trade-export

Indian Cashew Kernels: Grades, Packing and Compliance

What a nut packer, confectionery manufacturer or importer should settle before contracting Indian cashew — the grade system and why most enquiries cannot be quoted without it, the packing decision that determines shelf life, and an honest account of where India sits against Vietnam.

September 16, 2026

13 min read

RNG Trade Intelligence

Market Research Desk · Rajkot

https://rngagroexports.com/wp-content/uploads/2026/09/cashew-nuts.jpg

Cashew Kernels

Where India actually stands

It is worth stating the market position plainly rather than around it, because serious buyers already know it.

Vietnam is the largest cashew kernel exporter by both value and volume. India’s position has weakened in Europe specifically: Indian cashew kernel exports to Europe fell by around 7.8 percent annually between 2020 and 2024, reaching roughly 10,835 tonnes in 2024, and India’s European market share dropped from about 8.7 percent in 2020 to about 5.0 percent in 2024. Côte d’Ivoire is the largest producer of raw cashew nuts.

Two things explain this and both matter to a buyer. First, India is the world’s largest consumer of cashew kernels — domestic demand absorbs a very large share of what India processes, which limits export supply and supports domestic prices. Second, Indian processing remains substantially hand-operated at the shelling and peeling stages, which is slower and dearer than the mechanised Vietnamese model but typically yields a higher proportion of unbroken wholes and better peeling quality.

The practical conclusion: if you are buying on price per kilogram for a grinding application, Vietnam will usually win and you should not pretend otherwise. If you are buying wholes where the wholes-to-broken ratio, peeling quality and appearance carry into your finished pack, the Indian proposition is real. Decide which buyer you are before you run the tender, because the two comparisons produce opposite answers.

Per APEDA, the leading destinations for Indian cashew kernels in 2025-26 were Vietnam, the UAE, the Netherlands, Japan and Spain, with Saudi Arabia and the United States also significant. Note that Vietnam appearing as a top destination reflects kernel movement into a competing processing and re-export hub rather than end consumption.

The grade system: count per pound

This is the section that makes an enquiry quotable. Cashew grades are set by the Cashew Export Promotion Council of India and mirrored in international trade practice. The letter describes colour class and form; the number is the approximate count of kernels per pound. Lower number, larger nut, higher price.

White wholes

Scorched, pieces and dessert grades

The most costly routine error in cashew procurement is buying wholes for a process that destroys them. If the kernel is chopped, ground or dispersed into a matrix, large white pieces deliver the same nut at a materially lower price. Ask yourself whether the kernel is seen by the end consumer. If not, specify pieces and put the saving somewhere it shows.

Reference specifications

Packing: a shelf-life decision, not a cosmetic one

Cashew kernels are high in oil. Exposed to oxygen they oxidise and go rancid, and rancidity is the defect that arrives at destination rather than leaving origin. The packing format is therefore a technical specification, not a preference.

Vacuum tins

The traditional export pack: a 25 lb (11.34 kg) tin, vacuum drawn and flushed with carbon dioxide, two tins to a carton giving 50 lb (22.68 kg) net. Tins give the most reliable protection and the longest confident shelf life, and they tolerate rough handling and long transits. They are heavier, dearer and bulkier, and the buyer is left with tins to dispose of.

Flexi-pouch and vacuum pouches

Lighter, cheaper, easier to handle and easier to dispose of. Shelf life depends heavily on the barrier properties of the film and on whether the vacuum survives transit intact. A pouch pack with a good multilayer barrier and an undamaged seal performs well; a pouch with a compromised seal does not, and you will not know until the carton is opened.

Agree the expected shelf life in writing alongside the packing format, and agree what happens if a pouch seal fails in transit. On first shipments with pouch packing, ask for a higher proportion of cartons to be inspected on arrival than you would with tins. This is the single clause that prevents the most common cashew claim.

Microbiological control

Cashew kernels are frequently treated as ready to eat, and Salmonella is the organism that matters. Specify Salmonella absent in 25 g, E. coli absent, and total plate count and yeast and mould to your own limits. Ask what the processor’s kill step is and where in the line it sits, because a validated step before final packing is a materially different risk position from testing alone.

Aflatoxin applies as a tree nut and should be specified against your destination’s limit, with the sampling plan named in the contract — contamination in nut lots is uneven, so the sampling method carries as much weight as the analysis.

