By TradeIndia Team in Business Ideas — 30 Jun 2022

Top 10 Cashew-Nut Based Business Opportunities in India

The Cashew nut business is one of the fastest-growing and the most sought businesses, especially in India. This is cultivated commercially in different states of India, like Maharashtra, Tamil Nadu, Kerala, Orissa, Karnataka, Goa, Andhra Pradesh, and Gujarat.

Cashew nut is very famous and is being eaten not only as a raw dry fruit but also is used for cooking purposes like pulao, sweets, garnishing products preparing meat gravy, etc. This nut is in high demand throughout the seasons in India.

About Cashew Nuts

The cashew nut is formed on the outer layer of the cashew apple. During its maturity period the cashew apple along with its seed fall to the grounds. The fallen seeds are then collected, washed, and processed to obtain the so-called cashew nut. The fruit cashew apple is sweet and is mainly used in the preparation of a fermented drink called Feni which is very popular in Goa.

These are a rich source of carbohydrates as well with 22%, 47% being fats and 21.2% being proteins. The rest consists of minerals such as calcium, phosphorous, and iron. It is mainly used in cereals eaten during breakfast, confectionaries, healthy foods stuff, and baked goods and is also used in chocolate manufacturing companies. Apart from it being edible, the cashew nut is also known to have therapeutic applications. India is among the top cashew nuts manufacturers across the nation and is known to enter the cashew nut trade worldwide and it contributes to around 70% of the global production (in total).

The leading state which produces the maximum amount of cashew nut is Kerala where the processing of it takes place daily. About two-thirds or more of the cashew processing units are located in Kerala alone, and the remaining are located or scattered in other states of India. Orissa is known to be the third-largest producer of cashew nuts. The tree bearing cashew is a tropical evergreen tree that is capable of producing cashew apples thereby cashew nuts throughout the year. In the global context, the cashew tree is native to Brazil, which was then later brought to Mozambique and then introduced to India mainly by the Portuguese to prevent soil erosion.

The cashew nut is considered to be a rich source of proteins and fats and also an excellent or a good source of elements like phosphorus, calcium, and iron. A very high percentage of polyunsaturated fatty acids is present in this nut specifically the fatty acid, linoleic acid. In the international market, there are three main products of cashew:

Raw nuts,
Cashew kernels, and
Cashew nut shell liquid.

Scope of Cashew Nut Processing Business in India

The cashew nut processing business in India is still an ongoing business where the processing of cashew is generally done manually, and it requires a lot of laborers for the preparation process. The cashew processing business is still unorganized and a little scattered. However, in modern days the process is carried out in a very professional way and this business can promise the business people good profits. Women comprise about 90% of the labor in this industry. Although the processing of cashew nuts is picking still slow, this section will grow at a faster rate. The cashew-nut processing business is very profitable, and entrepreneurs who are interested in this field can take up long-term profits. This business of cashew nut will never run out of demand as the requirement for it keeps on increasing daily and hence has a promising future ahead with time. During the pandemic, the business of cashew nuts increased drastically, and it was seen that the business was stable.

There are many opportunities when one takes up the cashew-nut-based business. The cultivation of the cashew itself can lead to various business opportunities. Some of the top 10 cashew nut-based opportunities are given in the next section.

Cashew nut is demanded worldwide and is of global worth. The cashew-nut-based businesses not only profit from cashew nuts but also the by-products coming out along with them. The top 10 Cashew-Nut Based Business Opportunities that can be obtained from the cultivation of it can be either from the cashew or the by-products.

Also, Read: 5 Best Business Ideas To Start A Walnut Business in 2023

1- Raw Cashew Nuts

The raw cashew nuts undergo processing before they are sold in the market. The processing of it comes along with lots of by-products. Hence, processed cashew nuts can be made available in the market both domestically and internationally as well as their by-products.

2- Cashew Kernels

This is also a processed product that has already been commercialized in the market. About 60% of the kernels obtained from cashew are mostly used as snack ingredients for many Food industries. The remaining 40% is generally distributed to the confectionery sector.

3- Cashew Kernels processing unit

After the raw cashew nuts are being processed to be sold commercially, there is one by-product which is known as the cashew nut kernels obtained after the raw cashew are processed after their harvest. The main reason for this processing is to maintain the quality and properties of the cashew nuts. The kernels processing unit helps in the processing of kernels that have been utilized for commercial benefits to be consumed as snacks. Hence, this can play a major role in expanding the cashew-based business. Apart from snacks, it has also become a major ingredient in sweets preparation, chocolates, ice-creams, and cookies preparation

4- CSNL (Cashew Nut Shell Liquid)

This part is generally distributed to many industries where they are used as ingredients of various products such as in paper ink, textiles, drugs, paints manufacturing, and cosmetics industries. This part is also used in the pharmaceutical industry for making medicinal treatments for dermatological illnesses.

5- CSNL (Cashew Nut Shell Liquid) processing unit:

The by-products of cashew nut shell liquid has many numerous applications and this can be obtained through the help of a CSNL processing unit. The cashew nut contains a shell that is of a thickness of 1-8 inches which has a honeycomb-like structure and is soft and viscous. The liquid is dark reddish-brown and can be applied in many polymer-related projects. In today’s generation, the manufacturing potential of this particular product has also immensely increased. There have been many initiatives that encourage the use of this by-product or the production of it on a large scale especially when they consider the sustaining scope within the country and across the globe as well. Small Scale Industries (SSI) have come up to encourage the production of CSNL. Hence, this can be an opportunity for cashew-based businesses.

6- Outer Shell

The other shell of the cashew can be used as fuel. This part can be directly burnt or is generally collected to be used as a feedstock in the gasification process. Apart from these, the outer shell can be used for making briquettes that can be commercially sold.

7- Testa or peel

This part can be sold to many industries that work on natural antioxidants and are also an important source that can be used in leather manufacturing companies.

8- Cashew Testa Processing Units

These units help in enabling the removal of testa which is the skin/husk on the nut. The products have been widely and ideally used in pigments and tannery.

9- Cashew Apple

The cashew apple which has a fleshy texture can be made available for many medical applications. These include medicines for treating pharyngitis, diarrhea, scurvy, and also chronic dysentery. Apart from medical applications, this can also be used for making cashew syrup, chutney, juice, jam, and other beverages.

10- Cashew Apple processing unit

The cashew Apple is another by-product from the cashew nut manufacturing industries that can be used for several purposes as mentioned above. Several products can be prepared from this particular product. This has been used locally to prepare the well-known sweet drink called Feni which is sold in places like Goa and so on. It has many nutritional benefits and it is very tasty.

Conclusion

As mentioned above, business opportunities from this by-product are rampant. Fresh and fermented beverages-making industries need this, other industries such as biscuits, jams, juice, pulp, pudding, wine-making industries, pickles, and other confectioneries encourage the use of cashew apples in their businesses. Hence, the demand for this is also high apart from the cashew nut business.

FAQs: Cashew nuts

Q. What are the benefits of cashew nuts?

Ans. These nuts are rich in protein, fiber, and healthy fats which are important for the body. Vitamins and minerals can also be obtained from these nuts and other health-protective compounds. Like other nuts, cashews help in weight loss, controlling blood sugar, and maintaining a healthy heart.

Q. How many cashews should we eat in a day?

Ans. Eating cashews can help in increasing the growth of good cholesterol while reducing bad cholesterol. One is advised to consume approximately 3-4 cashew nuts daily for maintaining the proper weight of a person.