CashewNut Processing Business

Cashew nut processing business is one of the most sought-after nuts among dry fruits obtained from an exotic tree species. The cashew nuts commercial cultivation practiced in different states, mainly in Andhra Pradesh, Tamil Nadu, Goa, Kerala, Karnataka, Orissa, Maharashtra, and Gujarat. INC estimated raw cashew production in India for 2020–21 at 6, 91,000 tonnes against 7,42,000 tonne in 2019–20. The Global raw cashew production in 2020–21 is estimated at 3,722,000 tonnes and total supply at 3,924,000, with carryover stocks seen at 202,000 tonnes. Cashew is a famous dry fruit and is highly in demand in all seasons in India. It is either consumed as raw or used in different cuisines like sweets, preparing gravy, garnishing products, etc.[AatmnirbharSena].

Scope of Cashew Nut Processing Business in India:

Often Cashew nut processing business is considered profitable, and budding entrepreneurs can take this venture for long-term profits. The cashew nut processing business shall never run out of demand. The consumption of cashew in India is 1.6 million metric tons and is projected to register a CAGR of 9.0 % during the forecast period (2021–2026)[BusinessWire]. The value addition activities were affected negatively as a disrupted distribution channel tends to lower the end-products of cashew nuts in the market. However, tedious the cashew nut processing business has a promising future ahead of it. The cashew nuts commercial cultivation practiced in different states, mainly in Andhra Pradesh, Tamil Nadu, Goa, Kerala, Karnataka, Orissa, Maharashtra, and Gujarat. Women constitute almost 90 percent of the labor force in the cashew industry. Mechanization in cashew nut processing is picking up slowly. This model is prepared to guide to start of a new small-scale cashew processing unit.

Market Potential of Cashew Nut Processing Business:

India is a leading country for the production, processing, consumer, and exporting of cashew nut, cashew nut processing industries in India have the highest rate of productivity in the world. More than 70% of processed cashew nuts are exported in the world from India. The Cashew Export Promotion Council of India (CEPCI) is working to promote cashew nut and cashew nut shell liquid (CSLN).

The Demand And Market Of Cashew Nut Are Expected To Grow, Notably In The Outlook Period. India's Dry Fruit Processing Industry Is Multiplying, While Cashew Nut Consumption Growth In India Is Also Tremendous.

India needs to take its crop from the existing 7 lakh tonnes per annum to at least 12 lakh tonnes per annum in the next five years to become Aatmanirbhar in crop production[BusinessLine].

All senile plantations must be replaced with the latest hybrid variety that can yield over 15 kg per tree, and there is also a need to focus on high-density plantations.

You can sale Cashew in your city wholesale market in bulk or on the Online market mention below-

Apart from all traditional ways of promoting; online promotion is a very efficient and effective way to launch your brand. While marketing the business you need to study the competitors, analyze the competition, and do a plan for promoting your brand. You can open your own online shop where you can sell your product, or you can tie-up with another hosting site that will help to Sale and introduce your product to the customer. Advertising is a critical advance for the accomplishment of the business.

The entrepreneurs can contact any local distributor for selling cashew nuts or can contact various e-commerce websites like Bigbasket, Amazon, Grofers, JioMart, etc. Also, they take orders from big-shot companies and prepare orders for them.

Health Benefit:

The cashew kernel is considered a rich source of fat and protein, energy, vitamins, nutrition, and antioxidants and is an excellent source of calcium, phosphorus, & iron. It comprises a very high percentage of polyunsaturated fatty acids, particularly the essential fatty acid linoleic acid. Three main cashew products are also traded on the international market: raw nuts, cashew kernels, and cashew nut shell liquid. A fourth product, the cashew apple, is generally processed and consumed locally.

It Prevents Cancer, Healthy Heart, Lowers High Blood Pressure, Healthy Bones, and Helps in Weight Loss Anti-oxidants, etc.

