Kerala's Legacy in Cashew Cultivation

Kerala, especially the district of Kollam, holds a historic and central position in India’s cashew industry. The state has been a traditional stronghold for both cashew cultivation and processing, with thousands of families depending on the sector for their livelihood. While India produces over 0.8 million metric tonnes (MT) of cashew annually from 0.7 million hectares, Kerala remains one of the leading producers, despite the increasing prominence of other states like Maharashtra and Andhra Pradesh.

Cashew cultivation in Kerala is mainly concentrated in the southern coastal districts, where agro-climatic conditions favor the growth of high-quality nuts. The state has also focused on maintaining the quality of its native varieties while slowly introducing high-yielding grafts through farmer cooperatives and government initiatives.

Kollam – The Cashew Capital of the World

Kerala's identity in the global cashew map is largely shaped by Kollam, often referred to as the Cashew Capital of the World. For decades, Kollam has been the nerve centre for cashew processing, grading, value addition, and export, employing thousands of workers, predominantly women. Processing units in Kollam have historically set global standards for cashew kernel quality and food safety.

Even though cashew processing has spread to other parts of India, Kollam continues to contribute significantly to India’s export-grade cashew kernels. Notably, at one point, over 80% of India’s cashew exports were processed in Kollam, underscoring its unmatched expertise and legacy.

Export Performance and Contribution from Kerala

India is the largest global exporter of cashew kernels, and Kerala has played a foundational role in building this status. During 2021–22, India’s cashew exports increased from USD 420 million to USD 452 million, growing by 7%. A considerable portion of this value stems from cashews processed in Kerala-based units, particularly from cooperative societies, private exporters, and public sector units like KSCDC and CAPEX.

While India exported 76.8 million kg of cashew kernels in 2021–22, Kerala's high-quality processing techniques and consistent global demand have helped maintain premium prices, especially in niche markets like Europe, the USA, and Japan. In March 2022, India’s exports touched USD 40 million, with a substantial contribution from Kollam-based exporters.

Import of RCN – Kerala’s Critical Dependence

Unlike some states that depend solely on domestic production, Kerala’s cashew processing sector is heavily dependent on the import of Raw Cashew Nuts (RCN). With domestic cultivation unable to meet the processing capacity, RCN is regularly imported from countries like Ivory Coast, Ghana, Tanzania, Guinea-Bissau, and Indonesia.

Historically, Kollam alone has imported over 8 lakh tonnes of RCN annually, sustaining nearly 800–900 processing unit.To reduce dependency, Kerala has adopted initiatives to boost local cultivation. Through the Kerala Agriculture University (KAU) and KSACC (Kerala State Agency for Cashew Cultivation), high-yielding varieties and farmer subsidy schemes are being introduced.

Export of Cashew Kernel, CNSL and Import of Raw Cashewnut in India-STATISTICS

Statistics Data Source:DCCD