Riding on surging cashew nut imports to the European Union, India has witnessed a modest 8 per cent rise in exports during the first quarter (Q1) of 2025.
Vietnam accounted for 72 per cent of total EU imports. Cashew nut imports by the EU soared to an unprecedented level in Q1 2025, registering a record 42,850 tonnes valued at €273 million ($300 million). This marks a significant increase of 16 per cent in volume and 42 per cent in value compared with the same period in 2024, when 37,054 tonnes worth €193 million ($212 million) were imported, said J Rajmohan Pillai, Chairman of Beta Group, which owns the brand NutKing.
However, he pointed out that speculations are rife on the potential shift in cashew trade dynamics in the wake of the Trump Tariff, forcing suppliers to explore alternate markets in the EU, Japan and the Middle East. The US is a major market for cashew nuts, with Vietnam holding a major share. The recent 46 per cent US tariff on Vietnam could be a game changer.
At the same time, the impact of the 26 per cent US tariff on Indian cashews remains a topic of speculation, with contrasting views on the country’s ability to capitalise on the situation given domestic demand constraints and rising kernel prices, he said.
Pratap Nair, Managing Partner, Vijayalekshmi Cashews, said there are some countries in the EU whose requirements are high quality standards which can be met only by Indian processors. There are very few Vietnam processors who can match these quality standards.
Duty-free imports under FTA
Pillai attributed the reasons for higher EU imports to the FTA with Vietnam, which reduced the import tax rate on cashew kernels to zero per cent. This has facilitated Vietnamese exporters to offer their products more competitively. The imposition of high tariffs by the US on cashew imports from India and Vietnam is likely to redirect more cashew supplies towards the EU market, further increasing import volumes, he said.
With the new tariff announcement, there are no new contracts being signed for exports to the US, he said.
Published on April 9, 2025
