New Delhi, January 16, 2026—The Cashew Association of India has sounded an alarm over a sharp rise in illegal cashew nut imports, particularly from Vietnam and several African countries, warning that the practice is severely undermining the domestic cashew industry and threatening thousands of livelihoods.
According to the association, large quantities of cashew nuts are being brought into India under false declarations, and mislabeled as non-cashew products to evade import regulations and taxes. These imports, the association claims, are flooding the Indian market and placing immense pressure on local processors already grappling with high raw material costs and weak domestic demand.
In a letter to the Union Minister of Commerce, M. Ramakrishnan, Secretary of the Cashew Association of India, said the industry is facing “unprecedented strain.” He noted that many cashew processing units across the country have been forced to scale back operations due to abnormally high raw cashew prices and shrinking margins.
The association alleges that fraudulent use of Harmonised System of Nomenclature (HSN) codes lies at the heart of the problem. Cashew kernels are reportedly being misdeclared as animal feed, cashew nutshells, or other unrelated products. In a more recent development, raw cashew nuts are allegedly being declared as roasted cashews to bypass scrutiny.
Special Economic Zones (SEZs) have also come under scrutiny, with the association claiming they are being misused as channels for “cashew laundering.” Imported cashew kernels, once routed through SEZs, are allegedly sold in the domestic market as Indian products. This practice not only deceives consumers but also raises food safety concerns and damages the reputation of Indian cashews, which are widely regarded for their quality.
Mr. Ramakrishnan warned that the cheaper, often inferior-quality imported kernels are eroding the competitiveness of Indian cashews and could lead to the closure of agro-based processing units. Such closures would disproportionately affect women, as the sector employs more than 100,000 female workers across the country.
The Cashew Association of India has urged the Ministry of Commerce to take immediate and stringent measures, including stricter verification of HSN codes and enhanced coordination with customs authorities at ports. It has also called for tighter oversight of SEZs to prevent their misuse.
The association stressed that decisive action is essential to protect consumers from counterfeit and substandard products, ensure fair trade practices, and safeguard the future of India’s cashew processing industry.
Source ARDB TV
