High-value crop status could be the turning point for cashew sector

Finance Minister Nirmala Sitharaman proposes support for cashew, cocoa and coconut grown in coastal areas

With India’s raw cashew nut (RCN) production remaining at around 0.7 million tonnes (mt) per annum despite the country having a cashew processing capacity of 3 mt, the Union Government’s budget proposal to support high value crops such as cashew in coastal areas brings a ray of hope for stakeholders in the sector.

In her proposal, Finance Minister Nirmala Sitharaman said, “To diversify farm outputs, increase productivity, enhance farmers’ incomes, and create new employment opportunities, we will support high value crops such as coconut, sandalwood, cocoa and cashew in our coastal areas. Agar trees in the North-East and nuts such as almonds, walnuts and pine nuts in our hilly regions will also be supported.”

Thanking the government for announcing a dedicated programme to make India self-reliant in raw cashew production and processing, enhance export competitiveness and transform Indian cashew into premium global brands by 2030, Bola Rahul Kamath, President of All-India Cashew Association, told businessline that the association has been requesting that the grant for cashew cultivation be increased drastically and other nuts and dry fruits like almonds and pistachios. It is very much possible to grow other dry fruits and nuts in India also, he said.

Apart from cashew, the Budget proposal also supported high-value crops such as coconut, sandalwood, cocoa in coastal areas, agar trees in the North-East, and nuts such as almonds, walnuts and pine nuts in India’s hilly regions.

Positive signal

Gunjan Vijay Jain, President of Nuts and Dry Fruits Council (India), said the Budget 2026 sends a strong and positive signal for the nuts and dry fruits sector by recognising high-value agriculture as a key driver of farm income growth and export competitiveness. For NDFC(I) and stakeholders across the value chain, the focused support for cashew, almonds and walnuts is both timely and impactful.

The dedicated programme for raw cashew is particularly important, as it addresses challenges around domestic availability, processing capacity and value addition. Strengthening raw material production will support Indian processors and enhance the global positioning of Indian cashew products as premium offerings.

Targeted interventions for almonds and walnuts will encourage scientific cultivation in suitable regions, improve yield and quality, and gradually reduce long-term import dependence while improving farm-level economics.

Need of the hour

Kalbavi Prakash Rao, Managing Partner of Kalbavi Cashews, Mangaluru, said India now has the installed capacity to process 3 mt of RCN against its indigenous production of hardly 0.7 mt.

“Our domestic consumption is growing at 7 per cent plus and the ingredient segment consumption is at 10 per cent. The Government’s intention to be self-reliant in raw cashew nuts is the need of the hour and we will work with the government in making this possible,” he said, adding, “this indeed will be a long-term programme as it starts yielding only from fifth year and will take seven-eight years to optimise production. India has to work on a mission mode to make this happen.”

J Rajmohan Pillai, Chairman and Managing Director of Beta Group, which owns the NutKing brand, said the Indian cashew industry is witnessing a major revival after a prolonged period of decline and the loss of India’s top export position to Vietnam.

Focused policy framework

Calling the Budget a “turning point for self-reliance and global leadership,” Pillai said the elevation of cashew to high value crop status marks a critical step toward reducing import dependence and positioning India as the global benchmark for premium cashews.

He said the new status integrates the cashew sector into a focused policy framework that improves access to credit and strengthens research and development support for farmers and processors.

According to Pillai, the government’s mission to achieve self-reliance in raw cashew nuts will lower raw material costs and improve margins for thousands of small and medium processing units along India’s coastline.

Describing the announcement as “a visionary masterstroke for the cashew ecosystem,” Pillai said the government has directly addressed the yield gap that has long constrained India’s competitiveness. “We are transitioning from being merely a processing hub to a self-sustained global powerhouse,” he said.

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