models).

In a memorandum to the Key Minister, the president of AICGA, Nanya Achyutha Moodathaya, mentioned that the members of the association appreciate the actions taken by the Governing administration in safeguarding the desire of the farmers and the industry by employing MIP on cashew kernels, imposing 70 per cent obligation on import of cashew kernels, and the like.

Memorandum demands

The memorandum mentioned the January 1 notification suspending the license to import shelled cashew was a welcome transfer that assisted the industry to revamp from the existing disaster and the farmers were being also obtaining the benefit. “However, the DGFT has on February fourteen 2020 came up with a clarification beneath reference over, earning MIP not applicable for models beneath SEZ and EOU,” it mentioned.

The memorandum explained that thanks to small uncooked cashew costs and mechanized processing, the cashew kernel costs in other nations around the world are significantly less than the expense cost in India. However, thanks to substantial top quality of nuts and processing in India, Indian cashew kernels enjoy a quality cost in equally domestic and abroad market.

“When SEZ/EOU are authorized to import cashew kernels at significantly less than MIP, the small top quality / small priced cashew kernels (primarily ‘brokens’) so imported are becoming bought in the domestic market beneath the pretext of work works and substituted with ‘wholes’ kernels to fulfil the export obligations,” it mentioned.

This lowers the kernel costs in India. Even when small priced cashew kernels are re-exported from SEZ/EOU as ‘Indian Cashew’, the domestic processing models that can’t contend with them are influenced and consequently forced to lower the uncooked cashew costs they get from farmers to contend with SEZ/EOU models in the global market. This reduces the farmers money considerably, it mentioned.

When the farmers are delighted with the efforts and commitment of the Governing administration to double the money of farmers, these decisions of DGFT will drag them into debt pits, it mentioned, and asked for the Key Minister to immediate DGFT to withdraw the over notification.

The association memorandum mentioned that the DGFT really should put the import of all styles of processed and semi-processed cashew kernels beneath the ‘prohibited’ record as a long term measure to guard the desire of cashew farmers in India.

It also asked for the Key Minister to increase the import obligation on uncooked cashew nuts. This will assistance cashew farmers to accrue additional benefit, the memorandum mentioned.