Kerala - Kollam   

Chief Minister to meet processors

Ignatius Pereira

Bid to address issues in cashew sector

KOLLAM: Chief Minister V.S. Achuthanandan has called a meeting of cashew processors in his chamber at 3.30 p.m. on Wednesday. This follows a decision taken by the Cashew Manufacturers and Exporters Association (CMEA) to keep all private cashew factories closed from February 8 in protest against the ``indifference'' on the part of the State Government in addressing grievances of the private sector cashew industry.

The meeting is called at the instance of Minister for Labour and Cashew Industry P.K. Gurudasan. Besides Mr. Gurudasan, Cashew Special Officer Anil Xavier will attend it. Nine cashew processors and exporters have received invitation for the meeting as representatives of the private sector. All of them will attend the meeting.

The CMEA executive committee had met on February 2 to finalise its presentation before the Chief Minister. One of the major concerns is the alleged harassment by the Commercial Taxes Department vis-a-vis inter-State sale of cashew, especially with regard to the C-form and F-form issues. Following the harassment, eight-Kollam based cashew processors have migrated to Theni and Ambasamudram in Tamil Nadu during the past two months.

According to the CMEA, the cashew industry had occupied the number one position in the incentive list of the Vikas Krishi Gram Udyog Yojana for traditional agriculture-based industries under the Common Minimum Programme of the Union Government. But Union Finance Minister P. Chidambaram has removed cashew industry from the list and replaced it with poultry and egg with a view to pleasing the Tamil Nadu-based poultry industry. This would be brought to the attention of the Chief Minister.

When the State Government has included coir, seafood and handloom in Schedule One of the VAT Act, thereby categorising these as zero-tax products, the cashew industry, which provides employment to more than 4 lakh people, has been included in Schedule Four and subjected to a VAT of 12.5 per cent. This will be brought before the Chief Minister.

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