Palasa cashew industry in deep financial crisis due to lockdown, fall in demand
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Hike in electrical energy and labour expenses have dealt a giant blow to the industry.
India’s well-known cashew industry in Palasa, Srikakulam district, has been hit exhausting by numerous elements, together with the partial lockdown imposed by the Andhra Pradesh authorities to management COVID-19.
A steep fall in demand for the nuts and hike in electrical energy and labour expenses have dealt a giant blow to the industry.
Normally, 500 tonnes of cashew is processed per day right here however it fell to 200 tonnes in the previous couple of days.
“The closure of restaurants and cancellation of marriages triggered a sharp fall in demand for cashew. The industry is already in dire straits due to last year’s lockdown and a drop in exports,” Malla Srinivasa Rao, president of Palasa Cashew Manufacturing Units’ Association, informed to The Puucho.
Titli cyclone
According to him, many producers are unable to overcome their financial misery since October, 2018 when Titli cyclone induced a devastation in all the Uddhanam area, together with the cashew-rich Palasa, and Kasibugga cities.
The total loss inflicted by Titli is estimated to be ₹120 crore. The successive governments assured they might give you a bundle however it was not carried out. Many producers took financial institution loans for the revival of their models.
In spite of one of the best efforts, the industry couldn’t get again on monitor in the final three years. A hike in labour expenses can be cited as one of many causes for the rise in manufacturing value.
Currently, the producers pay every labourer ₹26.50 for processing a kg of cashewnuts. The fee is ₹17.25 per kilo if nuts are minimize by machines. The labourers concerned in loading and unloading cost ₹9.55 per bag.
Strike name
The Centre of Indian Trade Unions and different unions have given a strike name, demanding wage revision to mitigate the affect of inflation.
As many as 6,000 labourers, together with girls, are anticipated to take part in the strike from May 16.
The affiliation is anticipated to maintain a gathering with commerce unions to clarify its financial difficulties.
“We always give priority for the welfare of labourers. Many manufacturers run the units to ensure their livelihood. The unions should also cooperate with us for implementation of the new wage revision package from next year,” Mr. Rao stated.
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