AP's cashew industry hit as West Asia unrest drives up import costs

Visakhapatnam: The unrest in West Asia is set to hit Andhra Pradesh's cashew industry hard, making raw cashew imports both difficult and costly. The state remains heavily dependent on imported raw cashew nuts (RCN), mainly from African countries, several of which have imposed temporary export bans. As a result, cashew processing units in Andhra Pradesh may face shortages starting next month.

Around 700 cashew processing units operate in the state, with nearly 350 factories concentrated in Palasa-Kasibugga, Srikakulam district. Many units are already functioning at just 50-60% capacity. Together, Srikakulam's units produce about 60,000 kg of cashew kernels per day.

Domestic cultivation covers 1.2 lakh hectares, but nearly 40% of cashew trees are over 25 years old, yielding low- quality kernels.

With limited local supply, processors rely on imports from Ghana, Ivory Coast, Benin, Tanzania, Indonesia, and others via sea routes.

According to Malla Kantarao, vice-president of the Andhra Pradesh Cashew Manufacturers' Association (APCMA), escalating tensions in West Asia have disrupted logistics, payments, and exports. Sea freight rates have surged over 200%, forcing many units to halt imports. Exports of cashew kernels to Gulf countries have also declined, with shipments worth hundreds of crores stranded.

Industry experts say existing stocks will sustain units until late April. The domestic cashew crop, expected in May, may provide temporary relief, but if unrest continues, the industry faces a severe shortage of RCN.

Link: https://timesofindia.indiatimes.com/city/vijayawada/aps-cashew-industry-...