Mangaluru, (The Hindu): The Karnataka Cashew Manufacturers’ Association, Mangaluru, has welcomed the Union government in its 2018-19 Budget proposing to cut the customs duty on raw cashew from 5 % at present to 2.5 % to encourage cashew processing industry.

Secretary of the association M. Tukarama Prabhu told The Hindu that cashew manufacturers expected complete relief from the customs duty.

“We have been urging the government for no customs duty on raw cashew. Again we will appeal the government to reconsider its decision,” Mr. Prabhu said.

He said that the State had about 400 cashew processing industries with the annual processing capacity of about 3 lakh tonnes.

The State’s domestic production stood at about 30,000 tonnes per annum. Karnataka imported about 2.5 lakh tonnes of raw cashew per annum.

Mr. Prabhu said that Vietnam is leading the world in the cashew market. It did not impose any customs duty on raw cashew.

“If our industries are to compete in the world market the industries should function round the year. No import duty means more import for processing,” he said.

The secretary said that when processing industries functioned round the year they ensured continued employment to labourers and others and created more employment.

President of the association K. Ganesh Kamath said that the government will not earn much revenue by maintaining the import duty at 2.5 %.

The processing industries imported raw cashew mainly from Ivory Coast, Ghana and Nigeria, he said.

The Canara Plastic Manufacturers’ Association, Mangaluru termed the Budget as healthy.

President B.A. Nazeer said in a release: “It fulfilled the aspirations of those poor people who can’t afford the high cost of medical expenses. If implemented properly it will have great impact on the total health sector in turn helping economy. We congratulate Prime Minister for implementing such an exhaustive and comprehensive universal health scheme.”

The association said that the stress for agriculture and infrastructure is a step in the right direction.

Credit flow to MSME should be made available at very low rates as agriculture loans to boost employment. Reduction of income tax will help only medium scale industries not micro and small industries, he said.

“Reduction of excise duties and bringing them under GST for petroleum products should have been announced in this Budget to reduce inflation. We expect this announcement as early as possible.”