Today, I am going to share with you a worthwhile business idea and that is cashew processing business. In India, commercial cashew production started its journey in the late 60’s, and over the years, it has become one of major cash producing crops after tea and coffee, earning significant amount of foreign exchange for India. In the year 2014-15, India exported processed cashew nuts at a value of US$ 887.5 million, which is about 65% of total cashew exports worldwide. In cashew production and exporting, India ranks 3rd in the world after Vietnam and Nigeria. Almost 2 million people are engaged, directly or indirectly with this industry.
Cashews are extremely nutritive as well as comprises of the energy, vitamins, and antioxidants which are vital for strong health. These are high in calories, and some fibers which help us in protecting us from major diseases like cancer. Although cashew is also a seasonal fruit like some other fruits and you cannot eat in a raw form as it is not a ready to eat the product. So, cashew processing needs to be done earlier in which raw cashews are processed into the cashew nuts that are one of the renowned dry fruits in the world. The processing of cashews devises a lot of benefits and trade gains that can provide you lots of profits for the long run.
Processing of Cashew
The raw cashew nuts and cashew nut shell liquid are the two main products that have a great demand in international market. There are other two cashew products namely cashew kennels and cashew apples. Cashew kennels are also sold in world market; the USA is the leading consumer of it.
The raw cashew nuts need to be processed for consumption. Before processing, they are dried in the sun for 2-3 days to lower the moisture content of the nut. It is then stored in the gunny bags.
The cashew processing involves several consecutive steps namely
- Preliminary cleaning: The stored in-shell cashews are cleaned and then steamed under pressure to make the shells softer. It results the cashews becoming loose from inside and comes out from the shells. Shells are divided longitudinally to take out the kennels using hand.
- Steam Roasting: The cashew kennels are dried in an oven at moderate heat so that the outer layer can be peeled off easily. and produce fresh cashew nuts.
- Drying: After steam roasting, whole or broken kennels are being passed through a cabinet drier to obtain dry nuts.
- Peeling: The outermost pinkish layer, also known as Testa is removed off and after that they are now prepared for consumption.
- Grading: Cashew nuts are graded into 6 different standards depending on the color and size of the kennel and also on the roasting condition.
- Packaging: Before packaging, kennels are dried such that the moisture content becomes 3%. Kennel nuts are packaged in sacks for selling to retailers. Export quality nuts are vacuum packed in tin.
Technical Details Regarding Cashew Nut Processing Business
You can begin with a medium-scale cashew nut processing and it would give you a large profit by selling a large quantity of processed cashew to the retailers. It is true that it would need relatively big start-up capital to set up the plant. It is one-time investment but can generate continuous revenue if everything goes well. For starting a cashew nut processing business, you must be well aware of its few technical details which require a lot of consideration to allocate. Some of the important details are as follows:
1. Registration and Licensing Formalities
While beginning the business of a cashew processing, you will require acquiring numerous registrations as well as licenses from the Government authorities of your state. The list of registration and licenses are given below:
- You may begin the small to medium scale cashew nut processing unit either as an owner or as a business firm. If you are starting this business as an owner, then you have to register your firm as a One Person Company. But if you want to get registration as a firm, then you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC).
- The next license which you have to get is a Trade License from the Urban Authority of your state.
- After getting the trade license, you can apply for the VAT (Value Added Tax) registration
- In case if you wish to get a technology assistance and subsidy from the state’s government, then you have to apply and register for that also under MSME (Micro, Small, and Medium Enterprises).
- You also have to get approval from the State Pollution Control Board for beginning your cashew not processing business.
- It is also mandatory to have a License from the boiler superintendent.
- You may also protect the brand name of your cashew processing company by way of Trademark Registration.
2. Cashew Processing Business’s Outlay
The investment in the food processing can be either done through personal funding or you may take the loan from any commercial banks or regional rural banks. If you want to get benefit from the numerous subsidy schemes of the government, then it is compulsory that you opt for the loan from the banks. In so many countries, the government of the respective nations always try to promote the small scale businesses by providing them grant or subsidies.
3. Market Prospect
The demand for the cashew nut is growing speedily all over the world and there are so many countries that indulge in producing, processing, consuming and exporting of cashew nuts. It is one of the significant agricultural products that are imported and exported in many countries. So, if you start a small-scale cashew nut processing business, then it is quite obvious that you will have very bright future in this trade. In fact, some nations also support small businessmen who want to expand their cashew nut processing business on the large scale.
4. Equipment and Setup of Machinery
You must have the possession of a land evaluating around 500 sq.mt. which will be adequate for your small-scale cashew nut processing unit. The location must be smoothed and also possess an open space to dry out cashews in the sun. You must check the availability of nearby labor and the market where you will sell your product. All this matters a lot while calculating the total cost of processing. The main raw material is cashew nuts. The following are some important machinery and equipment that are required for the cashew nut processing business:
- Cooking Containers
- Semi-Automatic Shedding Appliance
- Steam Reservoir
- Multi-shade Cashew Nut Categorization Machine
- Husk Sorting Machine
- Vapour Tube
- Hot furnace
- Hand Functioned Cutting equipment
- Cashew Flaking Machine
- Cashew nut filling machine
- Fragments strainer
- Set of scales
- Shutting Machine
It is compulsory that you packed your final product in a humidity proof as well as airtight packets. You will also require obtaining the wrapping replaceable for cashew processing unit.
All the above information will help you in knowing about all the little detail about the cashew nut processing business and you can easily start it on a small scale on your own. Your main priority should be that you offer the best quality products to your consumers.