CAC News
The introduction of zero-tariff access between China and 53 African countries is expected to reshape the global cashew supply chain, with significant implications for major processing nations such as India and Vietnam.
Under the new trade arrangement, African countries are expected to retain more Raw Cashew Nuts (RCN) for domestic processing and export higher-value cashew kernels directly to China. Industry observers say this shift could tighten the supply of raw cashew nuts available to traditional processing hubs in Asia, particularly India and Vietnam.
Analysts warn that reduced RCN availability may keep raw cashew prices firm or rising, while increased African kernel exports could intensify competition in global markets. As a result, processing margins in Asian countries may come under increasing pressure.
India, one of the world’s largest cashew-consuming and processing nations, faces strategic challenges under the new trade dynamics. The country consumes approximately 300,000 metric tons of cashew kernels annually and relies heavily on raw cashew imports from West Africa. Domestic production, estimated at around 700,000 to 750,000 metric tons of RCN, remains insufficient to meet processing demand.
To maintain competitiveness, industry experts suggest India will need to expand cashew cultivation to approximately 1.2 million metric tons, improve farm productivity, strengthen incentives for farmers, and invest in more efficient processing technologies.
The changing trade landscape indicates that the global cashew industry is moving away from a single processing hub model toward a more diversified, multi-origin production and processing system. Market participants believe this represents a long-term structural transition rather than a temporary market cycle.
In recent years, the Cashew Nut Association of Cambodia (CAC) has observed growing interest from Indian processors seeking alternative raw cashew supplies. Over the past two years, CAC has held meetings with 16 Indian companies interested in purchasing large volumes of Cambodian raw cashew nuts for processing in major cashew-producing states such as Gujarat and Tamil Nadu.
The CAC emphasized that Cambodia has emerged as one of the world’s leading cashew-producing countries and remains a key source of raw cashew nuts for Indian processing plants. CAC reaffirmed its commitment to facilitating Indian companies’ access to high-quality Cambodian RCN supplies to support the industry’s evolving needs.
