CAC News

The regional cashew industry is celebrating a recent Supreme Court verdict related to traffic regulations, a decision stakeholders say could pave the way for smoother logistics and expanded cashew exports to the United States.

At the same time, exports to China have surged sharply, driving optimism across the sector as global prices trend upward.

According to industry data, exports of processed cashew kernels in January reached 65,000 tons, valued at $434 million — marking a 73.6 percent increase in volume and a 70.1 percent rise in value compared with the same period in 2025. The growth was largely fueled by strong demand ahead of the Lunar New Year, particularly in the Chinese market, where imports climbed significantly for holiday consumption.

China emerged as the largest market for Southeast Asian cashews in the first month of the year, posting a 49.4 percent year-on-year growth rate and accounting for 21.3 percent of Vietnam’s total cashew export value. The United States ranked as the second-largest consumer.

In 2025, China overtook the US as Vietnam’s largest cashew export destination, with turnover reaching $1.115 billion, compared with $975 million for the US and $495 million for the Netherlands. Analysts attribute the surge in exports to China to the country’s economic recovery, rising demand for health-conscious food products, and proactive efforts by Vietnamese exporters to meet stricter import standards.

By contrast, exports to the US in 2025 declined by 26 percent in volume and 17 percent in value compared with 2024, reflecting shifting trade dynamics and market pressures.

In India, domestic cashew supplies are currently limited, forcing the industry to rely heavily on imports. Prices have spiked amid rising seasonal demand linked to marriages and major festivals such as Ramzan and Holi. Traders report that small cashew pieces are selling for ₹600 per kilogram, 240-count kernels (₹800/kg) are about $8.82 per kg, 180-count kernels (₹850/kg) are roughly $9.37 per kg, and 320-count kernels (₹750/kg) are around $8.27 per kg.

Meanwhile, Cambodia, the world’s second-largest producer of raw cashew nuts (RCN), is facing severe weather disruptions. Prolonged cold conditions have delayed fruit setting, resulting in late harvests and supply shortages for Vietnamese processors.

Silot Uon, president of the Cashew Nut Association of Cambodia (CAC), expressed concern over potential production shortfalls in the 2026 season. He warned that reduced output could place further upward pressure on raw material prices and disrupt supply chains across the region.

Despite weather-related challenges, industry leaders remain cautiously optimistic that strong global demand — particularly from China — will continue to support prices and drive growth in the months ahead.