15-Dec-2023
With its diverse agricultural terrain, India has emerged as a prominent player in the worldwide cashew nut trade. The country's climatic conditions and experienced workers help to produce high-quality cashews, making it a profitable export sector. Cashew cultivation is widespread in India, particularly along the peninsula's coastal regions. Cashew is farmed mainly in Maharashtra, Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Goa, Orissa, West Bengal, and parts of the North-Eastern area. In this blog, we will discuss the opportunities for cashew nut exports from India.
India is one of the world's top cashew nut producers, with states like Andhra Pradesh, Maharashtra, and Odisha leading the way. The tropical climate of the country is perfect for cashew cultivation. This production surplus meets domestic needs and opens the door to exporting to various international markets.
According to the reports, cashew agriculture in India spans 0.7 million hectares, with the country producing more than 0.8 million tonnes (MT) annually. India's cashew nut production increased from 0.70 million tonnes (MT) to 0.77 million tonnes (MT) during 2019-20 and 2021-22.
However, the demand for cashew nuts has been constantly increasing due to their nutritional value and adaptability. Cashews are not only eaten as a snack but are also utilized in various culinary applications such as confectionery, baking, and cooking. With its capacity for large-scale production, India is well-positioned to capitalize on this growing global demand.
The average net revenue from 1 kg of value-added cashew goods is lucrative, with cashew kernel earning the most (N2,724.4 (US $7.6)) > cashew nut (N2,547.9 (US $7.1)) > both cashew products (N2,340.4 (US $6.5)).
Cashew nut exports can be profitable, but the actual profit margin relies on various circumstances, making a one-size-fits-all response impossible. Here's a breakdown of the essential factors that influence profitability:
Profitability variables include:
cashew prices: cashew prices vary according to cashew type (raw, processed, value-added), quality, market demand, and supply from key suppliers such as India, Vietnam, and Ivory Coast. Higher pricing naturally results in higher margins.
Manufacturing and processing costs: The costs of raw cashews, processing, packaging, and shipping all impact profitability. Efficient operations and raw material sourcing can significantly boost profitability.
Market segmentation and competition: Different marketplaces have different price points and levels of competition. Targeting niche consumers with premium cashews or value-added items can increase profits, but this requires specific marketing.
Did you know that? India primarily exports cashew nuts and a minor amount of cashew nut shell juice. Based on cashew export data, cashew exports were valued at US$ 363.19 million in 2022-23, down from US$ 453.1 million in 2021-22, a 19.84% decrease. Cashew exports totaled US$ 110.51 million between April and July 2023.
India is the world's largest cashew exporter, accounting for over 15% of global exports. Cashew exports by value increased by 7% during 2021-22, rising from US$ 420 million in 2020-21 to US$ 452 million in 2021-22. As per Indian cashew export data, cashew exports totaled US$134.38 million from April to August 2022.
Volume-wise, India's cashew exports increased by 9%, from 70.5 million kg in 2020-21 to 76.8 million kg in 2021-22. Cashew exports totaled 18 million kg from April to August 2022. The country exported cashews worth $40.0 million in March 2022, up from $33.6 million in February 2022.
Based on cashew nut exporter data, the cashews are exported from India to over 60 nations around the world. India's top export destinations include:
UAE,
Japan,
Netherlands,
Saudi Arabia,
United States,
United Kingdom,
Canada,
France,
Israel,
Italy.
According to Indian cashew exporters data, the UAE is the largest importer of Indian cashews, valued at US$ 131.5 million, accounting for 29% of total exports during 2021-22, up from US$ 98.5 million the previous year. Regarding volume, India's cashew exports to the UAE totaled 16.6 million kg, up 29% from 12.8 million kilograms last year.
As per India Trade Data, Japan and the Netherlands are among the top three importers of Indian cashews, accounting for 13% and 9% of total exports, respectively. Cashew kernel and cashew nut shell liquid exports from India to Japan and the Netherlands are valued at $58.1 million and $41.1 million, respectively.
In terms of imports:
Vietnam, a major importer of Indian cashews, has regularly increased cashew imports from India at a CAGR of 7% from 2016-17 to 2021-22.
Based on India import export data, the top ten importing countries of Indian cashews account for 84% of overall exports, indicating the enormous importance of traditional markets. This high increase in cashew exports across export destinations drives economic growth and job creation in India's critical cashew-growing states.
Some of the major cashew importers from India are:
Cashew kernels
Flavored cashew nuts
Roasted cashew nuts
Cashew nut butter
Cashew nut oil
Cashew nut milk
However, it is only a tiny portion of the numerous cashew nut product types shipped from India. The Indian cashew sector will continue to please consumers worldwide with its variety of tasty goods, with ongoing innovation and adaptation to market trends. Also, if you need an updated market report, you can connect with the ExportImportData.in platform to access India trade statistics, product-wise HS codes, and much more.
Export destination diversification:
While the United States and Europe remain the most important export destinations for Indian cashew nuts, the sector is expanding into new markets, such as Japan and the Middle East. This diversity of export destinations has helped Indian exporters minimize their reliance on established markets while opening up new prospects.
Branding and value addition:
To differentiate their products in the global market, Indian exporters have focused on value addition and branding. It involves providing roasted and flavored cashew nuts in appealing and unique packaging.
Adoption of technology:
The cashew export process from India has evolved due to contemporary technology that helps increase the quality and productivity of cashew nut processing. It involves automated sorting and grading devices, cutting labor costs while improving grading accuracy.
Government help:
To boost cashew nut exports from India, the Indian government has launched several support schemes and incentives, including the Merchandise Exports from India Scheme (MEIS) and the Trade Infrastructure for Export Scheme (TIES).
Growing worldwide demand, innovative processing, a focus on sustainability and value-added goods, and strategic branding are boosting India's cashew business. While price volatility and labor shortages are obstacles, the industry's tenacity and adaptation promise to open the door to a world of cashew-tinged riches for India and its global consumers.
Based on Indian cashew exporter data, the Indian cashew market is estimated to increase at a CAGR of 3.80% between 2023 and 2028, from USD 2.31 billion in 2023 to USD 2.79 billion by 2028. According to the India Brand Equity Foundation (IBEF), the cashew business will have a significant economic impact because it employs 10 lakh people on farms and factories in rural areas. Cashew agriculture in India spans 0.7 million hectares, with the country producing more than 0.8 million metric tons (MT) annually.
Overall, the cashew business in India has a bright future because of increased demand, technological developments, a focus on sustainability, and strategic branding. By tackling the problems and capitalizing on the potential, Indian cashew exporters may continue to thrive for years, making India synonymous with high-quality, ethically sourced, and delicious cashews.
The cashew nut export sector in India offers numerous prospects for entrepreneurs, farmers, and traders. The industry is positioned for further expansion thanks to a strong emphasis on quality, broad product options, government assistance, and rising worldwide demand. India can strengthen its position as a critical player in the international cashew nut trade by capitalizing on these opportunities and remaining alert to market developments. However, if you need updated market reports for cashew nuts, ExportImportData.in is the best data-driven platform. You can analyze the Indian trade data, cashew export data, and much more. Any further queries? Please connect to our data experts and schedule a free live demo today!
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