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Cashew processing capacity at Palasa in Srikakulam district, has more than doubled over the last three years on the back new plants and mechanisation of the existing ones.
As of now, there are 250 units operating in Palasa and Kasibugga from around 210 processing units some three years ago. Besides, about 65 per cent of the existing units had become fully automated leading to an increase in the capacity, said Malla Srinivasa Rao, president, Palasa Cashew Manufacturers Association.
The processing capacity has increased to 500-550 tonne a day from about 250 tonne three years ago, he added. Each unit has seen an investment of Rs 15-20 lakh in mechanisation. For instance, a labour used to process 10 kg nuts in 8 hours earlier, but post mechanisation, about 100 kg nuts could be processed in just one hour. The news ones are small and medium scale units, he said.
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Meanwhile, the Palasa Cashew Manufacturers Association has decided to stop processing operations from April 1 as the labourers are demanding a wage hike, Rao said.
According to him, in April last year, the wage was increased 32 per cent for women workers and 20 per cent for men. Of the total 10,000 direct employees in the Palasa cashew industry around 90 per cent comprises women workers and they get around Rs 300 a day. “The workers are now demanding a 75 per cent hike for the next two years. This is not agreeable to our association, hence we have decided to close the units from April 1 till the new wages are finalised,” he added.
