Kerala government sets record price of ₹150 a kg for raw cashew nut

In a decision aimed at revitalising the cashew sector, the State government has fixed the price of domestic raw cashew nuts (RCN) at an all-time high of ₹150 per kg. This record-breaking rate was determined during a high-level meeting of the State-appointed price fixing committee, marking the highest value ever assigned to cashew by the government.

The move is expected to provide immediate relief to cashew farmers while ensuring that cashew factories have a steady and reliable supply of raw materials without the interference of market volatility. To ensure that this fair price reaches every grower, the committee has issued a strict mandate requiring all buyers to pay the full ₹150 per kilogram. The government has also established a robust procurement network to facilitate this, primarily through the Kerala State Cashew Development Corporation (KSCDC) and Kerala State Cashew Workers Apex Industrial Co-operative Society (CAPEX). These public sector organisations will accept produce directly from farmers at their various factory locations.

Market stability

Additionally, the Cashew Board will manage larger volumes through a specialised tender process to maintain market stability throughout the harvest season. “This price will remain in effect from the beginning of the season until its end and the government intends to ensure fair price to farmers through this. The farming community should bypass middlemen and deliver their entire harvest to the Cashew Corporation, CAPEX, or the Cashew Board, so that they will get maximum economic benefit,” said S. Jayamohan, chairperson, KSCDC.

The meeting of the price fixing committee was presided over by B. Ashok, Principal Secretary of the Agriculture department and the Agricultural Production Commissioner. By streamlining the procurement process through State-run factories and the Cashew Board, the government hopes to create a sustainable ecosystem that protects the interests of both the agricultural workers and the industrial units that depend on high-quality domestic raw cashew nuts.