Vetapalem cashew nuts find it tough to survive

​Chirala (Prakasam Dt): Vetapalem’s cashew industry is in its death throes. Gone are the days when famed and fabled Vetapalem cashew nuts used to be on sale in dryfruit stalls all over the country.

Factors, including increase in labour charges, high import duties and reduction in the area of cashew plantations in nearby areas of Vetapalem for taking up real estate activity, are killing the industry softly.

Cashew plantations require no maintenance once they grow to the fruit bearing stage. Some plants are known to have survived for nearly 100 years, producing cashew nuts. When the country was under British rule, reformation colonies were set up at Stuartpuram and the inmates of these colonies were asked to grow cashew in the areas nearby in order to provide them work.

They raised cashew plantations from Naidupet to Ichapuram along the coastalline. Around 1930, the fruit from the plantations in Vetapalem and its surroundings used to be processed locally and sent to Madras for use by British officials and some portion of it used to be exported.

Now, cashew plantations in the surrounding areas of the Vetapalem are not supplying even 5 per cent of the demand from the industry. The private operators sold the land or removed the plantations to get more income by means of other crops or converting the land for real estate purposes. 

The forest department, which should take care of the trees and replant new ones, is not showing much interests. As a result, the total plantation area now has been reduced drastically. This scarcity of raw seed is forcing the local units to spend more on procurement but sell the nuts at competitive price with big players.

MV Sagar, honorary president of the Andhra Pradesh Cashew Manufacturers’ Association, said: “At present, the cashew processing industry in the state is facing difficult days and that is why companies like Olam, Vijaya Lakshmi Cashew (VLC) Industries are locking up their plants in North Andhra. As the seed is not available locally, we are importing it from African countries. Based on the plans, we give commitments to food processing companies to supply cashew for the following year at a specific price.

But last year the government introduced 10 per cent import duty on cashew and the small units in the industry suffered huge losses. Another reason is that many companies who paid crores of rupees to African countries were taken for a ride. The companies sent us empty containers. There is no security to our deposits as the government is not interested in protection of our rights. At Vetapalem, we have no raw fruit source, high wages to labour and high-import duty. These are the main reasons for the closure of many units.”

Atmakuru Sudhakar, president of the Vetapalem Cashew Manufacturers’ Association, said: “Most of the exporters lost their business as Vietnam became a tough competitor. The raw seed processing cost enhanced by 75 per cent, but the product cost has not increased even by 30 per cent. That’s why the industries in East and West Godavari districts are sustaining while Vetapalem units are folding up.”