India: Cashew industry hit by Customs order

Cashew industry has been hit by the direction from the Customs for 100 % open inspection of imported containers at a time when raw
cashewnut import from Africa is in full swing.

Cashew industry sources said that with the Cochin Customs insisting on 100 % open inspection of raw nut import containers for security reasons, over 1000 containers with cashew worth Rs 64 crore have piled up in the port pending clearance. Around 5000 more containers are expected to arrive in two days from Africa, which could worsen the situation.

The industry sources pointed out that it costs Rs 8000 to destuff and then re-stuff the container. Due to continuous rain in the last few days, the raw cashewnuts have been getting wet while destuffing and any delay in taking them to the factory and drying will lead to germination of seeds causing heavy loss to the processor exporters, the Cashew Export Promotion Council of India said in a letter to the chairman of Central Board of Excise and Customs.

The exporters have requested for release of imported raw cashewnut containers with a random examination of 10% as otherwise the industry would face a crisis. The Cochin Port Trust too has been talking to the Customs to settle the matter.

India is heavily dependent on raw cashewnut import from Africa for processing and export. The annual import last year touched 6.05 lakh tonnes worth Rs 2631 crore. India exported Rs 2950 crore worth cashew kernels last year.


Source: economictimes.indiatimes.com

Publication date: 6/2/2009