Srikakulam, July 6 (KNN) The cashew traders and owners of cashew processing units in the Palasa region of Andhra Pradesh have decided to shut down their units for 25 days due to the decreasing price of the nut.

Cashew kernels prices in the domestic market have crashed due to a surplus in the market and a slump in exports besides a surge in illegal import that has worsened the cashew industry in many parts.

President of Industrial Estate, Palasa, Malla Rameswara Rao said they decided to shut down the cashew processing units in Palasa region in the district for a period of 25 days as the India’s famous cashew processing industry in Palasa has been hit hard by various factors. The Bandh which began on July 5 will continue till Aug 1.

“The average cashew kernels price in the domestic market has dropped by over Rs 150 from last year to Rs 650 per kg now. The price of the super quality of the cashew kernels was Rs 800 per kg in 2022 now it has plunged to Rs 650 per kg. Similarly, the second grade of the cashew kernels crashed to Rs 450 a kg from Rs 650 a kg,” he said.

One of the primary reasons impacting the domestic cashew industry is the illegal imports of the cashew kernels from Vietnam and few other countries.

Over 300 odd cashew processing units have been operating in Palasa and Kasibuga of Srikakulam district and all the units together produce over 60,000 kg of cashew kernels per day and an annual turnover is between Rs 250 and Rs 300 crore every year. We will review the situation after 15 days and will decide whether to continue the bandh or revoke, reported TOI quoting traders from the region.

The bandh will hit hard to the livelihood of thousands of workers in Palasa region. Over 80 per cent of the workers in the cashew processing units were women.

On the other hand, cashew farmers alleged that the representatives of cashew industries and traders in Srikakulam district have formed a cartel to buy cashew nuts at throwaway prices from the farmers. 

They also expressed that the cashew farmers struggle to get remunerative prices for their produce despite the good yield in the year. The farmers demanded that the government fix Rs 16,000 per quintal as minimum price so that the farmers will get some profits as the input cost on the crop has been increased. 

They have urged the Andhra Pradesh government to adopt the Kerala model of purchasing system so that the farmers would get a decent price for their produce. (KNN Bureau)