Dry-fruit wholesalers, retail brands, sweets makers and exporters all buy graded cashew kernels, and that steady demand is why entrepreneurs set up processing units. A cashew processing plant consultant helps you decide the capacity, the level of automation and the products before you commit money. NPCS has advised entrepreneurs since 1994, and our team prepares project reports, feasibility studies and market research for cashew projects.
Cashew Processing Plant at a Glance
| Typical capacity | ~1–10 TPD raw nuts |
|---|---|
| Land | ~0.5–2 acres |
| Power load | ~30–200 kW |
| Water | Low |
| Manpower | ~50–300 (manual units); far fewer when automated |
| Indicative investment | ~₹1–5 crore (semi-automatic) to ₹10–20 crore (fully automatic) |
Investment basis: processing machinery, boiler, packing; excludes land and nut stock.
Figures are indicative ranges. Your project report works them out for your capacity and location.
Market Demand for Cashew Processing in India
Demand for cashew kernels rises with dry-fruit consumption, gifting and the growth of snack brands. Exports add a further outlet, with the US, UAE, Netherlands and Japan named as key markets. Processing is concentrated in Kollam, Mangalore, Panruti, Goa, Vengurla, Odisha and Palasa, close to nut supply and port access.
- Dry-fruit wholesalers and retail brands
- Sweets and bakery makers
- HoReCa and snack brands
- Exporters selling graded kernels
Cashew Products You Can Make
A new unit usually starts with graded whole kernels, since they sell to wholesalers and exporters. Splits, butts and pieces suit bakery and sweets buyers. Roasted, salted and flavoured cashews suit retail and snack brands, and they need a separate roasting line.
- Whole kernels graded W180–W450
- Splits, butts and pieces
- Scorched grades
- Roasted, salted and flavoured cashews
Cashew Processing Plant Process
The cashew processing plant process turns raw nuts into graded kernels through cooking, shelling, drying, peeling and grading. Nuts are cooked with steam or roasted in a drum so the shell loosens, then shelled and dried in a borma dryer. Humidification before peeling helps limit breakage.
Quality is controlled at grading and packing. Buyers check grade, moisture, broken percentage and insect damage, and exporters work to buyer specifications. FSSAI standards apply as well. Vacuum or gas-flush packing protects the finished kernels in storage.
- Raw nut grading and drying
- Steam cooking (or drum roasting)
- Shelling
- Kernel drying (borma)
- Humidification
- Peeling
- Size and colour grading
- Vacuum or gas-flush packing
Raw Materials and Machinery for a Cashew Plant
Raw cashew nuts are the main input, bought from Kerala, Karnataka, Goa, Maharashtra, Odisha and Andhra Pradesh, or imported from West and East Africa through Tuticorin, Kollam and Mangalore. You also need vacuum tins, pouches and CO2 or N2 for flushing. The boiler, shelling machines and colour sorters affect yield and labour needs most.
- Raw-nut dryer
- Boiler and cooker
- Shelling machines
- Borma dryer
- Peeling machine
- Grading and colour-sorting machines
- Vacuum packer
- Roasting/flavouring line
Cashew Processing Plant Licence and Approvals
Cashew processing plant licence and approvals start with unit registration and a consent to establish from the State Pollution Control Board before construction. The plant falls in the Orange category. Next come the factory licence, boiler approval under IBR and an FSSAI licence, State or Central by capacity. Consent to operate follows once the plant is built.
- CEPCI registration if you export
- Legal Metrology for packed goods
- No mandatory QCO applies
| Pollution category | Orange, CPCB Jan-2025 classification report, Annexure-I S.No. 28 (cashew nut processing) |
|---|---|
| HSN code | 0801 32 (cashew kernels); 2008 19 (roasted, salted or flavoured nuts) |
| GST | Cashew kernels: 5%; roasted/flavoured nuts: 5% (from 12%) w.e.f. 22-09-2025 |
| BIS / quality control order | No mandatory QCO |
| FSSAI | FSSAI licence (State or Central by capacity) |
| Other licences | Cashew Export Promotion Council of India (CEPCI) registration for exporters; Legal Metrology; boiler (IBR); factory licence |
Choosing the Right Cashew Processing Technology
The main choice is between manual shelling and peeling and semi-automatic or automatic lines with colour sorters. Manual units need roughly 50–300 workers and suit areas with steady labour supply. Automated lines need far fewer people and cost more, which suits buyers who want consistent grades. Your project report compares both for your capacity.
