The Indian cashew industry is facing significant challenges that have led to a sharp decline in exports in recent years. Despite being a major player in the global cashew market, India’s share has dwindled from around 80% to less than 10%. The industry is grappling with issues such as rising labour costs, lack of mechanization, and slower growth in domestic production. To address these challenges and promote the growth of the sector, the Agricultural and Processed Food Products Export Development Authority (APEDA) has announced several initiatives, including cluster-based development, branding and marketing, and support for research and development. These measures aim to attract investments, improve production, and enhance India’s competitiveness in the global cashew market.
The Indian cashew sector faces challenges such as modernisation deficits and rising labor costs, leading to a significant decline in exports from $917 million in 2017-18 to $368 million in 2023-24. Once a global leader with 80% share, India now contributes just 8% of global cashew exports. APEDA, through a cluster-based approach in Kerala and Maharashtra, aims to improve domestic production and promote cashew exports as a branded global product.
To reverse this trend, the Agricultural and Processed Food Products Export Development Authority (APEDA) has announced several initiatives aimed at rejuvenating the sector. APEDA Chairman Dev highlighted a cluster-based development approach, targeting two locations—Kollem in Kerala and Chandgad in Maharashtra—as pilot regions for integrated cashew production and export promotion. This initiative is intended to help meet domestic production needs and bolster India’s presence in the global market.