Why Mangaluru is emerging as cashew trading hub

Why Mangaluru is emerging as cashew trading hub

by admin- Wednesday, July 6th, 2022 07:09:17 AM

Farm regulation reforms implementation led to the State scrapping 1.5 according to cent APMC levy
The now-scrapped farm legal guidelines have helped Mangaluru become a hub for the raw cashewnut (RCN) exchange. This is because Karnataka was most of the first States to put in force the legal guidelines that had been exceeded in September 2020 however scrapped in November remaining yr following protest via a section of farmers in Punjab, Haryana and Uttar Pradesh.

As a part of the farm reforms , the Karnataka authorities withdrew the agricultural produce advertising and marketing committee (APMC) levy on goods traded outdoor the marketplace yard.

A levy of one.Five per cent on the cost of RCN traded, regardless of whether or not inner or outside the APMC market backyard, had put Mangaluru at a drawback earlier than the farm laws came into pressure.

Highlighting the motives in the back of Mangaluru rising as the hub for RCN alternate, K Prakash Rao, associate at the Mangaluru-based Kalbavi Cashews, told BusinessLine that the withdrawal of the APMC levy, the tremendous processing base in Karnataka and the logistical gain from Mangaluru to fundamental processing centres in the usa are a number of the reasons for Mangaluru emerging as a hub.

Rising imports
He said India imported round eight.Five lakh tonnes (lt) of RCN from East and West Africa remaining monetary. Almost 50 in step with cent of that quantity got here to Mangaluru. More than 1 lt of RCN become imported inside the final one month itself. Estimating that India’s import may cross 10 lt this 12 months, he said Mangaluru may import round five lt at some stage in the length.

Bola Rahul Kamath, proprietor of the Karkala-primarily based Bola Surendra Kamath & Sons, stated in advance traders averted Mangaluru due to the extra 1.Five in step with cent fee they had to incur, although Mangaluru had several different blessings for the change.

On the alternative benefits, he said many processing centres in Maharashtra, Goa, Kerala and Tamil Nadu are equidistant from Mangaluru making the transportation of the commodity less difficult. Earlier traders had been dependent on Tuticorin for cashew change.

Tukaram Prabhu, Managing Director of the Mangaluru-based totally cashew emblem MMP (M Madhavaraya Prabhu), stated Mangaluru has always been progressive in phrases of processing. It become brief in adopting the cutting-edge available technology within the zone.

Avoiding blind purchases
The alternate is prospering in Mangaluru after the withdrawal of APMC levy for the exchange outdoor the market yard. Today the processors from different parts of the usa can see the cloth in Mangaluru and then procure. The uncertainty issue of blindly shopping for a shipment from an global origin is also decreasing. This is helping the processors loads.

Prabhu said the withdrawal of the APMC levy has helped the government additionally as it’s miles getting greater sales from the exchange, and greater people are getting hired in the cashew area.

Santosh D’Silva, President of Karnataka Cashew Manufacturers’ Association (KCMA), stated the traders have good enough warehouse centers in Mangaluru. Some processors could no longer stock a whole lot, and they buy primarily based on their necessities. Mangaluru guarantees the supply of the commodity all through the 12 months.

Though the APMC levy become being amassed earlier, it turned into no longer of a whole lot use for the farmers in Dakshina Kannada and Udupi districts, as the amount turned into no longer spent on enhancing cashewnut manufacturing in the region, D’Silva stated.

Asked if the trend would preserve thinking about the fact that a few African countries are encouraging processing centers of their personal nations, Rahul Kamath said international cashew crop is developing, even though a few countries are encouraging home processing of the commodity.

Stating that the world RCN crop is around 40 lt, he stated Mangaluru imported round 3.5 lt of that ultimate year, and that isn’t always even 10 per cent of the world crop. Vietnam is uploading around 15-16 lt. Though there will be trouble on an extended-term, he did now not see any troubles inside the brief-term.

Tukaram Prabhu said there is a want to consciousness on increasing the home manufacturing of RCN, if the trend has to maintain in the long-time period.

Prakash Rao said India’s RCN manufacturing was three.45 lt in 2021-22. Of this, Karnataka’s proportion turned into 82,500 tonnes.

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