Choosing the Right Cashew Plant Size
Plant size ranges from about 1 to 10 TPD of raw nuts, and investment moves with it. Semi-automatic units are indicatively ₹1–5 crore, while fully automatic plants are ₹10–20 crore, excluding land and nut stock. Smaller units use about 0.5 acre, larger ones up to 2 acres. Start at a size your nut supply and working capital can sustain.
Government Schemes and Project Finance for Cashew Units
Schemes in the facts include Directorate of Cashewnut and Cocoa Development schemes, PMFME, PMEGP and state cashew policies in Kerala, Karnataka and Odisha. NPCS reports are used for bank loans and programmes such as PMEGP, MSME schemes, Mudra and NABARD-linked projects, subject to each lender's requirements. A clear cashew processing plant project report helps lenders assess your plan.
What Decides Success in a Cashew Processing Plant
Good operators buy raw nuts on outturn, meaning kernel yield, and protect whole-kernel percentage. They also keep labour productivity high and hold export certifications. Plan for these risks:
- Raw-nut price and import volatility
- Competition from Vietnam
- Labour availability
- Shell-liquid fumes in the plant
- Saleable by-products: CNSL, de-oiled shell cake and testa
How NPCS Helps You Set Up a Cashew Processing Plant
NPCS supports the decisions that shape your cashew project: capacity, manual or automatic technology, machinery selection and vendor choice. Our team also assists with plant layout, approvals planning and the financial model lenders ask for. Support continues through installation and commissioning, so your plan stays tied to how the plant actually runs.
NPCS's published client list records 16 assignments on cashew processing projects between 2013 and 2026 for clients in 7 states and 4 countries, including bankable project reports, techno-economic feasibility studies and market research reports.
What Your Cashew Processing Plant Project Report Covers
- Project introduction and BIS specifications
- Manufacturing process with flow sheet
- Market survey (demand, imports/exports, existing units)
- Personnel
- Plant and machinery with suppliers
- Land and building with layout
- Raw materials with sources and rates
- Financials (project cost, working capital, cost of production, profitability, break-even, 5–10 year cash flow, projected balance sheet, IRR/NPV/payback)
Cashew Processing Plant: Frequently Asked Questions
What is the cashew processing plant setup cost in India?
Indicatively, semi-automatic units cost about ₹1–5 crore and fully automatic plants about ₹10–20 crore. These cover machinery, boiler and packing, but exclude land and nut stock. Your project report works out the exact figure for your capacity and location.
Which pollution category applies to a cashew processing plant?
Cashew nut processing is classified Orange in the CPCB January 2025 report. You need consent to establish before construction and consent to operate before production. Your State Pollution Control Board confirms the requirements for your site.
How much land and power does a cashew plant need?
A plant of about 1–10 TPD raw nuts typically needs about 0.5–2 acres and a power load of roughly 30–200 kW. Water need is low. Actual figures depend on capacity, the level of automation and whether you add roasting.
How to start a cashew processing plant business?
Begin by fixing capacity, technology and nut sourcing, then prepare a project report. Next, register the unit, obtain pollution consent, FSSAI and boiler approvals, and order machinery. Choosing a location near nut supply or ports helps, as in Kollam or Mangalore.
How can NPCS help with a cashew processing project?
NPCS prepares project reports, feasibility studies and market research for cashew units. Our team also advises on machinery, vendors, layout and approvals. Share your planned capacity and location, and we will outline the next steps.