Cashew Nut is one of the most widely used edible tree nuts in the world. Cashew kernels are classified into several grades according to the size, colour etc. Cashew nut has emerged as a globally traded commodity in the last century. The evergreen cashew tree is also known for its fruits and the liquid derived from cashew shell.

Global Trends

India is the largest producer of raw cashews as well as exporter of processed cashew kernels in the world. The total raw cashew output is estimated to be around 1.3 million tons. India accounts for 350,000 tons while countries in East and West Africa put together produces around 400,000 tons. Vietnam and Brazil are the other major producers of raw cashew. Major importers of cashew nut are US, European Union, China, and countries in West Asia. Global prices of cashew kernels are shaped by prices of competing tree nuts such as almonds, walnut, pistachio etc.

Indian Scenario

Besides producing 350,000 tons, India also import an equal amount of raw cashew to meet its processing and export requirement. India accounts for more than 50 percent of global cashew kernel export earning around Rupees 25 billion per year. However, Vietnam has emerged as a major competitor for Indian cashew kernel exports as it also targets India’s traditional markets in the US. Vietnam has the advantage of domestic availability of raw nuts compared with India depending on imports of nearly 50 percent of raw cashew requirements.