<p>The Govt, both at Centre and state level are providing many schemes/subsidies/programs which can be beneficial for cashew processors, marketers etc. Such schemes are discussed here.</p> <p><strong>A) Central Schemes</strong></p> <p>The Union commerce ministry has approved four schemes, submitted by the Cashew Export Promotion Council of India, to improve quality standards of cashew kernels and hygienic standards of cashew export processing factories under 9th five year plan. Important points of these schemes are as follows;</p> <p>· Upgradation and modernization of cashew processing factories - The first scheme provides for financial assistance up to Rs 10 lakh per processor exporter for effecting technology transfer/process upgradation and modernization of cashew processing factories.</p> <p>· The scheme provides for acquiring new equipment, machinery for steam processing of raw cashew nuts, electrical and mechanical drying and sorting of cashew kernels. The financial assistance available as per the scheme is 33.33 per cent of the total investment or Rs 10 lakh, whichever is less.</p> <p>· To enable the cashew processing factories in the country to upgrade their quality standards and make it on par with the food processing units in the developing countries, financial assistance would be provided to the exporters for adopting ISO 9000/ha ccp quality control system in the cashew processing factories.</p> <p>· As per this scheme, the financial assistance available as per applicant would be 33.33 per cent of the total cost of investment, subject to a maximum of Rs five lakh. The third scheme is for importing/exporting latest eco-friendly packaging system to improve quality shelf life of cashew kernels.</p> <p>· The financial assistance available for each applicant would be a maximum of Rs 10 lakh and two sets of packaging machines.</p> <p>· Another scheme is for establishing an Rs 12.25-lakh training centre for cashew processing workers and factory managers to impart training on factory hygiene, product safety international regulations etc.</p> <p>The Cashew Export Promotion Council of India (CEPCI) in association with INC (International Nut and Dried Fruit Foundation) Spain and other world cashew players such as VINACAS (Vietnam), SINDICAJU (Brazil), ACA (representing 11 African countries) and other minor players has signed an agreement forming a Global Cashew Task Force for the benefit of the world cashew industry. The Global Task Force is expected to focus on three key activities/aspects such as Research on Nutrition and Health Claims, International Food Safety Norms and Promotion of cashews.</p> <p><strong>As per 10th plan period</strong>,</p> <p>· CEPC would provide one time subsidies to cashew exporters for procurement of equipment required for export of cashew in consumer pack (max. Rs 8 lakhs)</p> <p>· CEPC would provide one time subsidies to cashew exporters on identified items of equipments (Max. Rs 8 lakhs)</p> <p>· CEPC provide subsidy to cashew exporter for adopting flexi-pouch vacuum packing systems either in indigenously or through import. (Max. Rs 5 lakhs)</p> <p>· CEPC would provide one time subsidy to cashew exporter to improve facilities in the factories & get certification like ISO, HACCP, etc. (Max. Rs 5 lakhs for one system & Rs 8 lakhs for more then one system)</p> <p>Government of India launched VKGUY (Vishesh Krishi and Gram Udyog Yojana) for shipments under duty drawback scheme where the drawback rate is up to 1% only and DEPB (Duty Entitlement Pass Book Scheme), export incentive scheme at a pre-determined credit on the FOB value to promote cashew export in international market. But recently these schemes are withdrawn by the govt. Now the govt rethinking to continue the VKGUY and DEPB schemes, as otherwise the cashew exporters will find it difficult to survive in the international markets in the face of stiff competition from Vietnam and Brazil.</p> <p><strong>Modernization and diversification scheme</strong></p> <p>The Govt. of India, Department of commerce has accorded approval to the export promotion scheme of the Cashew Export Promotion Council of India (CEPC) to implement a scheme titled “Modernization and diversification scheme” with the following four components under eleventh plan</p> <p>· Process upgradation/modernization of cashew processing units</p> <p>· Setting up of facilities for value addition/consumer packing of cashew kernels</p> <p>· Adoption of new packaging system</p> <p>· Implementation of internationally accepted quality systems like ISO, HACCP, organic, etc.</p> <p>Exporters, who are members of the Cashew Export Promotion Council of India and remain so till the discharge of their entire export obligation, will be eligible for assistance under this scheme. The grant would be 25% of the total eligible investment, of which civil works should not constitute more than 50% subject to a maximum total grant of Rs. 50 lakhs per exporter for all components put together. Grant-in-aid will be released in Indian Rupees only. Grant will be provided only for purchase of eligible finished items / equipments. As such, bills for materials for fabrication/construction of various items will not be considered. The beneficiary has to fulfill an export obligation to effect cashew/cashew product export of five times of the grant amount provided to the beneficiary which will be achieved over one year period from the date of completion of the project.</p> <p><strong>Programmes</strong><strong> adopted by Directorate of Cashew and Cocoa Development (DCCD)</strong></p> <ol> <li><strong>Establishment of Farm level processing unit of cashew nut</strong> - The objective of the programme is to establish a farm level cashew nut processing unit for starting the processing of cashew at the farm level as a cottage industry for getting better income and thereby to create employment at the village level, particularly for the unemployed women. Under this programme the financial assistance shall be given as grant in aid to individual farmer/ processor/SHG’s/societies for establishment of a farm level cashew processing unit with a capacity of 40Kg. The financial assistance shall be credit linked back ended subsidy @40% of the cost of the project or Rs. 50,000 per unit which ever is lesser. The remaining 60% of the installation cost will have to be met by the farmer by availing loan from any nationalized Bank.