Raw Cashew Nuts

Cashew, derived from the exotic cashew tree, is one of the most sought-after nuts among dried fruits. In India, commercial cultivation of cashew occurs primarily in eight states: Andhra Pradesh, Goa, Kerala, Karnataka, Orissa, Maharashtra, Gujarat, and Tamil Nadu. Currently, India accounts for approximately 19.46% of the global cashew production. The cashew nut forms outside the fleshy fruit known as the cashew apple, which falls to the ground along with the seed when mature. After collection, the seeds are processed to extract the cashew nut. The sweet, fleshy cashew apple is often utilized to produce a fermented beverage known as Feni. Kerala leads the nation in cashew processing, housing over two-thirds of the processing units, while the remaining facilities are distributed across other states. Collectively, these units possess a processing capacity exceeding 800,000 tons per annum. The raw cashew seeds are sun-dried for 4 to 5 days before being processed for market distribution.

In India, cashew processing is predominantly manual and highly labor-intensive, with women making up nearly 90% of the workforce in this sector. The cashew industry remains largely unorganized and fragmented, although mechanization efforts are gradually increasing. This model serves as a guideline for establishing a new small-scale cashew processing unit.

Market Potential

The demand for cashew nuts is steadily rising, while supply remains limited. India stands as the leading producer, processor, consumer, and exporter of cashew nuts globally, representing a significant agricultural commodity exported to numerous countries.

Domestic Market

Cashew nut cultivation is largely restricted to coastal areas; however, demand for cashew nuts and their products is high throughout the country. Domestic consumption surpasses production levels, with cashew nuts being a staple in almost every household. Due to their premium pricing, they may be less accessible to lower-income populations. India produces approximately 700,000 to 800,000 metric tons of cashew nuts annually, with around two-thirds of this production consumed domestically. Cashew nuts are commonly used in various sweets, snacks, desserts, and ice creams, with demand surging during festive occasions such as Diwali, Ramadan, and Janmastami.

Export Market

India accounts for 65% of global cashew nut exports, reaching over 60 countries. In the 2023-24 fiscal year, India exported 113,620 metric tons of cashew nuts valued at approximately $825.89 million (₹4,955 crore). The country has established itself as a hub for cashew nut processing, leveraging its skilled labor force. Raw cashews are imported from countries such as Vietnam and Africa for processing before being exported worldwide, highlighting the substantial potential for export growth in this commodity.