Karnataka cashew industry unhappy over foreign trade policy

MANGALURU, APRIL 2:  

The cashew industry has expressed displeasure over the Foreign Trade Policy 2015-20, which was announced by the Union Commerce Minister, Nirmala Sitharaman, in New Delhi on Wednesday.

B Rahul Kamath, President of Karnataka Cashew Manufacturers’ Association (KCMA), said the Government has reduced incentives available to cashew exports under Chapter 3 of FTP from 5 per cent to 2 per cent. This overnight decrease in incentive scheme will affect the entire cashew industry very severely.

Export trade commitments

Stating that most of the export trade takes place three to six months in advance, he said: “We would have made export commitments factoring 5 per cent benefits under Chapter 3. Overnight reduction in incentives cannot be factored, and exporters stand to lose heavily on the export commitments made by them.”

Stating that Vietnam has already cornered a major share in world cashew trade, he said China is also increasing its cashew processing base. The collapse of cashew industry will have a serious effect on the socio-economic condition of rural areas, he said.

Urging the Government to increase the benefits under MEIS (merchandise export from India scheme) for the export of cashew kernels to 5 per cent from 2 per cent, Kamath said this will go a long way in cherishing the ‘Make in India’ dream. “We will soon regain India’s past glory by being the world’s largest cashew exporter,” he said.

- The Hindu