Cashew industry in Kerala expects lifting of curbs to help start processing

Most units will not take in fresh kernels and will only work on partially-processed stocks lying with them

The cashew industry in Kerala, controls about half the trade in the country, says even a partial relaxation may help it complete processing the stock that has been stuck at individual units due to the Covid-19 lockdown. Almost 2,000 individuals from the industry who visited African countries to purchase raw cashew prior to the lockdown announcement, are stuck there and the government should help them, said an industry organisation.

The industry may have lost around Rs 4,000 crore due to the Covid-19 lockdown across the country, said K Rajesh, president of the Cashew Industry Protection Council, Kerala. Around 8,000 tonnes out of a total 10,000 tonnes of demand from Japan is fulfilled by companies in Kerala.

While it would take nine days to process the cashew, a lot of stock has been kept in various stages of process since the lockdown was imposed. The industry not planning to process fresh cashews, but can complete those that were done half way, after assessing whether or not they are usable," he said.

The Union Home Ministry in a new notification on Wednesday, said that industries operating in rural areas, that is, outside the limits of municipal corporations and municipalities, can work after April 20. The state government is discussing measures to allow traditional industries to resume operations amid the lockdown.

"Around Rs 4,000-5,000 crore of business has been lost for the industry in the country, since we were not able to export. If we are not able to take up orders now, we may lose many customers after this," he said.

Kerala contributes 55 per cent of the cashew processing in the country, and mostly uses drum roast units while other states focus on mechanised processing. Some 868 of the country's 1,600 units are in Kerala, he added. The industry in the state has been reeling under a financial crisis in the recent past, with almost 90 per cent of the facilities remaining shut. However, with the financial institutions restructuring loans, almost 300 units had got back to work when the lockdown struck.

The industry imports raw cashew from countries like Togo, Ghana and Ivory Coast, At present, it is the season for purchase from Ivory Coast. At least 1,500 individuals from the industry are stuck in these countries due to the lockdown and the situation in many places is quite bad, said Rajesh. The Council has sought Central government's intervention to bring these employees back to the country.