MIP imposed on cashew kernels not applicable for units in SEZs, EoUs: DGFT

The minimum import price imposed on cashew kernels are not applicable for units in special economic zones (SEZs) and export oriented units (EoUs), according to a trade notice of the directorate general of foreign trade (DGFT).

In June last year, the directorate, under the commerce ministry, had sharply increased the minimum import price (MIP) for whole and broken cashew to Rs 680 per Kg from Rs 288 per kg.

Similarly for whole cashew, it was enhanced to Rs 720 per kg from Rs 400 per kg earlier.

Below these prices, imports of the commodity is prohibited.

In a trade notice, the directorate said it has received references from importers seeking clarification on application of MIP on import of cashew kernels in SEZ or EoU units.

"The matter has been examined in this directorate. It is clarified that MIP on cashew kernels is not applicable for imports by 100 per cent EoUs and units in the SEZs," Deputy Director General of Foreign Trade Gagandeep Singh has said in the notice.

SEZs and EoUs are developed as export hubs in the country. Raw materials imported by units in these zones are used for export purposes.

The country produces around 3.5 lakh tonne of cashew kernels. The production and import of raw cashew is around 8 lakh tonne and 9 lakh tonne, respectively.

Indian cashew industry exports different grades and products like cashew kernels (wholes and broken), cashew nut shell liquid (CNSL), cardanol (purified CNSL) and flavoured kernels.

Indian cashew kernels are well accepted and preferred world over for its quality, taste, tradition and commitment to supply, compared to other origins.

The country exports to about 80 countries, including the US, UAE, Netherlands, Saudi Arabia, Germany, Japan, Belgium, Korea, Spain, France, UK, Kuwait, Singapore, Qatar, Greece, Italy, Iran and Canada.