Manufacturing units gradually switching to boiler cooking method.
Cashew manufacturers in Palasa, the largest cashew market in Andhra Pradesh, are gradually switching to boiler cooking from the traditional drum roasting system.
About 200 cashew manufacturing units with a combined processing capacity of 400,000-450,000 tonnes operate at Palasa in Srikakulam district. These units work on the drum roasting system, which causes air pollution.
Over the last three to four years, pollution control officials have been serving notices to processing operators asking them to stop roasting and instead boil cashew nuts. The officials have in the last few months ordered closure of around 124 units.
According to Malla Nooka Raju, former president of the Palasa Cashew Manufacturer Associations, the operators were initially reluctant to switch to boiler cooking as it involved huge investments. Some even shifted base to Orissa, which is about 40 km from Palasa.
However, these operators are now showing interest in changing over to the boiler system, he told Business Standard.
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Each unit requires about Rs 10 lakh for changing the processing method.
“The central government has recently announced a subsidy scheme in this regard under which it is offering Rs 10 lakh to each unit, of which the subsidy component is Rs 2.5 lakh while Rs 7.5 lakh is towards tax concessions,” he said.
About 10 unit operators have availed of government's financial assistance and converted their processing system over the last one-and-a-half months.