What is a cashew nut processing project report?
A cashew nut processing project report is a detailed project report (DPR) for a unit that turns raw cashew nuts in shell into graded, packed kernels. It covers steam cooking, shelling, drying, peeling and grading, the machinery and raw nut needs, project cost, means of finance, five-year projections, DSCR and break-even.
Entrepreneurs use it to size the unit and apply for PMEGP, PMFME or a term loan; lenders use it to judge whether kernel sales can repay the loan.
Also known as: project report on cashew nut processing, cashew nut processing business plan, cashew kernel processing DPR, kaju processing project report.
What a bank checks in a cashew processing project
A cashew unit earns on the gap between what it pays for raw nuts and what it gets for kernels. Lenders test that gap first. These are the values in our sample report and why each one matters.
Raw nuts are 95% of this. A report that shows a much lower share is overstating the margin, so banks compare it with current raw nut and kernel prices.
Units buy nuts in bulk when the crop or a shipment arrives. In the sample this stock is the largest current asset, ₹126.22 lakh in Year 1.
One average across whole grades, splits and pieces. Pricing all output at the whole-kernel rate is the quickest way to inflate revenue.
DSCR is the cash available for repayment divided by the instalment due. The sample averages 2.20; a squeeze on the raw nut spread is what would pull it down.
Values are the assumptions in our illustrative sample. Your report uses figures for your capacity, suppliers and market.
Cashew nut processing plant cost in India
Cost depends on how many tonnes of raw nuts you process a day and how far you mechanise shelling and peeling. The third tier is the unit in our sample report; the other two are indicative ranges.
Small unit
₹50–90 lakh
150–250 kg of kernels a day, about 0.5–1.2 MT of raw nuts
- Machinery₹20–35 lakh
- Shed and fit-out (or rent)₹10–25 lakh
- Working capital margin₹8–20 lakh
Fits PMEGP or PMFME, subject to limits
Mid-size unit
₹1.5–2.8 crore
350–550 kg of kernels a day
- Machinery₹0.7–1.2 crore
- Land and building₹50–90 lakh
- Working capital margin₹25–45 lakh
Term loan with a cash credit limit
Semi-automatic unit
₹363 lakh
740 kg per day, 2,22,000 kg per year
- Plant and machinery₹153 lakh
- Land and building₹122 lakh
- Working capital margin₹52 lakh
Term loan ₹273 lakh (75%), promoter ₹91 lakh
Small and mid-size ranges are indicative and exclude land unless stated. Raw nut stock is the cost that varies most with your buying plan.
Cashew nut processing: the manufacturing process step by step
Most Indian units use the steam cooking route. Raw nut is 70–75% shell by weight and only 20–30% kernel, so every step is set up to get the kernel out whole.
- Calibration
Raw nuts are cleaned and sorted by size, so each size gets its own cooking time and cutter setting and fewer kernels break.
- Steam cooking
Batches are steamed under pressure for about 25–30 minutes, then left to cool so the shell turns brittle.
- Shelling
Semi-automatic cutters split each nut along its seam, and kernels are picked out from the shell pieces.
- Drying
Kernels leave the cutters above 10% moisture and are dried with hot air at about 65–70 °C for 6–8 hours, down to 3.5–4.5%.
- Peeling
After a few hours in a humid chamber to loosen the brown skin, a pneumatic peeler removes most of it and workers finish by hand.
- Grading
Kernels are sorted by size, colour and wholeness into whole grades such as W240 and W320, then splits, butts and pieces.
- Packing
Bulk kernels go into tins that are vacuumed and filled with carbon dioxide; retail packs are gas flushed to stay fresh.
- Roasting and flavouring
Part of the output, often the pieces and lower grades, is roasted, salted or flavoured and packed for retail.
