Bringing a ray of hope to Kerala’s struggling cashew sector, Union Finance Minister Nirmala Sitharaman has given an in-principle approval to a comprehensive memorandum of requests presented by Shibu Baby John, the State’s Minister for Forest & Wildlife Protection, Skill Development and Cashew Industry.Addressing a press conference following a meeting with Ms. Sitharaman, Mr. John said the Union government’s response was exceptionally positive and encouraging. “The Union Finance Minister has directed the State to immediately submit a detailed project proposal, which the Kerala government plans to draft swiftly with the assistance of a specialised committee of cashew industry experts,” he said.Over the past 12 years, continuous adverse conditions have forced nearly 90% of the approximately 850 private cashew processing units to shut down. This prolonged distress has escalated into a severe humanitarian crisis, with six entrepreneurs dying by suicide due to unbearable financial pressures. The situation has been further compounded by aggressive recovery proceedings initiated by commercial banks, which have pushed thousands of families and workers into deep economic uncertainty.To salvage the industry, the memorandum urges the Central government to officially declare Kerala’s cashew processing industry as an industrial sick sector. This designation will make the industry eligible for dedicated Central rehabilitation packages and concessions.MSME revival packageFurthermore, the State has demanded a special MSME revival package that ensures entrepreneurs receive crucial legal protections, financial incentives, and the necessary handholding to clear outstanding liabilities and safely restart their business operations.Drawing parallels to special Central relief frameworks extended to the tea and textile sectors, the memorandum formally requests the creation of a ₹1,000-crore special purpose fund for the rejuvenation of the cashew industry. The State emphasised the critical need for Central grants and subsidies to fund technology upgradation, automate factories, common facility centres, and roll out comprehensive worker retraining programmes. Published - July 10, 2026 08:43 pm IST