Date:06/08/2005 URL: http://www.thehindubusinessline.com/2005/08/06/stories/2005080601221200.htm

Back Efforts on to revive sops for cashew export

G.K. Nair

Kochi , Aug 5

THE cashew industry is exploring all options, including legal, against the Union Commerce Ministry's decision to withdraw export benefits to cashew under the Vishesh Krishi Upaj Yojana (VKUY).

After the announcement of these benefits to cashew, exports had gone up significantly. "India could get its market share back," industry sources from Kollam told Business Line. The DGFT had included cashew vide Notification No. 15/2004-09 dated January 4, 2005 in the items eligible for benefits under VKUY and then through a subsequent Public Notice excluded export of cashew for benefits under the scheme.

Now, the DGFT has clarified that "export of cashew shall be entitled for Vishesh Krishi Upaj Yojana benefits in respect of exports made between January 4 and April 26 only."

The decision would have a negative impact on the exports of cashew, the sources said.

Meanwhile, exports of cashew kernels during the first quarter of the current fiscal have gone up by Rs 192.81crore compared with the same period last year.

During the period, exports stood at 32,325 tonnes, valued at Rs 735.14 crore, against 28,858 tonnes, worth Rs 542.33 crore earlier, according to Cashew Export Promotion Council of India (CEPC) sources.

Similarly, imports of raw cashew nuts increased substantially during the quarter to 1,55,640 tonnes valued at Rs 608.20 crore from 1,22,498 tonnes worth Rs 379.19 crore earlier.

According to the industry sources, the price of cashew kernels in the domestic and international markets has dropped in recent weeks due to over supply mainly from public sector processors.

Added to this, there has been an increase in imports of raw nuts, they said.

Cashew kernel price has dropped to $2.20-2.30 a pound against $4 for almonds.

However, "it is a temporary phenomenon," they added.