History
Cashew trees were introduced to India by Portuguese traders in the 16th century for soil conservation. Commercial cultivation took off in the 1960s, and India quickly became the world’s largest cashew processor and exporter. Over time, as labor costs rose and Vietnam mechanized, India shifted more toward domestic value-addition and niche exports. The country still imports raw nuts to supplement local production and remains a benchmark for premium hand-peeled cashew kernels.
Production Regions
- Kerala: Birthplace of Indian cashew processing, now focusing more on value-added exports and cooperative processing.
- Goa and Karnataka: Major growing and processing hubs, benefiting from coastal climate and established infrastructure.
- Maharashtra (Konkan Belt): Known for large-sized cashews and expanding area under cultivation.
- Odisha, Andhra Pradesh, Tamil Nadu: Key eastern and southern regions with both smallholders and commercial orchards.
Growing Conditions
- Climate: Tropical with hot summers and well-defined monsoon season ideal for growth.
- Temperature: Optimal between 25–35°C, with tolerance to high temperatures.
- Rainfall: Requires 1,000–2,000 mm per year, mostly met by monsoon rains.
- Soil: Sandy laterite and well-drained red soils, slightly acidic (pH 5.5–6.5).
- Altitude: Grown up to 600 meters above sea level, especially in hilly coastal terrain.
Harvesting Process
- Natural Drop: Nuts fall with the cashew apple and are collected by hand.
- Separation: Kernels are removed manually and sun-dried for 2–3 days.
- Sorting: Grading is done based on nut size and shell quality before processing or sale.
Cultivation Method
- Planting: Done by seeds or grafted saplings under government-supported schemes.
- Pruning: Seasonal pruning after harvest encourages new shoots.
- Fertilization: Typically low-input, but improving with support from agri-extension services.
- Pest Control: Tea mosquito bug and stem borers managed with pesticides and biological control.
- Irrigation: Mostly rainfed; minimal supplemental irrigation during prolonged dry spells.
Supply Chain
- Farmers: Smallholder-dominated with support from cooperatives and processors.
- Processors: Mix of hand-processing units and mechanized plants; many women employed in shelling and peeling.
- Raw Nut Imports: India imports from Benin, Tanzania, and Guinea-Bissau to supplement domestic harvest.
- Exporters: Leading exporters handle logistics, food safety, and certifications for US, Middle East, and EU markets.
Local Logistics
- Transport: Nuts are trucked to processing units near coastal towns.
- Ports: Mangalore, Kochi, and Chennai are key export ports.
- Packaging: Traditional tin packaging is being replaced by vacuum-sealed and nitrogen-packed pouches for retail.
Regulations and Certifications
- FSSAI: Mandatory compliance with India's food safety norms for domestic and export markets.
- Certifications: ISO, HACCP, and BRC certification among leading exporters.
- Traceability: Government is improving traceability and e-Mandi integration.
Quality Standards
- Grades: Indian cashews are sold as White Wholes (WW), Scorched Wholes (SW), and Broken pieces (LP, SP).
- Moisture Content: Target is below 5% to ensure shelf life.
- Appearance: Clean, ivory-colored kernels with high oil content for taste.
- Size: Premium grades like WW180 and WW210 in high demand globally.
Trade Terms
- MOQ: 1 FCL (Full Container Load), approximately 17–19 MT of kernels.
- Incoterms: FOB (Mangalore, Kochi), CIF, and DDP options for buyers in EU and Middle East.
- Payment Terms: LC and TT preferred; some accept advance payments for small orders.
Environmental and Social Impacts
- Employment: The cashew sector is a major source of livelihood, especially for rural women.
- Sustainability: Manual shelling reduces energy use but results in inconsistent output; renewable energy is being explored.
- Waste Utilization: Shells are used for cashew nut shell liquid (CNSL); apples often discarded but show potential for fermentation or juice.
- Land Use: Cashew is promoted on marginal lands, improving rural economies without displacing staple crops.
Uses
- Snacks: Premium salted, roasted, and flavored cashews dominate domestic and export snack segments.
- Food Ingredients: Used in Indian sweets (kaju katli), gravies, vegan cheeses, and nut butters.
- By-products: CNSL is used in lubricants, paints, and bio-resins.
- Cashew Apple: Minor use in homemade liquors and jams; commercial potential still untapped.