SPV to push Mangalore cashew cluster

Project cost pegged at Rs 30 Cr

The Karnataka Cashew Manufacturers' Association has drawn up a plan to float a special purpose vehicle (SPV) to promote a cashew cluster in Mangalore.

The central government will be approached to contribute about 75 per cent of the equity through grants under the Industrial Infrastructure Upgradation Scheme (IIUS). The balance amount will be borne by the association and individual growers.

A Rs 30 crore project proposal is being formulated to set up this cluster, which will be in the lines of the UNIDO sponsored machine tools cluster at Bangalore.

It is expected that the special purpose vehicle will be ready in one and a half months, said Kalbavi Prakash Rao, president of the Karnataka Cashew Manufacturers' Association.

The SPV will bring cashew research stations, grower bodies and the Karnataka Cashew Manufacturers' Association under one roof. The Karnataka Institute for Cashew Development in Udupi district is being approached to give research strength to the cluster, he added.

Canara Bank, Syndicate Bank, Corporation Bank and Karnataka Bank have shown interest in funding the project as they are active in the cashew growing regions of Karnataka.

The infrastructure work to be taken up by the cluster include setting up of warehouses for cashew kernels and storage and drying facilities for raw cashew nuts.

In addition to strengthening the industry, the association, as part of its agenda to celebrate its 50th anniversary, plans to take steps to boost production of raw cashew nuts.

Currently, there is a huge gap between the supply and demand of raw cashew.

According to M N Pai of Mangalore-based Achal Industries, "Currently, 35,000 tonne is being produced in Karnataka as against the demand for 50,000 to 60,000 tonne. This has sent alarming signals to cashew manufacturers who, in turn, are approaching cashew research stations and the government to take up measures to take up cashew cultivation on a mass scale," he added.

Karnataka has become a big exporter of cashew and cashew kernels in the last three years, said Walter D'Souza, convenor of the committee on agro exports of the Federation of Indian Export Organisations (FIEO).

The Karnataka Cashew Manufactures' Association has 250 cashew units spread across the state, with about 120 located in the Mangalore region alone. This gives critical strength for the cluster's survival, said Rao.

The cluster development method has been suggested for the industry by various banks.

The industry directly employs more than 30,000 workers and almost 95 per cent are women from the weaker sections.

"Through this we can improved the living standards of the rural people coming under the cashew growing regions of Karnataka and elevate their socio-economic status," said Rao.