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Cashew nut processing — especially roasting, peeling, and packaging — is a high-potential agri-based business that not only offers excellent returns but also supports local employment. Many such units across India are led by women-led Self Help Groups (SHGs), particularly in coastal and tribal areas where raw cashew is abundantly available.
Prominent States:
Kerala
Goa
Odisha
Tamil Nadu
These states have favorable climates and access to raw cashew nuts, making them ideal for setting up cashew roasting units.
What Does a Cashew Roasting Unit Do?
Cashew processing is done in multiple stages:
- Roasting – Removing the outer shell through heat or steam treatment.
- Peeling – Removing the thin skin (testa) from the cashew kernel.
- Grading & Packaging – Sorting kernels by size/quality and hygienically packing them for sale.
Empowering Women Through SHGs
In many parts of India, especially in tribal and coastal belts, women-led SHGs are actively engaged in cashew processing units. With minimal training and small-scale machinery, these groups manage everything — from procurement of raw cashews to final packaging and marketing.
This not only creates self-employment but also builds community-level income and supports financial independence for rural women.
Why is this Business Lucrative?
High market demand (domestic & export)
Can be started at small or medium scale
Excellent value addition over raw cashew prices
Government support available from institutions like NABARD
Market Potential
India is one of the largest producers and consumers of cashew nuts. With rising health consciousness, demand for:
Plain roasted cashews
Flavored/spiced cashews
Vacuum-packed or export-grade cashew kernels
is growing rapidly — both in India and overseas.
You can market your products through:
Local grocery stores
Online platforms (Amazon, Flipkart)
Export channels
Local fairs and exhibitions
Conclusion
Starting a cashew roasting unit is a profitable and socially impactful business. With strong demand, low entry barriers, and support from NABARD and state governments, it can be a game-changer for rural and women entrepreneurs.

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