Introduction
India is one of the leading producers, processors, and exporters of cashew nuts globally, with a well-established industry spanning cultivation, processing, and international trade. The country has developed a strong value chain, where raw cashew nuts are sourced from domestic production as well as imports, processed into kernels, and exported worldwide. This integrated system has positioned India as a major global hub for cashew processing and exports.
Cashew cultivation in India is primarily concentrated in coastal regions, supported by favorable climatic conditions. The industry plays an important role in the economy by generating employment and supporting rural livelihoods, particularly in processing activities. India mainly exports cashew kernels, along with small quantities of cashew nutshell liquid (CNSL), catering to international markets across multiple countries. The sector continues to be export-oriented, contributing significantly to foreign exchange earnings.
State-wise share of cashew production in India (FY25) (000 MT)
Source: DGCI&S, Directorate of Cashewnut and Cocoa Development
Export Trend
India's cashew export trend (US$ million)
Source: Ministry of Commerce & Industry, APEDA Agri Exchange, Niryat
India is the second-largest cashew exporter, accounting for over 15% of global export share. The country primarily exports cashew kernels, with minimal quantities of cashew nutshell liquid. In FY26, India’s cashew exports were valued at US$ 379.19 million, reflecting steady performance compared to previous years.
Vietnam emerged as the leading export destination, accounting for approximately 29.26% of total exports, followed by the UAE and the Netherlands. Together, the top five destinations contributed a significant share of overall exports, indicating strong demand across key international markets.
The growth of the Indian cashew industry continues to be supported by the import of raw cashew nuts, which cater to nearly half of the domestic and export processing requirements.
At the same time, the government has been promoting domestic production through initiatives under the Mission for Integrated Development of Horticulture (MIDH) and Rashtriya Krishi Vikas Yojana (RKVY). These efforts focus on expanding cultivation areas and replacing older plantations with high-yielding varieties. Additionally, a roadmap approved by the Directorate of Cashew Nut & Cocoa Development (DCCD) aims to expand cashew cultivation by 1.20 lakh hectares, strengthening long-term supply sustainability.
Export Destinations
India exports cashews to 89 countries across different regions of the world. The key export destinations for India include the Vietnam, UAE, the Netherlands, Japan, Spain and Saudi Arabia. In FY26, Vietnam emerged as the largest importer of Indian cashews, with exports valued at US$ 110.93 million, followed by the United Arab Emirates (US$ 64.09 million), the Netherlands (US$ 40.98 million), Japan (US$ 36.05 million), Spain (US$ 23.60 million) and Saudi Arabia (US$ 18.47 million). Vietnam accounted for approximately 29.26% of India’s total cashew exports in FY26, underscoring its position as the leading overseas market for the commodity.
As of FY26, the total value of cashew exports stood at US$ 379.19 million. The continued strength of demand across West Asia, Europe and East Asia reflects the diversified global footprint of India’s cashew exports, supported by steady demand for processed nuts in retail, food processing and hospitality segments.
Country-wise share of India's cashew exports (FY26)
Source: NIRYAT
Government Initiatives
India’s cashew sector continues to show positive momentum, supported by strong export performance and proactive government initiatives. The country remains a key global processor and exporter of cashew kernels, with sustained international demand driving export resilience amid currency fluctuations. States such as Maharashtra are enhancing productivity through a shift towards natural farming, improving both quality and sustainability of output, which strengthens India’s competitiveness in premium export markets.
Additionally, targeted policy measures like the designation of Dakshina Kannada as an export hub are boosting infrastructure, logistics, and value chain efficiency for cashew exports. Institutional support from export promotion bodies and government-led initiatives aimed at improving cultivation practices, enhancing processing capabilities, and expanding market access are further reinforcing the sector’s growth. Collectively, these developments highlight India’s strengthening position in the global cashew trade while contributing to foreign exchange earnings, rural livelihoods, and inclusive economic growth.
The Government of India and the cashew export promotion council have undertaken several initiatives for the ease of exports and growth of the cashew industry. As non-financial assistance to exporters, many trade delegations, buyer-seller meets, fairs, development workshops, and research and development data are provided. Additionally, in 2018, the Basic Customs Duty on raw cashew nut was reduced to 2.5% from the previous 5%, and the Goods and Services Tax (GST) on the same was reduced to 5% from 12%.
As the cashew industry's domestic demand and exports are heavily dependent on imported raw cashew nuts, the Government of India has taken several steps to support efficient sourcing. These include:
- Changes in import policy for cashew kernel (both broken and whole)
- Revision of the standard inputs output norms (SION) for cashew exports
- Approval of Medium-Term Framework scheme for process mechanization and automation of cashew processing units with a financial outlay of Rs. 60 crore (US$ 8 million)
- Allowing duty-free import of raw cashew nuts under the Duty-Free Tariff Preference (DFTP) Scheme from least developed countries (LDCs)
- The government has also extended financial assistance to the Cashew Export Promotion Council of India (CEPCI) for organizing buyer-seller meet (BSM) and participation in international fairs under the Market Access Initiative (MAI) scheme, which supports tapping new markets.
Government Body
The Cashew Export Promotion Council of India (CEPCI)
The Cashew Export Promotion Council of India (CEPCI), established in 1955 under the Ministry of Commerce and Industry, is the main body responsible for promoting India’s cashew exports. It supports exporters by providing market information, facilitating global trade connections, organising international events, and ensuring quality standards. The Council also helps implement government schemes and works to strengthen India’s position as a leading supplier of cashew kernels and related products in the global market.
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Chittoor Road, Ernakulam,
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Kerala, India
Tel.:+91-484-2376459
Fax: +91-484-2377973
Email: cepc@cashewindia.org
Website: www.cashewindia.org
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