Konkan's cashew industry faces uphill battle with rising costs, labor shortages and limited raw material

By Amrit Prakash
Sindhudurg (Maharashtra) [India], November 9 : The Konkan region, famed for its scenic coastline, lush greenery, and rich agricultural produce, has long been synonymous with high-quality cashews.
In recent years, however, the Konkan region's once-thriving cashew processing industry has faced escalating challenges, forcing many local processors to operate under difficult conditions.
Konkan cashews are cultivated along India's Konkan coast, primarily in Maharashtra and Goa. This region's tropical climate, fertile soil, and coastal environment contribute to the rich taste and high quality of the nuts. Cashews produced in this region are known for their creamy texture and slightly sweet, buttery flavour, making them a favourite in both Indian and international markets.
They are also rich in healthy fats, protein, fibre, and essential minerals like magnesium, copper, and zinc, supporting heart health and energy levels.
Cashew processors in Konkan, like a processing unit in Kankavli that handles about 5-6 tons of raw cashews in each batch, have seen increased demand for their product. However, meeting this demand is far from simple. Processing cashews involves a time-consuming series of steps, including drying, boiling, cutting, and grading. This intricate process, taking up to six days per batch, is compounded by fluctuating costs, a shrinking labour pool, and a limited supply of raw cashew nuts.
Talking to ANI about the challenges involved in Cashew Processing 'Akshay Gurav' a Cashew Processing Unit owner said, "I am from Kankavli in the Konkan area and run a cashew processing unit here. Cashews are very famous in the Konkan, so we have started processing cashews. Currently, we process around 5 to 6 tons of raw material."
"For cashew consumers, it's quite simple, but for us, it's a process of at least four to five days. When the season starts, farmers bring cashews to us, which takes two to three days, then the cashews need to dry for about three days. After drying, there's the boiling and cutting, followed by drying again and then grading. So, the whole process takes a minimum of five to six days. While it may seem easy to others, it's quite challenging," said Gurav.
Gurav said, "Over the past four or five years, this work has become much more challenging. First, the cost of raw materials fluctuates heavily. The market rate is not stable; it goes up sharply at times and then falls drastically, which is difficult to manage. Another major challenge is that we are not able to get the quantity of raw materials we need. We also struggle to find enough workers. The workers we currently have are staying out of luck, but the new generation is not interested in this work. Handling the cashews gets oil on the hands, which causes problems, and the whole process isn't appealing to them. Although we have new machines, we still need workers to operate them."
He further added, "The imported raw material is much cheaper, while the locally sourced cashews are expensive, making it difficult for local processors to manage these costs. Although the government provides subsidies, they don't arrive quickly. Many people start processing units with the expectation of government support, but four to five years pass, and they still haven't received subsidies. In the last few years, many factories have shut down, and even now, about 90 per cent of the factories are closed due to a lack of raw material or because they are running at a loss."
"Units are also shut down because this is not the season, and the required amount of imported raw material is not coming in. The quantity of cashews produced by local farmers in the Konkan is not enough to meet the demand of the many factories here. Local production is insufficient, and import supplies are not able to support this demand either," he added.
Calling for support to secure the Industry's future he added, " I would say the government should encourage farmers to plant more trees, as this would increase their income. If their production increases, they would benefit, and prices would stabilize, which would also benefit us. If the government could reduce the 5 per cent GST on cashews, it would be very beneficial for us. Another point is that while the government is providing subsidies, it often takes four to five years to receive them, which limits the benefit. If these subsidies could be given within a fixed time frame, it would greatly benefit factory owners who rely on them."
While 'Ragini Ramchandra' (a worker in the Cashew Processing Unit) spoke to ANI and said, "I have been working in cashew processing for 7 years. We face difficulties while boiling cashews, as the smoke that comes out causes coughing and breathing problems. When we extract the cashews, it leaves stains on our hands. Even now, we burn wood to extract the cashews. There are no other sources of livelihood here, so we continue doing this cashew processing work."
Despite these obstacles, Konkan's cashew processors and farmers remain hopeful. With the right support, they believe the region's cashew industry can thrive once more, helping secure the livelihoods of local farmers and preserving Konkan's reputation as a premier cashew producer in India.