Palasa Cashew Processing Cluster and its Impact on Employment & Environment and lessons...
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Transcript of Palasa Cashew Processing Cluster and its Impact on Employment & Environment and lessons...
Palasa Cashew Processing Cluster and its Impact on Employment & Environment and
lessons
Malla.Srinivasa RaoPRESIDENT
THE PALASA CASHEW MANUFACTUERERS ASSOCIATION
Palasa Cashew Processing Cluster
FOUNDER: Late Sri Malla Janardhan Rao
Inception: 1940
Board: 9 members at inception, later it was
increased
Manufacturing Process
At inception - Pan Roasting Method (till
1960’s)
At median - Drum Roasting Method(till
2007)
At present - Steam Boiling method(till
date)
Cashew Industry in Andhra Pradesh
Andhra Pradesh is one of the major cashew growing states offering
congenial conditions for the cultivation of cashew. Andhra Pradesh
occupied sixth rank in terms of number of units and third rank in the
processing of cashew nuts in India.
Andhra Pradesh has about 46,913 hectares of area under cashew with
an annual production of 12,500 tons of raw nuts.
Srikakulam, Visakhapatnam, East Godavari, West Godavari, Krishna,
Guntur, Prakasam and Nellore are important cashew-growing districts
in the State.
Cashew Industry in Srikakulam
Industry Concentration
There are 650 and around cashew processing units in Andhra
Pradesh, 500 are located in Srikakulam district, and the
remaining is located in different districts of the state.
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.
PALASA CASHEW CLUSTER Includes
THE PALASA CASHEW MANUFACTURERS
ASSOCIATION
THE INDUSTRIAL ESTATE – PALASA
HARIPURAM CASHEW MANUFACTURES ASSOCIATION And Others…
Revenue to Government
TAX NUMBER OF DEALERS
TAX PAID NUMBER OF DEALERS
TAX PAID
VAT (5%) 263 23598674/- 256 14653933/-
CST(2%) 210 6003926/- 227 11300245/-
TOT(1%) 335 6033159/- 300 2590306/-
APRIL-2013 TO MARCH-2014
APRIL-2014 TO DECEMBER-2014
Impact On Employment
The level of automation was very less, the industry was totally based
on manpower, therefore the scope for employment was very high.
The tribal's and Agriculture labor of Srikakulam district , mostly
involved in manufacturing process.
The labor were paid daily wages at the piece rate system, which is
more than as per Minimum Wages Act.
Survey Reports
Intervention of the Government bodies and Political Parties was
ZERO. The cluster was followed by the Pharmaceutical industry ,listed as
2ND largest payer of wages in the Andhra Pradesh.
About 20000 families were depending, directly or
indirectly to this cluster
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
Role Of Financial Institutions
As Working Capital was directly proportional to production.
Apart from banks, local money lenders also play vital role.
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
Role Of Government And Other Agencies
In newly formed state, the government was much focused on the
Agro Based industries among which cashew was one.
Proper monitoring mechanism of Implementing agencies and
products
Periodic review of Schemes and Programs
Role Of Technology
As the industry was semi automated, technology has to be
provided at the better prices.
Up to date the hand cutting machines and the peeling machines
were satisfactory.
The usage of packing system were zero at this cluster.
The automated cashew cutting machines were not satisfactory.
Role of Infrastructure
Absence of ESI hospital
Lack of facilities in exporting through Vizag port
Absence of Skilled Labor
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 , which is
very expensive
Conclusion
The study made it clear that the cashew nut growers had lesser market knowledge level; 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.
The study has identified need for proper training to cashew nut growers. Hence, it is essential to provide sufficient opportunities to the growers for in-depth training on cashew nut cultivation and marketing by government agencies.
Conclusion ( Contd.)
Small Scale industries role is pivotal in stabilizing the economy and to bring economic viability to masses of the country.
India like developing countries need much support from all the dimensions to bring sustainable development to such industries.
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.
Though the several research studies revealed the challenges and number of representations given by the association, local leaders the cluster is still look for a helping hand.
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
Thank You