Karnataka’s cashew industry seeks relief measures to deal with pandemic impact

To help cope with the coronavirus outbreak and subsequent lockdown, the cashew market in Karnataka

To help cope with the coronavirus outbreak and subsequent lockdown, the cashew market in Karnataka has sought aid steps from the Point out federal government.

Terming the cashew market a highly labour intense just one, Subraya Pai, President of the Karnataka Cashew Manufacturers’ Affiliation (KCMA), instructed BusinessLine that cashew manufacturing units in the Point out employ about 60,000 women of all ages straight in the factories and an additional 40,000 in the farm and its price chain.

Covid-19 has wholly thrown the market out of equipment and will jeopardise the employment of these women of all ages, many of whom are their families’ bread-winners, he claimed.

The KCMA has created to the Karnataka Agriculture and Horticulture Secretary, seeking aid steps, he included.

The cashew makers will discover it complicated to shell out typical wages less than the present conditions, claimed Pai. ESI Company has not been very successful for most staff so considerably, he included. It has a enormous corpus crafted over the a long time, he noted, requesting the federal government to immediate ESI to shell out the income/wages during the lockdown period of time.

Subsidy launch

A lot of cashew makers had sought incentives from the federal government less than the Agribusiness Policy for agro-processing industries, claimed Pai. Stating that the sanctioned subsidy for the sector has not been launched considering that 2017, he asked for the federal government to do so now to help deal with the liquidity crisis. “This will deliver a big aid to the market to tide over its liquidity issue to some extent,” he claimed.

The uncooked product getting seasonal, the market is expected to invest in sufficient uncooked cashewnuts to method round the calendar year. This demands it to have a enormous functioning funds for procurement.

The Karnataka federal government collects a very significant stamp obligation for both hypothecation and equitable home finance loan, earning bank funding very high priced for makers, claimed Pai. He asked for the State’s Agriculture and Horticulture Secretary to consider up the challenge with the Finance Department to minimize the stamp obligation.

While cashew is a horticulture make, the Karnataka Agricultural Create Promoting Act has included it less than agricultural make and notified it in the routine of the Karnataka Agricultural Create Promoting (Regulation) Act, 1966. The regulation of this commodity has challenging its promoting, which expenses the farmer one.five for each cent of its price, claimed Pai. He asked for the federal government to de-notify uncooked cashewnuts from the Schedule of the Act.