Exporting cashews is a high-ticket business where "Grading" is the language of trade. India’s strength lies in its processing power; we import raw cashew nuts (RCN) from Africa, process them using a mix of traditional and modern methods, and export the high-value finished kernels worldwide.
1. Market Intelligence: Top Buyers (2025-26)
The global cashew kernel market is expected to remain tight in 2026, with Indian domestic prices often competing with export rates.
UAE & Saudi Arabia: The biggest volume buyers. They prefer W240 and W320 grades for hospitality and retail.
USA & Japan: They demand the highest quality and often buy W180 (King of Cashews). They are increasingly shifting toward Organic and Fair-Trade certified nuts.
Netherlands & Germany: Key gateways to Europe. They have very strict norms on Moisture Content (<5%) and Pesticide Residues.
Market Price (2025-26 Estimate): * W320 (Standard): ₹850 – ₹1,050 / Kg (FOB price varies based on global RCN supply).
2. The Product: Deciphering the 33 Grades
The Government of India recognizes 33 grades, but 26 are commercially significant.
| Grade | Name | Description & Use Case |
| W180 | King of Cashew | Largest, premium size. Used in luxury gift packs. |
| W210 | Jumbo | Large, attractive nuts. Highly popular in the USA. |
| W240 | Attractive Whole | Mid-range, best for retail packs in the Middle East. |
| W320 | The Standard | Most exported grade. Highest availability worldwide. |
| Butts (B) | White Pieces | Kernels broken crosswise. Used in cooking/sweets. |
| Splits (S) | White Pieces | Kernels split lengthwise. Ideal for bakeries. |
3. The Processing Lifecycle (Farm to Port)
India is shifting from manual shelling to Mechanical Steam Processing to meet hygiene standards.
Roasting/Steaming: Raw nuts are steamed to soften the shell.
Shelling: Automated machines or skilled labor remove the outer shell.
Peeling: The thin brown skin (testa) is removed using heat and air pressure.
Grading: Manual or Sortex machines sort nuts by size, color, and breakage.
Fumigation: Mandatory treatment to ensure zero pests.
Packaging: Vita-Pack or Vacuum Packing. Tins are flushed with Carbon Dioxide ($CO_2$) and Nitrogen ($N_2$) to maintain freshness for 18+ months.
4. Mandatory Compliance & Certifications
CEPCI Registration: You must register with the Cashew Export Promotion Council of India (CEPCI). They provide the RCMC (Registration-cum-Membership Certificate) needed for incentives.
FSSAI Central License: Mandatory for all food exporters.
Phytosanitary Certificate: Proves the cargo is free from quarantine pests.
Health Certificate: Often required by EU and Japan to certify hygiene standards.
APEDA Support: While CEPCI is the primary body, APEDA provides financial assistance (up to 50%) for branding and quality certifications.
5. Logistics: The "Bulk" Standard
Standard Export Pack: 25 lbs (11.34 kg) tins or 10 kg / 22.68 kg vacuum bags.
Container Capacity: A 20ft container typically carries 700 to 750 cartons.
Transit Tip: Cashews are prone to "rancidity" if exposed to heat. Ensure the warehouse at the port is well-ventilated.
6. Strategic Action Plan for 2026
Value Addition: Raw kernels are commodities. Export Roasted, Salted, or Flavored (Peri-Peri, Honey, Truffle) cashews. The margin is 40% higher than plain nuts.
Verify SION Norms: Ensure you understand the Standard Input-Output Norms (SION) if you are importing raw nuts from Africa to re-export processed kernels.
Direct Sourcing: If you are based in Kerala, Karnataka, or Maharashtra, source during the peak harvest (February to June) to lock in lower prices for year-round supply.