The Hindu Business Line : Cashew processing industry faces workforce shortage

Those in the cashew industry here pointed out that though the cashew-processing sector is ready to absorb 20,000 women workers in Karnataka alone, it is unable to get the workforce. Women workers form more than 90 per cent of the cashew-processing sector.

Mr K. Prakash Rao, Proprietor of Kalbavi Cashews in Mangalore, told Business Line that there is shrinkage of 10-15 per cent in workforce in cashew processing sector every year.

Around 40,000 women are employed in 225 cashew processing units in Karnataka. “In spite of all the recession, the cashew industry is looking to absorb nearly 20,000 women into the production line in Karnataka. But we (the industry) are unable to get them,” he said. Marriage, attractions of the modern retail sector and reluctance by children to send their mothers to work are some reasons for the workforce shrinkage in the industry.

Mr Rao said that younger women working in the industry migrate to other places after they get married. There is no replacement for them. Of the total workforce shrinkage in the industry, around 7 per cent is because of this reason, he said.

In the case of older women, children take the decision.

Mr Rahul Kamath, Partner of the Karkala-based cashew processing firm Bola Surendra Kamath & Sons, said that children of some older women do not want their mothers to work once they (children) get a well-paying job.

Mr Giridhar Prabhu, proprietor of Achal Cashew Industry in Mangalore, said self-help groups and self-employment are encouraged in rural areas. Hence less people are attracted to the cashew processing sector, he said.

Modern retail chains are also adding to the problem of the industry. One of the cashew processors in the region, who did not wish to be quoted, said that some workers prefer to work in fashionable industries, like the retail sector, even if they get paid less in that sector.

A worker in the cashew industry earns Rs 100 to Rs 130 a day. Another Rs 40 is earned by way of statutory benefits such as ESI, PF and leave encashment.

Some units regularly conduct medical camps and picnics for employees.

Mr Ganesh Kamath, Partner of the Vittal Cashew Industries based in Kasaragod of Kerala, said labour shortage will be one of the major issues the industry will face in the next few years. Acute shortage of labour may force an increase in wages in the cashew processing sector, he added.

Way Out

Expansion of cashew cultivation in non-traditional areas and establishment of cashew-processing units in those areas may help tackle the problem of labour shortage.

Mr Prabhu of Achal Cashew said there was a strong case for growing cashew in non-traditional districts such as Dharwad, Belgaum and Kolar in Karnataka. It will also generate employment in those regions.

Mr Rao of Kalbavi Cashews said the industry has to go to greenfield areas where labour is available and set up industries. “We have to look at areas where plenty of women workforce is available,” he said.

The industry is finding ways to increase the productivity of the workforce by automation wherever possible, though it is a disadvantage to the industry in terms of global competition, he added.

Manual processing has placed Karnataka cashew industry on top position in terms of quality in the market.

Another industry representative, Mr Rahul Kamath, said if the situation continues like this, the industry may prefer to operate in States such as Orissa. Even Madhya Pradesh and Bihar have some cashew processing units, he added.

More Stories on : Cashew | Human Resources | Karnataka

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