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3.146 The Kerala State Cashew Development Corporation (KSCDC) and Kerala State Cashew Industry and Labour
Workers Apex Co-operative Society (CAPEX) are the two agencies of the State engaged in cashew
processing sector in Kerala. CAPEX with headquarters in Kollam, is the apex body of cashew
workers primary societies engaged in the procurement of raw cashew nuts and marketing the
processed kernels. The Society owns 10 factories. There are about 6300 workers. Capex could
provide employment for 212 days in 2013-14. The performance of CAPEX by the last 5 years is given
in Appendix 3.50. The Kerala State Cashew Development Corporation (KSCDC) has 30 factories
with about 18000 workers. The Corporation processes raw cashew nuts and produces value added
products.The Corporation could provide employment for 106days in 2013-14. The performance of
KSCDC by the last 5 years is given in Appendix 3.51. CAPEX and KSCDC altogether employ about
24300 workers which is less than 10% of the total workers in the sector, where the rest of the workers
are in private sector.

Kerala State Agency for the Expansion of Cashew Cultivation (KSACC)

3.147 Kerala State Agency for the Expansion of Cashew Cultivation (KSACC) was constituted by
Government of Kerala to overcome the crisis of diminishing trend in shortfall of area under cashew
cultivation in the State. Since 2008, KSACC has been organizing promotional activities in cashew
cultivation and distributing cashew grafts of high yielding varieties and financial assistance to farmers
and institutions in the State. KSACC is the nodal agency for the Cashew cultivation activities in
Kerala, approved by NHM (National Horticulture Mission).During 2013-14 KSACC distributed about
10 lakh cashew grafts of high yielding varieties to farmers and other public, concentrating northern
region of the state. Assistance was also given for establishing apple processing units.

Cashew Export Promotion Council of India (CEPCI)

3.148 The Cashew Export Promotion Council of India (CEPCI), a non-profit making company, was
established at Kollam, Kerala with the object of promoting exports of cashew kernels and cashew
nut shell liquid from India. The council operates plan schemes for GOI, and offers various services
to its member exporters. The council has set up a Laboratory and Technical Division of international
standards which is recognised as an approved Research Centre for Doctoral research by Kannur
University and University of Kerala. The service of CEPC Lab is available to cashew industry as well
as entire food processing industry in India and abroad. Detailsof production of cashew is given in
Appendix 3.52.

Issues and Challenges in Industry Sector

3.149 High and persistent unemployment, particularly amongst educated and semi-skilled youth, is
one of the most critical challenges that Kerala faces today. Lack of space, poor quality infrastructure,
Business planning, Financial linkages, Market linkages, Technology and Infrastructure support,
Mentoring and hand-holding support are the also the constraints in Micro, Small and medium
industrial development in the state.

3.150 The limited level of funding, range of financial products and high cost of funds are major
constraint in the self-employment programs in the state. Also, entrepreneurship is mostly limited to
trade, transport and tourism, which are low knowledge-intensive sectors, while major part of Kerala’s
young generation is highly skilled and knowledge intensive.

3.151 Kerala’s industry is more labour intensive than national average in organised manufacturing
sector. The labour scenario in the State is also very challenging in labour productivity because of
high wage rate and low efficiency.

Economic Review 2014