| Date: |
05-03-2016 |
| Subject: |
KCMA opposes additional customs duty on imported raw cashew nuts |
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MANGALURU: Karnataka Cashew Manufacturers Association (KCMA) has strongly protested move by the union government to impose 5% basic custom duty on import of raw cashew nuts in the Union Budget 2016. In a letter addressed to union finance minister Arun Jaitley and released to the media here, KCMA president Bola Rahul Kamath said effective rate of duty is more than 9.5%, taking into consideration special additional duty and educational cess of 3.5%.
The budget places emphasis on employment generation and food processing. But, it is surprising that age old employment generating food processing industry (cashew sector) is being targeted by the government. The cashew industry in India process more than 16 lakh metric tonnes of raw cashew nut per anum. As Indian crop is only 6 lakh MT, they are forced to import balance requirement from the overseas countr, mainly African countries, Rahul said.
Cashew industry is an ideal industry to portray "Make In India" dream, as country imports raw cashew, processes it in India and exports. Already African governments' are taking steps to develop their indigenous cashew processing sector and hence, industry is under tremendous competitive pressure. It is surprising that 4% SAD is being levied on raw cashew imports, and this is made refundable to a trader but not refundable to a manufacturer.
Union government in other words is discouraging people who "Make in India" and encourage traders who just import and sell to India, he said adding presently cashew industry employs more than 7 lakh workers, mainly women from backward sections of society in rural parts of India. With new duty structure, cashew industry will lose its competitiveness to countries like Vietnam and Africa. This may result in closure of units and massive loss of employment opportunities.
Source : timesofindia.indiatimes.com
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