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Cashew Nut Processing Business

Cashew Nut Processing Business

by Tandava Krishna


We are all aware of benefits of dry fruits and nuts. They are rich in fat, fibre and protein that we do not get from other sources. They also have vitamins and minerals that are vital for us. Consuming them on regular basis improves our health. Likewise, cashews are one variety of nut that are very famous in market. They have incredible health and beauty benefits and are used by people from all over the world for delicacies. But the process of obtaining cashews is tedious. It is the extensive hardwork in the processing units that we obtain cashews from. 

The raw cashew nuts are firstly acquired from the local farmers and the local markets. These cashew nuts are dried in the sun for a time of two days and are then put away in the gunny sacks for processing throughout the year. The process of sun-drying helps in the expulsion of excess moisture subsequently resulting in longer storage. The preparation of cashew nut is a four phase process, each intended to produce quality edible cashew kernel.

If you want to start a cashew nut processing business, here is how you can do it:

Create a Plan 

If you are in cashew nut processing business, you need to understand it is not an easy task and requires a good understanding of the science behind manufacturing your product. Your scale of business will depend on it a lot. With that decide what will be your reach. Where will you set our your processing unit and as your business will be offline, are you willing to extend it to online mode? Will you deliver out of your town or within it? Decide the storage area you are going to keep your goods in.
The growth will only follow if you thrive in the market and the cashew nut processing business needs investment and time. You will also need a workforce that will help in the process. Testing has to be done to check if the composition is safe along with finding a place where all this can be manufactured. So, plan accordingly.

Increase your expertise

To open a cashew nut processing business, you need to have a lot of information about this industry. You should be an expert. Take guidance from an expert who has been in this business for long time to know the trends, fluctuations and risks of this business. Understand how how to get raw material from, what are the kind of equipment required and how much you should invest in the business. Here is step by step procedure of how cashew nuts are processed. 

Process of Cashew Nut Processing:

Steam Roasting

The external shell of the raw cashew nuts must be taken out to procure the eatable cashew kernel. The external shell of the cashew is extremely hard and it contains a corrosive oil that is not ideal for human consumption. The cycle of steam roasting helps in the removal of this hardshell with little effort. The raw cashew nuts are placed in a drum connected with a small broiler. The steam from this broiler is passed onto the cashews put in the drum for 10 – 15 minutes. These cashews are then left in the drum for 20 minutes for appropriate roasting. The roasted cashew nuts are then removed from the drum and set in the outside for around 12 hours to let them cool off that helps in removal of the cashew shells.

Shell Cutting

The roasted cashew nuts are then taken for cutting to remove the external shell. This is an intricate process and requires profoundly skilled workers to get the maximum intact kernel yield. This process requires every cashew nut to be exclusively positioned between blades of the machine operated manually to eliminate the external shell. This process brings about the production of cashew kernel with a delicate inner shell. After this nuts are placed in an oven which is continually kept up at a temperature of around 60 degrees for a time of 24 hours to make the inward shell brittle.


The inner shell of the kernel must be eliminated to produce the white nuts. The peeling process is intended to remove this inner delicate shell after the kernel is taken out from the oven. The kernel is used for peeling after it is kept in open space for a time of around 12 hours for a cool down. This helps in the peeling process. Each nut is independently peeled to get the white nuts.


The process of grading is intended to sort the white cashew kernel into various grades. The white kernel is divided into two- the wholes and pieces. The wholes and pieces are additionally divided into types depending upon the size, shading, and surface of the nuts. The arranging is done based on the set international sizes. These nuts are then placed in the oven to make the nuts crispier before they are sent for packaging.


The cashews are then to be packed according to the chosen kind of packaging. It is better to choose a packaging that is safe for edible item and is environment friendly. 

License and Permits

To open any food-related business, you have to take many approvals from the government and undergo many tests to get a license. Firstly, you will have to take permission for the land about making the use of space commercially as you will be taxed on that according to commercial regulations. Then for setting up the factory business you need to apply for around four-five licenses. This includes the GST registration, the FSSAI License, the Fire License, Local Municipal Corporation Health License, etc. Make sure you are ready with all the paperwork and to take multiple rounds of government offices, beforehand!

Get the manpower

As you read, the processing of cashew nuts is a tedious task. It requires highly skilled labour and one must knowledge of market regulations. Along with that, have in-house staff that will carry out tasks like managing, billing, loading, shifting, etc. Once you have a store and you desire to build it bigger, have a trusted group of people who will help you on each level as this is not a task that can be handled alone.  Think about all the prospects where you will require human effort and get yourself enough people to run your business smoothly.

Buy equipment and machinery

There are certain types of broilers and steamers required for cashew nut processing. Make a list of all and get the best quality, long lasting equipement.

Generate funds

This is amongst the first things to do. You are setting up a cashew nut processing business whether it is big or small, it will require a principal investment. Get yourself sponsors who are willing to support a local business and have your back

Go online

Setting up any business requires a strong local connection and communication so that the business can propagate but with the rise in the use of e-commerce, things have become a lot easier. Make a website for your cashew nut processing business to attract retailers and market your business. Arrange your products in different categories and use various models and tools which are available online to make your website catchier and more attractive. 

To open any business, one should be ready to work hard and show a lot of perseverance and determination. Any business will have good and bad days but it depends on the owner how they want to go about it. Your cashew nut processing business is going to be the same. Don’t get overwhelmed and enjoy the process. All the best!

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