Global and Indian Cashew Production: Key Insights

Imagine biting into a creamy, buttery cashew-a nut that has journeyed from tropical orchards across continents to land on your plate. But have you ever wondered where these delicious nuts come from and which countries dominate the global cashew trade? The story of cashew production is one of shifting landscapes, economic transformation, and agricultural innovation that spans from the sun-drenched coasts of West Africa to the verdant peninsular regions of India.

A brief introduction to the cashew tree 🔗

The cashew tree (Anacardium occidentale L.) is native to eastern Brazil, where it was first discovered growing wild before Portuguese traders introduced it to other tropical regions during the 16th century. Today, this resilient tree thrives across Africa, Asia, and Latin America, supporting the livelihoods of millions of smallholder farmers. What makes cashew particularly valuable is not just its delicious kernel but also its remarkable adaptability-the tree is drought-resistant and can grow in poor soil conditions, earning it the nickname “gold mine of waste land” in agricultural circles.

Beyond the kernel, every part of the cashew offers economic value. The cashew apple produces juices and alcoholic beverages, while the shell yields cashew nut shell liquid (CNSL), an important industrial raw material. This versatility makes cashew cultivation an attractive option for farmers in tropical regions seeking sustainable income sources.

Global cashew production: who leads the pack? 🔗

The global cashew market has witnessed remarkable transformation over the past few decades. According to industry data, global cashew production reached approximately 3.9 million metric tons in 2023, with the market expected to grow at a compound annual growth rate of over seven percent through 2030. The Asia-Pacific region dominates production, contributing over 62 percent of global output.

The landscape of top-producing countries has shifted considerably. Côte d’Ivoire (Ivory Coast) has emerged as the world’s largest producer, harvesting approximately 1.04 million tonnes in 2023. This West African nation now accounts for more than 26 percent of global cashew production. India follows as the second-largest producer with around 782,000 metric tons, while Vietnam produced approximately 347,635 metric tons during the same period.

Other significant producers include Benin (203,844 metric tons), Tanzania, Mozambique, Burkina Faso, the Philippines, and Brazil. Interestingly, West African countries have dramatically increased their output, with nations like Benin and Burkina Faso recording production growth of 20 to 50 percent over recent years.

India’s position in global cashew cultivation 🔗

India holds a unique position in the cashew world-while it may not lead in raw nut production, it has historically been the global hub for cashew processing and kernel exports. The Agricultural and Processed Food Products Export Development Authority (APEDA) notes that India ranks second globally in the export of shelled cashew nuts, holding approximately 8.72 percent market share. The country is also the world’s second-largest importer of raw cashew nuts in shell, reflecting its massive processing capacity.

India’s cashew production has shown steady growth, increasing from 779 thousand tonnes in 2021-22 to 810 thousand tonnes in 2022-23-a growth rate of four percent. The cultivation covers approximately 10 to 11 lakh hectares across the country’s coastal regions. However, India’s productivity remains a concern, with yields averaging around 760 kg per hectare compared to higher figures achieved by some competing nations.

Major cashew-producing states in India 🔗

Cashew cultivation in India is concentrated primarily along the peninsular coastal areas. Along the western coast, the crop flourishes in Kerala, Karnataka, Goa, and Maharashtra. The eastern coastal states of Tamil Nadu, Andhra Pradesh, Odisha, and West Bengal also contribute significantly to national production.

According to state-wise production data, Maharashtra leads with approximately 25 percent of India’s total raw cashew nut production, followed by Andhra Pradesh at 17 percent and Odisha at 16 percent. Kerala, traditionally associated with cashew processing, has seen its production ranking decline in recent years, now positioned sixth after Tamil Nadu and Karnataka.

The highest productivity levels have traditionally been observed in Kerala and Maharashtra, where yields exceed one tonne per hectare. Maharashtra’s success can be attributed to relatively newer plantations established with high-yielding clonal material and better agronomic practices. Meanwhile, Goa maintains its historical connection to cashew-having been the first Indian state where the Portuguese introduced this crop five centuries ago.

