For the 2026-27 financial year, Kerala Budget has set aside ₹56 crore to facilitate the mechanisation and modernisation of cashew processing factories. This funding is also intended to improve marketing facilities, develop new value-added cashew products, and extend cashew farming to ensure the availability of low-cost raw materials for local units. To address the critical need for raw cashew nut (RCN), the Budget has set aside ₹41 crore as a revolving fund for the Kerala Cashew Board (KCB) to ensure a seamless distribution of material to public sector processing units.
Furthermore, specific financial support has been directed toward key agencies, including ₹4.50 crore for the Kerala State Cashew Development Corporation, ₹3.50 crore for CAPEX, and ₹7 crore for the Kerala State Agency for the Expansion of Cashew Cultivation. An additional ₹30 crore is specifically set apart for general rejuvenation programmes within the industry to support its long-term sustainability.
“Finance Minister K.N. Balagopal has presented a Budget that reinforces the government’s commitment to the cashew industry, ensuring the vital traditional sector remains a priority. In a move aimed at long-term stability, the Budget allocates ₹142 crore for the current fiscal year to support the modernisation and expansion of the industry,” said KSCDC chairperson S. Jayamohan. He also points out these allocations are part of a sustained effort by the government which has channeled a total of ₹757 crore into the cashew sector over the past 10 years through various budgetary provisions. “These allocations balance the needs of both the public and private sectors,” he added.
Published – January 29, 2026 07:03 pm IST
