The cashew industry in the Palasa region of Srikakulam district is grappling with a serious issue: declining profit margins. This is a direct result of a significant drop in national market prices for cashew kernels, which have fallen by ₹100 to ₹120 per kilogram over the past two months. This price dip has caused a 30% to 40% reduction in supply from traders.
Over 300 cashew processing units are located in the Palasa and Kasibugga areas. These units collectively produce approximately 60,000 kg of processed cashew nuts daily. To sustain this output, they require a substantial annual supply of 80,000 to 100,000 tonnes of raw cashews.
| Issue | What’s Happening |
|---|---|
| Price Crash | ₹100–₹120/kg drop in last 2 months |
| Supply Decline | 30–40% drop due to price collapse |
| Raw Material Shortage | 60–70% units affected by low yield, embargoes |
| Glut & Illegal Imports | Oversupply + cheap Vietnamese imports |
| Weak Demand | Low North India demand even during festivals |
| Temporary Closures | Units shut for 2 weeks in June 2025 |
| Past Protests | 2023/2024 bandhs & demands for MSP and policy support |