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Cashew is Suffering from Over Investment

This entry was posted on Sunday, February 18th, 2018 and is filed under Cashew, Cashew Market, Cashew News, Cashew Prices.

Government of India fully supported the cashew industry by fixing only 5% GST. There is no interstate tax in the GST regime nor VAT like separate state level additions. Interest rate has also comedown.

Even then, the industry is collapsing on account of over investment. Available raw material fulfills only 50% of the installed capacity and even this 50% has only a seasonal market. When the seasonal demand ends, prices move 10 – 15% below the cost of production.  

Over investment is itself a trap on raw cashew importers. This trap compels them to give advances to unknown entities, compels to make one sided contracts, compels to believe bullish rumors and also compels to take the delivery of highly poor quality nuts. 

– When there are already govt supported agencies to look after the cashew sector, what should be the duty of the ‘Cashew Board’ in Kerala?

Both private and public sector should join under the ‘Cashew Board’ to solve all the above problems.

Raw cashew imports in to India needs a regulation about quality, out-turn and contract level conditions.

– This should be the duty of the Cashew Board.

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Filed Under: Cashew, Cashew Market, Cashew News, Cashew Prices