Centre approves revival package for Kerala's crisis-hit cashew industry
Union Finance Minister Nirmala Sitharaman has given an in-principle approval to a comprehensive memorandum submitted by Kerala's Minister for Cashew Industry, Shibu Baby John, seeking a revival package for the state's struggling cashew sector. The announcement was made by Mr. John during a press conference after meeting Ms. Sitharaman.
Mr. John stated that the Union government's response was positive, and the Finance Minister has directed the state to submit a detailed project proposal. The Kerala government plans to draft this proposal swiftly with the help of a specialised committee of cashew industry experts.
The cashew industry in Kerala has been facing severe distress over the past 12 years. Continuous adverse conditions have forced nearly 90% of the approximately 850 private cashew processing units to shut down. This prolonged downturn has escalated into a humanitarian crisis, with six entrepreneurs committing suicide due to financial pressures. Aggressive recovery proceedings by commercial banks have further deepened the economic uncertainty for thousands of families and workers.
To salvage the industry, the memorandum urges the Central government to declare Kerala's cashew processing industry as an industrial sick sector. Such a designation would make the industry eligible for dedicated rehabilitation packages and concessions from the Centre.
The state has also demanded a special MSME revival package that provides entrepreneurs with legal protections, financial incentives, and support to clear outstanding liabilities and restart operations. Drawing parallels to relief frameworks extended to the tea and textile sectors, the memorandum requests the creation of a ₹1,000-crore special purpose fund for the rejuvenation of the cashew industry.
The state emphasised the need for Central grants and subsidies to fund technology upgradation, factory automation, common facility centres, and comprehensive worker retraining programmes.
