The Palasa–Kasibugga cashew cluster in Andhra Pradesh, one of India’s largest, faced a two-week shutdown (June 5–19, 2025) due to a sharp ₹70/kg price drop and weak demand, halting production of 60,000 kg/day. This disrupted ₹200–250 crore in annual revenue and affected 15,000 workers’ livelihoods. The incident reflects recurring instability in India’s cashew sector, driven by pricing and supply volatility.
The Shutdown and Its Immediate Impact:
Cause: The primary trigger for the two-week halt (June 5-19, 2025) was a significant drop in domestic cashew kernel prices (around ₹70 per kilogram) coupled with slumping demand.
Production Halt: The combined daily production of approximately 60,000 kg of cashew kernels from these units ceased, representing a substantial loss of output for two weeks.
Economic Impact: The annual revenue generation of ₹200–₹250 crore (approx. $24-30 million USD) for the cluster was directly impacted. More critically, the livelihoods of an estimated 15,000 individuals directly or indirectly engaged in the industry were affected, as workers were left without income for over two weeks.