Industry seeks abolition of Karnataka APMC cess on raw cashew nuts

Mangaluru, February 12 The Karnataka Cashew Manufacturers’ Affiliation (KCMA) has reported that regulation of raw

Mangaluru, February 12

The Karnataka Cashew Manufacturers’ Affiliation (KCMA) has reported that regulation of raw cashew nuts by the Agricultural Create Advertising Committees (APMCs) in Karnataka has been impacting the growth of the market in the Condition.

KCMA president Subraya Pai advised BusinessLine that the market would get a important improve if the raw cashew nut is deregulated from APMCs.

He reported that the total generation of raw cashew nuts in the Condition is about 50,000 tonnes for each annum, as in opposition to the cashew producing industry’s prerequisite of four lakh tonnes for each annum. To satisfy this shortfall, Karnataka is importing raw cashew nuts from East and West Africa, to assure spherical-the-yr employment to the workforce of cashew producing units and to maintain their operations.

Competitive disadvantage

Stating that the APMC cess of one.five for each cent is earning the market uncompetitive in Karnataka, Pai reported lots of other cashew-generating States have not regulated raw cashew nuts. Producers in Karnataka are at a disadvantage on account of this development.

Pai reported that APMC cess was not taken off soon after the implementation of the GST, and this one.five for each cent cess is taking away the aggressive edge of Karnataka, as the influence of the cess operates out to in excess of ₹10 a kg on the completed products.

K Prakash Rao, husband or wife in Kalbavi Cashews in Mangaluru, advised BusinessLine that Mangaluru can come to be a important raw cashew nut hub if it will come out of APMC regulation. A lot of importers from Karnataka are importing raw cashew nuts by way of the Tuticorin port as there is no APMC there. “We can catch the attention of in excess of four lakh tonnes of raw cashew nuts to the New Mangalore Port, if the APMC deterrent is prevented,” he reported.

Increase to Condition revenues

Pai, much too, reported that seventy five for each cent of the imports could materialize at the New Mangalore Port, if the regulation of raw cashew nuts is stopped. This will not only deliver the gasoline for sustaining the growth of this market in Karnataka, but will also create great revenues to the Condition authorities by way of SGST, as about 50 for each cent of the created produce is bought in the Indian domestic markets.

The Condition authorities collects large tax revenue as SGST on the profits of this large-value product or service in the domestic market, and the growth of this market will only insert to the State’s exchequer.

In addition, the APMC revenue does not insert to the State’s revenue as most of the market fee collected is retained by the local bodies for its working, and only a tiny part goes to the promoting board for conference charges. There is no share for the exchequer of the authorities.

Pai added the abolition of cess on raw cashew nuts from APMCs will in no way influence the Condition Finances.