Increase in import the of Cashew kernels and high price for raw nuts and confusion over taxation has badly influence for the decline of sales.
Even though the government has imposed high import duty of 45%, yet huge quantity of kernels are imported due to cheap price in abroad.
Currently, kernels are imported at Rs 300-400 per kg in whole and in broken form, as it is profitable in Indian market where it is sold at Rs 800-820 per kg.
More import are done on broken kernels and it consumed by confectionary industry.
The introduction of goods and service tax (GST) had also hit the traders creating confusion in the commodity market which came into effect from July1.
GST on cashew was initially fixed at 12%, later it was brought down at 5% on request of the industry and traders.
Another reason for the higher retail price and low sale this year is the rise in the cost of imported raw nuts, because of which Cashew kernels in local market is high and effect in the sales.
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