The cashew nut industry in India has been important to the Indian economy for decades. India is one of the world's major producers and consumers of cashew nuts. While planning for 2025, it is crucial that everyone connected, from farmers to processors to exporters to consumers, understand the trend in the market, price fluctuation, and driving forces of the cashew nut industry.

 Overview of the Indian Cashew Nut Market

India's cashew industry includes large-scale cultivation, processing, and export. Kerala, Karnataka, Goa, Maharashtra, Andhra Pradesh, Odisha, and Tamil Nadu are the biggest cashew-producing states. These states' climatic and soil conditions support the production of high-quality cashew nuts in the nation.

The Indian cashew market has experienced steady growth during the last several years. According to market analysis, the India Cashew Market size will probably be valued at USD 2.49 billion in 2025 and is expected to expand at a Compound Annual Growth Rate (CAGR) of 3.80% to achieve USD 3 billion by 2030.

 Price Trends and 2025 Predictions

The Indian retail price range for cashew nuts as of January 2025 stands at INR 597.89 to INR 653.69 per kilogram, or approximately USD 5.05 to USD 5.52 per kilogram. citeturn0search4 The prices depend on various factors like cost of production, demand-supply, and international market conditions.

Historically, cashew nut prices have remained volatile due to fluctuations in production, changes in local and international demand, and extraneous factors such as global economic conditions and trade regulations. India imported cashews worth approximately USD 2 billion in 2022, a 65% increase from the previous year. citeturn0search0 A robust domestic demand and need to supplement local production to cater to consumption levels required is indicated in this higher import.

Moving ahead, the Indian cashew nut market is poised to increase because of the increased health awareness of consumers and the increasing popularity of cashew-based food items. The cashew nut snack market, in turn, is poised to reach USD 314.7 million by 2030, at a CAGR of 5.3% between 2025 and 2030.

 Determinants of Cashew Nut Prices

Various factors affect the price of cashew nuts in India:

1. Seasonality:

Cashew picking in India is usually done from February to May. Prices are lower during the peak season when there is much supply and higher during the off-season from October to January.

2. World Supply and Demand:

As a large exporter, India's cashew price is influenced by world market trends. Changes in production in other big cashew-producing countries can influence world prices, which have an impact on domestic prices.

3. Tariffs and Import Policies:

Changes in trade policy and import duty can affect the cost of raw cashew nuts imported for processing, which can affect retail prices.

 4. Currency Exchange Rates:

As cashew nuts are exported, fluctuations in exchange rates can influence export prices and competitiveness. 

5. Production Costs:

Labor expenses, fertilizers, pest management, and irrigation all contribute to the overall production costs, which determine the cost of cashew nuts.

 Market Segmentation and Consumer Decisions

The Indian cashew industry serves different segments of society, which include households, confectioners, bakeries, and hotels. Cashews are used in different forms:

- Whole Nuts: Eaten as snacks or put in food.

- Flavored Nuts: Mixed with spices or sweeteners to suit different tastes.

- Cashew Kernels: Used in confectioneries, desserts, and savory dishes.

- Cashew-Based Foods: Like cashew butter, cashew milk, and cashew-based spreads are gaining greater traction among healthy consumers.

More and more, consumers are requiring organic and healthy options. This is pushing producers to employ sustainable farming methods and to provide certified organic produce.

 Constraints in the Cashew Industry

Despite healthy growth prospects, India's cashew industry is confronted with several challenges:

• Climate Change

Among the biggest challenges is climate change, which has led to unpredictable weather conditions, affecting cashew production. Unpredictable rainfall, droughts, and changes in temperature can drastically decrease crop production, causing supply shortages and price volatility. To counter these effects, farmers need to embrace farming practices that will withstand climate issues and invest in better irrigation infrastructure.

• Bug Problems

The other serious problem is pest infestations. Cashew crops are prone to pests and diseases which reduce yield and quality. Farmers incur heavy losses if there are no effective pest control methods. The industry needs to focus on research and development to come up with environmentally friendly pesticides and integrated pest management methods to ensure sustainable production.