</li> <li><strong>Upgradation</strong><strong> of existing old cashew processing units</strong> - The programme is intended to upgrade some of cashew processing units in various states which are old and adopting very old methods for conditioning of the raw cashew nuts and are uneconomical for sustaining the industry, by improving the quality of the processing and obtain better return. The financial assistance shall be given as grant in aid to the individual farmer/processor/ SHG’s/societies@ Rs. 2,80,000 per unit of 320 Kg boiler capacity for the extraction of kernels or 40% of the cost of the project, whichever is lesser. The assistance shall be credit linked back ended subsidy. The remaining 60% of the cost involvement will have to be met by the farmer/processor by availing loan from any nationalized Bank.</li> </ol> <p>3) <strong>Training on cashew apple utilization</strong> - The objective of the programme is to popularize the usage of cashew apple by giving training on the preparation of cashew apple syrup. A training allowance of Rs. 500 per head for one day training will be provided towards food and refreshments, mobility charges of the trainees and contingency to the institute for organizing the training programme.</p> <p>The Ministry of Small Scale Industries (SSI) is operating a scheme for technology upgradation of Small Scale Industries (SSI) called the Credit Linked Capital Subsidy Scheme (CLCSS). The Scheme aims at facilitating technology upgradation by providing upfront capital subsidy to SSI units, including tiny, khadi, village and coir industrial units, on institutional finance (credit) availed of by them for modernisation of their production equipment (plant and machinery) and techniques. The Scheme (pre-revised) provided for 12 per cent capital subsidy to SSI units. This scheme covers ‘cashew processing’ under food processing programme.</p> <p><strong>B) State Specific Schemes</strong></p> <p><strong>Tripura:</strong> Capital Investment Subsidy to cashew processing industrial units is at 30% of fixed capital investment. 15% Price preference to industrial units, on purchases is made by State Government Departments/ Agencies.</p> <p><strong>Andhra Pradesh and Orissa:</strong> Cashew nut processing units in Andhra Pradesh and Orissa are mainly concentrated in few districts. These units have a capacity from 12 MT’s to 150 MT’s of RCN Processing. Most of the units have investment ranging from Rs 1.00 lakh to Rs 43.00 Lakhs. Number of employees in the unit’s ranging from 20 to 60 persons, mostly women. 15% subsidy for cashew processing industries is provided by state government.</p> <p><strong>Maharashtra:</strong> Realizing the vast potential of the cashew nut processing industry in creating employment/ the state government has launched subsidy-schemes. Men & women, be they farmers, unemployed youth, those searching to supplement their present income moreover even handicapped person can launch units under this programme. In a bid to increase cashew processing, the Maharashtra govt. launched subsidy assistance to a tune of 25,000 per unit.</p> <p>In the early 1970’s, the Government of Maharashtra introduced the minimum wage laws for the cashew nut processing workers. This led to a proactive discussion among the manufacturers and led to the creation of the Konkan Cashew Manufacturers and Exporters Association (KCMEA) in 1973. The Association is mainly into policy advocacy. The State Government has taken active step in growth of micro units and SHGs in the cashew processing sector. This has led to the creation of a large number of micro cashew processing units. The most recent development in this area is related to their “Employment guarantee scheme” that was launched in 1990-1991 by the Government of Maharashtra under a horticulture development programme. In November 2002, the Agriculture Department, with the help of NABARD and the NGO Gopuri Ashram has applied this scheme to the cashew industry (assistance for the purchase of processing machinery and interest subsidy) in Sindhudurg, under the name of the “Cluster Development Programme” under the National Programme for Rural Industrialisation (NPRI). Numerous cashew processing units have been established and value added products are also being manufactured. Additionally, training in production and processing technology have been made available to farmers and processors.</p> <p>National Horticulture Mission Maharashtra launched scheme Self employment & Value addition on field. Under this scheme, credit linked back ended subsidy of 25% of project cost maximum up to Rs. 5.00 lakh per unit is available to Cashew processing, Aromatic distillation, Spice grinding units etc.</p> <p><strong>Goa:</strong> The Government of Goa amended Scheme entitleling ‘Goa Youth Rojgar Yojana Scheme’ to provide Self Employment opportunities in the State of Goa. Under this scheme Cashew Processing Units to be supported through GHRSSIDC's (Goa Handicrafts Rural and Small Scale Industries Development Corporation) sale outlets located at various towns/places in the States of Goa.</p> <p><strong>Tamil Nadu:</strong> The Walmart Foundation announced a <em>USD 100,000 (Rs 50 Lakh) </em>donation to a project to help small scale farmers , including 900 women, affected by Cyclone Thane in Cuddalore, Tamil Nadu, where the Walmart Foundation’s Cashew Value Chain Initiative is currently underway. This project will be implemented by CARE, a leading international humanitarian organization.</p> <p> </p>