Raw cashew nuts and other raw materials
India grew about 7.9 lakh MT of raw cashew nuts in 2024-25 and imported 12.5 lakh MT in calendar 2024, mostly from Africa. Most processors therefore run on a mix of Indian and imported nuts, and import prices feed straight into their cost.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Raw cashew nuts in shell | 95% | 851.02 |
| Salt, spices and edible oil for roasted and flavoured kernels | 3% | 26.87 |
| Carbon dioxide and nitrogen for gas flushing | 2% | 17.92 |
| Total | 100% | 895.81 |
Buy on out-turn, not just price: a cheaper lot that yields fewer kernels, or more broken ones, costs more per kg of saleable kernel. Check a sample of every lot before you pay for it.
Cashew processing machinery and its cost
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Raw nut calibrator and grader | Sorts raw nuts by size before cooking | 9.15 |
| Steam boiler | Supplies steam for cooking | 21.36 |
| Steam cooking vessels | Cook raw nuts in batches under pressure | 12.20 |
| Semi-automatic shelling machines with shell separator | Cut the shell and separate kernels | 33.56 |
| Hot air kernel dryer | Brings kernel moisture down | 18.30 |
| Pneumatic peeling machine | Removes the brown skin | 21.35 |
| Kernel grading machine | Sorts kernels by size | 12.20 |
| Vacuum and gas flush packing machine | Packs tins and pouches | 12.20 |
| Roasting and seasoning line | Makes salted and flavoured kernels | 12.20 |
| Total plant and machinery | 152.52 | |
Costs are the sample report's estimates for a 740 kg per day unit. Get current quotations before you finalise.
Market for cashew kernels in India
Kernels sell all year to the dry fruit trade, sweet makers and bakeries, with demand peaking before Diwali and the wedding season. Price depends heavily on grade. In November 2025 whole W320 kernels traded at about ₹1,000–1,100 per kg in the domestic market, while splits and pieces sell for less.
- Dry fruit wholesalers and commission agents
- Sweet shops and mithai makers
- Bakery and confectionery makers
- Retail chains and online grocery platforms
- Merchant exporters
- Hotels and caterers
Where a new unit wins: selling pieces and lower grades as roasted, salted or flavoured retail packs earns more per kg than selling them loose to the trade.
Licences and approvals for a cashew processing unit
| Business registration | Udyam (MSME) registration and GST registration |
|---|---|
| Food safety | FSSAI registration for output up to 100 kg a day; state licence for over 100 kg and up to 2 MT a day; central licence above 2 MT a day and for all 100% export-oriented units |
| Pollution board consent | Cashew nut processing is in the Orange category, so you need consent to establish and consent to operate from the State Pollution Control Board |
| Packaged retail packs | Registration as a manufacturer or packer under the Legal Metrology (Packaged Commodities) Rules, 2011, from the state Legal Metrology department |
FSSAI limits are as published by FSSAI; confirm the current category on the FoSCoS portal before you apply.
Loans and schemes for cashew processing
PMEGP
Manufacturing projects up to ₹50 lakhMargin-money subsidy of 15–35% for a new unit; special-category applicants get 25% in urban and 35% in rural areas.
PMFME
35% subsidy, up to ₹10 lakhCredit-linked capital subsidy for micro food processing units, new or existing, with at least 10% of the project cost from you.
Term loan and cash credit
Units above scheme limitsA term loan for fixed assets plus a cash credit limit for raw nut stock. In our sample the cash credit limit is ₹154.60 lakh.
Scheme limits change. Confirm current terms with the bank or the scheme portal before applying.
Mistakes that weaken a cashew processing project report
- Pricing all output as whole kernels
Every lot yields splits, butts and pieces. Revenue must use a blended price across grades.
- A fixed kernel out-turn
Kernel recovery ranges from 20% to 30% of raw nut weight. A report should show what a few points lower does to profit and DSCR.
- Too little working capital for raw nuts
Nuts are bought in bulk, ahead of processing. Without enough stock days the cash credit limit runs out in the first season.
- No plan for the shell
Shell is 70–75% of what comes in. Decide whether it fuels the boiler or is sold, and cost its handling either way.
- Skipping proper drying and packing
Kernels not dried to about 4% moisture or not vacuum or gas packed lose shelf life, and buyers reject them.
