Synopsis: Supply disruptions have compelled processors in the markets to compete aggressively for raw materials, pushing global raw cashew nut prices upward.
Global cashew markets are reeling from severe disruptions in Tanzania’s harvest season, with Cambodia witnessing an unusual spike in raw cashew nut (RCN) prices due to political unrest in the East African nation.
Tanzania’s cashew harvest, which usually runs from October to January, has been thrown into disarray following post-election violence that has discouraged foreign traders from participating in the country’s cashew auctions. The absence of international buyers has resulted in a supply crunch, sending shockwaves across major processing countries, including Vietnam and India.
According to the Cashew nut Association of Cambodia (CAC) on Monday, the supply disruptions have compelled processors in these markets to compete aggressively for raw materials, pushing global RCN prices upward.
“Ordinarily, RCN prices in Cambodia tend to fall between September and January, when traders focus on imports from Tanzania and Indonesia,” said Uon Silot, President of CAC. “However, this year we are seeing the opposite — prices have surged due to the bottleneck in Tanzania’s supply chain.”
In October 2025, the average price of RCN in Cambodia rose to $2,050 per tonne, marking a sharp deviation from seasonal trends.
Across Africa and Asia, fierce competition is emerging among Indian and Vietnamese buyers. India, backed by long-standing relationships with West African producers and robust contract farming arrangements, currently holds a competitive edge in securing supplies.
Meanwhile, Vietnamese traders active in Cambodia have been offering higher purchase prices than their Indian counterparts, taking advantage of geographical proximity and lower transport costs.
Despite this, India has steadily increased its cashew imports over the past two years, signalling a strategic move to safeguard its processing sector and maintain a stable export flow.
Industry observers warn that should Tanzania’s political instability persist, the global cashew market may face further turbulence. “Extended unrest will only tighten supply and drive prices even higher in the coming months,” Silot cautioned.
The unexpected price surge has underscored Cambodia’s growing role as a vital supplier in the regional cashew trade, even as the sector grapples with international market volatility and unpredictable global supply chains.
Cambodia exported about 941,000 metric tonnes of raw cashew nuts in the first eight months of 2025, generating approximately $1.4 billion in revenue, according to CAC’s report. Despite the strong export performance, much of the output continues to reach China via third countries, limiting the Kingdom’s potential value gains.
Cashew remains one of Cambodia’s most promising agro-industrial crops, contributing significantly to national economic growth and rural livelihoods. The Ministry of Agriculture projects that by the end of 2025, cashew cultivation will expand to 600,000 hectares, yielding more than one million tonnes annually. As the Kingdom enhances its processing capacity, and deepens trade partnerships, it is steadily positioning itself as a competitive player in the global cashew industry.
