Date:02/03/2006 URL: http://www.thehindubusinessline.com/2006/03/02/stories/2006030202611900.htm

Back Cashew industry welcomes proposals

Our Bureau

Mangalore , March 1

Cashew industry in Karnataka has welcomed the proposal of the Union Finance Minister, Mr P. Chidambaram, to include food processing under the priority sector.

Terming it as an encouraging move by the Union Government, Mr K. Prakash Rao, President of the Karnataka Cashew Manufacturers' Association (KCMA), told Business Line that this would help cashew industry a lot.

Stating that cashew sector is poised for growth in Karnataka, he said tax benefits would be an added advantage to cashew industry in such a situation.

On the proposal to set up an empowered group of ministers for the development of industrial clusters in the country, Mr Rao said cashew is one of the ideal industries suited for cluster project. "We can see some initiatives in cashew sector in this regard," he said.

Welcoming the budget proposals, the Chairman of Cashew Export Promotion Council of India (CEPC), Mr Walter D' Souza, said that not much changes have been made in the Budget 2006-07.

Dr N.K. Thingalaya, economist and former Chairman and Managing Director of Syndicate Bank, said that nearly 200 million tonnes of foodgrains are available in India. In such a situation, inclusion of food processing in priority sector was the need of the hour. There is a need to preserve foodgrains at the village levels.