Kerala package for cashew processors

The Kerala government has announced a loan relief package for cashew processing units. The largely small-scale sector has been facing heavy loss and debt. A total of 111 units will get additional loan through the package, says the government.

However, the Kerala Cashew Industry Joint Protest Council (KCIPC) says the action is not enough and only around 30 units would be benefiting. And, that banks are proceeding with attachment of defaulter properties and auction, despite the dire situation.

It says over 700 of the 865 cashew factories in the state have closed, rendering 250,000 of the 300,000 workers jobless. These units produced around 85 per cent of the country's cashew kernels a decade earlier.

KCIPC is a council of four bodies — Federation of Cashew Processors and Exporters, Kerala Cashew Processors, Kollam Cashew Processors & Exporters and Kollam Cashew Guild.

Overall debt of cashew units in the state to banks is ~500-800 crore. The industry wants banks to provide more loans on the security earlier provided, not ask for more. Rajesh K, convener of KCIPC, says 40-50 per cent of the value of the security is provided as loan, not more. For additional working capital to restart operations at closed units, the Council wants that they be offered at least 90 per cent of the value.

Rajesh says at least three cashew unit owners have committed suicide so far and eight others have tried to do so.