Manufacturing process:

• Raw Cashew Nut Is Dried In The Sun And Stored In Gunny Bags - The Stored Raw Cashews Boiled By Using Steam In A Boiler.
• There Are Manufacturers Of Small Scale Boilers Available For Boiling Of Cashew Nut In Most Cashew Processing Areas.
• The Boiling Helps With The Softening Of The Cashew Shell. It Becomes Easy To Remove Nut Inside Cashew Seed After Boiling It.
• The Outside Of Steamed Cashew Nut Is Removed By Skilled Labor By Using Cashew Cutting Hand-Operated Equipment.
• The Cashew Shell Used To Extract Cashew Nut Shell Liquid (CNSL), An Essential By-Product Of The Cashew Industry.
• The Cashew Kernels Are Obtained And Dried In A Cabinet Dryer. The Outer Reddish Skin, Known As Testa, Is Removed To Get Cashew Nut After Drying.
• The Actual Recovery Of Cashew Nut Is Around 30 Percent, Whereas 50 Percent Account For The Shell, And The Remaining 20 Percent Is Process Loss.
• Cashewnut Is Graded Based On The Color And On How The Kernel Got Broken. The Dried Cashew Kernels Are More Processed For Producing Roasted Cashew, Salted, Flavored, Coated Cashew Nuts, Cashew Kernel Paste, Etc.
• After Having The Final Product Of Cashew-Nuts, It Is Further Packed And Is Made Ready For Marketing Purposes.

The processing units should follow the Food Safety and Standard Authority of India (FSSAI) act 2006. FSSAI Act is applicable pan India for all food products.

Techno-Economic Parameters:

The major component of a cashew processing unit is land, building, plant and machinery, and civil works. A project cost of Rs. 60 Lakh has been estimated. The details of project cost are given below

The cost of land and land development varies from place to place. Land cost of Rs. 3 lakh and land development cost of Rs. 0.30 lakh is optimum for 500sqm model.

Keeping in mind the availability of raw materials and market prospects, the processing capacity of 500 tons of raw cashew processing per season is optimum.-

1. Total Installed Capacity 500 tonns per annum of raw cashew. 
2. The unit will operate in a single shift of 8 hours for 200 days. 
3. Recovery of final products considered was 24% of raw cashew. 
4. Capacity utilization: 1st year - Construction period, 2nd year - 70%, 3rd Year 80%, and 4th year onwards - 90%. 
5. The sales price will be Rs.550/Kg for the whole cashew and Rs.425/Kg for splits 
6. Cost of raw cashew including transportation Rs.103 / Kg 
7. Labor charges are considered as Rs.160/- Kg for cutting, peeling, and grading. 
8. Insurance charges for the fixed assets considered as 0.5% of the depreciated cost of the assets. 
9. Interest on working capital considered at 12.5% per annum and interest on term loan considered at 12% per annum. 
10. Margin money considered at 25% of the financial outlay. 
11. A depreciation rate of 5% and 10% have been considered for civil structures and plant & machinery, respectively. 
12. A repayment period of ten years with one year grace period has been considered

Cashew Processing Business Registration & License:

1. If you are starting this fastener business as a One Person Company, then you have to register your firm as a proprietorship. For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd.Company with Registrar of Companies (ROC).
2. GST Registration: GST registration will allow you to get the GST number which is mandatory for every business.
3. Trade License: Obtain tread license from the local authorities.
4. Pollution Certificate: nut and bolt manufacturing industry may cause pollution; therefore, you need to get the pollution Control certificate.
5. MSME/SSI Registration: fastener manufacturing is a mechanical-based industry if you register your business with MSME/SSI Registration it will allow you for government subsidy and facilities.
6. License from Boiler Inspector: It is compulsory to have a License from the boiler superintendent for the cashew nut unit owner.
7. Trade Mark: you can secure your nut and bolt manufacturing brand with the help of trademark registration.

Reference:

https://discoverfoodtech.com/project-requirements-cashew-processing/

https://www.agrifarming.in/cashew-nut-farming-project-report-cost-and-profit#:~:text=The%20production%20of%20raw%20cashew,yield%20subsequently%20increases%20every%20year).&text=The%20total%20cost%20of%20178,Rs%2026%2C000)%20%3D%20Rs%204%2C260.

https://medium.com/@steptowardbusiness/how-to-start-cashew-nut-processing-business-small-manufacturing-d1218b74e779

https://www.cbi.eu/market-information/processed-fruit-vegetables-edible-nuts/cashew-nuts/market-potential

https://www.99businessideas.com/cashew-nuts-processing/

https://aatmnirbharsena.org/blog/cashew-nut-processing-business/