Indian Cashew Sector Needs Tariff On Raw Cashew And Cashew Kernel Imports.

This entry was posted on Wednesday, December 28th, 2011 and is filed under Cashew.

According to our estimates, there is no need to panic over cashew kernel imports as the quantity imported is very small and insignificant. Inventory stock of the Vietnamese industry is almost exhausted and their import commitments are negligible at this stage. Their daily kernel production may be down by 40-50% from normal in the next 14-15 weeks. Even then the Indian Government should’ re-frame its policies’ on raw cashew and cashew kernel imports.

1)There is no Custom duty, no VAT and no APMC Tax on the imported raw cashew nut. But the strange thing is that the Indian grower is suffering because of VAT and APMC Taxes in his own country! So he is not taking much interest in  growing cashew nut. Cashew crop is now vanishing from southern and western parts of India. Heavy Import Tax on raw cashew nut alone can save the Indian cashew grower as well as the Indian cashew sector.

2) Import Tax on kernel imports under the ‘Re-Export’ or ‘Value added Export’ category should be around 30-60%, otherwise all large scale food processors stop their domestic purchases and shift to imports from Vietnam and African countries.

Filed Under: Cashew