Archive · 8 Jan 2026
Rupee Slide Sparks Crisis in India's Cashew Sector
India's cashew industry is facing a big problem because the rupee has become weaker.
This means that importing raw cashews is now more expensive.
While this is good for exporters who are selling more, it's bad for processors who have to pay more for their materials.
Some people are even illegally importing cheaper cashews from other countries, which makes it harder for Indian processors to compete.
The industry is hoping that demand will pick up soon, especially during the wedding season.
The depreciation of the rupee has increased import costs for raw cashews by 20–25% in rupee terms.
Exporters are benefiting from the weaker rupee, with export values rising by over 100% recently.
Illegal imports of finished cashew kernels from Africa and Vietnam are undercutting Indian processors.
Domestic demand for cashews has remained subdued, with a expected pickup in mid-January due to the wedding season.
India's cashew processing capacity has increased, but many processors are facing losses due to higher costs and stagnant selling prices.
- Who
- India's cashew industry, including processors, traders, and exporters
- What
- A crisis triggered by the depreciation of the rupee, affecting the cashew sector
- When
- Early 2026, with expected demand pickup in mid-January
- Where
- India, with imports primarily from West African countries and illegal imports from Africa and Vietnam
- Why
- The rupee's depreciation has increased import costs and led to a disparity between processing costs and market prices
- Currency Depreciation
- Rupee breached ₹90–₹92 per dollar in early 2026
- Import Cost Increase
- Raw material costs rose by 20–25% in rupee terms
- Export Growth
- Export values rose by over 100% recently
- Illegal Imports
- Finished cashew kernels misdeclared as cattle feed or husk
- Processing Capacity
- India's processing capacity exceeds domestic raw cashew nut production
- Domestic Demand
- 70% of kernel demand met through imports, 30% from domestic production
- Expected Demand Pickup
- Mid-January with the onset of the wedding season