Cashew is a declared tree nut allergen in essentially every regulated market. Your supplier’s segregation practices become part of your own food safety file, so ask how cashew lines are separated from other commodities in the same facility and request the allergen management statement alongside the certificate of analysis.

Origin traceability: a question worth asking

India’s processing capacity exceeds its own raw cashew nut crop. A substantial share of raw nuts processed in India is imported, principally from West and East Africa. That is a normal, legitimate structure and it is how much of the world’s cashew moves — but it means “Indian cashew” usually denotes Indian processing rather than Indian-grown raw material.

If your specification, your label or your marketing depends on the raw nut being Indian-grown, say so explicitly in the contract and ask what documentation supports it. A supplier who treats that as an awkward question is answering it.

Documentation

• CEPCI registration — the cashew-specific credential, distinct from APEDA, and the first thing to verify
• Importer Exporter Code from DGFT, APEDA registration and FSSAI central licence
• Certificate of analysis: moisture, count per lb against grade, colour, broken and lower-grade admixture, with test date
• Microbiological report: Salmonella in 25 g, E. coli, total plate count, yeast and mould
• Aflatoxin report stating the sampling plan used
• Pesticide residue report where the destination requires it
• Allergen management statement
• Packing declaration stating format, vacuum and gas flush, and contracted shelf life
• Phytosanitary certificate and certificate of origin
• Halal, kosher or organic certification where the market requires it, with lot-level transaction certificates for organic
• Commercial invoice, packing list and bill of lading, declaring HS 0801.32 for shelled kernels (0801.31 for in-shell)

Container loading

Season and supply

The Indian raw cashew nut harvest runs from roughly February through May, with Maharashtra the leading domestic producing state and processing concentrated around Kollam in Kerala, Mangalore in Karnataka, Panruti in Tamil Nadu, Goa and coastal Andhra Pradesh. Because imported raw nuts supplement the domestic crop, processing and shipment continue year-round rather than following a single harvest window. Domestic festival demand tightens availability and firms prices in the run-up to Diwali, which is worth building into an annual contracting calendar.

How to qualify an Indian cashew supplier

1. Verify CEPCI registration first, then the Importer Exporter Code, APEDA registration and FSSAI central licence.
2. Establish whether the counterparty processes or only trades, and where the processing unit is.
3. Ask what the microbiological kill step is and where it sits in the line — not simply whether they test.
4. Agree the aflatoxin sampling protocol in writing before the first order.
5. Settle the packing format, vacuum and gas flush specification, and the contracted shelf life together, not separately.
6. Ask directly about raw nut origin if your label or specification depends on it.
7. Start with a trial container and check count per pound, broken percentage and rancidity on arrival before a term contract.

Frequently asked questions

What do W180, W240 and W320 mean?

W is white wholes; the number is the approximate count of kernels per pound. Lower number means larger nut and higher price. W320 is the most traded grade worldwide.

Wholes or pieces?

If the kernel is seen by the consumer, buy wholes and the grade matters. If it is chopped, ground or dispersed, large white pieces give the same material for less. Buying wholes for a grinding process is the most common expensive error in this trade.

Tins or pouches?

Tins with vacuum and CO₂ flush give the most reliable shelf life and tolerate rough handling. Pouches are cheaper and lighter but depend on barrier film quality and seal integrity. Agree shelf life in writing alongside the format.

Is Indian cashew grown in India?

Often not. India’s processing capacity exceeds its domestic raw nut crop, so a large share of raw nuts is imported from Africa and processed in India. If Indian-grown raw material matters to you, specify it and ask for documentation.

How does Indian cashew compare with Vietnamese?

Vietnam generally wins on price and volume. India’s case rests on hand processing, typically giving a better wholes-to-broken ratio and peeling quality. Choose according to whether appearance carries into your finished product.

How much loads into a container?

Around 14 MT in a 20-foot in tinned cartons and around 28 MT in a 40-foot.

What is the HS code?

HS 0801.32 for shelled cashew kernels, 0801.31 for in-shell. Confirm the eight-digit national code with your customs broker.

Request a specification-matched offer

Send your grade, whether you need wholes or pieces, packing format and required shelf life, microbiological limits and destination aflatoxin limit, with volume, port and incoterm. Tell us if the kernel is visible in your finished pack — it changes what we should be quoting you. Reply within 24 working hours with an FOB or CIF offer and a sample dispatch plan.

https://rngagroexports.com/request-quote/