The Cashew Processing industry is a highly profitable agro-based business, especially in cashew-producing regions like the Konkan belt of Maharashtra and other coastal areas of India. Processed cashew nuts are in high demand both domestically and in the international market.
Cashew Processing Unit Planning
To successfully establish a Cashew Processing Unit, the following steps are crucial:
1. Market Study and Capacity
- Market Demand: Investigate the demand for various processed cashew products (e.g., plain cashews, flavoured cashews) and by-products like Cashew Nut Shell Liquid (CNSL) in the local and export markets.
- Raw Material Supply: Plan where you will source a consistent, year-round supply of Raw Cashew Nuts (RCN) at competitive prices.
- Production Capacity: Determine the daily/monthly processing capacity of your unit based on your investment capability and market demand.
2. Essential Processing Steps and Machinery
Cashew processing primarily involves the following stages:
| Process Stage | Machinery Required | Purpose |
|---|---|---|
| Cleaning & Grading | Cleaner/Grader Machine | To remove dirt and sort raw nuts by size. |
| Roasting/Steaming | Boiler, Steam Chamber/Roaster | To soften the shell for easy cutting and to neutralize the corrosive shell liquid (CNSL). |
| Shelling | Shelling Machine (Manual/Semi-Automatic) | To break and remove the hard outer shell. |
| Drying | Hot Air Dryer/Oven | To dry the kernels to optimum moisture levels. |
| Peeling | Peeling Machine | To remove the thin, reddish skin (testa) from the kernel. |
| Grading & Packing | Grading Table, Packaging Machine |
3. Investment, Licenses, and Funding
- Investment: Depending on the project capacity, the investment can range from ₹ 10 Lakh to ₹ 50 Lakh or more. This includes land/rent, machinery, and working capital.
- Government Schemes:
- PMFME (Pradhan Mantri Formalisation of Micro Food Processing Enterprises): This scheme often provides subsidies for capital investment.
- Schemes under NABARD and the National Horticulture Board (NHB) may also offer financial assistance.
- Mudra Loan for small-scale units.
- Licenses:
- FSSAI (Food License): Mandatory for food processing.
- GST Registration
- Udyog Aadhaar/MSME Registration
- Local Authority Permissions
4. Profitability and Marketing
- Product Diversification: Increase profitability by selling not only whole kernels but also pieces (Splits, Butts) and the by-product CNSL, which has industrial uses.
- Marketing: Build your brand through excellent quality and attractive packaging. Focus on wholesale, retail, and export markets.
