Did you know that India, once a global leader in cashew exports, has seen its share plummet from 43% to just 8% in the last decade? A shocking fall for a country that remains one of the largest producers and processors of cashews globally.
So, what changed? In two words: Vietnam’s strategy.
Over the last 20 years, Vietnam has quietly revolutionized its cashew industry—embracing automation, streamlining costs, and deploying aggressive export strategies. The result? A highly efficient, global powerhouse that now dominates the international market.
What Can India Learn from Vietnam’s Success?
💡 1. Automation = Efficiency
Vietnam’s large-scale automated processing units handle over 200 tonnes per day, while India’s top plants in Maharashtra manage only 20 tonnes. The difference? Vietnam needs just 40 workers for a 20-tonne unit, compared to 300 in India.
🔧 2. In-House Machinery Manufacturing
Vietnam not only uses advanced machines—it makes them. Meanwhile, India imports most of its machinery from Vietnam, adding to operational costs.
🚢 3. Competitive Freight and Financing
Lower shipping costs and favorable loan rates (4–5% in Vietnam vs. 9–10% in India) give Vietnam a clear edge in international markets.
🥜 4. Focus on Value-Added Products
Vietnam is innovating with products like cashew butter and spreads, collaborating with U.S. companies to diversify its offerings. India, on the other hand, remains focused on traditional exports that face tough price competition.
How Can India Strengthen Its Cashew Industry?
→ Expand Plantations
→ Drive Automation
→ Improve Access to Financing
→ Tap into Middle Eastern Markets
→ Promote Indian Cashews Globally
→ Tax Incentives for Processors
→ Leverage APEDA’s 40% Machinery Subsidy
For states like Maharashtra, the largest cashew producer in the country, the creation of a state-level Cashew Board could be a game-changer—driving modernization, improving exports, and reclaiming India’s place on the global stage.
It’s time for India to learn, adapt, and lead again.
The global cashew market is ripe for a shake-up—will India rise to the challenge?
