The Cashew Export Promotion Council of India (CEPCI), the apex body of cashew exporters from the country, have lauded the hike in import duty on Cashew Kernels in the budget 2019-20.
The Cashew industry is under relaxation after the import duty is hiked.
In Annual Budget 2019-20, Union Finance Minister, Nirmala Sitharaman has announced a hike of 45 percent to 70 percent. Hike in the import duty of cashew kernels (both wholes and broken) and cashew nut others (semi and finished cashew and other products).
This decision is a relief to the already crisis-hit industry on its path to revival, said the council.
“On 8th February 2018, the council had represented the Government of India to increase the imports of cashew wholes from Rs. 400 to Rs. 720 per kg. As same, broken cashews to be increased from Rs. 288 to Rs. 680 per kg and also to hike the import duty on all cashew kernels from 45 percent to 70 percent. Vide Notification No.8, 2015 - 2020 dated 12 June 2019, the DGFT had increased the Minimum Import Price as requested by the CEPCI," said Dr R.K.Bhoodes, Chairman of CEPCI.
Bhoodes said, “Now with this Budget, the import duty on plain Cashew kernels is also hiked to 70 percent. However, request of council to hike the import duty and placing Roasted Cashew and other items (semi-finished, husk, shell) are under "Prohibited Items" is yet to be decided by the Government.”
Also, request to withdraw the 2.5 percent import duty on raw cashew nut which was much awaited by the industry is not seen addressed in the budget. Industry is heavily dependent on imported cashew for processing and the import duty has discouraged and made the domestic processing unviable resulting in the diversion of raw cashew nut from other producing countries to our competing countries”, he added.