How NPCS helps you set up a cashew processing unit
- Capacity and raw nut planDaily throughput, Indian and imported nut mix and stock days that fit your budget.
- Machinery and suppliersCompare shelling, peeling and grading machines and get quotations.
- Bank-ready project reportProjections, DSCR and working capital for PMEGP, PMFME or a term loan.
- Approvals and layoutPlant layout, boiler and steam lines, and the licence list for your state.
NPCS's client list includes 58 assignments in grain milling and allied food processing, cashew processing among them, prepared by the NPCS project team since 1994.
What's inside the cashew nut processing sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
18 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
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Cashew Nut Processing project report: frequently asked questions
How much does it cost to start a cashew nut processing unit?
A small unit making 150–250 kg of kernels a day needs roughly ₹50–90 lakh, and a mid-size unit about ₹1.5–2.8 crore. Our sample report models a 740 kg per day unit at ₹363 lakh, including ₹153 lakh of plant and machinery. These are indicative figures; your report works out the cost for your capacity, site and raw nut buying plan.
How many kg of kernels do you get from raw cashew nuts?
Kernel is about 20–30% of the weight of raw nut, and the shell makes up 70–75%. So one tonne of raw nuts gives roughly 200–300 kg of kernels, depending on the origin, size and moisture of the lot. The share that comes out whole matters as much as the total, because whole grades sell for far more than pieces.
Which machines are needed for cashew processing?
You need a raw nut calibrator, a steam boiler and cooking vessels, and shelling machines with a shell separator. After shelling come a hot air kernel dryer, a peeling machine, a grading machine and a vacuum or gas flush packing machine. A roasting and seasoning line is added for salted and flavoured kernels. In our sample the shelling machines are the largest machinery cost.
Is cashew nut processing profitable?
In our illustrative sample, a 740 kg per day unit earns ₹110 lakh net profit on ₹1,332 lakh of sales in Year 3. That is a 30% return on investment, with break-even at 36% of capacity. Real profit depends on the raw nut price you pay, the kernel out-turn of each lot and how much of your output stays whole.
Which licences are needed for a cashew processing business?
You need Udyam and GST registration, an FSSAI licence and consent from the State Pollution Control Board, since cashew nut processing is in the Orange category. FSSAI gives a state licence for units making over 100 kg and up to 2 MT a day. Retail packs also need Legal Metrology registration as a packer. Check state rules before applying.
Can I get a PMEGP or PMFME loan for cashew processing?
Yes, if your project fits the limits. PMEGP covers manufacturing projects up to ₹50 lakh with a 15–35% margin-money subsidy. PMFME gives micro food processing units a 35% credit-linked capital subsidy, up to ₹10 lakh. A larger unit like our sample usually takes a term loan plus a cash credit limit for raw nut stock.
Cashew processing business kaise shuru kare?
Start by fixing your daily raw nut capacity and where you will buy nuts, then get a project report that costs the machinery, building, raw nut stock and working capital. With the report, apply for an FSSAI licence, pollution consent and a bank loan or scheme. Begin with a few grades and add roasted or flavoured packs once sales are steady.
Is the cashew nut processing project report PDF free, and can I use it for a loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report; its figures are representative and not from a real project, so it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, location and loan scheme.
Sources and references
- Monthly dashboard: Cashew, November 2025Agricultural and Processed Food Products Export Development Authority (APEDA), checked Oct 2026
- Cashew processing, Food Technology moduleConsortium for Educational Communication (CEC), checked Oct 2026
- Eligibility and applicability criteria for FSSAI registration and licenceFood Safety and Standards Authority of India, checked Oct 2026
- Revised Orange category of industries (CPCB, 2020)Puducherry Pollution Control Committee, checked Oct 2026
- Registration of manufacturers and packers of packaged commoditiesLegal Metrology Department, Government of Goa, checked Oct 2026
- Prime Minister's Employment Generation Programme (PMEGP)MSME 1-Connect, Government of Uttar Pradesh, checked Oct 2026
- PM Formalisation of Micro Food Processing Enterprises (PMFME)Indian Overseas Bank, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.