Cashew, also known as Anacardium occidentale L., was introduced into India by the Portuguese. They used cashew farming to protect coastal regions against soil erosion in the 16th century. Since then, cashew farming has transformed itself from just stabilising soil to becoming a major contributor to the economic force. With around 0.7 million hectares cultivated, cashew farming provides over one million jobs and substantially impacts rural economies in India. Particularly prevalent in Maharashtra, Kerala, and Karnataka, cashew cultivation thrives in semi-arid regions. India produces an estimated annual output of 0.8 million tonnes of cashew, making it one of the world’s leading cashew producers and a global processing hub.

Over one million people work in cashew farming and processing, including small farmers and factory workers. There are about 3,650 processing facilities that handle the de-shelling, grading, and packaging of cashew nuts for both local and international markets. In the fiscal year 2023, India exported cashew worth $356 million, making up 15 per cent of the global export market. Indian cashews are in high demand in countries such as the UAE, the US, and Japan. This strong demand is driving growth in the industry, allowing small farmers to earn income and boosting export revenue for India.

Social benefits and community development

Cashew farming provides numerous social benefits in rural areas. It fosters a sense of communal responsibility among farmers who work collaboratively on challenges like pest control and market fluctuations. It has resulted in greater social engagement through agricultural extension programmes offering technical support, pest management strategies and market updates. Cashew farming has enabled the establishment of local processing industries that help reduce rural poverty by creating employment in previously underserved regions. Local processing plants have improved the economic landscape and empowered rural communities by giving them access to modern infrastructure.

Problems afflicting cashew farmers

Although cashew farming offers numerous advantages, its challenges must also be acknowledged and managed effectively. Price volatility threatens income stability for small farmers due to African raw cashew nut imports, causing fluctuation in prices. Indian farmers lack bargaining power against traders and processors who influence market rates, and labour shortages caused by urban migration or alternative employment options make finding affordable labour during peak harvest seasons more difficult.

Pest management is another key challenge. Cashew trees are vulnerable to pests like the tea mosquito bug and the cashew stem and root borer, which can significantly decrease yield if not effectively controlled. While some farmers can access pest management resources via government programmes or extension services, many do not, resulting in crop loss.

Government interventions and strategic recommendations

To meet these challenges, India has initiated several programmes aimed at strengthening the cashew industry. Through programmes such as the Mission for Integrated Development of Horticulture (MIDH) and the Rashtriya Krishi Vikas Yojana (RKVY), initiatives are in place to expand cashew cultivation areas while replacing older trees with high-yield varieties.

Strategic interventions could enhance industry performance through farmer cooperatives to improve collective bargaining power, allowing small farmers to secure better prices for their cashew. Labour-saving mechanisation could alleviate labour shortages that impair profitability. Investment in affordable pest control solutions would address crop loss caused by pests and contribute to sustainable farming. Additionally, government policies could help stabilise prices by supporting smallholder farmers.

Cashew farming remains an economically and strategically valuable part of India’s agricultural landscape, offering employment, income generation, and community-building benefits that support rural economies. While price instability, labour shortages, and pest infestations remain hurdles to success, government support and strategic interventions offer promising solutions for strengthening this essential industry. To sum up, cashew farming could provide even greater economic and social advantages —helping rural communities flourish while keeping India at the top of the global cashew market. With proper investments and policy support, this sector could deliver even greater benefits.

The author is Vice President, Nuts and Dry Fruits Council India (NDFC-I)

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