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Cashew sector sounds alarm as illegal kernel imports surge in India
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Monday, 19 January, 2026, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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India’s cashew processing industry is facing renewed pressure as the All India Cashew Association (AICA) has flagged a significant increase in illegal imports of cashew kernels, raising concerns over industry sustainability, market distortions and unfair trade practices. According to industry sources, a growing number of imported kernels are entering the domestic market under mis-declared classifications to evade import duties, putting genuine domestic processors at a competitive disadvantage.
Industry stakeholders report that unscrupulous traders are mislabeling plain cashew kernels the raw material used for making processed cashew products as categories such as “roasted cashews,” animal feed or cashew husk, which attract lower or even zero customs duty. Once cleared through customs under these false descriptions, the kernels are ultimately diverted back into the mainstream supply chain, undermining lawful imports and undercutting prices for legitimate business operators.
This surge in deceptive imports comes at a time when the domestic industry is already grappling with intense global competition and tight margins. While India remains one of the world’s largest consumers and processors of cashews, excessive inflows of cheaper kernel imports distort pricing and put pressure on Indian processors who pay full duties and adhere to compliance standards. Industry experts warn that continued unchecked entry of mis-declared kernels could erode local producer viability and disrupt the broader cashew value chain.
AICA has appealed to the central government and customs authorities to tighten enforcement, refine inspection protocols and ensure that HSN classifications are correctly applied at ports of entry. The association believes stricter customs scrutiny and harsher penalties for misdeclaration are vital to protect the domestic cashew ecosystem and maintain fair market competition.
With cashew prices sensitive to supply fluctuations and imported volumes rising, policymakers and industry bodies may need to collaborate on stronger regulatory measures to safeguard India’s cashew processors from a surge of illegal kernel imports.
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