As the Kerala state government gears up to impose additional levy to make up the losses incurred in the recent floods, the Cashew industry is likely to be affected by the move.
The Cashew Export Promotion Council of India (CEPCI) has put forward its demand to exempt Cashew industry from imposing the levy in order to support the industry which is already facing crisis.
Currently, some 700 Cashew factories in the private sector remain shut due to financial crunch while 173 of these have been declared as Non-Performing Assets(NPAs) facing recovery procedures.
In the current situation, the Cashew processors in the State could not compete with other State processors owing to huge expenses incurred in Cashew processing in the State. If the Government imposes levy, the products from Kerala will experience a price hike in the public market.
Such a situation will adversely affect the marketing prospects of the products from Kerala which is likely to further deepen the crisis faced by the industry.