<p></p><p>Palasa, the cashew treating hub of the country's east coast, fell silent on Wednesday with all the 150 factory units in and around the town downing shutters in protest against the 9.3% tax imposed on imported cashew. <br></p> <p>Malla Srinivasa Rao, president of the Cashew Manufacturing Association of Palasa, said, "We have been harassed by the state government, which had slapped notices against various big traders close to the end of last year. With the 9.3% tax imposed on imported cashew, prices of cashew kernel is going to increase and both us as well as the customer will be at the receiving end. A lot of cashew is imported from the African coastline. Now with this tax hike, the government is ensuring that the tax payer and consumer pay the price." <br></p> <p>He further added that earlier, the import tax was just 5% but the recent decision to increase it would cripple their international export market as they would have to hike the price. <br></p> <p>The manufacturers said that it was the responsibility of the state and central governments to promote cashew industry in the state. However, they observed that by forcing the Palasa manufacturers to pay extra tax, they were actually clamping down on the potential of the market in AP and giving Kerala the extra support to promote its own cashew industry.<br></p><p></p>