<p>The small-scale cashew owners under the Federation of Cashew Processors and Exporters (FCPE) took out a march here on Monday in protest against the failure of the government to curb excess inflow of processed foreign cashew into the domestic market hitting local processors. </p><p>The protest was staged in front of two big private cashew firms as well as the office of the Cashew Exports Promotion Council of India at Mundakkal. Over 16 members, including the office-bearers of FCPE, were arrested for trying to barge into the CEPCI office. The protesters submitted a memorandum to the CEPCI president seeking intervention to resolve the issue.</p> <p>The processors wanted a check on illegal imports utilising the loopholes in free trade contract and legislation to impose cent per cent import duty to sustain indigenous production and processing.</p> <p>The protest was inaugurated by Mr S. Jayamohan, chairman, Kerala State Cashew Development Corporation (KSCDC). According to the protesters, the import of cashew kernels allegedly utilising the loopholes in free trade agreement (FTA) has adversely affected the small-scale cashew processors. Large-scale processors make use of export incentives from various countries to import kernels that impact domestic cashew price and hits the indigenous industry.</p> The protesters demanded a ban on processed cashew imported through Indian ports. The roasted cashew has a low rate of import duty and hence unprocessed kernels are duped to be roasted cashew by these importers, it is alleged. The semi-finished goods will be reworked in processing centres in the state after filing customs declaration on the pretext of exporting the processed cashew, swindling export incentives. The protesters also demanded blacklisting of companies that swindle money using export incentives and imposing hundred percent import duty on processed cashew. The processors alleged that the violators go scot-free due to the apathy of the government agencies. <br><p></p>