CAC News
New Delhi, India — India, one of the world’s largest consumers and processors of cashews, is facing new strategic challenges as the global cashew trade evolves toward a more diversified production and processing landscape.
The country consumes approximately 300,000 metric tons of cashew kernels annually, making it one of the largest markets for the nut. However, India continues to rely heavily on imports of raw cashew nuts (RCN) from West Africa to support its extensive processing industry.
Domestic production currently stands at an estimated 700,000 to 750,000 metric tons of raw cashew nuts, which is insufficient to fully meet the needs of the country’s large processing sector. As a result, industry analysts say India must pursue both production expansion and technological upgrades to remain competitive in the global market.
Experts suggest that India may need to increase its cashew output to around 1.2 million metric tons, while also improving farm productivity through better agricultural practices, stronger incentives for farmers, and increased investment in modern processing technologies.
At the same time, the global cashew industry itself is undergoing structural changes. Traditionally dominated by a single processing hub model centered in Asia, the sector is gradually shifting toward a multi-origin production and processing system, with countries in Africa increasing their own processing capacity.
Industry observers believe this transition represents a long-term structural shift rather than a short-term market cycle, as producing countries aim to capture more value locally.
In response to these changes, the Indian government has placed greater strategic emphasis on high-value agricultural crops, including cashew, cocoa, and coconut. Following the latest Union Budget, authorities announced a dedicated program aimed at strengthening the cashew sector by increasing production, expanding processing capacity, and building stronger global branding for Indian cashew products by 2030.
The policy push is backed by a $19.5 billion allocation for agriculture, representing an increase of about 7 percent year-on-year. The funding signals India’s continued commitment to strengthening agricultural value chains and enhancing export competitiveness.
Despite efforts to boost domestic production, analysts note that India will likely continue to rely heavily on raw cashew imports from West Africa to support its large processing industry. This ongoing dependence suggests stable long-term demand for RCN in the global market, particularly from African suppliers.
As the sector evolves, the global cashew value chain is increasingly transforming — from farm-level production to advanced processing and international branding, shaping a new phase for one of the world’s most widely consumed nuts.
