Business

Council plea to extend yojana scheme to cashew

KOCHI: The Kochi-based Cashew Export Promotion Council of India (CEPCI) has appealed to the Union Ministry of Commerce to extend the benefits of Vishesh Krishi Aur Gram Udyog Yojana (VKGUY) to cashew exports with retrospective effect.

The scheme has been conceived to give a boost to agro products exports.

However, the demand of the council to make cashew eligible for the benefits of this scheme had not been favourably considered.

The cashew exports sector is facing stiff competition from countries like Vietnam besides problems like fall in international prices.

The council sources said that cashew was included in the items eligible for the VKGUY scheme as per notification No. 15(RE-2004)/2004-2009 dated January 4, 2005, with effect from April 1, 2004. However, cashew alone was excluded from the eligibility list as per public notice No. 4(RE-2005)/2004-2009 dated April 27, 2005.

After various representations, the Union government has been kind enough to grant VKGUY benefits for cashew exports between September 1, 2004 and April 26, 2005.

The drop in cashew exports during 2005-06 compared to 2004-05 was mainly due to the sudden withdrawal of VKGUY scheme, sources said.

The VKGUY would have improved the competitiveness of Indian cashews in the world market.

Since India is facing stringent competition from other cashew exporting countries, the council requested the government that VKGUY eligibility for cashew exports, which was withdrawn may be restored for the industry, with retrospective effect, similar to other comparable agricultural products like walnuts.

The council’s efforts and dialogue with the government are at an advanced stage and it is hoped that the scheme will be in place at an early date. Cashewnut Shell Liquid (CNSL), a by-product of the cashew industry, is a versatile raw material with innumerable industrial applications. Cardanol, which is purified and distilled CNSL are also exported from India. Cardanol has been already included in the list of items eligible for VKGUY benefits.

However, CNSL in its natural form has been inadvertently left out. This is purely an agricultural product and no export incentives are available for its exports.

The council said that CNSL in its natural form may be included in the list of items eligible for VKGUY benefits.

CNSL and Cardanol are by-products of cashew processing industry. But to get VKGUY benefit for Cardanol, exporters have to get RCMC from Shellac Export Promotion Council. Since most of the CNSL and Cardanol exporters are Cashew EPC members, obtaining RCMC from Shellac EPC is an extra burden for them.

Hence the council’s request to the Ministry of Commerce to change this clause in the FTP to RCMC from either Cashew EPC or Shellac EPC.

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