Key Update

The All India Cashew Association has called on the Union Commerce Ministry to intervene immediately to protect the domestic cashew processing sector from a surge in illegal imports of cashew kernels.

In a letter to Union Commerce Secretary Rakesh Agrawal, association secretary M. Ramakrishnan said abnormally high raw cashew prices and weak domestic demand have pushed the industry into severe distress. He said these conditions have made cashew processing economically unviable for many units across the country.

Importers Misdeclare Kernels to Evade Scrutiny

Mr Ramakrishnan said illegal imports have emerged as a major reason for the slowdown in the domestic market. Importers allegedly misdeclare HSN codes and bring cashew kernels into the country by falsely labelling them as animal feed, cashew husk, or other unrelated products. He added that some importers now declare plain cashew kernels as “roasted cashews” to bypass regulations.

Cheap Imports Flood Domestic Market

According to the association, cashew kernels from Vietnam and African countries have flooded the domestic market at lower prices. Mr Ramakrishnan also said importers are misusing Special Economic Zones (SEZs) to channel these kernels into the domestic supply chain, hurting Indian processors.

Imported Kernels Sold as Indian Products

The association said traders sell these imported kernels as Indian cashew kernels, misleading consumers and raising food safety concerns. Mr Ramakrishnan said these kernels are inferior in quality compared to Indian cashews and are damaging the reputation and credibility of domestic products. He warned that continued inaction could force large-scale shutdowns of factories in the labour-intensive cashew sector, putting the livelihoods of more than 10 lakh women workers across the country at risk.

Association Seeks Strict Enforcement

The All India Cashew Association has urged the Commerce Ministry to strictly verify HSN codes, strengthen customs checks at ports, and prevent the misuse of SEZs. It has also called for stronger action against mislabelling and substandard products to ensure fair trade practices, protect consumers, and safeguard domestic cashew processors.

Source: The Hindu