• Competition From Other Producing Nations

Foreign competition poses a danger to the Indian cashew industry. Vietnam and Ivory Coast are becoming major competitors in the global cashew market by offering lower prices and better quality goods. India needs to increase productivity, lower costs, and enhance the quality of its cashews through better farming and processing methods in order to retain its market share.

• Infrastructure And Processing Facilities

The industry also faces infrastructure and processing facility challenges. The majority of the processing units in India are obsolete and do not have modern technology, which results in inefficiencies and higher costs. Modernization of processing units and development of supply chain logistics is needed to improve overall efficiency. Infrastructure challenges can be addressed through government initiatives and investments from private entities.

• Price Volatility

Lastly, fluctuations in price in the global market have a great impact on the income of farmers and processors. Price fluctuations are the result of variations in world demand, exchange rates, and import-export policies. Such uncertainty makes planning and sustaining the business hard for everyone involved. The use of price stabilization methods and the encouragement of contract farming can give farmers and processors greater stability and security. 

Solving these problems is important if the Indian cashew industry is to compete in the global market. With the use of modern farming methods, investment in new technology, and proper policy implementation, India is able to overcome these problems and keep on developing in the cashew industry.

•  Help From The Government

The government of India has helped the cashew industry in many ways:

For the cashew industry to grow and become sustainable in India, some important measures are necessary. One of them is subsidies and financial support, which can offer funds for the setup of new processing units and the use of better technologies. Financial support can help farmers and processors lower their costs and conduct more efficiently, which will increase the productivity of the sector.

Another essential element is research and development (R&D). Investment in R&D can help in breeding cashew varieties that yield well and are disease- and pest-resistant, and this can make a tremendous boost to productivity while minimizing losses on account of pests and diseases. R&D can also study new processing technologies and value-added products, which can help farmers and exporters reap better profits.

Export promotion is necessary to render Indian cashew nuts more competitive in the global market. Product marketing, brand development, and quality upgrading can help Indian exporters enter new markets and become more dominant in current markets. Focusing on the high quality and variety of Indian cashew products, exporters can successfully compete with large producers like Vietnam and Ivory Coast.

Lastly, training and capacity building will assist farmers and processors in gaining the knowledge and expertise necessary for new farm and processing technology. Conducting training programs in best practices, sustainable agriculture practices, and modern processing will help increase productivity and the quality of products. Focus on these areas will ensure that the Indian cashew industry grows in a sustainable manner and is competitive on the international scene.

Grow Your Cashew Nut Business with Momex: Your Trusted Logistics Partner

India's market for cashew nuts will grow in 2025. The reason is that there is greater local demand, changing consumer choices, and more export opportunities. However, dealing with fluctuating prices, import policies, and international competition involves careful planning and stable sources. If you wish to import raw cashew nuts or take your business overseas, choosing the ideal logistics partner is key to achievement.

Momex is here to help make it easier. We possess a considerable amount of international shipping, customs clearing, and supply chain managing expertise, which enables us to streamline importing for you. Allow the problems associated with international trade to no longer get in the way—contact Momex today and find out how we can support your cashew nut import operation and keep you on top of the competitive marketplace!

FAQ

1. What are the determinants of India's cashew nut prices in 2025?

Cashew nut prices are controlled by a host of factors, from global demand and supply, weather conditions in producing nations, import duties, to exchange rates. Price can also be affected by different transportation and processing fees.

2. How do I keep up to date with the latest prices of cashew nuts in India?

You can keep yourself informed by reading commodity reports, joining industry newsletters, or visiting reputable trade websites that offer up-to-the-minute trends and prices for cashew nuts.

3. Do cashew nut prices differ based on seasons?

Yes, cashew nut prices typically vary by season. Prices are usually lower during the harvest season (February to May in India) when supply is abundant and can go up in off-season months since there is less available.

4. What is the effect of import duties on Indian cashew nut prices?

Tariffs and duties on imports can drastically affect cashew nut prices because they increase the cost of raw cashew nuts imported into India. It is advisable to remain informed about import rule modifications for effective cost management.

5. How do I procure good suppliers of cashew nuts in India?

To find reliable suppliers of cashew nuts in India, you could search trade directories, visit industry fairs, or contact experienced import service providers like Momex, which can help you find a supplier, organize shipping, and clear customs.