Increase on import tax threatens Mozambique’s cashew exports to India – report

Login

Register

http://www.clubofmozambique.com/

Increase on import tax threatens Mozambique’s cashew exports to India – report

12:38 CAT | 02 Mar 2020

in file CoM

The Indian government recently approved an increase in the tax on cashew nuts imports from 45 to 70 percent, a situation which presents a challenge to the sector in Mozambique.

The measure aims to protect India’s domestic market, the largest in the world in terms of both volume and value, a situation that considerably reduces the possibility of access to this market by the Mozambican processing industry.
The effects of the decision of the Indian authorities are already being felt in Mozambique, which is currently holding the highest levels of unsold finished product in its history, president of the Association of Cashew Industries (AICAJU) Gonçalo Correia explained to Noticias.

“One way out of this dilemma would be to sign an extraordinary trade agreement between the governments of Mozambique and India, which would allow Mozambican processors to place up to 4,500 tonnes per year of nuts in India, exempt from the import surcharge,” he said.

The price of cashew nut on the international market has already dropped significantly in recent weeks as a result of the fall in demand from China in the wake of the coronavirus outbreak, Correia added.

Source: Noticias