The government raises import tariffs on cashew nuts to 70%; greetings from the industry
New Delhi, July 5 () On Friday, the government announced an increase in the import duty on cashews to 70 percent of the current 45 percent, a measure that the exporting agency CEPCI said will help reactivate the industry affected by the crisis.
According to the 2019-20 budget document, customs duties on both smooth and broken cashew kernels will be increased.
However, the Council's request to increase import duties and place the roasted cashew nut in banned products has not yet been decided, said the Chairman of the Export Council of Cashew Exporters of India (CEPCI), R. K Bhoodes.
In addition, the request to withdraw an import tariff of 2.5 percent on raw cashew nuts, which was highly anticipated by the industry, is not considered addressed in the budget, he said.
CEPCI also demanded that the government completely ban the importation of roasted cashews, semi-finished cashews and peel, and that it reduce the import duty on raw cashews.
According to the council, the industry depends to a large extent on the imported cashew and the import tariff has made the national processing unfeasible, which results in the diversion of raw cashew nuts from other producing countries to our competing countries.
Apart from that, there has been an increase in imports of simple and semi-finished cashew kernels in the country due to erroneous declarations and use of loop holes in existing laws, he said.
Large volumes of simple cashews are imported under the pretext of roasted cashews that do not attract tariffs under various free trade agreements. In addition, bulk volumes of semi-finished grain are imported under the Advance Authorization scheme and sold in the domestic market, he said.
In addition, large volumes of broken cashews are regularly imported, mixed with cashew nuts and declared as a single shell, the Council added. With this type of imports, genuine processors or exporters find it difficult to survive and the industry is about to collapse, Bhoodes said. LUX SHW SHW