Escalating tensions in West Asia have plunged India’s cashew industry into a déjà vu–like crisis, severely disrupting logistics, payments, and export markets.
J. Rajmohan Pillai, Chairman and Managing Director of Beta Group, which owns the brand NutKing, said Iran had emerged as a key growth market for Indian cashews in recent years, with trade often routed through hubs such as Dubai.
However, since the escalation of hostilities in early 2026, shipments worth hundreds of crores of rupees are stranded. Iranian buyers have largely stopped opening new contracts following the closure of major ports, including Bandar Abbas, and the freezing of banking channels.
Major consumer
Iran was a major consumer of premium cashew grades such as W180 and W210. Its sudden exit has resulted in a temporary glut of high-quality kernels in India. Traders report sharp wholesale price volatility, with domestic prices softening as exporters attempt to liquidate stocks originally meant for Tehran, he said.
The industry’s dependence on UAE-based accounts for Iranian trade has now turned into a liability. With military strikes reported near regional hubs, the financial bridge that enabled Iran to purchase Indian cashews has effectively collapsed, Pillai said.
While India grapples with disruptions, processors in Vietnam are aggressively targeting the US and China markets, intensifying competition and putting pressure on India’s market share during the period of instability.
Further compounding the challenge is the likelihood of higher war-risk insurance premiums, which could make direct shipping to Gulf countries significantly more expensive. Besides, the diversion of vessels via the Cape of Good Hope to avoid Red Sea risks while servicing the US and European markets could add 15–20 days to transit times and increase freight costs by $200–400 per container.
Quality may be hit
“For a seasonal product like cashews, such delays can lead to quality deterioration and missed holiday consumption windows,” Pillai warned.
On the raw material front, vital raw cashew nut imports from West Africa isle likely to become more expensive leading to increased landed costs in Kollam due to surge in global crude oil prices. The weakening rupee against the US dollar has further squeezed margins for Indian processors already battling intense competition from Vietnam, he added.
Published on March 2, 2026