Cashew cultivation and processing present one of the most profitable opportunities in the agro-based industry. With a rising global demand for cashew kernels, cashew nut shell oil, and related by-products, this sector offers substantial returns on investment. India, Vietnam, Brazil, and some African countries are leading producers of cashew nuts, with increasing emphasis on value-added processing. A modern processing setup not only delivers edible kernels but also extracts high-value products like Cashew Nut Shell Liquid (CNSL). To set up a sustainable unit, one must understand the complete chain of cashew-nut-processing-with-cnsl-cashew-nut-shell-liquid-cnsl-cashew-nut-cashew-kernels-cashew-nut-shell-oil-manufacturing-plant, from raw nut procurement to final product packaging.

Cashew Nut Processing: Kernels and By-products

The cashew nut is more than just a snack. Its by-products, particularly CNSL and shell oil, are widely used in the chemical, paint, lubricant, and pharmaceutical industries. A comprehensive cashew processing unit taps into multiple revenue streams by using every part of the nut.

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Raw Cashew Nut Procurement and Storage

Cashew processing begins with procuring high-quality raw cashew nuts, which are harvested between February and May in most producing countries. The nuts are collected from cashew apples, dried under sunlight, and stored in ventilated godowns to avoid spoilage.

The quality of the end product largely depends on the moisture content and condition of the raw nuts. Ideally, raw nuts should have 8-10% moisture and be free from mold or insect infestation.

Moreover, storing the nuts in jute bags rather than plastic sacks helps in better air circulation and longer shelf life.

As a result, careful handling during storage ensures high kernel yield and oil content.

Pre-treatment and Roasting Process

Before shelling, raw cashew nuts require conditioning. The most common method involves steaming or drum roasting. Steam roasting softens the shells while preserving kernel quality. In contrast, drum roasting is a dry method that also aids in easier shell removal but may darken the kernels.

The roasting stage also influences CNSL recovery. During drum roasting, the shell releases a thick dark liquid—cashew nut shell liquid—which is collected through specialized extraction trays beneath the rotating drum.

In steam processing, CNSL is extracted separately after shelling. Each method has its merits, but drum roasting gives higher CNSL yield, making it suitable for units focused on by-product extraction.

Moreover, the selection of processing technique depends on the priority between kernel recovery and CNSL yield.

Shelling and Kernel Separation

After roasting, the nuts are allowed to cool before shelling. Shelling can be done manually using a hand-held blade or mechanically through semi-automatic or fully automatic shelling machines. The goal is to extract whole kernels without damaging the outer skin (testa), which protects the kernel during subsequent steps.

The broken shells collected during this stage still contain CNSL and are further used for shell oil extraction through solvent or hot oil techniques.

As a result, even shell waste contributes to the profitability of the cashew-nut-processing-with-cnsl-cashew-nut-shell-liquid-cnsl-cashew-nut-cashew-kernels-cashew-nut-shell-oil-manufacturing-plant.

Drying and Peeling

Once the kernels are extracted, they still carry the outer brown testa or skin. To remove this, kernels are dried in a Borma dryer at 70–90°C for 6–12 hours depending on the moisture content. This drying hardens the testa and makes peeling easier.

The peeling is either done manually or using pneumatic peeling machines that use compressed air to separate the skin from the kernel. After peeling, the kernels are sorted based on size, color, and grade.

Grades like W-180, W-210, W-240, and W-320 indicate whole white kernels, with W-180 being the largest. Scorched and broken kernels are also categorized separately for varied pricing.

Moreover, accurate grading ensures better marketability, both for local and export purposes.

Cashew Nut Shell Liquid (CNSL) Extraction

Cashew nut shell is not a waste product. It contains about 20–30% CNSL, a versatile industrial chemical. CNSL is a dark, viscous liquid composed mainly of anacardic acid, cardol, and cardanol. It is used in brake linings, paints, coatings, and varnishes due to its thermal and anti-corrosive properties.

There are two major methods to extract CNSL:

1. Hot Oil Bath Process: Shells are crushed and passed through a hot oil bath where CNSL seeps out due to heat. The extracted liquid is filtered and stored in steel drums.

2. Solvent Extraction: Shells are ground and treated with solvents like hexane to dissolve CNSL. The mixture is then distilled to separate the solvent from CNSL.

The hot oil method is more common in small-scale operations, while solvent extraction is used in larger, more automated units.

In contrast to kernel processing, CNSL extraction demands specialized equipment and heat management for safe handling.

Cashew Nut Shell Oil Production

The residue shell left after CNSL extraction can be used for oil generation or as a high-calorific biofuel. Cashew shell oil contains combustible components and is often used to power boilers or dryers within the plant itself.

Moreover, the shell cake can be compacted into fuel briquettes, offering an eco-friendly energy solution.

By integrating this waste-to-energy model, a cashew-nut-processing-with-cnsl-cashew-nut-shell-liquid-cnsl-cashew-nut-cashew-kernels-cashew-nut-shell-oil-manufacturing-plant can reduce energy costs and promote sustainability.

Packaging and Value Addition

Final products—cashew kernels, CNSL, and shell oil—require proper packaging for long shelf life and market appeal.

• Kernels are vacuum-packed or nitrogen-flushed in food-grade pouches or tins to prevent oxidation.

• CNSL is stored in steel or HDPE drums, clearly labeled for industrial use.

• Shell oil and by-products are packed based on usage—either for in-house fuel or external sale.

Moreover, adding value through roasting, salting, or coating kernels opens new consumer segments and higher margins.

Export-oriented units must follow international packaging norms and hygiene certifications to meet buyer requirements.

Infrastructure and Equipment

To establish a medium-scale plant processing 2–5 tons of raw nuts per day, you need the following:

• Roasting chambers or steam boilers

• Shelling machines (manual or automated)

• Borma dryers and peeling machines

• Grading and sorting tables

• CNSL extraction units (hot oil bath or solvent systems)

• Packaging machines (vacuum sealers, nitrogen flush systems)

• Power backup and water purification systems

In addition, clean working areas, food safety zones, and proper ventilation are essential to maintain product hygiene.

Moreover, integrating automation at key points—shelling, peeling, packaging—boosts productivity and reduces labor dependency.

Licenses and Legal Requirements

To operate a cashew processing plant, you must obtain:

• FSSAI registration for food-grade kernels

• GST registration and trade license

• Pollution Control Board clearance for solvent-based CNSL extraction

• Factory license and labor compliance certifications

• Export licenses (if shipping overseas)

Moreover, adhering to quality standards like AGMARK, ISO, and HACCP enhances your credibility in global markets.

As a result, following all legal procedures ensures smooth operation, better buyer trust, and eligibility for government incentives.

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Conclusion

Establishing a cashew-nut-processing-with-cnsl-cashew-nut-shell-liquid-cnsl-cashew-nut-cashew-kernels-cashew-nut-shell-oil-manufacturing-plant offers multifaceted income potential—from edible kernels to industrial CNSL and biofuel shell oil. By understanding every step, from raw nut procurement and roasting to grading, extraction, and value addition, entrepreneurs can build a scalable, export-ready business. Moreover, aligning with sustainable practices like waste-to-energy conversion and eco-friendly packaging adds to long-term profitability. With global demand for cashew products rising steadily, now is an ideal time to invest in a vertically integrated cashew processing venture backed by modern technology, skilled manpower, and quality-driven operations.

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