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Palasa Cashew Processing Cluster

and its Impact on Employment & Environment and

Malla.Srinivasa Rao

Palasa Cashew Processing Cluster
 FOUNDER: Late Sri Malla Janardhan Rao
 Inception: 1940
 Board: 9 members at inception, later it was

Steam Boiling method(till .Manufacturing Process  At inception .Drum Roasting Method(till 2007)  At present .Pan Roasting Method (till 1960’s)  At median .

Visakhapatnam. Andhra Pradesh occupied sixth rank in terms of number of units and third rank in the processing of cashew nuts in India.  Srikakulam.500 tons of raw nuts.913 hectares of area under cashew with an annual production of 12. West Godavari. Prakasam and Nellore are important cashew-growing districts in the State. Cashew Industry in Andhra Pradesh Andhra Pradesh is one of the major cashew growing states offering congenial conditions for the cultivation of cashew. Guntur. . Krishna.  Andhra Pradesh has about 46. East Godavari.

and the remaining is located in different districts of the state.Cashew Industry in Srikakulam  Industry Concentration  There are 650 and around cashew processing units in Andhra Pradesh.  Palasa and surrounding areas includes 450 processing units(each of 1ton to 4 tons a day) in Srikakulam district is the major cashew processing centre in Andhra Pradesh. . 500 are located in Srikakulam district.


Revenue to Government TAX APRIL-2013 TO MARCH2014 NUMBER OF TAX PAID DEALERS APRIL-2014 TO DECEMBER-2014 NUMBER OF TAX PAID DEALERS VAT (5%) 263 23598674/- 256 14653933/- CST(2%) 210 6003926/- 227 11300245/- TOT(1%) 335 6033159/- 300 2590306/- .

which is more than as per Minimum Wages Act.  The tribal's and Agriculture labor of Srikakulam district . therefore the scope for employment was very high. mostly involved in manufacturing process.  The labor were paid daily wages at the piece rate system. .Impact On Employment  The level of automation was very less. the industry was totally based on manpower.

Survey Reports  Intervention of the Government bodies and Political Parties was ZERO.listed as 2ND  About largest payer of wages in the Andhra Pradesh. directly or . 20000 indirectly to this cluster families were depending.  The cluster was followed by the Pharmaceutical industry .

Causes for Labor Scarcity  Increase in Production in nearby areas to the cluster  Diversion towards Agriculture works in seasons  Food for Work.Central government policy .

Effects on Cluster by Scarcity  Increasing gap between Supply and Demand  Decrease in profit level  Decrease in production value .

Best Practices of Palasa Cashew Cluster  Both the unions discuss the increment of wages  All the employers and employees undergoes Bilateral settlements.  The conclusions made by settlement was followed and exercise till the next meeting called for.  The welfare of the employees was observed by the employers association. .

Environments .

Environments  Finance  Government  Local bodies  Infrastructure  Technology  Natural climatic conditions .

local money lenders also play vital role.  Apart from banks.Role Of Financial Institutions  As Working Capital was directly proportional to production.  Though there are many funding institutions. the funds provided were not sufficient to increase the production level at this cluster  Non availability of FOREX authorized dealer .

the government was much focused on the Agro Based industries among which cashew was one.  Proper monitoring mechanism of Implementing products  Periodic review of Schemes and Programs agencies and .Role Of Government And Other Agencies  In newly formed state.

 Up to date the hand cutting machines and the peeling machines were satisfactory.Role Of Technology  As the industry was semi automated.  The automated cashew cutting machines were not satisfactory. . technology has to be provided at the better prices.  The usage of packing system were zero at this cluster.

Role of Infrastructure  Absence of ESI hospital  Lack of facilities in exporting through Vizag port  Absence of Skilled Labor .

which is very expensive .Problems of Cluster  Illegal Competition by New and Small Entrepreneurs  The age of the crop was is more than 50 years  Absence of Central and State Cashew Boards support to the Cluster  Maximum import was done trough Tuticorne .

 The study has identified need for proper training to cashew nut growers. Hence. this implies that the extension agencies may guide the cashew nut growers for improving their knowledge level to improve productivity.  There is need to convince the cashew growers about good cultivation and Marketing practices through demonstration and training. . it is essential to provide sufficient opportunities to the growers for in-depth training on cashew nut cultivation and marketing by government agencies.Conclusion  The study made it clear that the cashew nut growers had lesser market knowledge level.

)  Small Scale industries role is pivotal in stabilizing the economy and to bring economic viability to masses of the country.  Palasa Cashew cluster is moving ahead slowly to reach its economic and social goals as almost all 15.000 families are directly dependable on it.  As compared to other cashew processing states the local banks support is to still think a lot to cater the needs of the processing units .  Though the several research studies revealed the challenges and number of representations given by the association.Conclusion ( Contd. local leaders the cluster is still look for a helping hand.  India like developing countries need much support from all the dimensions to bring sustainable development to such industries.

Thank You .