Press release (MB)

Mangalore, Mar 29: The member of the Karnataka Cashew Manufacturers' Association have expressed their gratitude to chief minister H D Kumaraswamy and deputy CM and finance minister B S Yediyurappa for having provided the relief of reducing the rate of VAT on cashew kernels from 12.5% to 4%, says a press release from KCMA. 

This has now brought the industry at par with other neighbouring cashew processing states like Goa and Maharastra where the rate of VAT2 as at 4% since the introduction of VAT.  The Association had made several representations and had met the finance minister to prevail on him the necessity for this measure as the industry was finding it extremely difficult to market its produce within the state at 12.5% VAT.

This relief will go a long way in boosting the consumption of cashews in our state and contrary to the expectation; this reduction of tax will increase the revenues from the industries to the exchequer.  Karnataka has a great advantage amongst the cashew processing states of having an internal market which can grow 3 folds in the next four years on account of its high purchasing power consumers.  Karnataka is currently consuming about 3000 Mts p.a of cashew kernels valued at about Rs. 68 crores and this is poised to grown in leaps and bounds on account of the expansion of the production base within the state.  Processing was earlier restricted to only D.K. and N.K. districts, it has now spread to Kolar, Belgaum and Shimoga Districts, says the press note further.

The Association as part of its Golden Jubilee project had launched the an ambitious programme called Karnataka Geru Samriddhi Yojane in association with the department of horticulture with a vision to increase the raw cashew production in our state from the existing 30,000 mts to 1.50 lac MTs and make Karnataka the cashew state of India by the year 2015.  This would result in a generation of additional employment for over 40000 women workers and this industry would be the back bone for rural development in our state.  This relief provided now will give a major impetus to the industry and will certainly help in widening the consumption base, thus aiding the process initiated in our Golden Jubilee year, adds the press statement. 

The Association also wishes to express its indebtedness to all the MLA’s, MLC’s and MP’s of this coastal belt for having voiced their opinion in favour of this industry and having provided the manufacturers this relief, according to KCMA.