With a total outlay of ₹92.36 crore, budgetary allocations for the crisis-hit cashew centre has evoked mixed response from stakeholders. While the public sector finds the Budget supportive, private processors are highly apprehensive about its provisions.
The Cashew Board gets the highest allocation of ₹41 crore and ₹30 crore is earmarked as cashew sector revival fund. Other allocations include ₹5 crore for the diversification of production, ₹2 crore for creating women-friendly working environment in the private processing units, and ₹2 crore for the revival of small and medium cashew factories through interest subvention for loans and capital grant.
How funds are allotted
“At a time when the Union Budget failed to allocate anything for cashew and traditional industries, the State government has given considerable attention to the sector. While the amount set aside for Kerala State Cashew Development Corporation (KSCDC) is ₹3.05 crore, Capex gets ₹3 crore, and the Kerala State Agency for the Expansion of Cashew Cultivation gets ₹6.31 crore. The Budget also allocates ₹41 crore to procure raw material through Cashew Board and ₹30 crore to support private factory owners,” said S. Jayamohan, KSCDC chairperson.
Private sector’s view
Meanwhile, private processors feel the Budget holds hardly any promise for them. “At present 95% of the processing units in Kerala have downed their shutters and the Budget offers no provision to reopen them. The revival package will go directly to units that are operational,” said Muhammad Shan, processor.
Published – February 07, 2025 06:18 pm IST
