Kerala Budget: Concerns mount over shrunken cashew outlay
Despite the announcement of a comprehensive package to address the systemic crisis in the cashew industry, the sharp decline in direct budgetary allocation has sparked
Despite the announcement of a comprehensive package to address the systemic crisis in the cashew industry, the sharp decline in direct budgetary allocation has sparked serious concerns over the survival of the sector. The newly presented Budget has formulated a revival package that includes steps taken in close consultation with banking institutions to implement a highly anticipated one-time settlement (OTS) scheme for closed factories. However, the Budget has set aside a mere ₹56 crore for the cashew sector to back these initiatives, triggering widespread concern among industry stakeholders. “Though an OTS scheme existed previously as well, it failed to yield results due to a lack of cooperation from banking institutions.
We were fully expecting this Budget to deliver a highly structured strategy backed by specific, dedicated financial allocations to rescue the struggling industry from its current downfall. Unfortunately, the current layout lacks that clarity, leaving processors with nothing but confusion and deep concern,” said a processor. A comparison with previous fiscal years reveals a drastic reduction in financial support for this employment-intensive industry. While the final Budget of the previous Left Democratic Front (LDF) government, presented by former Finance Minister K. N. Balagopal, had earmarked ₹96 crore exclusively for the cashew sector, the current allocation has been slashed to just ₹56 crore.
‘Livelihood crisis’ Industry experts and union representatives warn that this sharp drop in funding will inevitably scale down the number of working days for factory employees, forcing thousands of rural households into a severe livelihood crisis and pushing the already struggling traditional sector deeper into economic turmoil. Expressing strong dissent over the layout, former Kerala State Cashew Development Corporation chairperson S. Jayamohan said that the Budget has completely neglected the traditional industrial sectors, which serve as the economic backbone of districts like Kollam. He pointed out that since the Forest Minister himself holds the cashew portfolio, there was a widespread expectation that the Budget would include major proposals to expand local cashew cultivation under the leadership of the Social Forestry wing, but these hopes have been completely dashed.
“The neglect is not confined to cashew alone, as other critical traditional segments such as coir, fisheries, and handloom have also been pushed to the margins with very limited and restrictive fund allocations,” he said.
The BriefWire