Despite State government coming up with multiple schemes, including a revival plan, crisis continues to plague the cashew sector.
As the industry is facing a shortage of raw material, several units are struggling to stay afloat. Meanwhile, processors, who were forced to close their units, allege that the one-time settlement (OTS) scheme announced by the government wasn’t properly implemented.
As per the OTS scheme that provides significant relief to private processors, interest on loans up to ₹10 crore will be completely waived. For loans up to ₹2 crore, they can settle their outstanding debt by paying only 50% of the principal amount. However, for loans exceeding ₹2 crore, borrowers will be required to repay 60% of the principal amount.
According to processors, despite the government order (GO), most banks have refused to implement the scheme that was announced in 2019.Factory owners, who were forced to down the shutters due to the crisis, say at present they have zero options to close their loans or reopen the factories. “My factory was closed seven years back and as per the OTS scheme I made my initial payment. But after that the bank abruptly stopped cooperating,” says Dileep, a processor. More than 100 processing units in Kollam are currently not operational and the factory owners say that the revival package has failed to support them. “The schemes and budget allocations are mainly for government factories and private units that are still functioning. Both the government and banks are turning a blind eye,” says Shaji, a factory owner. Processors demand immediate government intervention in solving the issue as cashew is a labour intensive sector. “We want a special package for processors who have lost everything. A hearing should be held to check the accounts of process or who were cheated by banks after paying the first instalment of loan repayment. Since most banks have not implemented the OTS scheme as per the GO, the scheme should be extended for one more year until December 31, 2025,” says Dileep.
