Higher input cost to cut margins of cashew processors: CRISIL SME tracker

CRISIL expects a sharp increase in raw material prices to impact the profitability of small and medium enterprises (SME) in cashew processing in the current fiscal year. 

The increase in costs is due to a hike in import duty on raw cashew kernels from 45 per cent to 70 per cent, in the Union Budget for 2019-20.

The government raised the import duty to provide relief to domestic cashew growers who were impacted, as kernel prices quoted 10 per cent lower year-on-year in fiscal 2019, amid a supply glut stemming from a 29 per cent increase in imports. 

About 50-55 per cent of