The PIL claims that the KCB, a state-owned entity, awarded contracts worth over ₹33.9 crore each to Olam International Ltd. and ADT Trading FZE for the import of Ghana-origin raw cashew nuts. The petitioner alleges that a quality inspection revealed the nuts to be old, damaged, and of mixed quality, not meeting the required standards. This has raised concerns about potential financial losses for state-run processing factories.
Court Action: The Kerala High Court has admitted the PIL. The petitioner has sought a vigilance probe into the alleged corruption and action against the suppliers. The court has requested instructions from the state government and has scheduled the next hearing for September 8, 2025. The court noted that if there is substance to the allegations, competent state authorities have the power to intervene.
Andhra Pradesh: Illegal Imports and Trade Concerns
Illegal Imports: The Cashew Manufacturers’ Association (APCMA) has reported a significant problem with illegal imports of cashew kernels. They claim that these imports are disguised as items like “cattle feed” to evade import duties and taxes. This practice, often routed through Special Economic Zones (SEZs) and Export Oriented Units (EOUs), allows the imported, cheaper cashews to flood the domestic market, undermining legitimate businesses and causing a financial hit to domestic processors.
Market Cess: The APCMA has also called on authorities to remove the Agriculture Market Committee (AMC) cess on cashew kernels. They argue that this cess puts Andhra Pradesh manufacturers at a disadvantage compared to other states like Odisha, Karnataka, and West Bengal, which do not impose similar levies on cashew kernels or imported raw cashews. The association contends that this cess is a form of double taxation, as it is applied to a processed product.