Palasa cashew processing units to be upgraded

The Palasa cashew processing units operators have decided to spend close to Rs 5 crore to upgrade their plants to meet the Pollution Control Board norms.

"As the burning of cashewnuts results in severe air pollution, the Pollution Control Board officials have been booking cases against several cashew processing operators in Palasa. To avoid this, our association members have agreed to upgrade the processing units over the next couple of years," Malla Nooka Raju, president of Palasa Cashew Manufacturers Association, told Business Standard.

At present, about 165 cashew processing plants are operating in Palasa, the biggest cashew manufacturing centre in the state, and nearly 30,000 workers are dependent on this industry.

Each unit would invest more than Rs 3 lakh to upgrade the technology. "The board officials have assured us that they will not book any cases against us for at least one year as we have promised to upgrade the technology," Raju said.

Apart from this, the association will also organise several training programmes to spread awareness among the workers on how to reduce air pollution during nuts cooking.

The Palasa cashew processing operators will start the nuts cooking operations from April 15 instead of April 1.

"Initially, we decided to start our operations from April 1 itself because new cashew crop has already started coming into the market. But as the commercial tax officials have not yet clarified our doubts on the new tax system, we have postponed the date to April 15," he said.

Due to value-added tax, cashewnut prices will be increasing abnormally, he added.

"At present, farmers are offering nuts at Rs 3,200 per bag (each bag contains 80 kg), and the price will now increase to Rs 4,000 (inclusive of VAT and transportation costs) to reach the processing plants," he said. Palasa cashew processing units consume 8-10 lakh bags of cashewnuts annually.