To a limited extent, cashew cultivation has expanded into non-traditional areas including Chhattisgarh, northeastern states like Assam, Manipur, Tripura, Meghalaya, and Nagaland, as well as the Andaman and Nicobar Islands.

India’s cashew export landscape 🔗

The Indian cashew industry is a significant contributor to the national economy, employing more than 10 lakh people across farms and processing facilities in rural areas. The processing industry, which was earlier concentrated in Kollam (Kerala), Mangalore (Karnataka), Goa, and Vettapalam (Andhra Pradesh), has now spread across multiple states.

During the fiscal year 2023-24, India exported approximately 65,808 metric tonnes of cashew kernels valued at around USD 339 million. The major export destinations include the United Arab Emirates, Japan, Netherlands, Spain, and Saudi Arabia. The UAE remains the largest single importer of Indian cashews, accounting for approximately 35 percent of total exports.

Beyond kernels, India also exports cashew nut shell liquid (primarily to China, Vietnam, and Mexico) and cardanol, a purified form of CNSL used in various industrial applications. The country exports cashew products to over 60 nations worldwide, maintaining its position as a major player in global cashew trade.

Challenges facing the Indian cashew industry 🔗

Despite its strong processing capabilities, India faces several challenges in maintaining its competitive edge. The domestic production of raw cashew nuts meets only about half of the processing demand, necessitating significant imports from African countries including Ghana, Togo, and Tanzania. This dependence on imported raw materials affects profit margins and exposes the industry to price volatility.

Outdated processing technology in many small and medium-sized facilities remains another significant hurdle. While nations like Vietnam have adopted automated processing systems that dramatically improve efficiency and reduce costs, many Indian processors still rely on traditional, labour-intensive methods. Additionally, erratic weather patterns due to climate change, including unseasonal rains and droughts, have caused production fluctuations in recent years.

Government initiatives and future prospects 🔗

Recognizing the need to boost domestic production, the Indian government has implemented various initiatives through the Directorate of Cashewnut and Cocoa Development. The Mission for Integrated Development of Horticulture (MIDH) and Rashtriya Krishi Vikas Yojana (RKVY) focus on expanding cultivation area and replacing senile plantations with high-yielding varieties.

A roadmap programme has been approved to extend cashew cultivation by 1.20 lakh hectares across both traditional and non-traditional growing states. Research institutions continue developing improved varieties with better yield potential and disease resistance, while extension services work to transfer modern production technologies to farmers.

The future of India’s cashew industry appears promising, driven by increasing health consciousness among consumers who recognize cashews as nutrient-dense foods. Growing domestic consumption, combined with sustained export demand from the United States, European Union, and Middle Eastern markets, suggests continued expansion opportunities for producers and processors alike.

The road ahead for global cashew production 🔗

Looking at the broader picture, global cashew production is forecasted to reach approximately 4.69 million metric tonnes by 2026, representing nearly nine percent growth from current levels. This expansion will likely be driven by continued growth in African production and recovery in Asian output. The market value is projected to exceed USD 14 billion by 2030, with rising demand for healthy snacks and plant-based foods fuelling consumption growth.

Sustainability initiatives are gaining momentum, with organisations like the African Cashew Alliance promoting eco-friendly farming practices. These efforts have already shown results, with countries like Tanzania reporting yield improvements of up to 30 percent since 2020. The push for local processing in producing countries-rather than exporting raw nuts for processing elsewhere-is reshaping value chains and creating new economic opportunities in rural communities.

What do you think? With climate change affecting traditional growing regions and new players entering the market, how do you see the future of cashew farming evolving? And as India works to boost its domestic production, can it reclaim its historical dominance in the global cashew industry?

References

1. https://www.fao.org/4/ac451e/ac451e04.htm
2. https://www.mordorintelligence.com/industry-reports/global-cashew-market
3. https://worldpopulationreview.com/country-rankings/cashew-production-by-country
4. https://apeda.gov.in/cashew
5. https://www.ibef.org/exports/cashew-industry-india
6. https://keralacashewboard.com/cashew-industry/
7. https://dccd.gov.in/crop-history-cashew