Kollam:
The cashew industry is heading for a crisis in view of the global economic melt down. Most of the processing centres in Kollam in Kerala - which is known as the capital of cashew processing industry - have recorded decline in production even exports have come down.
It is little work and no play at the cashew processing units in Kollam in Kerala. With cashew prices crashing from $1200 per ton to $700, exports from Kollam have taken a huge hit. This October, exports were down by 2000 tonnes, compared to the same month last year. (Watch)
Ratheesh Kumar, MD, Cashew Development Corporation, says: ",There will be impact. Supply demand theory will work if the buying power is coming down. naturally the impact will be there in the industry.",
A majority of the cashew processing factories in Kollam are functioning at the moment with the help of old stocks. But with global economic crisis not yet over. Factory owners are worried about the next season which begins in February when the fresh cashew crop arrives for processing. While the industry is hoping the domestic market will bail it out, the government is worried poor quality cashew will find its way into the domestic market.
Kerala's Finance Minister Thomas Isaac says: ",Kollam has about 400 cashew processing factories with about 2.5 lakh workers. The Cashew Development Corporation is now looking to move away from its traditional export market of US and Europe to new markets like Russia and China.",
It is little work and no play at the cashew processing units in Kollam in Kerala. With cashew prices crashing from $1200 per ton to $700, exports from Kollam have taken a huge hit. This October, exports were down by 2000 tonnes, compared to the same month last year. (Watch)
Ratheesh Kumar, MD, Cashew Development Corporation, says: ",There will be impact. Supply demand theory will work if the buying power is coming down. naturally the impact will be there in the industry.",
A majority of the cashew processing factories in Kollam are functioning at the moment with the help of old stocks. But with global economic crisis not yet over. Factory owners are worried about the next season which begins in February when the fresh cashew crop arrives for processing. While the industry is hoping the domestic market will bail it out, the government is worried poor quality cashew will find its way into the domestic market.
Kerala's Finance Minister Thomas Isaac says: ",Kollam has about 400 cashew processing factories with about 2.5 lakh workers. The Cashew Development Corporation is now looking to move away from its traditional export market of US and Europe to new markets like Russia and China.",
Track Latest News Live on NDTV.com and get news updates from India and around the world
