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

Ali Corbett

The Karnataka-based All India Cashew Growers Association (AICGA) has urged the Centre to apply minimum amount import selling price (MIP) on cashew kernels used in the models coming under SEZs (exclusive financial zones) and EOUs (export-oriented models).

In a memorandum to the Primary Minister, the president of AICGA, Nanya Achyutha Moodathaya, reported that the customers of the affiliation enjoy the measures taken by the Governing administration in shielding the interest of the farmers and the business by applying MIP on cashew kernels, imposing 70 for each cent duty on import of cashew kernels, and the like.

Memorandum calls for

The memorandum reported the January one notification suspending the license to import shelled cashew was a welcome move that served the business to revamp from the current disaster and the farmers had been also getting the advantage. “However, the DGFT has on February 14 2020 came up with a clarification under reference earlier mentioned, making MIP not relevant for models under SEZ and EOU,” it reported.

The memorandum spelled out that because of to very low raw cashew charges and mechanized processing, the cashew kernel charges in other nations around the world are less than the cost selling price in India. Having said that, because of to superior excellent of nuts and processing in India, Indian cashew kernels take pleasure in a high quality selling price in the two domestic and abroad industry.

“When SEZ/EOU are permitted to import cashew kernels at less than MIP, the very low excellent / very low priced cashew kernels (primarily ‘brokens’) so imported are getting sold in the domestic industry under the pretext of career works and substituted with ‘wholes’ kernels to fulfil the export obligations,” it reported.

This lowers the kernel charges in India. Even when very low priced cashew kernels are re-exported from SEZ/EOU as ‘Indian Cashew’, the domestic processing models that can not compete with them are influenced and therefore forced to lessen the raw cashew charges they purchase from farmers to compete with SEZ/EOU models in the intercontinental industry. This cuts down the farmers cash flow greatly, it reported.

When the farmers are delighted with the attempts and motivation of the Governing administration to double the cash flow of farmers, these conclusions of DGFT will drag them into personal debt pits, it reported, and asked for the Primary Minister to immediate DGFT to withdraw the earlier mentioned notification.

The affiliation memorandum reported that the DGFT must location the import of all varieties of processed and semi-processed cashew kernels under the ‘prohibited’ list as a long-lasting evaluate to shield the interest of cashew farmers in India.

It also asked for the Primary Minister to maximize the import duty on raw cashew nuts. This will assist cashew farmers to accrue a lot more advantage, the memorandum reported.

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