Cashew Nut Plant Project Report

By | January 23, 2017

The demand for cashew nut is gradually increasing, whereas its supply is limited. India is the largest producer, processor, consumer and exporter of cashew nuts in the world. As it is impossible to consume raw cashew and cashew apple, thus, both of them need processing before consumption. Cashew nuts, which is one the famous dry fruits, involves processing of raw cashews. Cashew Nuts can either consumed directly or converted to a variety of products like salted cashew nuts, Kaju Burfi, cashew curries etc. Fermented products like beverages and feni are processing outcomes of cashew apple pulp. The major requirements of a cashew processing unit are land, building, plant, machinery, and civil works. Further, we will be discussing in detail about cashew nut plant project report.

Land and Land Development

  • 500 sqm land will be sufficient for small-scale cashew processing unit.
  • Leveling of the site must ensure adequate space for sun drying of raw cashew.
  • The land should be free from any encumbrance and shall be mortgageable and classified as non-agriculture.
  • Leased land can also be taken but the lease period should be sufficiently more than the repayment period of the loan. The leased land should preferably be with an enabling clause for a mortgage of land to banks or financial institutions.
  • The cost of land and land development varies from place to place. Land cost of Rs. 3 lakh and land development cost of Rs. 0.30 lakh is optimum for 500sqm model.

Buildings and Civil Works

  • The cashew processing unit requires a processing, drying, and packing area.
  • A built-up area of 250 sqm is adequate for a cashew processing unit of small scale. Main processing area would require about 55-60 sqm, whereas storage and packing rooms would occupy balance area.
  • The terrace can work as drying yard for raw cashew.
  • The total estimated cost of the building is Rs.50.00 lakh.
  • The construction of buildings for processing of cashew as per the guidelines of FSSAI.
  • The height of the building should be such that sufficient breathing space is available. All windows and doors should be provided with insect proof wire mess. Slope as per standard guidelines should be provided on the floor.
  • Glazed tile flooring shall be preferable to ensure easy cleaning of the floor after processing session.

Plant & Machinery

  • Cashew processing is a seasonal activity and the factory would work for about 200 days in a year.
  • Keeping in mind the availability of raw materials and market prospects, the processing capacity of 500 tons of raw cashew processing per season is optimum.
  • The estimated cost of plant and machinery is Rs.60.15 lakh. The details of plant and machinery and other equipment are given in Table as shown below.
cashew nut plant project report

Machinery Required | |

Other Assets

  • Furniture & fixtures,
  • Cashew basket,
  • SS utensils,
  • Storage racks,
  • Working tables

Government Approvals

Prior to establishment

  • Registration of concern with Registrar of Companies (ROC)
  • NOC from Local Bodies like Gram Sabha/ MC etc. – mandatory
  • Consent to establish from State Pollution Control Board – mandatory
  • Approval of Layout plan for construction – mandatory
  • Permission to dig bore well from Ground Water Survey and Development Authority (GSDA)
  • Registration with District Industry Centre (DIC) for as Small and Medium Enterprise
  • Application to State Electricity Board/ Authority for sanction of requisite power load

After establishment

  • License from FSSAI
  • Permission to commence production from State Pollution Control Board
  • License from boiler inspector

Manpower Requirement

  • The cashew processing industry is highly labor intensive. The labor is essential for each and every operation like loading and unloading of raw materials and finished products. Requirements of labor in the drying of raw materials, processing and packing of cashew kernel. The cashew cutting and peeling requires skill. Most of these cashew processing activities are performed by female skilled labor on a contract basis.
  • The processing units also need to employ permanent labor for handling various day to day operations. The detail of manpower requirement is given in Table below.
cashew nut plant project report

Manpower ||



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