Cashew growers seek MIP on cashew kernels used in SEZs, EOUs

Elvera Bartels

The Karnataka-based mostly All India Cashew Growers Association (AICGA) has urged the Centre to put into practice least import rate (MIP) on cashew kernels made use of in the models coming less than SEZs (particular financial zones) and EOUs (export-oriented models).

In a memorandum to the Key Minister, the president of AICGA, Nanya Achyutha Moodathaya, mentioned that the members of the association take pleasure in the actions taken by the Authorities in preserving the curiosity of the farmers and the marketplace by employing MIP on cashew kernels, imposing 70 for each cent duty on import of cashew kernels, and the like.

Memorandum demands

The memorandum mentioned the January one notification suspending the license to import shelled cashew was a welcome move that served the marketplace to revamp from the current disaster and the farmers had been also having the benefit. “However, the DGFT has on February fourteen 2020 arrived up with a clarification less than reference over, generating MIP not applicable for models less than SEZ and EOU,” it mentioned.

The memorandum discussed that thanks to minimal raw cashew price ranges and mechanized processing, the cashew kernel price ranges in other countries are much less than the charge rate in India. Nonetheless, thanks to large high quality of nuts and processing in India, Indian cashew kernels enjoy a top quality rate in each domestic and abroad industry.

“When SEZ/EOU are authorized to import cashew kernels at much less than MIP, the minimal high quality / minimal priced cashew kernels (in particular ‘brokens’) so imported are staying sold in the domestic industry less than the pretext of job works and substituted with ‘wholes’ kernels to fulfil the export obligations,” it mentioned.

This lowers the kernel price ranges in India. Even when minimal priced cashew kernels are re-exported from SEZ/EOU as ‘Indian Cashew’, the domestic processing models that can’t contend with them are afflicted and as a result pressured to decrease the raw cashew price ranges they acquire from farmers to contend with SEZ/EOU models in the worldwide industry. This lessens the farmers money greatly, it mentioned.

When the farmers are delighted with the endeavours and commitment of the Authorities to double the money of farmers, such decisions of DGFT will drag them into financial debt pits, it mentioned, and asked for the Key Minister to immediate DGFT to withdraw the over notification.

The association memorandum mentioned that the DGFT should area the import of all forms of processed and semi-processed cashew kernels less than the ‘prohibited’ checklist as a lasting measure to safeguard the curiosity of cashew farmers in India.

It also asked for the Key Minister to enhance the import duty on raw cashew nuts. This will aid cashew farmers to accrue a lot more benefit, the memorandum mentioned.

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