§1What this business is
Raw cashew nuts are steam-cooked, cut open on shelling machines, separated from the shell, dried in an oven, held in a humid chamber, peeled with compressed air, graded into whole, split and broken kernels, passed through a metal detector and packed. The KVIC profile also covers roasted and salted cashews. The leftover shells are the raw material for cashew nut shell liquid (CNSL).
Capacity: Sample report: 1,35,000 kg raw nuts giving 33,750 kg kernels in the first full year (45% capacity), rising to 48,750 kg kernels at 65%; 10 hours a day, 300 days.
§2Is it right for you?
Who it is for
Someone near cashew-growing areas or ports with trading experience.
Who it is not for
Someone without the working capital to stock raw nuts for months.
Advantages
- Strong domestic and export demand for cashew kernels
- Shells and other by-products also sell
- Grading lets you sell whole kernels at a higher price
- A well-known trade with established buyers
Drawbacks
- Raw nut prices decide the profit
- Large working capital in the buying season
- Shell oil is corrosive — workers need protection
- Imported raw nuts set the market
Skills you need
- Raw nut testing (outturn and moisture)
- Process control (cooking, drying, peeling)
- Kernel grading
- Trade and export contacts
Why difficulty 3/5: The machines are simple, but raw nut buying and working capital make or break the unit.
§3Market
Who buys
- Dry-fruit wholesalers and retailers
- Sweet makers, bakeries and food processors
- Exporters and overseas importers
How it sells
- Wholesale markets and traders
- Branded retail packs
- Export
Good to know
- The sample report sells kernels at ₹640–665 per kg.
- It calls the Indian cashew industry almost export-oriented and cites a 9.33% annual growth forecast for 2020–2025.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Steam cooker with steam generator | — | — |
| Shell cutting machine | — | — |
| Vibrator separator (kernel from husk) | — | — |
| Drying oven and humidity-controlled chamber | — | — |
| Peeling machine (compressed air) | — | — |
| Kernel separator and grader | — | — |
| Metal detector and packing | — | — |
| Plant & machinery total (sample report) | — | ₹20.42 lakh |
| SS/aluminium-top working tables 3 × 2½ × 6 ft | 2 | — |
| Cashew cooker with steam boiler | 1 | — |
| Cashew nut decorticators | 25 | — |
| Electric dryer with trays | 1 set | — |
| Weighing balances (platform and table models) | 1 each | — |
| Equipment total (KVIC profile) | — | ₹4,00,000 |
From: PMEGP sample project report — Cashew Processing Project (prepared by Udyami/Samadhan) (2020) · KVIC Project Profile — Cashewnut Processing (PMEGP)
- Raw cashew nuts₹100 per kg in the sample report; 1,35,000 kg raw nuts for 33,750 kg kernels in the first full year
- Packing material₹7.00 lakh a year in the KVIC profile
From: PMEGP sample project report — Cashew Processing Project (prepared by Udyami/Samadhan) (2020) · KVIC Project Profile — Cashewnut Processing (PMEGP)
Suppliers in Building Business Bazaar
Cashew Cluster Producers Promotion And Development Trust · Anugul →Cashew Cluster · Margoa →Cashew Cluster, Uthopia · Uthopia →Cashew Cluster · Ganjam →Cashew Processing Cluster, Belgaum · Belgaum →Cashew Nut Processing Cluster, Selsella,West Garo Hills · West Garo Hills →Cashew Cluster, Nilachakra, Brahamgiri, Puri · Puri →Export Inspection Agency Laboratory, Pilot Test House, Mumbai · Mumbai →Export Inspection Agency, Kochi (laboratory) · Kochi →
In our raw material database
§5Licences & registration
- FSSAI licence
- Udyam
- GST
- Pollution Control Board NOC
- IEC and CEPCI registration for export
- Trademark (optional)
§6Schemes & subsidies
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- PMEGPCentralActive15–35% subsidy
- AIFCentralUnclear3% interest subvention, up to ₹2 crore
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMFME and PMEGP fit; AIF gives interest subvention on loans for primary processing; CGTMSE for a loan without collateral.
§7Money
How the investment is worked out: PMEGP sample report: civil work ₹1.50 L + plant & machinery ₹20.42 L + office equipment ₹0.50 L + working capital ₹16.44 L = ₹38.86 L (land and building rented). KVIC profile (roasted & salted cashew): work shed 2,000 sq ft ₹4,00,000 + equipment ₹4,00,000 + working capital ₹10,00,000 = ₹18,00,000.
Working capital: Raw nuts are bought in season: working capital ₹16.44 L in the sample report (bank ₹14.80 L), ₹10.00 L in the KVIC profile.
The sample report's projections start in 2020-21; the KVIC profile has no year — check current machinery and raw nut prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: CEPCI (Cashew Export Promotion Council of India)
- Confirm the 8-digit ITC-HS code on the DGFT site.
§9Risks — where people fail
- Raw nut price
- Low kernel outturn
- Broken kernels lower the value
- Pests and moisture in storage
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working cashew nut processing unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (FSSAI licence, Udyam), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Cashew Nut Processing?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
- PMEGP sample project report — Cashew Processing Project (prepared by Udyami/Samadhan) (2020)
- KVIC Project Profile — Cashewnut Processing (PMEGP)
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.