Karnataka - Mangalore   

Cashew industry seeks incentives

Staff Correspondent

Chamber, FIEO submit a petition to DGFT

MANGALORE: The Federation of Indian Export Organisations (FIEO) and the Kanara Chamber of Commerce and Industry have urged the Director-General of Foreign Trade (DGFT) to extend Vishesh Krishi and Gram Udyog Yojana benefits under the new Foreign Trade Policy to cashew industry.

The yojana was introduced in the new Foreign Trade Policy (2004-09) to encourage exports of agriculture products and promote rural employment.

When K.T. Chacko, DGFT, Union Ministry of Commerce, was here recently to attend a seminar on "exports from coastal Karnataka: vision 2010", the two trade bodies apprised him on the need to extend the yojana to the cashew industry.

Coastal districts, particularly Dakshina Kannada and Udupi, are the main cashew-growing areas in the State.

A note submitted to the DGFT said that cashew was first included in the list of items eligible for the yojana and then removed from it. A built-in incentive had been introduced under the yojana for exporters utilising domestic raw material for export production. Such exports would get additional benefits under the yojana at 5 per cent of free onboard (FOB) value of exports compared with those who used imported agricultural inputs and who would get benefits at the rate of only 3.5 per cent.

This would encourage indigenous procurement of inputs for agricultural exports and help farmers. The cashew industry provided employment to over 10 lakh workers in the farm, factory and trade sectors in the country.

The note said cashew should be covered under the yojana.

"It is requested that cashew might be allowed the yojana benefits at least at the rate of 3.5 per cent which was stipulated for the items containing imported inputs as announced in the annual supplement to the policy," the two trade bodies have said in the note.

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