Cashew growers seek MIP on cashew kernels used in SEZs, EOUs

The Karnataka-dependent All India Cashew Growers Affiliation (AICGA) has urged the Centre to put into

The Karnataka-dependent All India Cashew Growers Affiliation (AICGA) has urged the Centre to put into action minimum amount import price tag (MIP) on cashew kernels applied in the models coming less than SEZs (particular economic zones) and EOUs (export-oriented models).

In a memorandum to the Prime Minister, the president of AICGA, Nanya Achyutha Moodathaya, said that the customers of the affiliation appreciate the actions taken by the Federal government in preserving the fascination of the farmers and the business by applying MIP on cashew kernels, imposing 70 for every cent obligation on import of cashew kernels, and the like.

Memorandum calls for

The memorandum said the January one notification suspending the license to import shelled cashew was a welcome transfer that aided the business to revamp from the latest disaster and the farmers ended up also finding the gain. “However, the DGFT has on February 14 2020 arrived up with a clarification less than reference over, earning MIP not applicable for models less than SEZ and EOU,” it said.

The memorandum stated that thanks to low raw cashew costs and mechanized processing, the cashew kernel costs in other nations around the world are much less than the price price tag in India. On the other hand, thanks to significant excellent of nuts and processing in India, Indian cashew kernels get pleasure from a quality price tag in the two domestic and abroad market place.

“When SEZ/EOU are authorized to import cashew kernels at much less than MIP, the low excellent / low priced cashew kernels (especially ‘brokens’) so imported are getting sold in the domestic market place less than the pretext of position operates and substituted with ‘wholes’ kernels to fulfil the export obligations,” it said.

This lowers the kernel costs in India. Even when low priced cashew kernels are re-exported from SEZ/EOU as ‘Indian Cashew’, the domestic processing models that are unable to compete with them are impacted and that’s why compelled to lower the raw cashew costs they acquire from farmers to compete with SEZ/EOU models in the global market place. This lowers the farmers income considerably, it said.

When the farmers are delighted with the attempts and commitment of the Federal government to double the income of farmers, this kind of selections of DGFT will drag them into debt pits, it said, and requested the Prime Minister to direct DGFT to withdraw the over notification.

The affiliation memorandum said that the DGFT should put the import of all sorts of processed and semi-processed cashew kernels less than the ‘prohibited’ list as a long-lasting evaluate to shield the fascination of cashew farmers in India.

It also requested the Prime Minister to enhance the import obligation on raw cashew nuts. This will assistance cashew farmers to accrue additional gain, the memorandum said.