Which Indian District is Known as the Cashew Capital of the World?

Kollam, a port city in Kerala, was once known as the "Cashew Capital of the World." It earned this title because of its large-scale cashew production and global influence on cashew prices. However, the industry in Kollam has declined over the years due to various challenges.

Akansha Arora Published On December 28th, 2024

Cashew are one of the most popular nuts in the world, loved for their creamy texture and delicious flavor. They are used in a variety of dishes and snacks, making them a favorite for people of all ages. But have you ever wondered which Indian district is known as the “Cashew Capital of the World”?

Worldwide Cashew Production

In 2023, the world produced 1,250,000 metric tons of cashews. This nut is popular for its taste and health benefits, with countries like Vietnam and India leading production. Cashews are a key ingredient in snacks and various cuisines globally.

Cashew Capital of the World

Kollam, a port city in Kerala, was once known as the “Cashew Capital of the World.” It earned this title because of its large-scale cashew production and global influence on cashew prices. However, the industry in Kollam has declined over the years due to various challenges.

Why Kollam is Known as the Cashew Capital of the World?

Kollam used to be the largest producer of cashews in the world. The city had over 780 licensed cashew factories that supplied cashews to global markets. Kollam’s exporters played a key role in deciding the global price of cashews. It was also home to major organizations like the Kerala State Cashew Development Corporation (KSCDC) and the Cashew Export Promotion Council of India (CEPCI).

Present Status of Kollam’s Cashew Industry

Today, the number of licensed cashew factories in Kollam has dropped from over 780 to less than 80. Despite this decline, the Kerala State Cashew Development Corporation and the Cashew Export Promotion Council of India continue to operate from Kollam.

Reasons for the Decline of Kollam’s Cashew Industry

Competition from Vietnam: Vietnam has emerged as a strong competitor in the cashew market. Unlike Kollam, Vietnam uses advanced technology and automated processes, making their production faster and cheaper.
Relocation of Factories: Many cashew factories in Kollam have moved to other states like Andhra Pradesh and Tamil Nadu, where operating costs are lower.
Lack of Technology in Kollam: Kollam’s cashew industry still relies heavily on manual labor. The lack of modern machinery has made it hard for the city to compete with countries like Vietnam
Vietnam’s Crop Yields and Kollam’s Impact: Although Vietnam’s domestic cashew crop yields have recently fallen, Kollam’s industry struggles to regain its lost status due to other ongoing challenges.