CAC News-- April 2026
The global cashew industry, once seen as a pillar of agricultural growth in developing economies, is now grappling with a deepening crisis marked by widespread spoilage, farmer unrest, and systemic breakdowns. What should have been a season of “potential growth” has instead devolved into a landscape of rotting waste—highlighting critical failures in logistics, policy, and market coordination rather than any decline in global demand.
Industry analysts warn that without immediate state intervention to procure and properly store current harvests, the 2026 cashew season could inflict lasting damage on the global supply chain.
A “Perfect Storm” Unfolds
The crisis has been driven by a convergence of unseasonal weather, logistical bottlenecks, and insufficient government support. Reports emerging in early 2026 indicate that thousands of tonnes of cashew nuts are decaying in storage facilities, particularly in parts of West Africa and South Asia.
In regions such as the Bono East Region of Ghana and the Konkan belt of India, farmers have taken to the streets in protest. Demonstrators accuse authorities of failing to uphold promises related to minimum price guarantees, storage infrastructure, and market access—leaving rural communities on the brink of financial collapse.
Climate Volatility and Rapid Spoilage
At the heart of the crisis lies extreme weather volatility. Unseasonal rains and persistently high humidity have significantly accelerated post-harvest spoilage.
Cashew kernels are highly hygroscopic, meaning they readily absorb moisture from the air. Once moisture levels exceed 5%, quality begins to deteriorate rapidly. In environments where humidity surpasses 80%, dangerous fungal contamination—particularly Aspergillus flavus—can develop within 24 to 48 hours. This leads to the production of aflatoxins, rendering the nuts unsafe for consumption and unsellable in international markets.
In India’s Maharashtra state, erratic weather patterns in March 2026 caused severe crop losses. The situation escalated when thousands of farmers blocked the Mumbai–Goa Highway in protest, demanding urgent government intervention.
Market Breakdown and the “Middleman Trap”
Despite a global cashew market projected to reach $9.65 billion in 2026, many farmers—especially in West Africa—find themselves effectively shut out.
In Ghana, producers report a near-total collapse of the buffer stock system, which is meant to stabilize prices and ensure timely purchases. With no reliable institutional buyers, farmers are forced to rely on intermediaries who often dictate prices well below production costs.
This “middleman trap” leaves farmers with little choice: sell at a loss or hold onto their harvest in hopes of better prices—risking total spoilage in the process.
Strain on the Global Supply Chain
Compounding the crisis are mounting pressures within the global supply chain. Rising maritime freight costs, coupled with geopolitical tensions in the Middle East, have disrupted trade flows and constrained liquidity for major exporters such as Vietnam. As a result, these buyers have become more cautious in sourcing raw cashew nuts from African producers.
Meanwhile, protectionist policies in several African countries—aimed at boosting domestic processing—have had unintended consequences. Export bans on raw cashew nuts, introduced without sufficient local processing capacity, have created a surplus of unsold stock, further exacerbating storage challenges and spoilage.
A Critical Moment for Intervention
Experts emphasize that the current crisis is not due to weak demand but rather systemic inefficiencies. Without swift government action—such as emergency procurement programs, investment in storage infrastructure, and clearer trade policies—the fallout could extend far beyond 2026.
For millions of smallholder farmers, the stakes are immediate and existential. For the global market, the risk is longer-term: a destabilized supply chain that could take years to rebuild.
Reference J Rajmohan Pillai
