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India’s exports of cashew nuts have declined by more than 50 per cent over the past 15 years after touching a record high of 1.31 lakh tonnes in 2011-12 on tough competition, high operational costs for processing and reliance on imported raw materials, trade experts say.
J Rajmohan Pillai, Chairman and Managing Director of Beta Group, which owns the brand NutKing, said India’s cashew export revenues reached a seven-year low in fiscal year 2023-24, totalling $339.21 million. Some reports even indicate that the quantity of exports in 2022-23 (59,581 tonnes) was the lowest in two decades.
Gunjan Jain, President of Nuts and Dry Fruits Council of India, said cashew nut exports have plummeted to a record low of around 45,000 tonnes now.
Several factors
Pillai said the decline can be attributed to several factors, including global competition, high operational costs for Indian processors due to the lack of advanced mechanisation and reliance on imported raw materials. Imports are often unfavourably priced, and supply chains from Africa have been disrupted due to phenomena like El Nino.
“Indian cashew exports have seen a significant decline over the past decade. For instance, exports of cashew kernels (processed cashew) from India declined from 1,26,667 tonnes in 2004-05 to 59,581 tonnes in 2022-23. The total export earnings increased from ₹447.80 crore in 1990-91 to ₹3,890.25 crore in 2019-20. “However, the trend has been a gradual decline in recent years, especially in terms of volume and value. India has been facing challenges in competing with countries that have embraced more modern processing techniques and have lower production costs,” he said.
In the past decade and a half, Vietnam has emerged as a top exporter in the global market. “Vietnam exports have gone up significantly, almost doubling in the last five years,” said Jain.
Vietnam steady in pole position
Beta Group’s Pillai said Vietnam has strengthened its position as the world’s leading cashew exporter. In 2023, Vietnam exported 644,000 tonnes of cashew nuts, valued at $3.6 billion, up 18 per cent in value and 24 per cent in volume from the previous year.
“In 2024, Vietnam’s cashew exports reached record levels, with the Vietnam Cashew Association (VINACAS) expecting the value to surpass a record $4 billion,” he said.
Early 2025 data (Q1 2025) show a temporary decline in Vietnam’s exports in volume (down 19 per cent). However, value increased by 3.7 per cent, and the average export price increased to $6,868 per tonne (up 27.9 per cent compared with the same period a year ago).
“This indicates resilience driven by higher global prices and strong demand despite volume fluctuations. The US remains Vietnam’s largest market, though exports to the US fell 14.5 per cent fall in Q1 of 2025, prompting Vietnamese businesses to explore new markets such as the Netherlands and Japan, where exports have shown growth.
Mixed trends
“VINACAS projects a rebound from April-May onwards, with a target of $4.5 billion in cashew exports for 2025,” said Pillai.
He said that as of early 2025 (around April), Vietnamese cashew kernels (W320 grade) were trading at an average of €4.09/pound (approximately $4.44). This reflected a 2.51 per cent increase.
“India’s cashew prices have shown mixed trends, with upward pressure due to limited supply and rising export demand. As of February 2024, cashew kernels, W240, were costing $8,585/mt f.o.b India, and W320 were at $7,935/mt. The average export price for Vietnamese cashew nuts in February 2025 reached approximately $6,821 per tonne,” he said.
Jain said one of the reasons for Indian cashew nuts not being competitive in the global market is the domestic consumption, estimated at above 3.5 lakh tonnes.
Short-supply on domestic front
“The demand is met by Indian domestic industry that processes raw cashew nut crop of around 7-7.5 lakh tonnes. Imports of raw cashew nuts make up 11-13 lakh tonnes. India processes around 20 lakh tonnes of raw cashew nuts, getting a final cashew kernel production of around 4-4.2 lakh tonnes,” he said.
Pillai said India remains one of the world’s largest consumers of cashew nuts. “Domestic demand for cashews in India is substantial and growing reaching a record high in 2023. The market value for Indian cashew is estimated at $2.40 billion in 2024. Demand is growing at an estimated 7 per cent annually,” he said.
Though raw cashew nuts domesti production was 7,94,900 tonnes in 2023-24, it was not enough to meet the high domestic demand and processing requirements for exports.
India heavily relies on imports of raw cashew nuts. Imports increased by 57 per cent between 2021 and 2023. This demonstrates that a significant portion of India’s domestic demand, and indeed its processing capacity, is met by importing raw cashew nuts, primarily from African nations like Ivory Coast, Ghana, Benin, Guinea-Bissau, Nigeria, and Tanzania, said Pillai.
US tariff hope
On the other hand, domestic production of raw cashew nuts has stagnated at around over the past 5 years, said Jain.
Pillai said cashew in India is cultivated on 11,99,084 hectares in Maharashtra, Andhra Pradesh, Odisha and other States. “While India is a significant producer, its productivity (674 kg/hectare average in 2023-24) is lower compared to countries like Vietnam. The industry faces challenges with erratic rainfall and unusual weather impacting yields in key producing States,” he said.
Pillai, however, sees the potential 46 per cent US tariff on Vietnamese cashews redirecting European and Middle Eastern buyers towards Indian supplies. It would create new export opportunities for India despite its current higher processing costs compared to Vietnam, he said.
Published on May 29, 2025
This article first appeared on The Hindu Business Line
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