<p>Cashew processing units in North Andhra are facing worst-ever crisis with several managements forced to shutdown their operations following imposition of import duty on raw cashew nuts. <br></p> <p>Industry sources said of 200-odd units located in North Andhra, 150 have already stopped production and the remaining have already pressed alarm buttons. “If the government fails to respond in next few days, we have to down the shutters,” finance and market head of Arle Cashew Pvt. Ltd Madhav Sure said. <br></p> <p>The firm with a capacity to process 3.2 ton per day has its unit at Arle village in K. Kotapadu mandal, about 40 km from here. <br></p> <p>Indian cashew processing units import more than 60 per cent of their requirement from abroad mostly African countries. Sensing the demand for raw cashew nuts from India and Vietnam, even the African countries have been imposing export duty. <br></p> <p>‘A big blow’</p> <p>Cashew unit owners feel that the imposition of 9.36 per cent import duty had dealt a big blow to the entire industry, which employs thousands of people in the rural areas. <br></p> <p>They also feel that as it would make the units sick, their bank loans might become non-performing assets. <br></p> <p>Representations submitted</p> <p>Representations have been submitted to Union Finance Minister Arun Jaitley to withdraw the import duty announced in the budget. <br></p> <p>The processing units are dependent on imports as country is unable to produce the quantity needed by them. <br></p> <p>According to Andhra Pradesh Cashew Manufacturers’ Association, India produces six to seven lakh tons of cashew nuts as against installed and running capacity of 23 lakh ton and 16-17 lakh ton respectively. Imports from West Africa are estimated at 10 lakh ton. India exports 1.3 lakh ton. Indian domestic consumption is 2.5 lakh ton (as per 2012 data) with 14.4 per cent growth rate. As per latest data, it is 3.4 lakh ton with a growth rate of seven per cent. <br></p> <p>The association has been representing the Centre and the States to encourage farmers to grow more cashew groves to help save foreign exchange. <br></p> <p>Industry sources say of 200-odd units in North Andhra, 150 have stopped production<br></p>