Mangalore, Mar 25 (KNN) The labour intensive cashew industry is upset over the government's proposal in the Budget for 2016-17 to impose five percent customs duty, four percent special additional duty (SAD) and three percent cess on import of raw cashew nuts.

The cashew nuts manufacturers have voiced their concerns over the decision saying that it has been taken without consulting stakeholders including manufacturers and exporters.

“Government has no clarity on what prices to increase and what not,” said a Kollam based cashew manufacturer.

“Government has imposed a cumulative duty of 9.36 per cent on raw cashew nuts. The move will definitely hit the labours, small and medium industries and also cashew nut exporters,” said Nowfall Salam, Managing Partner, Tasty Nuts, Kollam.

The manufacturer explained that if the price of raw cashew goes up by Rs 10 then the selling price of final product would go up atleast Rs 40.

The move will lead to non-availability or acute shortage of raw cashew nuts or will lead to closure of units, said the entrepreneur.

Raw cashewnuts are grown by small and marginal farmers and processed by micro, small and medium enterprises (MSME) in rural areas, employing mostly women (90 percent) and generating indirect jobs for about 400,000 people.

The move will hit the labours the most, said the manufacturer. (KNN Bureau)