Bandh hits cashew processing units at Palasa

Srikakulam: The ongoing bandh of cashew nuts cutting and processing units at Palasa, Vajrapukotturu and Mandasa areas in Srikakulam district has affected the interests of both the manufacturers and workers very badly. Earlier, the price for a bag of 80 kg cashew nuts was sold for Rs 13,500, but now it has fallen drastically to Rs 10,500.  

In addition to it, cashew units produced in the state of Kerala and Bengaluru are also being sold at the local market.  Earlier, cashew nuts were also exported to other countries and as a result, there is a stiff competition for their sale and purchase in the local market.

The export of raw cashew nuts to African countries is also another reasonfor fall in the price of cashews due to an increase in production and fall in demand. Cashew nuts can be stored for any number of days and traders are compromising on fixing of rates. Another reason for fall of cashew nut prices is the heavy rainfall in north India where the demand is extremely high for cashew.

In this backdrop, cashew nuts manufacturers closed the cutting and processing units from July 10. In all, 300 recognised cashew processing units are operating in Palasa, Vajrapukotturu and Mandasa areas and 10,000 workers are losing their wages.

Price fluctuations in the open market are the prime reason for the present crisis in the cashew industry at Palasa. To express solidarity with the cashew nuts manufacturers here, the traders of Parlakimidi, Garabanda, Rampa and Gurandi areas of adjacent Odisha state shut down their units.

Speaking to The Hans India here on Friday, Workers’ Union president B Simhachalam and general secretary A Krishnamurthy said, “The State government should intervene on the closure of units with the fall in prices as workers are losing their wages”. 

We have no intention to make the workers incur losses but to protect our product, we stopped only cutting and processing of cashew nuts due to fall in prices,”  Manufacturers Association president M Srinivasa Rao and secretary Ch Mahesh Kumar said Assistant Commissioner of Labour P Vijayalaxmi and Assistant Labour Officer, P Vijaya Kumar said,  “We are discussing with representatives of workers and manufacturers to solve the issue as soon as possible”