Cashew industry in Kerala calls for a support package

Kochi: The cashew industry protection council has called for a comprehensive support package from the Centre to shore up the cashew industry in Kerala.

The council president D Mathewkutty said out of the 834 registered cashew factories in the state around 700 remains closed for the past five years. Around 200 entrepreneurs have come under NPA category while another 100 accounts are in the stressed asset status.

In the current Covid-19 scenario the suffering of all involved in the industry, with over 3.5 lakh women workers have multiplied, he said. The council requested for writing off at least 50% of the principal amount of loans in the banks and NBFCs and waiver of bank interest. The current liability of the industry is around Rs 1500 crore.


``The remaining part of the principal can be converted into term loan with minimum interest rate repayable in a period of ten years,’’ he said. Another demand is provision of fresh working capital with subsidized special interest rate for 3 years with existing collateral the banks hold, to re-start the business.

The council also wants the banks and financial institutions to stop the recovery measures with immediate effect.