The Hindu Business Line : Cashew industry upset over cut in DEPB rates

THE cashew industry is upset over the moves of the Director-General of Foreign Trade (DGFT) to steeply reduce the Duty Entitlement Pass Book (DEPB) rates for the sector. The DGFT had announced the reduction in DEPB rates for the cashew industry through a notification dated February 9.

Mr P. Bharathan Pillai, Chairman, Cashew Export Promotion Council of India, said that he has written to the Union Minister for Commerce, Mr Arun Jaitley, and the DGFT voicing the industry's concern over the cut.

The DEPB rates for cashew kernels exported in plastic pouches have been cut by 50 per cent, while those exported in consumer packs have been cut by 33.33 per cent.

The move comes at a critical time when the cashew industry is confronting serious problems from all sides.

While the price of raw nuts has remained high, the appreciating value of the rupee and crashing international cashew prices have been causing serious concern to the industry, according to a release from the council.

"When such factors are making it difficult for the industry to survive, the recent reduction in DEPB rates has come as a body blow," Mr Pillai said.

Besides, he added, export contracts ere entered into on a forward basis and all exporters would be in deep trouble.

The industry has sought the restoration of DEPB rates to their earlier levels.

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Cashew industry upset over cut in DEPB rates