September export earnings fell to $25.1m as conflict, rising raw-material costs and stronger competition squeeze processors, particularly in Andhra Pradesh’s Palasa hub.
India’s cashew export industry is under fresh pressure, with new trade data showing a sharp fall in overseas sales and mounting strain on processors. According to Informist, export earnings from cashews dropped by more than 39 per cent in September to $25.1 million, while shipments for the April-to-September period fell nearly 10 per cent to $135.9 million. The figures suggest the latest monthly decline was far steeper than the trend seen across the first half of the financial year.
The slump is hitting an industry that depends heavily on foreign demand, particularly in the Middle East. Data from the Agricultural and Processed Food Products Export Development Authority show that, between 2021 and 2025, the Middle East accounted for about 51 per cent of India’s cashew-kernel exports on average, leaving exporters exposed to regional instability. The latest report points to war in the Middle East, rising raw-material costs and stronger international competition as the main forces weighing on the sector.
The impact is being felt most sharply in Palasa, a cashew-processing hub in Andhra Pradesh. Local reports have described disrupted orders, swelling inventories, job losses and pressure on processors to sell at a loss. Industry representatives have said some factories have struggled with cash flow after export shipments slowed, forcing them to dispose of stock cheaply or rely on borrowing to keep operating. In July, processors in Palasa and nearby Kasisbugga also reportedly halted work for 10 days after raw cashew prices rose while kernel prices failed to keep pace.
India’s position in the global market has also come under pressure from abroad. Vietnam remains a major force in cashew-kernel exports, while African producers have expanded their own processing capacity, reducing India’s traditional advantage as a re-export hub for imported raw nuts. APEDA says India still exports cashew kernels to markets including the United Arab Emirates, the Netherlands, Japan and Spain, but the combination of weak orders, higher input costs and intensifying competition is making the business increasingly difficult for some processors.
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