The supply delay has hit the cashew sector in Kerala

An empty cashew processing unit in Kollam. | Photo credit: File

Kerala’s cashew nut processing sector has come to a standstill as severe cargo delays choke the entire supply chain. Barriers to shipping, especially around the critical Strait of Hormuz, have hit the industry hard, blocking the import of raw cashew nuts (RCN) and halting the export of finished kernels.

Exporters are facing a serious crisis as supplies to Gulf Cooperation Council (GCC) countries have almost stopped. With finished goods stuck in transit and payments delayed, cash-strapped private factory owners were forced to close the shutters.

‘Already In Trouble’

The sudden closures hit workers hard, leaving thousands of cashew workers out of a job. “The industry was already in deep trouble and our working days have reduced to almost nothing in the last few years. But what we are facing right now is different. Everything has come to a standstill for the last few days and no one can tell us when operations will resume,” says Sudha, a cashew worker.

Adding to the industry’s woes, the fluctuating dollar has hit local businesses hard by driving up raw material prices. “We’re actually right in the middle of our peak season, but it feels like the off-season,” says Shan, a cashew processor. “March to October is usually our busiest time of the year, but this development has brought everything to a complete standstill,” he adds.

An industry already reeling from vulnerabilities such as comparatively higher wages, lack of mechanization and lack of RCNs has been plunged into deeper crisis by the recent disruptions.

As domestic production of RCN in the state is critically low, factories have to rely heavily on imports from countries such as Ivory Coast, Ghana and Tanzania to keep their wheels turning. “There are several reasons why processors are closing their units. Despite the demand, we are forced to stop production,” says Dileep, a processor.

Processors are bracing for a prolonged crisis as delays at sea and rising raw material costs are not in sight.

Published – 20 May 2026 18:58 IST